Tell us about you and your role at Advanced Supply Chain Group.
I head up our commercial team, which is responsible for driving company growth. ASCG has worked hard to sustain growth throughout the past decade, with this achieved through a mix of long-standing client relationships, organic growth with existing customers, international expansion and attracting new customers from across retail and eCommerce.
We work together as a team to really understand retailers’ supply chain goals, and how these align with wider sales strategies and business plans, as well as the challenges and opportunities that exist throughout the sector. This enables us to develop commercial strategies which meet retailers’ ambitions to enhance supply chain and stock inventory management strategies, and processes.
Retailers across the board are looking to reduce costs. Where are the big wins in supply chain savings?
One of the biggest wins can be found in reviewing and challenging the capabilities of supply chain software. We’ve seen lots of instances where an initially specified software system has grown and grown into something completely unrecognisable and not necessarily the best fit for the business.
Retail supply chains evolve so quickly, there’s a tendency to keep adding to supply chain software with attempted plug-ins and upgrades. These will often deliver quick fixes, which can seem beneficial, but will end up masking a whole host of missed efficiencies and opportunities to optimise performance.
The quick upgrade approach can also mean that operations are being limited by the software. Strategies and performance become dictated by the software when it should really be the other way around. Taking a step back and thinking first about objectives will enable retailers to look at new possibilities for developing and deploying software that delivers significant supply chain savings.
Reverse logistics is causing lots of headaches right now, with return rates rising. What can retailers do to make their return processes more efficient?
There’s really no need for customer returns to be a supply chain headache. The key thing is to make sure that retailers have an end-to-end supply chain strategy that integrates returns as a dedicated channel.
Treating products coming back into the business, much in the same way as those being sold, will enable retailers to create greater transparency about returns. They’ll be able to draw on accurate data about salvage rates, speed of returns and quality of products to make more informed decisions about returns and better address any risks of margin dilution. Most reverse logistics headaches are caused by a lack of information – something that can be put right quickly with the correct solution.
What technology are you most excited about for the industry, and what implications could it have?
We get excited about technology and advances in equipment that help enhance sustainability. Last year, we expanded our fleet of delivery vehicles, adding 35 new Renault T Evolution model trucks. They deliver a 3% fuel saving compared to previous models and are also fitted with Optifleet software to track CO2 emissions and fuel consumption, as well as driving styles and behaviours.
Additionally, we work with bespoke technology that optimises transportation loading and route planning to further reduce fuel consumption and carbon emissions. These types of solutions are readily available and are already helping us to support retailers in their wider efforts to improve overall supply chain sustainability.
What is going to be the biggest trend in the retail supply chain in 2023?
One of the biggest trends will be retailers aiming to speed up customer returns. I think we’ll see the volume of returns shoot up this year because of the impact of rising living costs. Consumers are keen to save money and are shopping differently. For example, ASCG research of 1,000 people found that 29% have traded down on their usual purchases of non-essentials.
Shoppers are buying brands and products they are less familiar with, and these items might not meet their usual expectations, leading to them being sent back. Retailers realise that these situations leave an unfulfilled sales moment. The shopper is likely to be still looking for a product that meets their expectations. Speeding up the returns process to maintain shopper satisfaction will increase their propensity to re-shop with the same retailer.
Businesses will be fighting harder for every sale, and quicker returns will play a key part in this, especially as sending items back becomes even more of a standard part of consumers’ purchasing.
