Digitalization of the retail chain and store automation

Both thinking in chains and applying ICT are essential for industries in which buying and selling, and logistics play a central role. Retail is an industry that fits this description perfectly. This report describes a study conducted by Dialogic within the framework of the o3d2009 program, focusing on the innovation position of the Dutch retail sector regarding chain digitization. The research objective was: To inventory chain digitization initiatives within a large number of branches of the Dutch retail sector, combined with creating a 'sector snapshot' to establish the conditions and principles for chain digitization, in order to translate this into recommendations to encourage (clusters of) sector organizations to enhance chain digitization and reduce administrative burdens in the industry. We specifically looked for initiatives where retailers played a central, rather than subordinate role in linking information systems and item files with suppliers and/or wholesalers. Based on interviews and distribution of questionnaires across 35 different retail sectors, we found that only two sectors are progressing towards this form of open chain digitization for independent retailers. The sector organization for furniture stores and the sector organization for fashion, footwear, and sports stores have both made chain-wide agreements on product and communication standards, as well as the exchange of (strategic) management information. This has been implemented in a central internet platform (portal or private marketplace) where retailers, wholesalers, and manufacturers organize and manage their orders and transactions on an equal basis. Of note is that the participating retailers are not larger than average in terms of product range and purchasing volume, manage very different product chains within the platform with both high and low turnover, operate based on both stock and order, and have both mixed and uniform ordering patterns, etc.