Why Your Retail Supply Chain Needs a Digital Transformation

There is a tremendous downside to the online business revolution we've experienced over the last decade or so. Customers have grown accustomed to expect fast, reliable service from their online stores.  And if you can’t deliver? They’ll bounce to your competitor in seconds.

Nearly 60% of consumers are actively comparing shipping options before they buy. That means before they even click "Add to Cart," they're checking if someone else can get it to them faster and cheaper. 

And if you think you’re safe just because you closed the sale, think again. 83% of consumers say a bad delivery experience will make them never shop with a retailer again. Even worse? About a third will go out of their way to leave a bad review, ensuring that others think twice before buying from you.

What's more, even the most established businesses are struggling to keep up. In the last year alone, 95% of companies hit major delays or bottlenecks in their fulfillment operations. Almost half had issues with order processing, while over a third had trouble managing their inventory.

And the first months of Covid years  have been a wake-up call for the entire industry. Supply chains were already under pressure, but the sudden shift to online shopping accelerated everything. What should have taken a decade happened in just three months. And let’s be honest—most businesses weren’t ready.

But here’s the good news: supply chain operations aren’t just a logistical headache. When done right, they can actually set your business apart from the competition. The key? Digital transformation.

A digitally-enabled supply chain isn’t just about slapping on a few new software systems. It’s about rethinking the way you handle inventory, fulfilment, and customer expectations. It’s about building a system that’s not only faster and more efficient but also flexible enough to handle whatever disruption comes next.

So let’s talk about what that actually looks like.

The Benefits of Digitally-Enabled Supply Chains

Retailers are throwing everything they’ve got at fixing their supply chains, and for good reason. Without a streamlined fulfilment system, you’re always one step behind customer expectations. 

Warehouse operators and fulfilment leaders are actively embracing digital transformation to address their most pressing challenges. Here’s what the smartest businesses are doing to upgrade their operations:

• Enhancing process capabilities (45%)
• Making staffing changes (27%)
• Upgrading order fulfillment software (27%)
• Investing in new fulfillment technologies (24%)
• Using automated goods-to-person picking technologies (20%)

Translation? The industry is going digital—and those who don’t will be left in the dust. But digital transformation isn’t just about throwing money at technology. It’s about creating a system where automation, people, and smart processes work together to give your customers what they want, when they want it. In short, it’s about redefining how your supply chain operates. 

The goal is to create seamless integration between technology, people, and processes, ensuring speed, accuracy, and adaptability.

When done right, a digitally-enabled supply chain can transform your business in six key ways:

• Faster Delivery (Same-Day & Next-Day)
• Omni-channel Fulfilment (Buy Online, Pick Up In Store)
• Real-Time Inventory Visibility
• Seamless Integration with Fulfilment Partners
• Lower Operational Costs
• Stronger Supply Chain Resilience

And trust me, this isn’t just about keeping up—it’s about getting ahead. Let’s dive into the first two benefits and see how they can completely change the game for your business.

1. Unlock Same-Day and Next-Day Delivery

Let’s talk about speed—because in the world of eCommerce, it’s no longer just a perk—it’s an expectation. 42% of warehouse operators say that meeting customer expectations for same-day or next-day delivery is one of their biggest eCommerce challenges.

A few years ago, waiting five to seven business days for a package felt normal. But today? Consumers want their orders yesterday. Same-day and next-day delivery have become the golden standard. So if your business can’t keep up, your competitors are more than happy to step in.

Think about it from the consumer’s perspective. They see two identical products, one with free next-day shipping and another with standard five-day delivery. Which one do you think they’ll choose? Exactly. In fact, nearly a third of consumers now say they feel frustrated when same-day shipping isn’t an option. Even more telling, 74% of shoppers say that experiencing same-day delivery makes them significantly more likely to buy from that retailer again.

This isn’t just a trend—it’s a complete shift in consumer behaviour. The ability to offer lightning-fast shipping isn’t about being fancy—it’s about survival. And here’s the hard truth: without a digitally enabled supply chain, meeting these expectations is nearly impossible.

The Roadblocks to Faster Fulfilment

So what’s stopping businesses from offering rapid delivery? A lot, actually. Many sellers still rely on outdated manual processes, fragmented inventory systems, and inefficient fulfilment workflows. Orders come in, but there’s no real-time synchronization between sales channels, warehouses, and shipping carriers. The result? Delays, errors, and frustrated customers.

