Retail Unwrapped from The Robin Report https://therobinreport.com Retail Unwrapped is a weekly podcast series hosted by our Chief Strategist Shelley E. Kohan. Each week, they share insights and opinions on major topics in the retail and consumer product industries. The shows are a lively conversation on industry-wide issues, trends, and consumer behavior. Mon, 23 Dec 2024 15:40:29 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.2 The Robin Report The Robin Report info@therobinreport.com Retail Unwrapped from The Robin Report https://therobinreport.com/wp-content/uploads/2023/12/RR_RU_Podcast_CTAArtboard-02-copy.jpg https://therobinreport.com Retail Unwrapped from The Robin Report Retail Unwrapped is a weekly podcast series hosted by our Chief Strategist Shelley E. Kohan. Each week, they share insights and opinions on major topics in the retail and consumer product industries. The shows are a lively conversation on industry-wide issues, trends, and consumer behavior. false All content copyright The Robin Report. Business Wisdom + AI in Retail Decision-Making https://therobinreport.com/business-wisdom-ai-in-retail-decision-making/ Tue, 24 Dec 2024 05:01:00 +0000 https://therobinreport.com/?p=97241 Business Wisdom + AI in Retail Decision-MakingOne of the most popular business debates today is what AI will replace. Many see emerging technology as a panacea for all business challenges. Yet it is the human factor that always shapes organizations and guides them forward. If we […]]]> Business Wisdom + AI in Retail Decision-Making

One of the most popular business debates today is what AI will replace. Many see emerging technology as a panacea for all business challenges. Yet it is the human factor that always shapes organizations and guides them forward. If we blindly believe what AI churns out, we are forfeiting our greatest critical thinking skills: perspective and context.

Not all AI is created equally. The key is to know what tools work hand in hand with the workforce in alleviating repetitive tasks enabling them to make better, faster business decisions. Skypad delivers real-time data and analytics to pave the way for critical insights into understanding current inventory and sales data and emerging trends. These AI systems are more efficient, reliable and trustworthy than humans for managing such data-intense reports. The magic bullet is blending mechanically generated information with the insights that human intelligence can overlay on the data.

We have always been advocates of using AI in its various forms as a tool to help retailers achieve higher levels of performance. It has made so many tasks formerly managed by cumbersome Excel spreadsheets obsolete. It can crunch numbers, spit out analytics, help manage inventory and promote sales

But it can’t replace human creativity, intuition and experience. Business wisdom can’t be automated by AI in retail decision-making

AI as an Ally

AI is a powerful strategy for retailers and brands to augment and amplify pattern recognition and strategic intuition. Savvy retailers are adept at spotting market trends before data confirms them. Managers who have keen observational skills sense shifting customer needs before they’re articulated. They also understand the emotional drivers of purchasing decisions which influence how to recognize market opportunities that don’t show up in data. They recognize the subtle competitive threats based on industry dynamics. And smart retailers use systems thinking to see the larger picture holistically. For example, understanding cyclical business patterns may not be evident in short-term data. There is still a gut instinct when it comes to macro pattern recognition.

Not all AI is created equally. The key is to know what tools work hand in hand with the workforce in alleviating repetitive tasks enabling them to make better, faster business decisions. For example, Skypad delivers real-time data and analytics to pave the way for critical insights into understanding current inventory and sales data and emerging trends. These AI systems are more efficient, reliable and trustworthy than humans for managing such data-intense reports. The magic bullet is blending mechanically generated information with the insights that human intelligence can overlay on the data. Going forward, tech and human partnerships will become de facto table stakes for successful retailers.

De-Risking the Business

Smart retail leaders can identify which processes should be automated. Balance is key in implementing machine learning where automation enables humans to do their jobs better.

Machine learning systems can support experienced leaders by helping them make decisions with incomplete information balancing short-term pressures with long-term sustainability.  Human wisdom also provides the ability to distinguish between healthy and unhealthy risks. AI has no sense of when something seems to be too good to be true — if it can even determine if it really is.  Nor can it assess the ripple effect of decisions. AI is literal, sequential and basically clunky – although it is also astonishingly fast. It is the human factor in concert with machine learning that can de-risk a business.

Retailers can leverage predictive analytics, pattern recognition, and real-time data to reveal potential risks early on. They can use this information and take proactive measures to mitigate them, such as optimizing inventory management, forecasting demand flux, detecting fraudulent transactions, and identifying potential supply chain disruptions before they occur. The result?  Minimizing financial losses and improving operational efficiencies.

