Will Trailer Telematics Unlock Value for Retailers and Suppliers?

Will Trailer Telematics Unlock Value for Retailers and Suppliers?

Radio frequency identification and advanced weighing technology-key drivers

Supply chain managers constantly find two important issues to tackle during operations-logistics costing and improvising customer experience. Connected to them are retailers and suppliers who are equally vexed to ensure quick delivery of products to maintain relationships. What happens during various phases of operations comes at a cost and this often leads to stressful situations. Will adopting trailer telematics unlock values for these people? As innovative trends appear in the industry, they will need to switch over. In such a scenario, radio frequency identification and advanced weighing are likely to be key drivers of sustained business goals.

The following text provides tactical knowledge for CPG and retail supply chain managers.

Trends that make business a challenge

Overcoming past challenges

To know how the values can be unlocked, one needs to look back at the challenges that CPG ad retail supply chain faces periodically.  Understanding the challenges and bringing change makes the shifts more acceptable to the people who have to bear the disruption. A few years ago, recession altered the buying habits of many consumers-online and offline. This gave an opportunity for private labels to innovate. They went for better packing, design, and presentation to add value for money for their customers. This has put several other CPG brands in the competitive category. The only way they can survive now, is to cut costs and offer better delivery services. This trend has made supply chain operations volatile. Some retailers have become more dynamic in the way they use the telematics services to reach the consumer’s doorstep. Stability of various operations from the warehouse to transportation- the entire supply chain is aligned. This has given top line e-commerce companies growth opportunities. For example, if a product is available at two e-commerce sites, customers prefer the one that satisfies them consistently-i.e. provides the right product and replaces it if necessary in quick time. Now, there is no excuse that a product ‘has been lost in transit’ or ‘the route has been changed’, ‘address not found’ or even a ‘wrong size’ has been shipped.

How can this be possible?

Demand for radio frequency identification and advanced weighing

The recent development in the radio frequency identification for retail industry is crucial. They are advanced barcodes and they track right from the place where the inventory is placed till it is sold to the customer. In 2005, this system was used to track animals. Since then, it has come a long way and is being used by several supply chain managers for CPG where it has met with considerable success. The tool allows retailers to keep the most popular items on the shelves where the customer will always get it. The chip and tags are a great source of big data to ponder on to improve the business. In keeping abreast with the digital transformations, advanced weighing is also important for the retail industry. When the products need to be weighed often older models of scales are utilized. But this could hamper operations and products may return to the warehouse. One of the innovative technologies is advanced weighing. When large trucks or trailers are used for ferrying goods they need to have a specific weight before moving out on the highways. Overshooting the maximum load may prove to be detrimental to the operations.

New technology apps are available

They ease operational pressure

With the pressure that is being put on companies on efficiencies they can capitalize on the big data through various analyses. All vehicles carrying goods need to be tracked before they reach the consumer. CPG and retail supply chain users can achieve their objectives through these efficiencies at each stage. In time to come, even grocery stores will follow this pattern as consumers will expect them also to reach their doorstep with provisions. The digital transformation will be complete when grocery stores also join this bandwagon. Investments in various business models that focus on new technologies like radio frequency identification and advanced weighing have proven to be successful with some supply chain managers. In a bid to improve the consumer appetite while they purchase online, this is the way forward to unlock the value potential. In a study done by Accenture Strategy, the report found out that $2 trillion was saved through costs and perfect timings.

 

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