Smart digitization in retail requires an integration platform

Smart digitization in retail requires an integration platform

Retailers were hit when shops closed due to corona. It is characteristic of the sector that it succeeds in reinventing itself in a crisis. New digital channels were set up at lightning speed and new business models were devised. In the retail sector, the growth in turnover from internet sales will therefore continue. Smart digitization helps to be always ready for new developments and to work on growth and customer satisfaction. This works better with a platform.

The retail sector faces the challenge of meeting the ever-changing expectations of customers. According to Rabobank's latest Retail Update (September 2021), the future of retail is 'the seamless digital integration of online and offline commerce, with the customer at the center'.¹ The key is the mobile phone, according to the bank. It forms the crucial connection between the two worlds.

Trends and developments

The authors of the update sees five developments that are forcing entrepreneurs to adapt their strategy and digitize smartly:

1. fusion;
2. Vertical integration and smart data;
3. Omnichannel and technology;
4. Collaboration (vertical or via platforms);
5. Market and competitive position.

A brief explanation:

1. in fact, this is a form of industry blurring. An example is Omoda, a brand that traditionally sells shoes, but now also adds online clothing to its range.
2. is about delivering directly to the consumer, as chewing gum manufacturer Ben Bits does via its own webshop. This webshop, in combination with the use of social media, PR and influencers, is building a brand that should appeal to a younger target group.
3. is contacting customers via the physical store and online channels (including social media), but in an unambiguous way. This means that there should be as much coherence as possible. Coolblue is a (reverse) example of this. Started as an online shop, stores were added where customers can, among other things, pick up online orders.
4. an example is the partnership of supermarkets with food blogs and culinary websites, whereby consumers place ingredients from recipes directly in the online shopping cart.
5. the enthusiasm for shopping is increasing again and vacancy in shopping centers is decreasing. In addition, a record number of online stores were added in the first half of 2021. This increases the need to stand out and emphasize distinctiveness.

Lay the foundation with an integration platform (as a Service)

In order to not fall behind in all these developments, a solid digital foundation is needed behind the scenes. A webshop with payment options and recommendations, for example, requires all kinds of links and integrations.

A platform provides the connectivity to connect everything and everyone, collect and analyze data and make predictions. By bringing together data from different sources, for example, a 360-degree customer view is created. As a result, retailers can better tailor their offer to needs. Setting up a platform is specialist work that is often outsourced.

Say goodbye to paper

Because a platform also functions as a basis for electronic data exchange or EDI, retailers say goodbye to the paper world of orders, invoices and packing slips. The automated sending and receiving of messages to customers and suppliers (regardless of which system they use) provides all kinds of benefits, such as:

• Greater speed;
• Less chance of (typing) errors because cutting and pasting is no longer necessary;
• Better planning of logistics processes and optimization of inventory management: because information is available earlier (in real-time) and because algorithms help to accurately predict peaks in demand.

Combining a platform (as a service) with EDI is therefore one of those smart ways of digitization that prepares retailers for a future of growth and innovation.

Knowing more? Then read our e-book 'The right digital foundation: prerequisite for omnichannel success: How an Integration Platform as a Service accelerates digital transformation' or contact us today!

1. https://www.linkedin.com/feed/update/urn:li:activity:6838713467587854336/