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Pressure is mounting for businesses to take note of their impact on the environment. With retail being one of the key contributors to the world’s global carbon emissions, retailers have a growing responsibility to improve their sustainability practices.
Consumers no longer only look for quality and price in a product, sustainability credentials are now an important factor in purchase decisions. Strategies for product creation and managing stock inventory must take into account environmental impact, adhere to the increasing sustainability legislation, and provide transparency to their customers. Sustainably managing inventory also comes with benefits to the retailer in terms of increased margins, higher sell-throughs, and reduced waste, in addition to gains in brand reputation.
Meeting sustainability demands with tech solutions
The demands of sustainability legislation are growing rapidly in both complexity and volume. Retailers must develop processes to manage these demands if they are to meet criteria globally and acquire the credentials to speak about sustainability to their customers. Building reliable systems to manage sustainability targets across the supply chain, will allow retailers visibility to manage product impact proactively rather than retrospectively. Full traceability of products, while delivering business benefits also provides a competitive advantage to speak to an increasingly sustainability-savvy customer base.
Technology will play an integral role in the management of sustainability principles and practices in retail. Intelligent inventory eco-systems, made up of several industry-leading solutions, will be required to allow retailers to manage their inventory efficiently and track their developing sustainability credentials.
AI-led Product Management Solutions – AI will play a key role in the management of complex sustainability legislation and certification. In addition to tangible gains, of reduced returns rates and higher sales, through expertly optimised e-commerce pages.
Assortment Planning and Allocation Solutions – Leveraging advanced data science techniques will drive intelligent buys, efficient production, and critically reduce excess waste. Unnecessary transit will be cut to further reduce the impact on global emissions.
The accruing impact on global emissions not only improves environmental sustainability but also improves product availability across the network, and therefore future sales potential.
Partnering for sustainable success
Awareness of the sustainability issues that face the retail industry is the first step in addressing this global problem, businesses however must take on a personal responsibility to help tackle the issue.
Thought Provoking Consulting can help support retailers to navigate the complexities of new sustainability principles and help guide teams through process change and improvement. We excel in the delivery of intelligent planning and reporting tools that yield not only substantial sustainability advancements but also tangible business advantages. We can provide actionable insights that will improve transparency and legislative adherence. Ultimately, driving cost-savings, environmental benefit, and an opportunity to strengthen brand reputation.