Post by lizaseo11 on Nov 9, 2024 5:20:58 GMT
Retail automation is the use of technology and software to perform tasks in a store instead of people. Imagine, instead of manually counting items and recording them in a cash register, all this is done by computers. The article described how trade automation systems help stores operate more efficiently.
Forecast for the development of the retail automation market
The retail automation market is projected to grow at a CAGR of 14.66% from 2024 to 2029. The reasons include increasing urbanization, changing lifestyles, and rising consumer spending.
Let's look at the main trends in the industry.
Expanding the use of artificial intelligence
Personalized recommendations: AI analyzes customer data, preferences, and purchase history to provide customized recommendations.
Chatbots and virtual assistants. Robots can answer questions, provide information about products and services, and place orders.
Image analysis: Computer vision technologies make it possible to recognize products, track inventory, and optimize warehouse operations.
Chatbot for business
The rise of contactless technologies
Self-service. The emergence shopify website design of self-service checkouts, payment and return terminals simplifies the purchasing process and reduces queues.
Mobile payments. Payment via smartphones is becoming more convenient and secure.
Biometric Identification: Using fingerprints, facial recognition, and other biometric data to authenticate shoppers increases security.
Integration of online and offline channels
Omnichannel. Creating a single customer experience allows customers to interact with the brand through various channels: website, mobile app, physical store.
Click-and-collect. The ability to order products online and pick them up in store increases convenience for shoppers.
Virtual try-on. Virtual fitting rooms allow customers to try on clothes and accessories online, which is especially relevant for fashion retail.
Big data analysis
Assortment optimization. Sales data analysis allows for more accurate demand forecasting and product assortment optimization.
Improving Pricing: Dynamic pricing based on demand and other factors can help maximize profits.
Marketing personalization: Analyzing customer behavior data allows you to create more effective marketing campaigns.
Robotization and automation of warehouse operations
Warehouse robots. Automation of warehouse operations increases the efficiency and accuracy of order fulfillment.
Drones. Drones are used to deliver goods over short distances.
Yandex's unmanned robot
Sustainable Retail
Eco-friendly technologies. The use of energy-efficient equipment and packaging, as well as waste reduction, is becoming increasingly important for retail companies.
Local production. Growing interest in local products and reducing transportation costs.
Why do we need automation of retail enterprises?
Automation of trade enterprises increases business efficiency, improves customer service, reduces costs and increases competitiveness in the market. Let's consider these factors in more detail.
Improving efficiency
Reduced customer service time. Automated checkouts and self-service systems allow you to serve more customers in less time.
Inventory optimization. Accurate inventory control and demand forecasting help avoid shortages or excesses of products in the warehouse.
Speeding up processes. Automation of routine operations , such as product acceptance, inventory and order formation, significantly increases the speed of staff work.
Improving customer service quality
Personalization: Using customer data allows you to offer customized recommendations and promotions, increasing customer loyalty.
Quick problem solving. Chatbots and virtual assistants help promptly answer customer questions and solve problems without human involvement.
Improving data accuracy
Minimizing errors. Automation of cash transactions, inventory control and other processes reduces the likelihood of human error.
Regular reports. Automation systems provide up-to-date information on sales, stocks and other indicators, which allows you to make informed management decisions.
Cost reduction
Personnel optimization. Automation of routine operations allows to reduce the number of personnel and reduce the costs of wages.
Reduced Losses: Accurate inventory control helps prevent theft and reduce losses from shortages.
Energy efficiency: Some automation solutions can reduce energy consumption, such as through the use of LED lighting and energy-efficient equipment.
Data-driven decision making
Data analytics: Automated systems collect and analyze large volumes of data, allowing you to identify trends, forecast demand, and make more informed decisions.
Quick response to market changes. Business owners can quickly respond to changes in demand and the competitive environment.
Levels of automation of trade enterprises
Usually, there are three levels of automation of a trading enterprise: front office, back office, head office.
The front office is the part of the business that directly interacts with customers. This includes all the employees and processes that help serve customers, such as salespeople, cashiers, and consultants.