At Skypad we recognize that inventory misalignment is a major issue and a massive headache. Replenishment is another issue — identifying what’s moving, and what’s not moving. This issue resonates with the retailer management, buyers as well as brands. For example, you’ve got size runs that are missing. Or colors that are that are doing very well in Detroit and then doing very poorly in in Florida. But no one is making any moves to manage that. These are just a few of the misalignments that we see between retailers and their brands that Skypad can alleviate.

Then consider how retailers and their brand partners need a reliable bridge to track sales and inventory levels across all locations. Using data, managers can make informed decisions on how to reallocate merchandise and restock stores to deliver a better customer experience. According to a survey by Cin7, 70 percent of holiday shoppers abandoned a purchase because an item they wanted was out of stock. That does not build loyalty or solid customer relationships. De-risking your business is basically de-risking loss of sales and customer loyalty.

AI in Retail Decision-Making

We believe that AI is an extremely useful tool to augment human intelligence (not wisdom). The AI an organization relies on is only as good as its composite of information. At Skypad we have built a transparent SaaS platform built on data from brands and retailers that provides a real-time view of sales and inventory, as one single platform that can transform the way your organization shares, reports, and collaborates on sales and inventory data, with a completely integrated, turnkey analytics app. 

Skypad is the ultimate omnichannel sales reporting platform – providing an automated, all-inclusive solution that is used cross-functionally by organizations to share sales and inventory data. For retailers, it’s an end-to-end solution to share sales and inventory performance insights with brand partners. For brands, it delivers a complete view of your sales and inventory performance by collecting, consolidating, and reporting sales and inventory data across various global retailer partners and disparate sources.

We developed Skypad with the ultimate decision-maker in mind: the customer. Business wisdom can’t be automated, and neither can the customer. We offer an analytics platform to enable the retailer to distribute information securely, clearly and concisely so the brand can actually make decisions with the retailer on optimum product management. It is with the customer at the heart of the retail experience that Skypad combines the best of human wisdom and common sense with our innovative technology to exceed expectations.

Note: Skypad is a TRR Innovator

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Retail Transformation: The SKYPAD Prescription https://therobinreport.com/retail-transformation-the-skypad-prescription/ Wed, 26 Jun 2024 10:00:00 +0000 https://therobinreport.com/?p=73673 Retail TransformationSKYPAD drives retail transformation with its portal, blending human expertise and technology for efficient data management and strategic decision-making.]]> Retail Transformation

For the retail industry, the strategy of competitive advantage has hit a few speed bumps. The sector has transformed from a system of incremental change where small shifts created short-term leverage, to a continuum where change ignites change almost overnight. To achieve sustainable success in a digital marketplace, dynamic retail companies need expertise, efficiency, and scale. While making this statement is simple, successful execution requires leadership and a strategy that is grounded in foresight and critical thinking and is nimble and responsive enough to change. And that’s where the power of breakthrough tech solutions that solve real-life problems excels.

Retail is a margin industry. We believe that useful, standardized data output creates an increasingly efficient and creative retail environment that benefits consumers, suppliers, retailers, brands, and the environment, demonstrating that a long-term outlook can be holistically beneficial, especially to the bottom line.

New Markers for Success

If a simple definition of success in the retail industry is persuading a customer to purchase your products and pay a price that allows for profitability, there is nothing simple about the machinations and calculations required to get to that result. Operating in a digital marketplace, companies need high performance in every appropriate channel at all times, all while continuing to seamlessly expand and enhance customer touchpoints. What used to be simple merchandising decisions have evolved into a web of platforms, search engines, and channels all demanding investment for engagement, whether or not it converts to an immediate sale. And what’s more vexing is that successful retailers must outperform not only the competition — but themselves.

Safety in Numbers

Retailers can take some comfort that they are not alone. Multifaceted change is hard work. The transformation to new digital models and running a business holistically often requires partners. Just look at how the world’s leading technology firms have strategically partnered with complementary organizations to leverage advanced technologies and incorporate domain expertise. Microsoft collaborates with OpenAI, Apple designated Google as its default search engine, and Amazon Web Services (AWS) dominates in cloud networking for global businesses. These portfolio partnerships illustrate intelligent business decisions to partner up for accelerated success. It saves money in the long run to partner with a trusted tech partner that has tech expertise in its DNA. A successful technology collaboration activates the potential for dynamic business development, short-term and long-term. Admittedly, retail has been slower to adopt this shared-strength model. Identifying synergistic technology partners is now the baseline for success. So, how do retailers get off the sidelines and into the game?

