The Future of Retailing A Logistics Perspective

By Tony Sciarrotta , Reverse Logistics Association

They say that the retail experience is undergoing a radical technology shift. Ostensibly, this will make many business processes obsolete. Such disruptions have occurred before—when catalog sales were introduced; when big-box stores displaced mom-and-pop stores, business models changed. Somehow, the retail experience survives. Squeezing the fruit, trying on the clothes, will never be totally replaced by on-line shopping and drones. My smart refrigerator cannot re-order tomatoes for me! Yes, some store brands are suffering and will not able to adapt, but the retail experience will find a new model.

Some form of a brick and mortar store will always be a part of our economic cycle. While the process will become more automated, human interaction and decision making will remain its crucial nexus. The positive side is that these evolutionary changes also enable better decision-making with less effort. Being able to see yourself in a virtual wardrobe without having to physically change clothes will be nice. That “virtual reality” view of yourself will be better than a cramped changing room with a mirror. Picturing that new sofa in your home virtually will save a lot of buyer’s remorse.

There is a raft of new technologies emerging for the retail channel. Experiential retail with augmented and virtual reality is just a part of our future shopping experience. Virtual display technology that collects shopper reactions and engages in-store-customers will enhance the experience. Micro-fulfillment and semi-customized manufacturing (3-D printing) with in-store personalization will evolve stores into small manufacturing and warehousing outlets.

Logistics will also continue to play the critical enabling role in the process. However, logistics, too, will undergo many changes: automated driverless vehicles and drones and vision recognition will dramatically impact the logistics industry. We can expect automation to replace many of today’s logistics staff, though new job descriptions will supplant “truck drivers.”

CNBC reported last January (2019) that one-quarter of American jobs are at a high risk of automation. Most of those jobs will be in low-skilled labor including warehousing and logistics. Their summary of a Brooking Institute report suggested that 55% of jobs in material handling and transport are in danger of automation, as are 49% of repair jobs.

While this may be viewed as pessimistic by many, human staff will continue to be required and valued, but with higher level skill sets. Can you manage a robot? Can you fly a drone? If yes, then your job is secure. If not, now is probably a good time to learn. Those who master such skills before corporate decides to “upgrade” are likely to be the ones who get the new positions.

It is not that difficult to upgrade your skills. The Reverse Logistics Association continues to offer seminars and events that provide updates and training on cutting edge issues facing our industry. The RLA has targeted being a leading promoter of innovation in logistics. Our Standards Committee has developed innovative protocols for enhanced product labeling. These enhancements—adopted by ANSI, facilitate applications in repair and refurbishment, as well as for the consolidation of logistics labeling. We are now exploring the use of blockchains for refurbished product disposition and asset management. We are also exploring focus groups and new product evaluations with the creation of a Logistics Technology Roundtable. We expect to begin such focus groups to begin this coming year. Contact our Standards Committee through our web site if you would like to participate in these focus groups: https://rla.org/committee/standards.

The market may evolve. But somebody will always have to get the products and the materials from one place to the next. There will always be a need for competent staff who are on-top of the trends and technologies that drive (pun intended) commerce. The RLA is a critical part of that process.