Radial Inc., a bpostgroup company and the leader in eCommerce solutions, releases findings from a proprietary survey conducted in collaboration with Industry Dive’s studioID. Survey results reveal that retailers are focusing on artificial intelligence (AI), inventory strategies, sustainability initiatives, and overcoming logistical challenges to future-proof their operations. 

The survey tapped U.S. retail executives at companies with $10 million to $1 billion in annual revenue to seek insight into where they have their eye for 2024 fulfillment goals.

Four important survey findings:

1. Retailers had an overwhelmingly successful Peak 2023, but they continue to be plagued by challenges in the fulfillment process.

Many retail executives report that the top challenges their companies face in their fulfillment processes are order processing speed (43%) and order accuracy (41%).

“Partnering with a third-party logistics provider (3PL) is a strategic advantage, as we can assist brands with the entire cycle from click to delivery,” explains Matt Barr, Vice President of Marketing at Radial. “When brands entrust operations to a dependable 3PL partner, they can focus on other challenges while we do what we do best—deploying fulfillment strategies that align with the brand’s goals.”

2. AI hype gives way to strategic deployment.

Every industry is pivoting to embrace the promise of AI, and retailers are no exception. More than half of respondents say they’re either currently using AI or looking into it for their operations. They’re aligning their efforts around five functional areas, with more than four out of five retail executives citing these top use cases:

• Inventory management, such as forecasting demand, managing inventory levels and optimizing the allocation of stock across different locations
• Customer service, including chatbots and virtual assistants providing real-time support to customers in tracking shipments and answering queries
• Risk management and fraud detection through activities like detecting anomalies in shipping patterns and identifying potential fraudulent activities
• Predictive analytics for returns that include analyzing historical data to predict potential returns and enabling proactive measures to streamline the returns process
• Customized shipping solutions, including tailoring options based on individual customer preferences

3. Nearly all retailers intend to increase the use of technology to enhance forecasting.

“Real-time insights are critical,” notes Barr. “Combined with historical data, they can help inform brands on purchasing behaviors that allow them to match supply with demand, thereby eliminating stock-outs, surpluses—and surprises.”

That explains why 99% of retailers say they plan to enhance their forecasting capabilities to more thoroughly anticipate product demand and stay ahead of market trends, including 42% who say they will enhance collaboration with suppliers for real-time market insights. One-quarter will invest in advance data analytics tools, and 21% will implement machine learning algorithms for predictive modeling.

4. Finding creative solutions to the return conundrum leads to significant benefits.

It’s no secret that returns are an ongoing pain point, but customers continue to prioritize choice. Fortunately, there are ways brands can maintain that critical positive customer experience without sacrificing profit.“ The countdown to a successful 2024 peak season is on,” Barr says. “Working with the right 3PL partner can significantly impact your brand’s image, and now is the time to begin your drive toward a record-breaking year.”

Download the full research report and explore additional information and details about the survey results here. https://resources.industrydive.com/what-matters-to-retailers-in-2024

Survey Methodology

The survey, conducted by Industry Dive’s studioID in collaboration with Radial, was taken by 150 retail leaders in the United States at companies with an annual revenue between $10 million and $1 billion, surveyed from Q1 of 2024.