Have you invested in inventory management technology for your retail business this year? If you’re still dragging your feet on the benefits of how inventory management technology and services can help keep your business running smoothly, you may regret your indecision now that the end-of-year holiday season is nearly upon us.
According to a survey by Brightpearl, a provider of retail management systems, “the majority of mid-market retailers and wholesalers will face a clear disadvantage meeting peak holiday (Black Friday and Christmas) demands when compared to online and large retail giants.”
That’s because these retailers haven’t invested in technology to streamline operations. They have, instead, relied on business as usual strategies to cope with holiday demand, which is to hire more staff to handle holiday shopping season foot traffic and to stock up on more inventory on the assumption that doing so will ensure they won’t turn customers away because they run out of merchandise.
Of those retailers surveyed, 53% said they could “remain competitive” by increasing staff and 40% planned on increasing inventory to meet demand. Though 58% surveyed have invested in technology to streamline operations, only 35% said they’d “adopt a new technology solution” for inventory processes. These findings show that “omnichannel retailers risk poor customer experiences and inability to fulfill orders or meet increased demands due to lack of process automation, as well as reliance on inefficient business operations.”
The strategy of hiring temporary help and stocking up on merchandise that may end up languishing on stockroom shelves, may not be as efficient as it once was for handling the holiday season. To be competitive in this Amazon-driven world, retailers must keep up with inventory management technology. Blue Chip can provide solutions. Contact us to learn more.