Your say--Success overseas relies on robust supply chain

The news that online fashion retailer Asos has moved into the European market is part of an exciting new trend of international expansion that we’re seeing among retailers. A recent report by independent think tank FreshMinds entitled “Multichannel Matters: A route to next generation retailing”, found that 44 percent of UK retailers are already selling from the UK to overseas; with a further 14 percent intending to start doing so. Of these, half will use own-branded websites to launch their international operations.
 
However, any entry into a new market means an extension of product range and supply chain capabilities. In order for the European sites to succeed, they must ensure they have the correct infrastructure in place to guarantee a smooth customer experience.

Of all supply chain issues, stock availability is a challenge that dominates retailers’ concerns. Forty-five percent of retailers consider problems surrounding stock availability as the most significant issue they have faced over the past year, with well over a third (40 percent) also anticipating that better product availability is going to be the key customer requirement in years to come. Yet while the majority of retailers see it as a problem, less than a quarter (24 percent) have prioritised investing in it.

The report has revealed that some UK retailers prioritise investment in front-end, point-of-sale improvements such as web storefronts rather than back-end processes such as stock availability, meaning that they may be underprepared for entry into international markets.

Stock availability across channels is a minimum requirement for consumers. Retailers, therefore, need to ensure their infrastructure is able to serve these basic customer expectations, with every point of the brand experience seamless, or they risk letting down their customers and impacting the bottom line. Another reason to invest in a more efficient supply chain: In another survey within the report, 61 percent of customers said that they would spend more with a retailer if they got product availability right.

Roger Burns is business development director, fashion at DHL Supply Chain. The Multichannel Matters reports can be downloaded here.