Here’s where digital transformation steps in. With automated workflows and strategically located inventory, businesses can significantly cut down fulfilment times. Imagine a seamless system where:

• New orders instantly sync between your eCommerce platform and order management system.
• Smart automation directs the order to the nearest warehouse or fulfilment center for the fastest delivery.
• Pick-and-pack processes are streamlined with barcode scanning, robotics, or AI-driven sorting.
• Shipping carriers are automatically chosen based on speed, cost, and efficiency.

The best part? This isn’t reserved for massive corporations. Businesses of all sizes can implement smart fulfillment strategies with the right digital tools.

The Bottom Line: Convenience Wins

Consumers aren’t just looking for fast shipping—they’re actively making purchase decisions based on it. If your competitors can get a product to their doorstep faster, you might lose the sale—even if your product is better.

Now’s the time to evaluate your fulfilment processes and invest in the technology that can take your shipping speeds from sluggish to supercharged. Because in today’s market, speed isn’t just an advantage—it’s the ticket to staying relevant.

2. Enable Omni-channel Fulfilment

Customers don’t just shop in one place anymore. They’re browsing on their phones, checking out on their laptops, picking up in stores, and expecting seamless transitions between all of it. 

Imagine this: A customer finds the perfect pair of shoes on your website. They add them to their cart, ready to check out, but then they see that standard shipping takes five days. Five days? That’s practically an eternity in today’s fast-paced world! Frustrated, they leave your site and start searching for another retailer that can get the shoes to them faster—or, even better, one that lets them pick up their order today.

This is the reality of modern retail. Consumers expect flexibility, convenience, and speed, and that’s where omni-channel fulfilment comes into play. It’s no longer enough to have a great online store or a well-stocked physical location—your supply chain needs to bridge the gap between the two.

The bottom line is that the modern consumer wants choices. Whether it’s home delivery, in-store pickup, or curb=side fulfilment, convenience is king. The businesses that can connect these dots effortlessly? Those are the ones winning.

Why Omni-channel Matters

Customers today don’t just shop in one place. They move seamlessly between online and offline channels, expecting the same level of service wherever they go. And they’re open to alternative ways of getting their products:

• Buy Online, Pick Up In-Store (BOPIS) – No waiting, no shipping fees. Just grab and go.
• Curb-side Pickup – A convenient option that skyrocketed during the pandemic and isn’t going away.
• Ship-from-Store – Using your retail locations as fulfilment centres can speed up delivery times.
• Third-Party Pickup Locations – Expanding pick-up points increases accessibility for customers.

The numbers back this up. For example, let’s talk about Buy Online, Pick Up In-Store (BOPIS). It’s one of the biggest shifts in retail logistics, and for a good reason. Consumers love it—68% have used it multiple times, and their reasons are clear:

• Saving on shipping costs (48%) – Why pay for shipping when you can pick it up for free?
• Speed (39%) – No waiting for delivery when you can grab your order the same day.
• Convenience (28%) – The flexibility to pick up orders on their own schedule.

BOPIS isn’t just a consumer preference—it’s a strategic advantage for businesses. It reduces shipping costs, increases foot traffic to stores, and enhances the overall shopping experience. But it only works when your inventory and fulfilment systems are integrated properly.

The Digital Backbone of Omni-channel Success

Omni-channel fulfilment isn’t as simple as letting customers pick up their online orders in-store. To provide a smooth omni-channel experience, retailers must integrate their eCommerce and brick-and-mortar operations. It requires a rock-solid digital infrastructure that seamlessly connects online and offline sales. 

You can’t just slap a BOPIS button on your website and call it a day. You need a backend system that ensures:

• Real-time inventory visibility – Customers need to see exactly what’s available at their local store before they make a purchase.
• Automated order routing – Orders should be intelligently assigned to the best fulfilment location, whether that’s a warehouse, store, or distribution center.
• Integrated logistics and tracking – Whether a customer chooses shipping, in-store pickup, or curb-side delivery, they should have full visibility into their order status.
• Your team knows what’s coming and can quickly process in-store pickups.

Without these pieces in place, you risk frustrating customers with canceled orders, unexpected delays, and poor service—leading to lost sales and negative reviews.

Those who optimise BOPIS and curbside pickup will not only reduce shipping costs but also increase foot traffic to their stores—creating more opportunities for additional sales.

Retailers That Get It Right, Win Big

Big box retailers like Macro and Game are leading the charge, but they’re not the only ones. Mid-sized and smaller retailers who invest in omni-channel strategies are seeing major gains. Customers want the ability to shop their way, and businesses that can provide that seamless experience are thriving.

When businesses get omni-channel fulfilment right, they unlock new levels of customer satisfaction. Shoppers love the flexibility, and businesses gain efficiency by optimising inventory across multiple locations.

