Traditional retail practices are outdated and the retail market is undergoing a digital transformation. By this, we aren’t just referring to going from offline to online stores or using social media to reach a broader audience. Although these are some remarkable achievements, retailers are now turning towards the allure of automation.  

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In a fiercely competitive and unpredictable market, staying ahead is crucial to capturing and retaining customer attention. However, dealing with tasks like inventory management, problems with suppliers or logistics, and the inability to manage the workforce can detract from the customer experience. Automation is emerging as an effective solution, with the global retail automation market expected to be valued at about $33 billion by 2030.

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Implementing workflow automation in retail 

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Automation in retail is nothing less than a revolution. To think that a market solely run by humans is now seeking solutions from tech. Be it something as small as sending automatic emails to something as big as robots picking, packing, and sorting packages for delivery. The scope is vast. Here are a few prominent examples of how it can help retailers lead in their industry:

• Inventory management: Managing inventory and stock levels manually is tedious and prone to errors. Especially for retailers who have a large inventory like supermarkets. This would eventually lead to losses or a stock full of unsold items. But with automated systems in place, you can track inventory levels regularly, and streamline the reordering of stock without over-stocking or understocking any product. It can also update you in advance if any product needs refilling. This makes the whole process smooth and error-free. It also frees up employees' time to focus on marketing strategies or find new products that will help them gain leverage over their competitors.
  
  Walmart, an industry giant, faced an issue with inventory management across its stores in multiple locations. That’s when they brought in automated inventory management systems. This was integrated with AI and Machine Learning to automatically update the store managers if they need to restock products based on weather conditions, customer behaviors, or historical data. This helped Walmart save on over-stocking products accidentally and improved customer service experience.
  
  
• Order processing: The practice of automating orders is usually divided into a few steps - order validation, order routing and processing, order packaging, and delivery. This system manages everything from sending confirmation emails upon order receipt to notifying customers of successful delivery, streamlining the entire process. Companies that have implemented order processing automation notice a reduction of 10-15% in costs along with a drop in order processing time.
  
  A prime example of this is Amazon. As one of the world’s largest e-commerce giants, managing millions of orders daily across different countries posed significant challenges. To tackle this, Amazon introduced an innovative solution: robots and AI-integrated automated systems. Robots handle tasks like sorting, packaging, and shipping, while AI systems manage order tracking and delivery status. This automation has allowed Amazon to significantly reduce delivery times, save millions in labor costs, and enhance its overall customer service experience.
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• Supply chain automation: Streamlining supply chain management with automation allows retailers to save time in connecting with suppliers, tracking shipments, and overseeing warehouse operations. It also reduces manual effort from employees, ensuring end-to-end data tracking access with IoT devices.
  
  Zara has mastered supply chain management through automation. The brand aimed to shorten the time from product design to delivery while efficiently managing logistics. Automated systems allow Zara to track real-time data from its global stores, feeding this information into an automated supply chain system. This system enables the brand to adjust production, distribution, and inventory to align with customer demand. By automating these processes, Zara can create inventory based on popular designs and gain insights into what resonates with customers and what doesn't.
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• Workforce management: Automating workforce management allows retailers to track their employees’ performance, get timely feedback, and enhance their overall experience by reducing workloads. This helps retailers build a culture of “employees first” in their organizations, making it easier to attract top talent from the market. It also helps boost the morale and productivity of employees working in the organizations.
  
  Ikea’s automated workforce management strategies have been successful in helping the brand maintain stability and equality at work. By utilizing an AI-integrated system, the brand can schedule employees based on demand patterns and even weather conditions. This smart approach has resulted in higher employee morale and productivity, benefiting both the workforce and the business.
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• Customer experience: “Customer is King” - a motto most retailers follow. But how do you ensure your customers receive the best experience and support? The answer lies with automation. By providing personalized experiences, automation helps customers build a connection with the brand, driving client retention. AI-driven chatbots, tailored offers, and automated loyalty programs are just a few examples of how this works. These services run 24/7, without delays or human intervention, making customers feel valued.
  
  Sephora, a leading name in the global cosmetics industry, has successfully implemented automation in its customer service. Their AI-powered chatbots provide assistance, personalized suggestions, and skin-care advice to customers from any part of the world at any given time. They also introduced automated loyalty programs personalized for customers that would provide offers based on their purchase history. This strategy has improved brands’ customer engagement and retention rate, while also showing a spike in sales. 

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Automation is set to transform retail business models and the entire value chain by streamlining organizational layers, thereby empowering a more skilled, trusted workforce with real-time data and analytics. The businesses that succeed will be those who swiftly recognize these changes and adapt accordingly.

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And if you’re unsure about the automation process, check out some of our ready-made templates for the retail sector.