Operational excellence that can win customers, drive profitability and be environmentally friendly
In an ever-evolving retail landscape, achieving operational excellence is crucial for businesses looking to scale efficiently. At a recent session, Georgia Leybourne from Linnworks explored three key pillars of operational success—expansion, automation, and control—offering insights into how retailers can optimise their operations after a customer makes a purchase.
Understanding Operational Excellence
Operational excellence is the fine balance between meeting consumer demands, achieving business goals, and ensuring seamless collaboration with partners. As Leybourne highlighted, one customer described it as the ability to "make customers happy while ensuring sustainability." This definition encapsulates the need for efficiency without compromising customer satisfaction or long-term viability.
To tailor the session to the audience, an early poll helped gauge attendees’ roles in retail and supply chain management, ensuring the discussion addressed their specific challenges.
The Expansion Imperative
The growth of ecommerce continues at an accelerated pace. Online shopping is projected to rise from 15% to 25% of total retail sales by 2027, underscoring the importance of multi-channel selling. A recent Linnworks study of UK consumers revealed varied shopping preferences, with customers engaging across marketplaces, brand websites, and physical stores.
However, selling across multiple platforms introduces complexity. Businesses must synchronise inventory in real-time to prevent overselling and stockouts, a challenge that only grows as operations expand.
Another crucial factor in expansion is unexpected demand spikes. Viral trends—such as a product gaining traction on TikTok—or successful marketing campaigns can lead to sudden surges in sales. Businesses without automated systems in place may struggle to fulfil orders efficiently, risking lost sales and dissatisfied customers.
The Power of Automation
Automation is the backbone of scalable operations. Many businesses still rely on traditional ERP systems or spreadsheets, which become impractical as order volumes increase. By automating order processing, retailers can streamline fulfilment, reduce errors, and improve efficiency.
A key area where automation delivers significant impact is logistics. Retailers working with multiple carriers must optimise shipping strategies, ensuring accurate order allocation and compliance with courier requirements to avoid costly fines.
Another critical aspect is inventory visibility. Businesses must maintain a single view of stock across warehouses, stores, and online channels. Without real-time inventory tracking, fulfilment issues can arise, leading to delays, stockouts, or excess inventory that ties up capital.
Linnworks and the Future of Connected Commerce
Linnworks plays a pivotal role in helping retailers navigate the complexities of multi-channel commerce. Through its connected commerce platform, businesses can integrate inventory, automate fulfilment, and scale efficiently while maintaining real-time visibility across all sales channels.
As retail continues to evolve, companies that embrace expansion, automation, and control will be well-positioned to meet growing consumer expectations, drive operational efficiency, and maintain a competitive edge in the digital marketplace.