Fragmented communication between stores, warehouses, and delivery operations is one of the biggest hurdles in modern retail. This was the key takeaway from a recent survey of retail leaders conducted by Zebra Technologies and Aberdeen Research.
The research revealed that data silos have become the norm in omnichannel retail operations, which is having a significant impact on frontline productivity and hampering the customer experience.
Consider the following scenario. A customer visits a store to purchase a product, only to find an empty shelf. Unbeknownst to the store associate, the warehouse has plenty of stock available, but disconnected systems mean the store hasn’t received an updated inventory record or triggered a replenishment request. The customer leaves empty-handed, the retailer loses a potential sale, and valuable stock sits idle in the warehouse.
This scenario is all too common across modern retail operations. But best-in-class retailers are countering this by introducing software that breaks down silos, connects their frontline staff, and streamlines their operations.
What best-in-class retailers are doing differently
The most successful retailers are striving for a ‘connected frontline’ – meaning all their hardware, software, and data is part of one integrated system, rather than a patchwork of disconnected tools.
In fact, our research shows best-in-class retailers are 85 per cent more likely to run one, fully integrated system across their stores, warehouses, and delivery operations, when compared with average retailers. By giving their associates access to real-time data across the entire retail operation, best-in-class retailers deliver better customer experiences.
The results show that connected frontline teams clearly outperform siloed teams in several critical areas. For example, best-in-class retailers improved their order fulfilment accuracy by 27 per cent year-on-year, compared to just 6 per cent for other retailers. They also reported a 24 per cent improvement in on-shelf availability, while other retailers held flat (-0.1 per cent).
When it comes to getting products back on shelves, best-in-class retailers also shortened their shelf replenishment cycle time by 23 per cent, compared to just 4 per cent for all other retailers.
Furthermore, best-in-class retailers were able to give their associates more time to focus on higher-value tasks, which directly contributes to better customer experiences, increased sales, and improved business performance. These retailers reported a 24 per cent year-on-year improvement in time spent on value-added tasks, compared to just 1 per cent for other retailers.
All of these improvements can be achieved by removing data silos and ensuring associates have access to the right information, whenever and wherever they need it.
Our research shows that these improvements have significant flow on effects in the rest of the retail operation: best-in-class retailers reported 11x greater year-on-year growth in annual revenue compared with other retailers. Furthermore, they recorded a 28 per cent improvement in customer retention, while all others reported a 2 per cent annual decline.
The software that connects frontline teams
Best-in-class retailers are investing in specific technologies to connect their frontline. For example, they are 95 per cent more likely to connect employees across locations through real-time push-to-talk or voice communication. Push-to-talk software gives associates the ability to identify exactly who is on shift, where each person is located, and ask them for help with the click of a button, providing a seamless connection between store and warehouse staff.
Best-in-class retailers are also 77 per cent more likely to provide employees with AI tools that offer instant access to product knowledge, task guidance, or support. When associates need answers at their fingertips, AI software can deliver intuitive, helpful recommendations based on a retailer’s specific procedures. Whether it’s locating assets in the backroom, identifying mislabelled or expired products, or answering questions about return policies, AI software is helping frontline workers access critical information when they need it most.
Key takeaways
When retail stores, warehouses and delivery operations don’t have access to the same information, the customer experience suffers. Best-in-class retailers are addressing this disconnect by implementing software that breaks down silos and connects employees across the entire retail operation. As a result, they are seeing far greater improvements in inventory accuracy, omni-channel fulfilment accuracy, revenue growth, and customer retention compared to other retailers.
In 2027 and beyond, it’s clear that software adoption will become the next source of competitive advantage in Australia’s complex retail landscape.
