Operational Optimisation; Where To Start
Retail operations are the heartbeat of your business, ensuring it runs with a consistent rhythm. These operations, which are frequently overlooked in retail businesses, are crucial and often form the starting point of many issues that arise. They demand attention and care, and often where most of our time is spent during the initial phases of a partnership when we are actively engaged in supporting a brand.
The ultimate aim of selling products to customers is to provide them with a positive, memorable experience that not only generates sales but also fosters customer loyalty, leading to increased profits. It has to manage multiple processes that have to be orchestrated carefully to ensure everything runs seamlessly and according to plan.
Retail operations encompass all the processes and tasks involved in the day-to-day running of a retail business. This includes a wide array of tasks such as order fulfilment, inventory management, adjusting your online store or warehouse, accounting, customer support, sales, returns management, and much more. Given that these operations are crucial for the smooth running of a retail business, it is necessary to streamline them wherever possible, making them more efficient and effective.
At its core, retail operations can be divided into two main areas. The first area includes everything leading up to the point where your stock is under your control, ready to be sold and delivered to the customer. The second area starts from the moment a purchase is made and a person transitions from a potential lead to an actual customer. All tasks involved in ensuring they receive their order on time, and providing them with a good experience, are classified as retail operations.
To help brands succeed in this area, we have curated a list of our top recommendations for foundation operational focuses:
Inventory Management: This is an extensive area covering aspects such as design, sourcing, suppliers, and shipping to the brand. It's essential to have a robust inventory management system in place to avoid sellouts or overstocking.
Customer Service: This is an area that requires continuous review, accommodating changing consumer spending habits and the competitive growth of the market. It plays a crucial role in retaining customers and enhancing the brand's reputation.
Order Processing: It should always be optimised to become more streamlined, efficient, and memorable for your customers. This involves everything from receiving the order to packaging and shipping it.
Payment Acceptance: Although there may not be many varied options, it's worth revisiting frequently to ensure that you are providing your customers with the most convenient and secure payment methods.
Optimise Returns Management: An effective returns management process not only enhances the brand's reputation but also creates convenience for shoppers, increasing their likelihood to shop again.
Organise Your Stock Warehouse/Location: As a business grows, you can't afford to have stock scattered "everywhere". You may still keep your stock on-site and distribute it yourself, but having access to live data is crucial to making meaningful marketing decisions.
Shopping Experience: It needs to be continually scrutinised and fine-tuned to ensure it is performing at its best, whether online, in-store, or in an omnichannel collective.
Often, when we begin a partnership with a brand, they seek innovative and radical ideas to transform their business. However, most of the transformation usually revolves around the above topics. Only when these solid foundations are firmly in place, and regularly reviewed and updated, do the "exciting ideas" have a chance to truly transform and elevate the business.
If you are experiencing retail growth or feel your business needs realigning to support a new direction or simply to better support the route its taking, get in touch, we'd love to hear from you.