Retail, CPG and Logistics
Commonly outsourced retail functions: Unlocking efficiency and cost-saving with retail outsourcing
Running a retail business is often like trying to “master it all”. Managing the day-to-day operations of the company to procurement, inventory management, order fulfilment, managing the eCommerce platforms, and keeping up with the evolving demands of the customers and the market can become challenging. However, managing everything may become overwhelming and critical functions may fail.
This is where outsourcing in the retail industry emerges as a winning strategy. Infosys BPM offers new-age retail automation solutions that include category management, merchandise management, retail store operations, e-commerce operations, and omni-channel management. The expertise provided by Infosys BPM allows retailers to offload some tasks so that they can better focus on the things that matter – meeting the expectations of the retail customers.
Benefits of outsourcing in the retail industry
As the international markets are evolving, retailers are facing many operational challenges, with the top three concerns being supply chain management, rising operational costs, and talent shortage. Relying on external partners to leverage retail automation solutions can help companies tackle these concerns and enjoy benefits like:
Reduced costs
Cost reduction is one of the primary motivations when it comes to exploring outsourcing in the retail industry. Engaging with third-party providers for tasks like customer service, marketing, or IT support can significantly ease the financial pressure and be a great cost-saving measure with retail outsourcing.
Increased efficiency
Leveraging retail automation solutions can help companies outsource and automate time-consuming, repetitive tasks. As a result, they can focus their time, energy, and resources on the core retail functions and achieve enhanced operational efficiency.
Round-the-clock support
A strong online presence is a cornerstone of survival for modern retailers, creating the need for round-the-clock customer service. Offering 24/7 support in-house can be logistically and financially challenging. Outsourcing customer support operations can help retailers ensure round-the-clock support for the customers, bolstering customer satisfaction.
Access to a larger talent pool
Leveraging retail marketing outsourcing or retail technology outsourcing solutions can give companies access to a specialist talent pool. This not only reduces costs associated with recruitment and talent retention but can also improve the quality and efficiency of such specialised tasks.
Top six outsourced retail functions
The benefits of outsourcing in the retail industry are indisputable. When it comes to deciding what tasks to outsource, it is critical to understand which tasks are best suited for an external agency to handle and what tasks you must complete in-house. Six of the most common retail functions companies can outsource include:
Customer service
Outsourcing customer service operations not only ensures 24/7 support for customers without inflating operational costs but also helps you implement industry best practices with expertise from the outsourcing partner. As a result, retailers can streamline handling inquiries and complaints, delegate support functions to external partners, and optimise service delivery for enhanced customer satisfaction and cost-saving with retail outsourcing.
Digital marketing
Retail marketing solutions give companies access to specialised talent for digital and content marketing, content creation for various campaigns, social media management, and SEO. This approach can help you improve brand visibility, align marketing strategies with the evolving industry trends, and focus on growth without managing an in-house team.
Logistics management
Outsourcing logistics management – encompassing inventory management, warehousing, and order fulfilment – ensures timely delivery (or returns) and smooth operations across the supply chain. Retail automation solutions allow retailers to streamline order processing, maintain optimal stocks, and minimise inventory errors, thereby improving operational efficiency while cutting logistical costs.
IT infrastructure and support
Retail technology outsourcing solutions give retailers access to advanced IT support, web development expertise, and eCommerce solutions. Imperative for survival, leveraging these solutions can help retailers enhance website performance, ensure security, and stay competitive in the evolving digital landscape.
Data analytics and reporting
Analysing sales trends and operational data is critical for facilitating data-driven strategic decisions. Outsourcing solutions in the retail industry allow businesses to leverage expert analytics and reporting tools to identify trends, extract actionable insights, and drive better decision-making without adding to operational costs.
Administration
Lastly, retailers can outsource administrative tasks like payroll, HR, and vendor management to reduce the workload and increase the efficiency of the in-house team. Ensuring these non-core but essential activities are managed efficiently can help retailers focus on customer engagement and strategic growth.
Outsourcing in the retail industry has cemented its position as an effective strategy that can help retailers enhance efficiency, boost customer satisfaction, and optimise operational costs. With a smart, highly responsive retail experience, companies can be smarter, more agile, and more responsive as they navigate the constantly evolving retail markets and demonstrate their ESG commitment as well.
