Many changes are taking place in retail, and process mining helps companies meet these challenges and make the most of new opportunities. The number of online stores is expected to double in the next decade, so that retailers are dealing with more complex logistics and supply chain issues. To keep up, they need to optimize and adapt their fulfillment operations.
Consumers are turning to more affordable options, such as small packages and cheap brands, and that's why retailers urgently need to explore data integration and process mining applications in the retail industry. This technology enhances efficiency, increases profits, and prepares businesses for technological integrations. Let's explore some of the opportunities process mining provides to retailers.
Foundation for AI
New technologies, such as generative AI, require data enhancement. You need to understand your business operations to lay the groundwork for integrating these advanced tools. But how process mining improves retail operations in this case?
Take the example of Carrefour, the leading French retailer operating in 40 countries with over 14,000 stores. They've combined process intelligence with generative AI to streamline their operations: Carrefour uses data from ChatGPT and process mining, to speed up the process of comparing quotes from indirect buyers. What used to take 30 minutes manually can now be done in just 10 minutes — and it potentially saves them thousands of euros.
Carrefour is also exploring how the combination of process mining and generative AI can be applied to other areas like marketing and human resources. This will save them even more time and money.
Improving Returns
Last year alone, 27% of UK shoppers sent back their online clothing purchases. These returns cost retailers billions of dollars annually, but process mining applications in the retail industry can optimize the returns process and identify the reasons why customers are sending items back in the first place.
Retailers get ahead of issues that previously led to returns: they identify and spotlight the errors that cause orders to be returned or canceled. For example, Swiss luxury goods retailer Globus uses process mining to uncover inefficiencies within its systems that led to returns. It found that an issue between different systems allowed one customer to reserve an item online while another purchased it (it led to unnecessary returns before) .
Due to process mining benefits for retailers, Globus reduced cancellation rates by 20%. It also deployed a logistics dashboard to track delivery times and returns in real time.
Efficient returns are a must-have of customer service today. Poorly handled returns turn customers away, but process mining insights ensure that returned products are quickly resold. Enhancing retail efficiency with process mining is a way for retailers to avoid both overstock and understock traps, and keep handling costs under control.
A More Efficient Future
It's the perfect time for retail leaders to explore the benefits of optimizing retail workflows with process mining. Process mining tools simplify how businesses run and help leverage generative AI and other advanced technologies.
Again, how process mining improves retail operations? Importantly, process mining makes customers happy, especially when it comes to returns. Online stores grow and customers look for cheap deals, but process mining helps retailers to adapt to whatever the market brings them. They stay nimble and customer-centric.
Conclusions
Let's sum up what process mining means for retailers. Due to optimizing retail workflows using process mining, every failure in their retail operations will be a stepping stone to success rather than a stumbling block. This technology will reveal hidden pathways to greater efficiency and happier customers. Instead of focusing on routine issues, retailers can keep customers coming back for more.
FAQ
How can process mining help retailers optimize their inventory management?
Process mining gives retailers a clear overview of their inventory processes, so they can spot and fix inefficient processes. Real-time data analysis allows retailers to better decide how much stock to carry and when. Enhancing retail efficiency with process mining means reducing costs and avoiding overstock or shortages.
What are the key metrics retailers should track when implementing process mining?
When using process mining, retailers should focus on the cycle time of the process, frequency of bottlenecks, and deviation rates. Monitoring these metrics will help identify areas needing improvement and deliver consistent quality to customers.
How does process mining enhance customer experience in retail operations?
Faster checkouts, easier returns, and always finding what you came for are all the results of process mining benefits for retailers, identifying and fixing inefficiencies in particular. Due to this method, customers are happy and are more likely to return to the store.
What are the common challenges retailers face when adopting process mining, and how can they be addressed?
Retailers may face problems with integrating data, resistance to new ways of working, and a lack of competent personnel. But these problems can be solved through thorough training, fostering a culture open to change, and selecting process mining tools that work well with existing system.
