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Digital Fulfillment

Digital Fulfillment and customer experience: opportunities for producers

Optimising the supply chain by anticipating consumer needs allows production and logistics to be made more flexible

To meet the needs of tight deadlines and very specific needs, the time has come to manage the supply chain by using integrated infrastructure to optimise production cycles based on real-time requirements and harmonise the monitoring of the inventory in the warehouse with the reaction speeds marked by e-commerce. Designing digital fulfillment is the key to a fulfilling customer experience and a compression of logistics costs.

The increase in omnichannel retailing has made it more evident that producers need to understand consumer needs to reduce the risk of excess inventory or, even worse, insufficient supplies at peak demand.

The mismatch between information on production and distribution operations and that offered to the public often limits the ability of companies to fully understand and meet the needs of their customers.

However, this scenario offers the opportunity to optimise the supply chain by introducing digital tools, increasingly pervasive within the entire process cycle, aligning production and distribution to consumption choices in real time.

Consumer decision-making, which is often overlooked, consists of three fundamental questions:

  • Does the product have the characteristics I am looking for?
  • Is the selling price consistent with the quality of the product and service? 
  • How long will I have to wait to receive the product?

Conventional order fulfillment processes often limit the ability of customers to consider these dimensions at the same time.

Making the balance among “price-characteristics-timing” parameters explicit to customers and ensuring transparent information for the evaluation of selection criteria is crucial for those producers who want to exploit the potential of digital transformation. The optimisation of production and logistics can ensure a significant reduction in costs, as well as guaranteeing a better customer experience..

What can be the path to take to introduce an effective digital fulfillment process within your company?


RETHINK THE STRATEGY OF ORDER FULFILLMENT
 

As a first step, it is necessary to explore new technologies that optimise the production of different varieties of products in small quantities and, consequently, to evaluate alternatives to centralized production plants. For example, advances in 3D printing technology offer many opportunities to experiment with new decentralized production methods.


MAKING PRODUCTION DATA DRIVEN

To reduce bottlenecks, there’s the possibility to redefine some roles within your supply chain to improve information flow and capture consumer decision-making. In-store digital catalogues do this by offering the possibility to be integrated with original and targeted branding actions. With the data collected from user navigation, production decisions can be addressed quickly and strategically.

Among the projects carried out by CWS, there’s the integration between the physical store and the online one of an important sportswear brand, made with multimedia totems that allow you to place orders, choose the size and the name to print on the item to be customized in the store, and to pay through the integrated Pos. By reading the barcode, the totems are also a cross-selling tool, advising customers on how to complete their outfits.


A SINGLE INFRASTRUCTURE, GREATER TRANSPARENCY

Integrating all order fulfillment channels into a single cloud infrastructure allows producers to explicitly balance price, time and individual product features to better take advantage of customization options, reduce stocks, and encourage customers interested in customizing products to wait.

Digital fulfillment shows companies the path to follow to create, with strategic investments, flexible production and effective communication.

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CWS offers solutions for the management of the E2E process of digital fulfillment of companies, with particular focus on the manufacturing sector. In the Factory competence center we combine versatility and specialization in a team that loves to innovate exploring the potential of new technologies also taking advantage of strategic partnerships.

We help companies to gain new value from the possibilities offered by digital services, creating business transformation opportunities along the entire value chain.