Front office automation includes cash registers, self-service terminals, barcode scanners, payment acceptance equipment, displays for displaying information about the product and purchase amount, and software for all this functionality.
The back office is the part of the business that is not visible to customers. It includes accounting, inventory management, order processing, and administration. Back office employees ensure that all of the company’s internal processes run smoothly. This allows the front office to successfully serve customers.
Back office automation includes software for inventory control, warehouse management systems, devices and programs for inventory, product acceptance and other tasks.
The head office is the central office of the company, where key decisions are made and strategy is developed. It is home to the executives and administrative services that manage the entire organization and coordinate the work of all its departments.
Head office automation includes systems for enterprise resource management, software for analyzing sales data and the effectiveness of marketing campaigns, programs for planning sales, purchasing, and logistics.
All three levels of automation are closely interconnected. For example, sales data collected at the front office level is transferred to the back office system for analysis and order formation. And sales data for the entire network, collected at the head office level, is used to make strategic decisions.
Examples of retail automation systems
1C: Retail. One of the most common solutions in Russia. Offers functionality for managing sales, warehouses, purchases, and cash transactions. The software contains many modules that can be customized to specific business needs.
MyWarehouse. Cloud system for trade management and warehouse accounting. Suitable for both small stores and large chains. Features an intuitive interface and flexible settings.
Admin panel of the service "My warehouse"
SAP Retail . Solution for large retail chains. Functionality includes: supply chain management, sales planning and marketing. Does not work in Russia.
Saby Retail is a retail automation solution developed by SBIS. It combines functionality for store management, business process optimization and customer service improvement.
Shopify is a platform for creating online stores that also offers tools for managing offline sales. Does not work in Russia.
Criteria for choosing a trading automation system
Let's look at the key factors to consider when choosing an automation system.
Business scale. A simpler system will be suitable for a small store, while a large chain will require a functional development of the Enterprise level .
Product range. For stores with a large number of products, it is necessary to choose a system with developed inventory management functionality.
Budget. The final price of automation depends on the cost of the program and additional modules, its configuration, subscription fee, technical support.
Integration with other systems. The program should easily integrate with systems already in use, such as accounting, banking, marketplaces, equipment. Possibility of creating your own integrations.
Manufacturer's reputation. The company's experience in the market, customer reviews, as well as the quality and speed of technical support.
Protection of data from unauthorized access, as well as the ability to restore information in the event of failures.
Scalability. The system should grow with the business, supporting an increase in the number of products, stores and users. Availability of additional modules that can be connected as needed.
Ease of use. The software should be understandable to users without special training. The ability to work with the system from mobile devices.
Stages of implementation of trade automation
Implementation of a trade automation system is a complex process that requires careful preparation and planning. It usually goes through several stages.
Step 1. Analyze the current state and define goals
Studying all business processes in the company, identifying bottlenecks and inefficient operations.
Clear formulation of the tasks that the system must solve: inventory optimization, increasing the speed of customer service, improving analytics.
Defining metrics by which the effectiveness of the system implementation will be assessed.
Step 2. Selecting an automation system
Drawing up a detailed list of system requirements based on automation goals and business specifics.
Studying offers from various vendors, comparing functionality, cost and customer reviews.
Conducting demonstrations of systems, testing functionality and usability.
Step 3. Preparing for implementation
Creating a team responsible for implementing the system.
Drawing up a detailed work plan indicating deadlines and responsible persons.
Collecting and preparing data for transfer to the new system.
Conducting training for employees who will work with the new system.
Step 4. Implementation of the system
Installation of servers, workstations, cash register equipment and other necessary devices.
Configuring the system according to company requirements, creating users and roles.
Transferring data from an existing system to a new one.
Conducting comprehensive system testing to identify and eliminate errors.
Step 5. Starting the system
Parallel operation of the old and new systems to check the correctness of data and processes.
Complete transfer to the new system.
Assisting users in mastering the new system.
Important points during implementation
Involvement of department heads and key employees in the implementation process.
Willingness to adapt the implementation plan should unforeseen circumstances arise.
Regular communication between all project participants.
Providing high-quality training to employees on how to work with the new system.
