The Bottom Line Benefits Of Workforce Management In Retail Distribution

By RedPrairie

Retailing is one of the world's most challenging and competitive industries. Regardless of the segment, "brick & mortar" retailers, catalogers and online retailers face an environment characterized by intense competition - too many outlets or sites chasing too few consumers - and the need to invest heavily in information technology to reduce operating costs and improve margins and the customer experience.

In recent years retailers have made significant investments in supply chain management improvements to complement the continuous focus (by traditional retailers) on store operations. These investments have included latest generation warehouse management systems (WMS), sophisticated inventory management and replenishment systems, new technologies and processes required to support flow-through and cross-dock distribution center operations, and initiatives such as collaborative planning, forecasting and replenishment (CPFR).

Retailing is distribution intensive, and a retailer's level of distribution efficiency is often an important driver of its market success. As a result of the critical role of distribution, and often tight margins, retailers have been less likely to outsource distribution to third party logistics (3PL) providers than many other industries. For many retailers, distribution is a mission critical core competency important to keep in-house, both to keep costs low and to maintain distribution control.