5 key insights from the ORTEC Retail Summit
Read time: 4 minutesThe 5 things we learned from our customers during the ORTEC Global Retail Summit 2021:
- Operational efficiencies are currently the #1 focus area for retail CEOs
- There’s high demand for tactical decision support, like forecasting and capacity planning capabilities
- Massive volatility in store volumes requires a more dynamic delivery schedule
- Growing e-commerce volumes require agile and scalable technology
- Employee engagement is essential in the “war for talent”
Last month, we organized the 4th ORTEC Global Retail Summit. Over 150 people from 24 different countries and 52 retail companies registered. Read on to get the key insights and learnings from the event.
1. Operational efficiencies are currently the #1 focus area for retail CEOs
Retailers are shifting their focus towards operational efficiencies and digital transformation. The latest PwC Global Consumer Insights Pulse Survey (conducted in June 2021) confirms this, as Athanasios Spanos from PwC shared during the event.
This might be surprising. You might expect retailers to be focused on e-commerce sales and consumer experience, pursuing organic growth, or launching new products. However, COVID-19 measures and the resulting boost in e-commerce deliveries has strained operations and increased the need for efficiency.
2. There’s high demand for tactical decision support, like forecasting and capacity planning capabilities
During the event, George Ninikas (Industry lead for Retail & Wholesale at ORTEC) presented our proposition for Retail & Wholesale. At ORTEC we strive to deliver impact on store delivery, e-commerce fulfillment and workforce management. We have a consistent end-to-end framework for all solutions offerings: from modeling to operations and analytics.
In a real-life poll, participants said they are mainly interested in solutions that support tactical decisions and processes. This fits perfectly with our product roadmap. Besides investing in developing operational and execution software, we are helping customers advance in the use of historical data for various applications, like forecasting.
More information can be found in the E-Guide AI is in ORTEC's DNA.
3. Massive volatility in store volumes requires a more dynamic delivery schedule
Many retailers are still working with static routes for store delivery. They often have reservations about applying dynamic routes. But the volatility caused by the COVID-pandemic forced retailers to act. Robin Osnes Djørup from ASKO ØST, part of Norway’s biggest retailer Norgesgruppen, explained how his transport team managed this change towards dynamic routing. Change management plays a critical role and should not be underestimated. But the results are great. Stores are satisfied with the new delivery schedules. Grocery volume grew by 35%, while the number of routes grew by only 12%. This means they can process more sales orders without considerable investments on new vehicles.
4. Growing e-commerce volumes require agile and scalable technology
As Gerry Ward, Digital Platform & Operations Manager at Waitrose, explained, new e-commerce volumes require new technology investments. “We faced unprecedented demand, new registrations, slot bookings and bulk buying. We needed to imagine new ways to serve customers. We had to boost our technical agility. We had to build confidence in our teams to react and offer great service, especially to those who were most vulnerable.”
Thanks to their DevOps mindset, they were able to create resilience and stability. An advanced, cloud- native time slot booking technique enabled Waitrose to scale and meet the continued need for new delivery times and route planning activities. They were able to accept more orders with the same capacity, while improving the consumer experience.
5. Employee engagement is essential in the “war for talent”
Following the upheaval brought by COVID-19, most companies are facing a workforce shortage, and drivers are in high demand. Europe and the UK are facing huge talent shortages. As a result, comprehensive workforce scheduling systems that drive employee engagement and satisfaction are gaining traction.
ORTEC Benelux Director Vincent Lemmens presented a case study of how advanced optimizers go hand-in-hand with creating more efficient schedules and boosting employee happiness. The results of his study showed that by applying optimization, a qualitatively better planning can be obtained in 20 minutes rather than they do now do in 5 to 6 hours, with a significant saving of 3.7% on total planned hours. Also the total lead time of the planning process can be significantly shortened, from 5 to 8 hours to a maximum of 3 hours. It’s a great time to implement these tools. To learn more, sign up for this webinar on data-driven employee rostering on November 25th 2021 (Dutch spoken).
Optimizing the world of retail
If you want to know more about these topics or would like to attend our next event, please reach out to your account manager or to the ORTEC office in your region.