Ultimately, retail automation is an investment in the future of business. It allows companies to increase efficiency, improve customer service, and gain a competitive advantage.
Forecast for the development of the retail automation market
The retail automation market is projected to grow at a CAGR of 14.66% from 2024 to 2029. The reasons include increasing urbanization, changing lifestyles, and rising consumer spending.
Let's look at the main trends in the industry.
Expanding the use of artificial intelligence
Personalized recommendations: AI analyzes customer data, preferences, and purchase history to provide customized recommendations.
Chatbots and virtual assistants. Robots can answer questions, provide information about products and services, and place orders.
Image analysis: Computer vision technologies make it possible to recognize products, track inventory, and optimize warehouse operations.
Chatbot for business
The rise of contactless technologies
Self-service. The emergence shopify website design of self-service checkouts, payment and return terminals simplifies the purchasing process and reduces queues.
Mobile payments. Payment via smartphones is becoming more convenient and secure.
Biometric Identification: Using fingerprints, facial recognition, and other biometric data to authenticate shoppers increases security.
Integration of online and offline channels
Omnichannel. Creating a single customer experience allows customers to interact with the brand through various channels: website, mobile app, physical store.
Click-and-collect. The ability to order products online and pick them up in store increases convenience for shoppers.
Virtual try-on. Virtual fitting rooms allow customers to try on clothes and accessories online, which is especially relevant for fashion retail.
Big data analysis
Assortment optimization. Sales data analysis allows for more accurate demand forecasting and product assortment optimization.
Improving Pricing: Dynamic pricing based on demand and other factors can help maximize profits.
Marketing personalization: Analyzing customer behavior data allows you to create more effective marketing campaigns.
Robotization and automation of warehouse operations
Warehouse robots. Automation of warehouse operations increases the efficiency and accuracy of order fulfillment.
Drones. Drones are used to deliver goods over short distances.
Yandex's unmanned robot
Sustainable Retail
Eco-friendly technologies. The use of energy-efficient equipment and packaging, as well as waste reduction, is becoming increasingly important for retail companies.
Local production. Growing interest in local products and reducing transportation costs.
Why do we need automation of retail enterprises?
Automation of trade enterprises increases business efficiency, improves customer service, reduces costs and increases competitiveness in the market. Let's consider these factors in more detail.
Improving efficiency
Reduced customer service time. Automated checkouts and self-service systems allow you to serve more customers in less time.
Inventory optimization. Accurate inventory control and demand forecasting help avoid shortages or excesses of products in the warehouse.
Speeding up processes. Automation of routine operations , such as product acceptance, inventory and order formation, significantly increases the speed of staff work.
Improving customer service quality
Personalization: Using customer data allows you to offer customized recommendations and promotions, increasing customer loyalty.
Quick problem solving. Chatbots and virtual assistants help promptly answer customer questions and solve problems without human involvement.
Improving data accuracy
Minimizing errors. Automation of cash transactions, inventory control and other processes reduces the likelihood of human error.
Regular reports. Automation systems provide up-to-date information on sales, stocks and other indicators, which allows you to make informed management decisions.
Cost reduction
Personnel optimization. Automation of routine operations allows to reduce the number of personnel and reduce the costs of wages.
Reduced Losses: Accurate inventory control helps prevent theft and reduce losses from shortages.
Energy efficiency: Some automation solutions can reduce energy consumption, such as through the use of LED lighting and energy-efficient equipment.
Data-driven decision making
Data analytics: Automated systems collect and analyze large volumes of data, allowing you to identify trends, forecast demand, and make more informed decisions.
Quick response to market changes. Business owners can quickly respond to changes in demand and the competitive environment.
Levels of automation of trade enterprises
Usually, there are three levels of automation of a trading enterprise: front office, back office, head office.
The front office is the part of the business that directly interacts with customers. This includes all the employees and processes that help serve customers, such as salespeople, cashiers, and consultants.
Front office automation includes cash registers, self-service terminals, barcode scanners, payment acceptance equipment, displays for displaying information about the product and purchase amount, and software for all this functionality.
