Harnessing the Power of Automation and Orchestration in Retail: 4 Key Use Cases

Automation and orchestration have become more pivotal to driving efficiency and innovation than ever before. The retail sector, especially during and post-COVID-19, has undergone a massive transformation. With technological advancements over the past five years surpassing those of the previous 25, retailers are leveraging automation to streamline operations and enhance customer experiences.

The Digital Transformation Journey

COVID-19 served as a catalyst for digital transformation in retail. According to a McKinsey & Company study, businesses have accelerated their digital initiatives by an average of seven years within mere months. Despite the significant technological investments, retail teams haven't expanded in size, posing a unique challenge: achieving more with less. The focus is on maintaining or improving customer experience while reducing operational costs—a delicate balance that automation and orchestration can help achieve.

Key Focus Areas

The McKinsey survey highlighted three primary areas of focus for retailers:

• Generating Revenue (84%)
• Improving Operational Margins (67%)
• Enhancing Customer Experience (65%)

These goals often conflict; enhancing customer experience without automation can lead to decreased operational margins. Therefore, the strategic implementation of automation and orchestration is crucial.

Four Use Cases of Automation in Retail

Let's explore four specific use cases where automation is making a significant impact in the retail industry:

1. End of Day Processing

End of day (EOD) processing is critical for retail operations. It involves tasks such as reconciling sales, handling cash deposits, closing ledgers, updating inventory, and generating reports. Traditionally, these tasks were manual, time-consuming, and prone to errors. Automation streamlines EOD processes, reducing the need for human intervention and minimizing errors.

For instance, automated workflows can reconcile daily sales against consolidation files, flag discrepancies, and alert relevant teams for further investigation. This not only saves time but also ensures accuracy. With retailers operating thousands of stores, even minor savings per store can accumulate to significant efficiencies.

2. NOC Troubleshooting

Network Operations Center (NOC) troubleshooting often involves diagnosing and fixing issues with remote store services and self-service machines. Automation can run diagnostics and take remedial actions to ensure smooth operations, minimizing the need for field technicians. For example, automated systems can perform regular health checks on point-of-sale equipment and other in-store facilities, ensuring they are operational and addressing issues proactively.

By automating these processes, retailers can optimize customer experiences, ensuring that services are available when needed and reducing downtime.

3. Stuck E-Commerce Orders

E-commerce has become a cornerstone of retail revenue, making the smooth processing of orders essential. Stuck orders, caused by system errors, inventory discrepancies, or data synchronization issues, directly impact revenue. Automation can quickly identify and rectify these issues, ensuring orders are processed efficiently.

Automated systems can trigger corrective actions based on incident reports from various systems. For example, if an order is stuck due to a SKU not being found, automation can generate and close a ticket, serving as an audit record. This proactive approach minimizes revenue loss and enhances customer satisfaction.

4. Incident Response

Managing a vast array of technologies, from backend logistics to customer-facing sales floors, is complex. Automation and orchestration streamline incident response, handling diagnostics and remedial actions autonomously. Automated health checks and diagnostic processes can identify potential incidents, trigger appropriate responses, and notify relevant teams with timely and accurate information.

Incorporating AI into automation further enhances incident response. AI-powered systems can perform root cause analysis, preventing future issues and ensuring seamless operations. For example, during a change process, automation can verify the health of impacted items, ensuring services are restored and operational quickly.

In Conclusion

Automation and orchestration are transforming the retail industry, enabling retailers to navigate the challenges of digital transformation, cost pressures, and customer expectations. By leveraging these technologies, retailers can streamline operations, improve efficiency, and enhance customer experiences. The journey of digital transformation in retail is ongoing, and automation will continue to play a crucial role in shaping the future of the industry.

Explore these four use cases in greater detail in our on-demand webinar replay, Automation Escape Room: Retail Infrastructure and Operations Edition.