SLIMANE ALLAB Intelligent retail systems enable a retailer to manage supply chains and logistics in an intelligent way to maintain cost effectiveness
South African retail companies are respond-ing to the way in which ecommerce is changing their engagement model with customers by improving customer engagement channels and order fulfilment intelligence, says industrial and retail software company JDA Europe, Middle East and Africa presales group VP Slimane Allab.
Stores and their employees are becoming customer engagement channels and form part of the increasingly important customer order fulfilment trend that is changing the retail industry, he says.
“Omni-channel is demanded by the retail industry and aims to ensure that customers get a seamless shopping experience by enabling them to interact with the retailer using multiple channels, but recognised as a single client on the system. The retailer can also use this information to segment its customer base,” he highlights.
While retailers have in-depth knowledge of store placement and broad segmentation, they can now do detailed customer segmentation and associated segment-specific offers tailored and communicated to these segments.
However, the JDA customer engagement system must be matched by a change in the quality of product knowledge that employees at stores have, as customers come to stores informed about product offerings, but want to get more detailed information about and alternative options to the products, for which most retailers are not prepared, emphasises Allab.
“These changes and a customer order fulfilment system enable a retailer to meet customer orders quickly by leveraging stock available in depots, warehouses or stores. This means that orders can be met efficiently and cost effectively, impacting on both sales and also margins. Products can also be returned at any store, as part of the “buy anywhere, fulfil from anywhere and return anywhere” approach.”
Top retail companies in South Africa are using JDA Group’s retail software to manage merchandise, space, price and promotions, as well as their supply chains. The group is known for providing industrial software and supply chain management systems, but has expanded into the retail sector, following its merger with US retail software company RedPrairie in December 2012.
“Intelligent retail systems enable a retailer to manage the often complex supply chains and logistics in an intelligent way to maintain cost effectiveness, improve agility and leverage the inventory chain to fulfil orders,” says Allab.
Improving customer segmentation and engagement also means that retailers can move away from the traditional assortment of goods in a store and use the store as an offer management channel to fulfil the orders of a specific customer segment at a specific price and with a specific inventory. Stores remain a strong part of the omni-channel engagement model, he notes.
The JDA system enables retail chains to have a view of their entire supply chain and inventory and to change their stores from retail points to facilities conveying a specific and differentiated shopping experience to customers, he concludes.