The back office is the part of the business that is not visible to customers. It includes accounting, inventory management, order processing, and administration. Back office employees ensure that all of the company’s internal processes run smoothly. This allows the front office to successfully serve customers.
Back office automation includes software for inventory control, warehouse management systems, devices and programs for inventory, product acceptance and other tasks.
The head office is the central office of the company, where key decisions are made and strategy is developed. It is home to the executives and administrative services that manage the entire organization and coordinate the work of all its departments.
Head office automation includes systems for enterprise resource management, software for analyzing sales data and the effectiveness of marketing campaigns, programs for planning sales, purchasing, and logistics.
All three levels of automation are closely interconnected. For example, sales data collected at the front office level is transferred to the back office system for analysis and order formation. And sales data for the entire network, collected at the head office level, is used to make strategic decisions.
Examples of retail automation systems
1C: Retail. One of the most common solutions in Russia. Offers functionality for managing sales, warehouses, purchases, and cash transactions. The software contains many modules that can be customized to specific business needs.
MyWarehouse. Cloud system for trade management and warehouse accounting. Suitable for both small stores and large chains. Features an intuitive interface and flexible settings.
Admin panel of the service "My warehouse"
SAP Retail . Solution for large retail chains. Functionality includes: supply chain management, sales planning and marketing. Does not work in Russia.
Saby Retail is a retail automation solution developed by SBIS. It combines functionality for store management, business process optimization and customer service improvement.
Shopify is a platform for creating online stores that also offers tools for managing offline sales. Does not work in Russia.
Criteria for choosing a trading automation system
Let's look at the key factors to consider when choosing an automation system.
Business scale. A simpler system will be suitable for a small store, while a large chain will require a functional development of the Enterprise level .
Product range. For stores with a large number of products, it is necessary to choose a system with developed inventory management functionality.
Budget. The final price of automation depends on the cost of the program and additional modules, its configuration, subscription fee, technical support.
Integration with other systems. The program should easily integrate with systems already in use, such as accounting, banking, marketplaces, equipment. Possibility of creating your own integrations.
Manufacturer's reputation. The company's experience in the market, customer reviews, as well as the quality and speed of technical support.
Protection of data from unauthorized access, as well as the ability to restore information in the event of failures.
Scalability. The system should grow with the business, supporting an increase in the number of products, stores and users. Availability of additional modules that can be connected as needed.
Ease of use. The software should be understandable to users without special training. The ability to work with the system from mobile devices.
Stages of implementation of trade automation
Implementation of a trade automation system is a complex process that requires careful preparation and planning. It usually goes through several stages.
Step 1. Analyze the current state and define goals
Studying all business processes in the company, identifying bottlenecks and inefficient operations.
Clear formulation of the tasks that the system must solve: inventory optimization, increasing the speed of customer service, improving analytics.
Defining metrics by which the effectiveness of the system implementation will be assessed.
Step 2. Selecting an automation system
Drawing up a detailed list of system requirements based on automation goals and business specifics.
Studying offers from various vendors, comparing functionality, cost and customer reviews.
Conducting demonstrations of systems, testing functionality and usability.
Step 3. Preparing for implementation
Creating a team responsible for implementing the system.
Drawing up a detailed work plan indicating deadlines and responsible persons.
Collecting and preparing data for transfer to the new system.
Conducting training for employees who will work with the new system.
Step 4. Implementation of the system
Installation of servers, workstations, cash register equipment and other necessary devices.
Configuring the system according to company requirements, creating users and roles.
Transferring data from an existing system to a new one.
Conducting comprehensive system testing to identify and eliminate errors.
Step 5. Starting the system
Parallel operation of the old and new systems to check the correctness of data and processes.
Complete transfer to the new system.
Assisting users in mastering the new system.
Important points during implementation
Involvement of department heads and key employees in the implementation process.
Willingness to adapt the implementation plan should unforeseen circumstances arise.
Regular communication between all project participants.
Providing high-quality training to employees on how to work with the new system.
Ultimately, retail automation is an investment in the future of business. It allows companies to increase efficiency, improve customer service, and gain a competitive advantage.