If you’re still operating with disconnected systems and fragmented inventory management, it’s time to rethink your strategy. Because in today’s retail landscape, businesses that adapt to omni-channel fulfilment aren’t just keeping up—they’re setting the pace.

So, are you set up to meet these expectations? If not, it’s time to rethink how you connect your supply chain to the customer experience.

3. Gain Real-Time Inventory Visibility

Let’s be real—there’s nothing more frustrating for a customer than seeing an item marked “in stock,” only to find out later that it’s actually backordered. It’s like getting to the front of a long line at your favorite coffee shop, only to be told they just ran out of your go-to drink. Talk about a letdown.

But customers aren’t the only ones suffering from inventory mishaps. For retailers, poor inventory management can lead to overstocking, stockouts, lost sales, and unnecessary storage costs—all of which eat away at profits.

Why Inventory Visibility is Everything

Imagine being able to see, in real time, where every single product is across your supply chain—whether it’s in a warehouse, a retail store, a fulfilment centre, or even in transit. That’s what real-time inventory visibility gives you. And it’s a game-changer.

With a single, global view of your inventory and orders, you can:

• Display accurate stock levels online, so customers can confidently click “buy now.”
• Predict demand and prevent stockouts, so you never lose a sale due to empty shelves.
• Optimise inventory distribution, sending stock where it’s needed most.
• Reduce overstock and storage costs, keeping only the right amount of product on hand.

The High Cost of Poor Visibility

If you’re still relying on outdated inventory tracking methods—like manually updating spreadsheets or waiting for warehouse reports—you’re already behind. Consider this:

• 43% of small businesses either don’t track inventory at all or use manual systems.
• 37% of retailers struggle with inventory management, leading to fulfilment delays.
• One-third of customers will never shop with a brand again after a stockout experience.

The risk isn’t just losing a sale today—it’s losing a customer for life. And with competitors stepping up their game, that’s a risk no retailer can afford to take.

Making Real-Time Inventory a Reality

The good news? Today’s technology makes real-time inventory tracking easier than ever. Cloud-based systems, RFID technology, and AI-powered analytics can give you instant visibility and control over your inventory, no matter where it is.

If you’re serious about faster fulfilment, happier customers, and fewer supply chain headaches, investing in real-time inventory visibility isn’t just a nice-to-have—it’s a necessity.

4. Gain Full Control Over Fulfilment Partners

Many retailers rely on third-party logistics (3PL) providers to handle fulfilment. However, outdated order management systems often make it difficult to track what’s happening outside their own warehouses.

With a digitally-enabled supply chain, retailers can integrate cloud-based infrastructure and real-time data sharing to:

• Monitor order statuses as if fulfilment was happening in-house.
• Track shipments in real time to provide accurate delivery estimates.
• Reduce costly fulfilment errors by improving data synchronisation.

By creating a transparent and automated relationship with fulfilment partners, retailers can maintain control over their entire supply chain—no matter how many partners they work with.

5. Reduce Costs & Improve Efficiency

As eCommerce continues to grow, logistics costs are rising. Retailers must pay more for:

• Transportation and shipping.
• Warehousing and storage.
• Packaging and materials.

A digital supply chain helps lower costs by:

• Automatically selecting the most cost-effective shipping carrier.
• Routing orders to the closest and most efficient fulfillment center.
• Eliminating errors like late or incorrect shipments.
• Splitting orders across multiple fulfilment locations for faster delivery.
• Using data-driven forecasting to prevent overstocking and reduce waste.

By optimising fulfilment operations, businesses can increase profitability while still meeting customer demands.

6. Build a Resilient Supply Chain

Supply chain disruptions are inevitable—whether from pandemics, natural disasters, or cyberattacks. But businesses with digital supply chains can adapt quickly and maintain operations when faced with unexpected challenges.

• A resilient supply chain is one that:
• Diversifies suppliers to reduce risk.
• Uses predictive analytics to anticipate disruptions.
• Adopts automation to minimise reliance on manual processes.
• Creates redundancy for critical operations to prevent bottlenecks.

Retailers who future-proof their supply chains can outlast competitors and continue serving customers—no matter what challenges arise.

Conclusion

Retailers who embrace digital transformation will lead the future of supply chain management. By leveraging automation, real-time data, and advanced fulfilment strategies, businesses can:

• Meet growing customer expectations.
• Reduce costs and increase efficiency.
• Future-proof their operations against disruptions.

The time to modernize your supply chain isn’t tomorrow—it’s today.

Are you ready to transform your fulfilment operations and stay ahead of the competition?