In today’s digital world, consumers are savvier than ever before. Any smart buyer knows they can walk into a store, select and try on a garment and walk away, knowing they can simply jump online later and buy the same garment, usually at a much lower price.
Gone are the days when it was enough in retail to just be good at what you do. So how do you get cut through in today’s cut-throat retail environment where the buyer is king? The answer lies where you probably least expect it.
The best way to beat your competitors today is not to compete with them at all. Why? Because today’s battle to be number one is no longer between retailer and retailer. It’s between supply chain and supply chain. Allow me to explain what I mean.
I used to assume, as many retailers still do, that supply chain was nothing more than a fancy term for ‘logistics’ and only associated with warehousing and transportation. But I have since learned that nothing could be further from the truth.
Supply chain is in fact the end-to-end (cash-to-cash) operation of your entire business, from planning and buying the merchandise to how it leaves the store. In other words, it’s about consolidating, simplifying and streamlining your operations in order to buy, move and sell goods more efficiently, effectively and safely.
Strategic, collaborative supply chain performance ensures that the right product hits the right markets in the right way and at the right time. But it’s equally about the delivery of exceptional customer service. This is where the term ‘effectiveness’ comes in to play.
To attract, retain and build customer loyalty, you must deliver the ultimate retail experience, which takes a combination of outstanding people management and operational planning skills. You simply won’t get cut through unless you have both.
Once you start adding millions to your bottom-line as a result of making improvements in these two crucial areas, you will understand that supply chain is the real game changer in this business.
Our basic desire as human beings is to serve others. Make customer service your number one priority at all times and you will be rewarded many times over in monetary terms. This is true whether you are in direct contact with consumers or not. For instance, if you are the CEO of a department store, your staff and suppliers are your customers. Serve them well and they will reward you by delivering a high standard of service themselves.
Imagine if a football coach ordered his team to perform on the field without ensuring each team member was superbly trained, well-nourished and in top physical and mental condition before each game. A coach who doesn’t serve his team well can’t expect his team to perform well simply on command. Every leader must practice what they preach. At the end of day, if you’re not serving a customer directly, serve someone who does.
The three questions every retail CEO should be able to answer
— Is your supply chain both efficient and effective? (In other words, is your supply chain management based on a customer service led strategy rather than a cost savings led strategy?)
— What are your supply chain costs?
— How can you improve and leverage your supply chain?
I used to think a retailer had to spend millions to build a world-class supply chain. But you don’t need to build a museum to win in this game.
You just need to focus on the delivery of exceptional customer service (whoever your customer may be) as well as the end-to-end operational aspects of your business. Consistently knowing the answers to the three questions will help put you on the right track.
— The writer is CEO of Thought Leaders Middle East.
