Opinion: How tech will disrupt the retail supply chain

Last month Adidas unveiled the first shoe to come out of its robot factory.

The sportswear brand understands that its investment in tech is a necessary step to ensure its existence in a trend-driven market.

Adidas isn’t alone – companies around the globe are increasingly training robot armies and fleets of disruptive technologies to combat inefficiencies at every point of the supply chain.

Unilever has already seen prototype production time cut by nearly half after investing in 3D printing.

Change is to be expected, naturally, but if retailers are to lead change they’ll need to get to grips with the key areas of transformation

Disruptive technologies, which include the Internet of Things (IoT), artificial intelligence (AI) and 3D printing, are fed by multiple, ever-replenishing data sources, enabling tasks that were once carried out by humans to be done by machines far more efficiently, conveniently and cheaply.

Tech is helping supply chain processes transform from being simply reactive to become far more proactive, even predicting potential potholes before they cave in.

Change is to be expected, naturally, but if retailers are to lead change they’ll need to get to grips with the key areas of transformation.

Factories

Factories are driven by productivity. Competitive retail targets mean factory owners have to work their staff harder to meet burgeoning demand.

Historically, there has been limited means to survey individual workers, but networks and sensors are now allowing insights into employee working conditions as well as output.

Aggregated, personalised data on workers will allow factory bosses to make tweaks to processes for all staff, opening up opportunities to increase productivity.

Additionally, one small sensor could provide accurate, real-time data to inform buying decisions.

These technologies could also greatly reduce the levels of falsification in the auditing process, giving retailers greater power to weed out suppliers that fall short on worker welfare.

Factory workers

Technological innovation could directly impact an employee’s quality of life, including working hours and pay.

We’re developing a new app in which users will be able to log responses to questions about quality of their working life.

Accumulated information will help build a picture of each factory’s performance and staff happiness. Data will also reveal how to make improvements to equipment, greatly boosting efficiency and quality.

Moreover, creating an open, transparent environment where people can share their opinions will help factories improve and grow.

Retailers and consumers

Access to core data and heightened connectivity will provide buyers and consumers with important product information, from how the product was created to its environmental impact.

Sage Project’s new food platform signals the possibilities with dynamic product labelling.

Retailers need to be proactively adapting their working practices for tomorrow’s world

The app deconstructs more than 20,000 fresh and packaged foods into interactive, personalised information that make the basics of food labels – calories, top nutrients, ingredients and allergens – easier to digest.

Retailers can work with brands to make in-store product information far more accessible. There’s also the potential for competitive product pricing for ethically sourced goods. Each step will take us further towards fine-tuning the supply chain.

Retailers need to be proactively adapting their working practices for tomorrow’s world.

Technology is the vehicle to change. Now is the time to consider how you can add value to the retail sector, without sacrificing the people working within it.

• Wendy Kent is chief operating officer at product design and procurement specialist Matrix