Manhattan Associates has shared five key technology trends that will impact Australian and New Zealand retailers and supply chains in 2022. 

With supply chain issues, increasing returns volumes and heightened customer expectations in relation to online deliveries – local brands will have a hard time satisfying customers in 2022, according to Manhattan Associates managing director for Australia and New Zealand, Raghav Sibal.

“As a result, retailers will find that they quickly need to adopt new systems and approaches that help meet the consumer demand for a seamless and more personalised shopping experience today and into the future,” he said.

1. Sustainable ecommerce delivery to become a bigger issue

Home delivery continues to be the preferred purchasing option for most Australian online shoppers. However, consumers are not prepared to just accept the convenience of delivery at the cost of the environment, with research showing that one in six (60%) of Australian consumers are open to receiving goods at a later date if it meant that it was delivered more sustainably.

Consumer research also shows that over half (60%) of Australians often receive their online order in multiple shipments, and 81% of them said that they think this is an inefficient and unsustainable way of delivering goods. In fact, the same number (81%) also said they would prefer to receive their order later if it meant that it would arrive in one consolidated delivery.

“As online shopping delivery rates and the corresponding impact on the environment continue to rise, retailers and 3PLs will need to make sustainability a bigger priority. Those retailers who don’t make sustainability a core part of their business will likely find that down the track they lose out on this potential competitive advantage and drive environmentally aware consumers to other retailers,” Raghav said.

2. Returns management will impact brand perception

While ecommerce has served as a lifeline for retailers, the increasing volume of returns is posing significant challenges, including impacting consumer perceptions of a retail brand. The returns process can regularly make or break the overall brand experience and savvy retailers are increasingly viewing the return process as an opportunity to further engage with customers.

“In 2022, retailers will need to have greater visibility and more intelligence around their inventory, regardless of where it is currently residing in their network. Smarter front-end omnichannel systems capable of efficiently dealing with customer enquiries and greater insight into data around transportation processes will be the key areas for brands looking to solve the challenges presented by the growing returns trend,” Raghav said.

3. War for talent will put pressure on supply chains

Given the extent to which a positive or negative customer service interaction can have on a shopper’s perception of a retail brand, the war for talent and need to retain high performing staff will create additional business pressures in 2022.

Organisations need to focus on selling themselves as an employer of choice and create and promote initiatives that set their business apart.

Given the need to retain IP in a challenging hiring market, more employers are focusing on career planning and succession internally to ensure adequate support and training for workers to move up the ladder.

4. Micro-fulfilment will help drive supply chain efficiencies

“As ecommerce and ‘store to door’ delivery continues to grow, many retailers are struggling to turn a profit from online sales. The challenges of the last two years didn’t just fast-track ecommerce uptake, they also accelerated advances in technology, pushed businesses to revaluate traditional models, and forced many to rethink relationships between retailers, disruptive start-ups and automation; setting the scene for a radical shake up of fulfilment strategies in 2022,” Raghav said.

One of these fulfilment strategies, and one of the most cost-effective trends retailers and supply chains are adopting is micro-fulfilment. By expediting the fulfilment process, micro-fulfilment gives brands the opportunity to get goods to their customers quickly, while also providing convenient collection point for consumers.

5. Visibility and forward planning will help future-proof

With supply chain issues leading to stock level challenges for many retailers, the last thing any business wants is to run out of stock – or worse, to later find out that the stock they needed was in the warehouse the whole time.

“To mitigate this, operational visibility and forward planning remain fundamental to retail and supply chain continuity and efficiency. To gain these insights, solutions like a Warehouse Management System (WMS), which integrate all sales and distribution channels into one place are required. With innovations like a WMS, retailers have absolute transparency around their goods and are able to review the rules of stock allocation, temporarily giving priority to in-store stock over warehouse stock, thus, freeing up any trapped inventory confined within closed stores,” Raghav said.