4 Key Takeaways from NRF 2022

Omni-channel customers will fuel the future of retail planning

One thread ran through almost every retail inventory planning conversation during NRF 2022: putting omni-channel customers at the heart of demand forecasting and allocation is critical to success.

One of the biggest challenges in 2021 was around demand forecasting and allocation. Today, retailers need to radically align their operations with their omni-customers, according to Burak Ovunc, CEO at FLO International Shoe Group.

Retailers should always ask themselves what do our omni-customers want? Where do they want it? And how fast do they want it? But, more importantly, in 2022, they need to have highly accurate forecasts at all levels of granularity in their demand planning to be able to meet the demands of their customers.

Omni-fulfillment is a must for forward-thinking retailers

According to NRF, consumers have higher expectations in post-pandemic era. In fact, 83% of them now expect flexible shipping and fulfillment options.

Now that omni-customers demand faster delivery times and even same-day delivery is becoming a common option, retailers should think carefully about where to position their limited inventory to provide services to their customers within a day or two. But, more importantly, they need to think about how they can do so at a low cost.

Supply chain planning of 2022: Demand-driven and profit-optimized

Despite all the increased capabilities in transactional systems and increased visibility across channels, many retailers mentioned during NRF 2022 that their organizations are still silo-driven.

Retail and omni-channel sides have different objectives and the KPIs are separated, resulting in a lack of unified perspective across the organization and planning and execution processes. 

Similarly, some of the old problems remain unsolved, and these pain points are slowing the efficiency of omni-channel retailing. Mainly, retailers continue to rely heavily on inaccurate forecasts and plans and leave the execution to rule and experience-based decision mechanisms.

However, we see that these pain points of omni-channel retailing are minimized by those modern retailers who establish a demand-driven, profit-optimized supply chain planning process that works both top-to-bottom and bottom-up from the most granular level.  

The future of retail planning

NRF 2022 demonstrated that the omni-channel retail supply chain space is evolving quickly. Clearly, 2022 will be the year where they will focus more on increasing their capabilities in demand forecasting and inventory planning. In the omni-channel world and there is a need for omni-channel, profit-optimizing retail planning systems in 2022 and beyond.

So, if you’re interested in profit-optimizing your inventory planning and execution to stay ahead in the omni-channel retail space, get in touch with our retail experts today. In 2022, transform your retail planning into a competitive weapon.