Retail never stands still. From evolving shopping behaviors to rising fulfillment expectations, change is the only constant. Successful retailers continuously adapt to stay relevant, seizing opportunities to grow their customer base and market share.
Let's explore five key strategies to help retailers successfully navigate change in the ever-shifting landscape.
1. Understand the importance of supplier collaboration
Retail change management isn't just about updating internal processes. The real challenge lies in transforming how you work with your entire network of suppliers and trading partners.
A leading specialty mattress retailer learned this when expanding their omnichannel strategy. They realized that seamless shopping experiences required improved supplier interactions for timely deliveries and proactive customer communication.
To foster supplier engagement:
- Clearly communicate your vision and goals
- Highlight mutual benefits of the proposed changes
- Provide support to help suppliers adapt to new processes
2. Engage merchandising in the process
Merchandising teams influence key business outcomes like sales, margins and market share. Their expertise in managing assortments and supplier relationships makes them essential for the success of any change initiative.
An online retailer of healthy, sustainable products discovered this during a time of rapid growth. By involving their merchandising team in a change initiative with suppliers, they onboarded nearly 100 percent of their suppliers to an automated procure-to-pay process.
To empower your merchandising team:
- Demonstrate how change initiatives support their merchandise plan and drive business results
- Limit disruption as much as possible to avoid impacting supplier relationships
- Provide tools and data for better supplier performance tracking
3. Identify and address operational bottlenecks
Change how you work with suppliers to minimize disruptions and drive performance. For example, even one shipment that arrives at a distribution center unexpectedly or without proper documentation can create a bottleneck across the whole receiving process.
A multi-brand sporting goods retailer overcame similar challenges as they expanded their product offerings and supplier network. By implementing automated data exchange throughout the order cycle, they improved inventory accuracy, accelerated order processing and enhanced customer service.
To enhance efficiencies in your organization:
- Identify manual processes that should be automated
- Break down information silos between departments
- Determine what data needs to be shared with suppliers and other trading partners
4. Implement a structured change management approach
Successful transformation is the result of careful planning. Many retailers find change initiatives complex, often due to lack of planning or resources.
A farm and home supply retailer discovered an effective approach when enhancing their order process. They found that partnering with outside experts to manage vendor outreach and onboarding was crucial for driving greater automation and collaboration.
To implement a structured change management approach:
- Set clear goals and metrics for your initiatives
- Tap into external expertise to overcome resource constraints and leverage best practices
- Communicate effectively internally and externally to foster a culture of change
5. Leverage technology to improve collaboration
In retail, one size doesn't fit all when it comes to technology. The key is finding solutions that accommodate diverse supplier capabilities while still capturing the data you need to make informed decisions and drive successful change initiatives.
A leading Canadian retailer with over 1,700 locations put this into practice when investing in supply chain resilience and vendor collaboration. Their technology strategy accommodated various supplier systems, allowing for flexible data exchange while still delivering valuable insights to inform planning and distribution efforts.
To boost supplier relationships:
- Implement systems that support suppliers' preferred technology
- Prioritize accurate, timely data exchange
- Seek long-term technology partnerships to support continuous improvement
Embrace change for retail success
Change brings challenges, but it also opens doors to growth. By equipping your retail business with the right strategies, you can turn these challenges into opportunities for success. For more insights on change management, visit our website or connect with our team.
