Top 5 Trends forIoT in the Retail Supply ChainA word from our facilitator: The presence of the Internet of Things (IoT) continues to grow in most retail environments and consumer goods, from sensors in stores to smart refrigerators, resulting in higher expectations that IoT will have a positive impact on the overall retail supply chain. IoT will transform the way the retail supply chain currently operates, allowing enterprises to become more agile and competitive—if the technology is leveraged properly. Four experts in the field of retail supply chain came together to delve into the trends and drivers of IoT that are shaping the industry. The findings included the many opportunities in the current solutions to optimize retail supply chain performance while also helping improve the consumer shopping experience.

Here are the top five trends top experts have identified as driving the field:

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The increased presence of sensors at the store level and embedded in products for tracking purposes will continue to grow. The surge in data availability from these technologies will help companies achieve leaner supply chains through improved data accuracy, real-time data availability, accurate consumer demand and visibility, inventory reduction, and increased speed-to-market. All these factors will contribute to optimizing the overall supply chain and creating the best merchandising programs.

Retail Supply Chain Optimization

IoT technology is undergoing its own learning curve. There are many solutions available in

the marketplace, but adoption has been slow, because some systems have proven

ineffective, cost prohibitive, or too difficult to use. As solution-providers get a better

understanding of an organization’s needs and can meet those requirements,

accelerated adoption and application of IoT will take place, creating the most profitable solutions. Another factor that will increase

the adoption rate is the growth of cloud-based software solutions which will

help reduce implementation costs. We will see fewer providers offering

higher-quality solutions.

Adoption of IoT Solutions

“Tracking inventory from factory to point of sale with a

microprocessor-based tagging system will speed [the] supply chain,

improve customer service, and increase security.”

technologist, strategist, IoT consulting

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“There is a real first-mover advantage for those savvy companies who select the appropriate ways to adopt IoT for their organizations. There are consumer analytics which can lead to greater conversion in-store and online...there are [also] supply chain visibility implications when done right.”

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Anand Vemula

FACILITATORSupply Chain and

Operations Consultant

Doris Hernandez

Participants:

Technologist, Strategist, IoT Consulting

Anand Vemula

director of operations of omnichannel supply chain, Walmart and Sam’s Club e-commerce

Justin Schuhardt

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Consumer expectations are high and continue to be fueled by immediate data

availability on product offerings from multiple companies and service providers. This increased transparency is leveling the

information power between the consumer and the enterprises, resulting in higher demand from the consumer for quality

product, low pricing, and fast delivery options. However, IoT allows companies to

gain insights that help in creating a more personalized shopping experience, providing

on-demand services and products, and simplifying the shopping process. The

additional data points and insights from IoT will assist companies in enhancing the

consumer shopping experience.

Enhancing Consumer Experience “Retail businesses can now intersect to

enable one user-experience across all interaction points and channels, creating added value for the customer and new growth opportunities for well-poised companies.”

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technologist, strategist, IoT consulting

Anand Vemula

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As more data becomes available from multiple data sources and products, companies will have an enriched understanding of consumer needs. Consumers want ease of purchasing products as well as quick response times with fast delivery of purchased products. With IoT, companies will be able to build meaningful relationships by fulfilling consumers’ requirements and fostering increased customer loyalty. The additional data from IoT will help to build new distribution channels that can reach consumers in innovative ways and provide value not previously identified.

New Channels and Retail Formats“Factors driving force is the

consumer wanting to get things faster...lack of new environment to entice customers to go into stores,

everything is the same in every mall, town square, lifestyle center, main

street, shopping strip.”

Planning Management Consultant, XpresSpa/El Palacio de Hierro Lion Merchandising Advisors

“

Maria Leo

Planning Management Consultant, XpresSpa/El

Palacio de Hierro Lion Merchandising Advisors

Maria Leo

The organizational structure will be transformed to emphasize the higher

informational value derived from the supply chain functional areas. The proliferation of

various IoT technology solutions requires different skill sets at both the store and

corporate levels, yet, functioning within the current outdated business model, hiring

practices remain the same. It is important to recognize the changing dynamics and adjust

the business structure to complement the new technological advances, from product

development to delivery to the consumer. As companies continue adapting their product

offerings to leverage the new technology, so will their personnel framework evolve to

match the shifting demands.

Human Resources: Talent and Retention “More importance in the organizational

structure of companies, with the supply chain landscape being high on the organizational ladder.”

“Chairman, Tintagel Capital Holdings LLC

Jeff Knott

Chairman, Tintagel Capital Holdings LLC

Jeff Knott

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Director of Operations of Omnichannel Supply

Chain, Walmart and Sam’s Club E-Commerce

Justin Schuhardt