How to Leverage Oracle Retail Technology for Sustainable and Profitable Supply Chain?
Retailers have a unique opportunity to lead the way in sustainability efforts as the world becomes increasingly aware of the need to protect the environment. In alignment with the efforts of intergovernmental organisations and NGOs which are implementing regulations, introducing carbon taxes, and establishing certification programs to encourage sustainable practices, retailers can play a significant role in operationalising sustainability globally and contribute to a greener future.
What Does the Modern Consumer Value?
Today’s consumers are more conscious than ever of the impact brands have on the environment and want to see companies taking action and making changes. In fact, Oracle's 2022 Consumer Research Report revealed that 57% of consumers care very much about whether a retailer's values such as sustainability and ethically sourced materials, align with their personal beliefs.
Consumers are also paying close attention to the level of transparency and accountability that brands have, particularly regarding their products and supply chains. The availability of information has increased dramatically in recent years, and consumers are demanding that brands be transparent about the origins of their products. Brands that fail to provide these details risk losing customers to competitors that are more forthcoming.
To meet consumer preferences, it's important for retailers to recognise that brands should offer convenience and speed without sacrificing quality or sustainability. While there's a common misconception that these two things are often at odds with each other, technology and willingness to innovate are key. Retailers can use tools like data analytics and inventory management software to make informed decisions, reduce waste and improve their bottom line while creating personalised experiences that meet consumer needs and ensure a sustainable future tomorrow.
Scope 3 Challenges That Can Be Solved with Inventory Management
Scope 3 refers to the indirect greenhouse gas emissions that occur throughout the value chain of a product. They can make up a significant portion of a company's overall carbon footprint. These emissions are caused by various activities, from raw material extraction to transportation and product disposal.
Overproduction
Retailers often face overproduction when they overestimate product demand, resulting in excess inventory that leads to markdowns and sales. This surplus inventory becomes dead stock, occupying valuable storage space and potentially ending up discarded or sent to landfills.
Raw Materials and End-of-Life
Disposal of unsold inventory can also have a significant environmental impact. This can include the depletion of natural resources, increased greenhouse gas emissions from the production and transportation of products and additional waste in landfills. To reduce the impact, retailers can prevent excess inventory by using data analytics for effective demand forecasting, managing the flow of goods and Oracle Retail Brand Compliance Management for maintaining good relationships with suppliers and collaborating on eco-initiatives and compliance also ensure environmental and labour standards are met.
Supplier Management & ESG Compliance
Businesses rely on a network of suppliers to source the products they sell, therefore maintaining good relationships with suppliers and managing the flow of goods is crucial for sustaining inventory levels and meeting customer demand.
Being under increasing pressure to demonstrate that supply chains comply with environmental, social and corporate governance (ESG) standards, retailers must ensure that the products they sell are ethically sourced and produced. With Oracle Retail Brand Compliance Management, retailers can effectively measure compliance, ensure transparency with centralised data and processes and access up-to-date and accurate supplier information.
Through the operationalisation of supplier evaluation processes and fostering collaboration across the supply chain, retailers can consistently drive global sustainability improvements over time.
Sustainability that Lasts
Minimising Scope 3 emissions can be a significant challenge for retailers. However, with the right tools, data, and collaboration, retailers can identify opportunities for emission reductions and drive sustainable business practices. But it's important to recognise that technology alone cannot make a company sustainable. It’s a tool that, when used properly, enables and supports the implementation of sustainable practices, bringing a company closer to its sustainability objectives.
As a trusted Oracle Retail partner for over 20 years, OLR can provide the necessary services to ensure your omnichannel technology remains sophisticated, efficient and scalable. We understand that every retailer has unique objectives and seeks a solution that meets their needs — which is why we dive deep into your brand's structure, values and goals in order to implement and support Oracle Retail Merchandising System in the way that works for you.
What does this all translate into? More free time. More time to innovate, grow and succeed. More time to focus on the most important matters, while OLR takes care of the rest. It’s a win-win for all parties involved.
Contact us to learn more.