Collaborative Partnership

Dynamic, shared-strength retail is built on investing in systems to automate low-level tasks so the more complicated activities can be executed through a combination of human skills supported by emerging technology. At SKYPAD we know how to balance the art and science of retail and have built a leading retail-vendor portal to alleviate mind-numbing repetitive tasks. Smart retail and brand operators have learned to embrace the opportunities presented by intelligent human-tech integration. Both fashion and retail are seasonal games, racing from collection to collection, and season to season, with little time to retool or adapt to new technology. The combined pressure of both internal and external quarterly earnings expectations often serves as a barrier blocking innovative, systemic change. This is a short-term orientation that chills long-term strategies and investments that may not promise a quick return on investment but will propel a brand into the future.

Retail Transformation

The lingering influence of retail’s merchant culture can also be a barrier to change. Mickey Drexler, Sam Walton, Les Wexner, and Steve Jobs are considered legendary merchant visionaries. They are retail executives who instinctively tapped into the cultural zeitgeist and created magic. But let’s face it, the industry has evolved from magic-making to data-driven strategies. Both can co-exist. In recent comments from Walmart’s current CEO Doug McMillon, he describes a experiencing decade-plus of sluggish transformation while the retail giant was evolving from big box to adaptive retail. He explains the balance between the company’s merchant traditions and the essential transition to a technology-enhanced organization is table stakes.

Retail’s Unique Challenges

SKYPAD empathizes with the challenges facing retailers today. Data accuracy often represents the difference between success and failure. We intimately understand retail reporting processes and systems that ensure data is aggregated accurately in an era where reporting errors can lead to misguided decisions or missed opportunities. The past is not a good predictor of solutions for today and the future. For example, in-house reporting solutions are inherently inefficient in our interconnected marketplace.

Based on market conditions and analysis of how retail traditionally uses data to make decisions, we created a retail/vendor portal. Our software is designed specifically to manage retail’s unique challenges. We blend deep retail knowledge with cutting-edge technology in a solution designed to bring our clients to new levels of efficiency with a pathway to exceed today’s market expectations.

Our portal offers a high degree of customization, allowing users to design reporting templates and data visualization options that meet their specific requirements. This breakthrough reporting solution responds to the complexity retailers face with increased data volumes, disparate data sources, and incohesive initiatives that lack integration. The portal is designed to eliminate costly development, streamline staffing, control maintenance costs, and address cybersecurity vulnerabilities. We are trusted by our partners to consistently deliver a secure data solution that alleviates compliance concerns and far exceeds most in-house reporting efforts with lower up-front, and ongoing maintenance and support costs.

Synchronized Retail Reporting

We know that accurate and timely intelligence lays a foundation for informed decision-making based on up-to-date information. We process data from the supply chain through attribution, creating a secure, actionable information stream that informs varied teams throughout our partner organizations, allowing them to pinpoint weaknesses and uncover opportunities. In other words: modern merchandising.

Our portal will help any merchant use standardized data output to create an efficient and creative retail environment that benefits consumers, suppliers, retailers, brands, and the environment. Contact us for more information and a free consultation. 

Note: SKYPAD is a Robin Report Innovators Network Partner

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A Retail Vendor Portal Built on Trust https://therobinreport.com/a-retail-vendor-portal-built-on-trust/ Thu, 04 Apr 2024 10:00:00 +0000 https://therobinreport.com/?p=55024 Retail Vendor PortalIf you visualize the future, chances are you don’t see it as a triangle. But look again. Think of the three sides as the weight of the past, the push of the present, and the pull of the future — […]]]> Retail Vendor Portal

If you visualize the future, chances are you don’t see it as a triangle. But look again. Think of the three sides as the weight of the past, the push of the present, and the pull of the future — all in constant tension. This is the Futures Triangle, an analytical tool for charting plausible outcomes based on trends.

SKYPAD, Retail Vendor Portal is about much more than data. Breaking down barriers to transparent communication lays the groundwork for new levels of trust. Trust between retailers and brands, and finally the end consumer. We are doing our part to define one truth, translating disjointed data into quality information that untethers the future of the industry from the shackles of the past.

So, in terms of today’s retail industry, consider the triangle as an uneasy balance with AI dominating the present moving retail toward its inevitable future while the weight of legacy systems keeps retail firmly stuck in the past. Now in context of this mess, the SKYPAD retail vendor portal is an operating system where integrated data, collected, and collated from disconnected inputs and propels retail from the present to the future.

How are you going to manage this? It’s an epic challenge: Most of retail’s fragmented data systems tether the industry to the past with little hope for emerging intact, anticipating the future, rather than catching up to it.

How Did We Get Here?

Let’s take a step back. As the world raced ahead with blinders on into the digital marketplace, retailers were soon drowning in disaggregated data. Demand for next-generation tools designed to harness and organize the endless tranches of stored data became a magnet for innovation. Enter the tech startups inspired by entrepreneurs who saw the problem through a different lens, recognizing it as nothing less than an opportunity.

