DHL Supply Chain demonstrates how advanced automation, real-time inventory visibility, and sustainable practices can create a seamless and personalised customer experience across all channels, beginning at the very heart of the supply chain.
Over the years, consumer expectations in the retail and e-commerce sectors have evolved due to technological advancements, increased competition, and changing shopping behaviours. Consumers now demand a seamless, consistent, and personalised experience across all channels.
By integrating supply chain operations with customer-facing retail experiences, businesses can create a more cohesive shopping journey for consumers. This approach not only meets the heightened expectations of modern consumers but also leverages data and technology to streamline processes and enhance service levels.
A unified retail experience can enhance a customer’s shopping journey by seamlessly integrating online, mobile, and in-store interactions. Industry expert Sean Maguire understands the significance of ongoing changes in retail logistics, having worked for over 34 years in the industry in the UK and Australia.
Currently working as DHL Supply Chain Australia’s VP of retail and 4PL, he is focused on the future of the industry and the movements that will give a boost to third-party logistics (3PL) and fourth-party logistics (4PL) customers.
“A customer searching for a new pair of shoes can start by browsing personalised recommendations on the retailer’s website, continue their engagement through a synchronised mobile app with push notifications and inventory checks, and receive personalised assistance in store.
The seamless checkout process, real-time order tracking, and easy return options all contribute towards the customer’s experience, Maguire said.
The customer’s journey begins from the supply chain and can be influenced by inventory visibility, personalisation, automation and sustainability.
Real-time inventory visibility
A key development in the retail industry is the recognition that data is crucial for successful campaigns. Traditionally, supply chains would increase labour to meet volume. Using data, more precise sales events can now be planned, maintaining service levels without excessive costs. Forecasting tools have helped businesses better prepare and capitalise on significant events like Black Friday. Sophisticated data analytics systems covering warehousing and transport activities assist businesses in managing stock and transport, allowing them to communicate more accurate order information with their customers.
“By leveraging real-time data analytics, we can optimise supply chain operations to meet customer demands efficiently and cost-effectively,” Maguire said.
Delivering value through experience
Value-added services are increasingly being used in the retail sector. These services personalise and enhance the customer experience by offering tailored solutions that extend beyond basic product offerings.
For instance, quality control and inspection help meet product standards before reaching the retailer and include checking for defects, verifying quantities and conducting compliance checks. Labelling and tagging through price tags, RFID tags or promotional labels helps with inventory management. Cross-docking by transferring products directly from inbound to outbound transportation with minimal storage time, significantly reduces handling costs and speeds up the delivery process.
Additionally, personalisation through services like gift wrapping, customised packaging, and monogramming create a tailored experience for individual customer needs.
One of the more crucial value-added services is efficient returns management. “The practice of “bracketing,” where customers buy the same item in multiple sizes and colours with the intention of returning some, has increased online return rates. As a result, many consumers now review return policies before making online purchase,” Maguire said.
A seamless returns process that offers quick refunds and a hassle-free experience can influence the consumer’s decision to make a purchase. These value-added services not only enhance convenience and satisfaction but also foster stronger customer loyalty and differentiation in a competitive market.
Automated reality
Automation has been instrumental in providing supply chains with resilience, flexibility and scalability. By pioneering the use of autonomous mobile robots (AMRs) in retail logistics operations, this technology offers greater capacity and improved staff efficiency. Robotics not only enhances speed and efficiency but also creates more employee development opportunities and improves job satisfaction and safety.
“In a current partnership between DHL Supply Chain and a global cosmetics retailer in Australia, AMRs have been implemented to support operators in achieving efficient and accurate order processing. The technology also integrates with the warehouse management system to create seamless and fast data exchange for improved inventory management,” Maguire said.
Sustainability and diversity
Retail organisations are increasingly judged by the business activities of their suppliers, especially regarding sustainability and diversity. DHL is investing in more sustainable operations, from renewable energy through solar panels on warehousing space to investments in sustainable fuels. From 2024-2026, DHL Supply Chain is transitioning ~2000 fossil fuel trucks to alternatives, such as battery electric or biogas.
In addition, there are many sustainable warehousing and transport efficiency practices that can significantly reduce an operation’s environmental impact.
“The opportunities to drive sustainability while engaging our team are vast, from waste management through recycling programs, to efficient lightning, heating and cooling as well as fuel-efficient routing. It is as much a matter of burning less, as it is a matter of burning clean,” Maguire said.
An example of how some businesses are optimising their operations for sustainability is by hosting annual employee charity sales within their DHL Supply Chain warehouses. These sales support charity partners and repurpose discontinued or damaged goods, thereby minimising waste and maximising social impact.
As the retail landscape continues to evolve, staying ahead requires continuous innovation and adaptation. Embracing these strategies will enable businesses to create exceptional customer experiences, foster long-term loyalty, and maintain a competitive edge in the retail market.
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