The omnichannel process is what everyone in retail is striving for so that customers have a seamless experience as they shop. Creating that experience for the customer directly affects how inventory is managed and requires retailers to have inventory accuracy and visibility. Thus improving customer’s ability to explore and engage both online and in stores.
How is that accuracy and visibility solved?
Arvato Systems demonstrated how to overcome the inventory challenge by connecting RFID technology to the Hybris as a Service Cloud (YaaS) creating real-time inventory tracking.
How does it work?
With the use of RFID tags on all products their location and movement can be tracked, making the information accessible in real time. For a sales representative on the floor of a retail store it allows them to easily locate the right size, shape, color, etc. of a product by using a phone or tablet. This eliminates long searches by the sales person or the consumer himself. Online, the consumers have an accurate view of the inventory in the stores, which improves the customer satisfaction for example in ship-from-store and buy-online-pickup-in-store situations. This enables retailers to improve the omnichannel experience of the consumer. In addition, the Arvato Inventory Service can also help to find misplaced items and to investigate lost items.
Accurate inventory has direct impact on revenue. Brian Krzanick, Intel CEO said, “Every 3% accuracy improvement of inventory drives 1% revenue increase” when speaking about Levi’s. With the Arvato Inventory Service running on YaaS and powered by Impinj item intelligence, retailers can avoid out-of-stock situations and reduce safety stock levels meaning less markdown pricing.
The API plays a central role in Hybris as a Service (part of SAP Hana cloud). Based on standards, this means every system that can communicate via basic web services technology can become part of the solution. “By taking data out of silos and into the YaaS cloud, retailers can get a single view of their entire inventory” stated Patrick Ruhkopf.
To find out more or see the process in action, please reach out to Cloud Commerce Services.