But retailers weren’t moving as fast. Their dilemma was to build or buy solutions. At first, many retailers boldly tried to develop their own information management systems. Many eventually turned to consultants or technology partners for help. But as the data streams became more complex and analyzing the output into intelligence became increasingly opaque, systems failure was the norm.

Trust

Let’s simplify the data nightmare as a use case from the perspective of retail-vendor management. One of the most critical assets of any partnership is trust. Both sharing data and providing partners with full transparency about their brands are based on trust. This trust feeds into the greater insight of knowing that you are not alone in making sense of the cascades of data that confront you daily. From the perspective of the retailer-vendor relationship, knowing exactly where your merchandise is located and what’s selling, then applying that information to run a more profitable business, while also enhancing the customer experience, is priceless.

Yet, the biggest tech pain points for retailers and brands are systems that do not talk to each other, apps that don’t present a holistic view, and solutions that aren’t based on real-time needs. The answer to a better way forward may seem self-evident – on the surface. But if you look more deeply, unpacking the massive headaches tech-based reporting has created needs a different filter.

Emerging from the Glacial Age of Data Management

To add perspective, think of the number of retailer portals designed to accept vendor data uploads into their proprietary platforms. Then add the legions of established internal information protocols and processing teams required to systematize and organize that incoming data. So, in the interest of protecting proprietary information and systems, each retailer develops a distinct methodology for disparate data synthesis while ironically leaving their vendor data and retail intelligence vulnerable. Think about how spreadsheets and insider intelligence can regularly fall into the wrong hands as documents and data are sent via email or other insecure transmission methods.

Mastering the power of tech tools ultimately falls back on people, not systems. Internal tech teams and buyers have struggled to translate incompatible, fragmented data into their existing systems. Without a central hub designed to interpret all this data, retail vendor portal projects have been a disaster. Many have been abandoned.

SKYPAD noticed the problems and how the inefficiencies of this scattershot approach manifested and metastasized. Looking at the situation logically, our engineers designed a solution that not only collects and organizes inventory and sales data on a granular level, but one that standardizes, secures, and right-sizes the data for distribution between brand and retail partners across the industry. Our goal is to establish a tool that allows relevant parties to access the same data at the same time, defining one truth based on consistent data. You could say that our SaaS solution is the Rosetta Stone essential to a new level of understanding, a singular truth that changes retail from a reactive culture to a proactive one. And our relationships are based on trust. With clean, coherent, dynamic data as a scaffold, analysis, inventory, localization, distribution, and AI strategies can emerge.

Anticipating the Future

So much technology is just another element in a sprawling technology stack. We start from another vantage point: We do not underestimate the power of foresight principles, examining the long-term impact of business, and exploring implications for multi-brand department store and ecommerce retailers, brand clients, consumers, and even the planet. It is critical intelligence culled from disconnected threads of data. This intelligence transforms the Futures Triangle making the weight of the past diminished, and shapeshifting to the pull of the future.

Imagine how multi-brand department stores or ecommerce retailers can be relieved from complicated layers of organizational workflow, reducing risk, increasing productivity, supporting pricing optimization, and stemming costs. Imagine a painless data distribution platform that can be leveraged and applied to popular and emerging sales channels including marketplace, resale, and AI-fueled models. And then imagine bridging the data divide between your organization and the brands you work with. It distills into a simple truth: solving the issue of fragmented data facilitates growth.

And who benefits the most from an integrated reporting system? The consumer.

Refined data accommodates ideal pricing enabling more full-price sales. On the face of it, customers in the habit of shopping markdowns may not love full-price sales. But honestly, how can any customer trust a retailer that races to the bottom with price promotions? How can you trust a price-slashing merchant that undervalues its merchandise? What is anything really worth? If a brand can save a consumer time, establish an informed definition of value, and gain trust, it can unlock the ultimate brand opportunity, a loyal relationship.

The Planet

When we mention the planet, SKYPAD thinks on a higher level by providing a better plan for the environment and thus humanity. When business intelligence allows partners to operate more efficiently with a platform that enables better decision-making in product development, distribution, and new initiatives, it results in fewer returns, overstocks, and waste. Retail and apparel‘s negative impact on the planet has been well documented. We believe that the best way to support a more livable world is through considered design and small, yet focused collective efforts.

In sum, SKYPAD is about much more than data. Breaking down barriers to transparent communication lays the groundwork for new levels of trust. Trust between retailers and brands, and finally the end consumer. We are doing our part to define one truth, translating disjointed data into quality insightful information that untethers the future of the industry from the shackles of the past.

Note: SKYPAD is a Robin Report Innovator. For more information on our Vendor Retail Portal and other breakthrough reporting solutions.

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