RETAIL AND TECHNOLOGY NEWS

US retailers are no strangers to big data — in fact, they’re drowning in it. From searching to purchasing, transactions constantly generate data. This data deluge could swamp retailers — or buoy them.
 
According to a recent IDC study commissioned by Microsoft, retailers worldwide could gain $94 billion in value over the next four years by improving their synthesis, analysis and use of the data they collect — we call this the “data dividend.” 
 
It used to be that to analyze significant amounts of business data, retailers needed a data scientist using specialized tools — and creating jargon-heavy reports. But with the business software available today, retailers can start small to plumb their data for better insight. Virtually any store manager can import, drag and drop data to analyze their displays, stock management, customer engagement and more.   
 
Small projects are quicker to execute than large initiatives, so retailers can see immediate results — and dividends.
 
There are several ways retailers can leverage existing data and tools:
 

• Cross the streams. Start by identifying your data silos — such as sales category data, supply data or campaign results — and find ways to bring them together. How do specific product line sales compare across locations? How do loyalty card sign-ups correlate with preorders or returns? Assessing your data helps you formulate smarter questions about your business.
• Zoom in. Broad demographic segmentation is giving way to microsegmentation — using more factors to create richer, more individually detailed target groups. Instead of a vast category of women 18 to 35 who earn $75,000 to $99,000 per year, microsegmentation can give you women 25 to 29 who live in specific ZIP codes, listen to country music, shop five times per month, and drive one-third of sales for your top product. Such detail helps businesses personalize offers and service to increase sales.
• Go public. Supplement your proprietary data with public data, much of which is available for free in formats that can be imported directly into spreadsheets or other applications. Weather data from the NOAA plus daily sales by store can reveal how weather influences shopper behavior. Census data shows which customer segments are growing fastest in different parts of the country. And data from Twitter and Facebook can reveal customer sentiment and give early insight into trends — especially for new technology or product categories for which your past sales data simply can’t offer guidance

Gartner's annual assessment of the supply chain leaders revealed that front-runners in the space are expanding the demand-driven concept and leveraging their best-in-class supply chains to better serve customers.

The Supply Chain Top 25 rankings are comprised of two main components: financial and opinion. Public financial data gives a view into how companies have performed in the past, while the opinion component provides an eye to potential and reflects future expected leadership.

Gartner analysts derive a master list of companies from the Fortune Global 500 and the Forbes Global 2000, with a revenue cutoff of $10 billion. Gartner then pares the combined list down to the manufacturing, retail and distribution sectors, thus eliminating certain industries, such as financial services and insurance. Total composite scores are based on a 10-point scale.

Among the vertical examination of supply chain, five retailers were named to the top 25:

Apple. The tech giant claimed the top spot for the seventh year running. Apple's ability to keep both its e-com and in-store channels in-stock is accomplished through constant investment in its supply-chain infrastructure. The retailer's recent expansion into China has put its supply chain to the test. Composite Score: 8.85.

Amazon. Amazon claimed the number three position for the second year in a row. It is no surprise that the online leader is atop any supply chain list — the entire enterprise is built on getting products to customers as quickly as possible. While futuristic plans like delivering packages via unmanned drones may grab the headlines, it is the e-tailer's everyday commitment to supply chain efficiency that makes it a leader. Composite Score: 6.08.

Nike. The athletic shoe and apparel manufacturer and retailer climbed two positions year-over-year to finish 12th on Gartner's latest list. The company experienced impressive 57% growth in e-com in Q3 2014 and ramped up its supply-chain infrastructure to accommodate the increase in demand. Operating overhead grew 15% reflecting investments in infrastructure, supply chain capabilities, DTC and digital. Composite Score: 3.89.

H&M. The fast-fashion retailer finished in 13th position — up four spots from its 2013 finish. H&M's ability to rise in the rankings is impressive considering its supply chain underwent a major upheaval less than a year ago when it went live with e-commerce in the US. Composite Score: 3.83.

Walmart. The big box retailer dropped one position to 14th place in this year's rankings. Having built its reputation on everyday low prices and being a one-stop shop for everything shoppers need, Walmart can ill afford to suffer supply chain hiccups. When the retailer experienced disruptions in its chain during the winter's harsh weather, Walmart responded by incurring incremental expenses for third-party transportation services and overtime wages to keep product flowing. Composite Score: 3.52