When shopping for groceries these days, it is easy to miss how technology has changed the grocery shopping experience.
Many patrons use mobile software applications (Apps) on their phones or phablets to get coupons, find deals, compare prices, and determine if they are getting the best value for their money. Instead of relying solely on in-store flyers and point of purchase materials, shoppers can choose to visit the brand website of the store for information, promotions, health tips, and guidance in their shopping journey. Shoppers can also take advantage of manufacturers' websites, blogs, online reviews, and more to inform.
For retailers, technology has introduced efficiencies into the supply chain and in replenishment. By utilizing analytics and inventory management software, retailers are able to anticipate demand and meet need through just in time distribution. Low velocity items can be distinguished from higher velocity sales items and can transported accordingly to maximize resource management and control shrink. Bar codes and SKU numbers allow workers to ensure that the right product goes in the right slot in the planogram without the need for manual pricing. This is a far cry from the days when stock clerks had to price items by hand after slicing a box open with a box cutter and inventory was completed maintained by paper records.
Accepting products, a critical event in the inventory management process, has also been augmented with technology. Prior to loading, the brand distribution center accounts for the changes to its inventory and prepares digital and physical manifests as needed. Vendor deliveries are checked in and the shipments electronically added to store inventory for tracking. Many retailers have also incorporated radio frequency identification technology into their inventory management process. Large retailers will slot products inside their on-site storage in locations designated with specific RFID tags. At checkout, as items are sold, inventory is recalculated and compared to existing shelf and storage locations in order to determine current count and if there are potential out of stocks within the store location. By use of inventory management software, pull lists can be generated in order to target efforts during the business day to keep items from running out.
Layout design may seem to be about aesthetics and navigation, but there is a process in place so that retailers can maximize their store space to be profitable. By selecting what merchandise to place along the perimeter and in what order from one side to another stores may attempt to persuade shoppers to buy things impulsively. End cap promotions, aisle ending racks, and drop shipment displays are decided upon based on deals from manufacturers and revenue per square foot.
Of course maintaining a location that is pleasant and pleasing to the eye is important, but it varies based on the priorities of the retailer and the resources at their disposal. Some shoppers value savings and the relative ease they can fill their carts. Others value cleanliness and the experience. Then there are other considerations such as samples, selection, and if the location is friendly to children. Whichever it is, there has probably been some analysis done to determine how to implement this approach and technology fit into the process somehow.
Even with all of these changes, there is still a human element involved. Even though workers may benefit from forklifts and pallet jacks, there is still some mechanical lifting involved. Workers stock shelves and inject a human presence into the surroundings. Employees handle simple to complex customer service questions, replenish shelf locations. Self checkouts still have humans assigned to monitor them for user error, mechanical failure, watch for theft. and to say goodbye to customers and thank them for their patronage. Much has changed, but many of the tasks remain with different tools to complete them.
