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Balancing the service versus cost equation

As a retailer, you face many challenges. Your customers are more fickle than ever. They can shop when they want to and where they want to. Your only hope of keeping them loyal is meeting their ever-higher expectations for product assortments, price, quality, and service.

On top of that, change is inevitable because innovations in products, services and shopping technologies mean you have to continually evolve to differentiate yourself and stay ahead of the competition.

At the same time, you need to keep supply chain costs low, especially given escalating fuel and transportation costs. You have to be able to efficiently manage and coordinate a large number of local, regional and international partners, and warehouses.

In this environment you need intelligent and advanced supply chain technologies that allow you to adapt to shifting consumer demand and external events, as well as collaborate across functional and organizational boundaries to meet customer expectations for products, value, quality, and service.

You have to balance the service versus cost equation. It’s essential for competing successfully when margins are tight.

Learn how SAP makes this possible. Visit our web site dedicated to retail without boundaries.

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  • Cost control on the supply chain definitely helps improve margin. Recently worked with a retailer who was handling products too often before it got to the store.  The had to rethink all of the logistics, warehouse operations, and inventory management. The best data came from making improvements in the store systems, and then using that to adjust inventory levels and then warehouse processes.  They were shipping goods more than once, before they arrived at the store – and so a rethink was in order!

    Thanks for reminding us of the importance – and the link.