Retailers, Don't Fret Robotics. Instead, Embrace It for Customers' Happiness

Robotic Automation is taking over the retail industry, and it causes all sorts of reactions. In this article, Kevin Twitchell proposes to leave doubts behind and focus on customer experience, which will demand both technology and people's best efforts.

Robotic Process Automation (RPA) is a type of business process automation technology based on the use of software robots that reproduce human actions, interacting with various IT systems at the user interface level.

The technology can be used to perform various functions of the back office, as well as in sales processes, customer support. Here are some important benefits and features:

Functionality

Robotization can be effectively implemented in any division of the company, where staff are forced to spend up to 70% of their time on daily mechanical actions, which in turn slows down the process as a whole.

These are primarily Customer Service and Finance, Purchasing and Sales, HR, Marketing and Legal.

Productivity growth

The introduction of RPA is guaranteed to increase productivity by 40%. The program works without errors, at high speed, continuously 24/7 at any time. Compared to humans, one RPA robot processes data under specified conditions 4-6 times faster and can replace up to 7 employees of the department, depending on the complexity of the process.

Accuracy of execution

Robotization allows not only to significantly increase the productivity of business processes, but also to minimize the number of mechanical errors that are inherent in man.

Properly configured robot works with 95% accuracy, clearly executes all assigned commands, keeps a log of their actions, allows you to easily recover time and establish the causes of deviations.

Cost reduction

By investing once in the development of RPA-robot, in the future the company saves on operating costs associated with the maintenance of workers - wages, training, hospital, HR services and more.

Scaling business processes with RPA is 2-3 times cheaper than traditional staff expansion.

Security

Robotization easily provides a complete description of their actions (logs) and allows flexible control of operational performance.

RPA robots can be programmed to back up in the event of a system failure, reduce threat detection and response times using automatic hazard notification.

Quick return on investment

The standard payback period lasts from 6 months to 2 years, depending on the volume of transactions. An accurate estimate is possible with complete data on all costs associated with the selected business process. The life cycle of an RPA project consists of 3-6 weeks - for pilot development, 3-8 months - for process robotization and approximately 1-2 years - for refund.

Ocado Technology, a DataArt client, recently partnered with Kroger to run several fully robotic warehouses in the U.S. The first warehouse, in Cincinnati, Ohio, is already up and running. Warehouse automation has become increasingly popular over the past few years, and the technology has significant potential for expansion in the grocery delivery sector. Ocado Technology was an early adopter of automated warehouses in the U.K. Now, the company has brought its innovative approach to the U.S. with the potential to elevate consumers' experience.

Some critics debate if automation is the right direction for the retail industry: they worry it will cause a decrease in employment opportunities and that there could be a potential backlash against Kroger. The fear of the unknown is an expected reaction to any change. However, it is essential to remember that automated warehouses still require workers to manage their operations. Robots can ease constraints on parts of the supply chain but can't entirely replace human workers.

As technology shifts the industry, customers are changing their preferences too. For example, around a half of consumers in the U.S. say they are more interested in online payment options in 2021 than before the pandemic, according to a recent survey by Savings.com. Over the past year, people also started increasingly value quick shipment (51%, men 41%), fast checkout (women 51%, men 41%), and quality of customer service (46%). In short, the comfort and convenience that became a necessity during the pandemic is now an expected part of the post-pandemic business.

Let's examine the situation through a global lens. Multinational companies have an added challenge: creating a consistent customer experience across several countries. For example, Unilever, an international consumer goods company and DataArt's client, said in its yearly growth report that one of the strategic choices was to digitize the wholesale and retail trade and focus on e-commerce. Unilever operates in around 190 countries, so it is an excellent example of how consistent customer experience will be a prerequisite for any business in 2021. Unilever works on every brand representation online to match its glory on a shelf in stores and actively implements customer choices via data-driven merchandising and artificial intelligence.

Automation has been a trend in other industries, too. For example, NASDAQ, a global technology company and DataArt client that works with capital markets and other industries, was the first in its field to implement a completely electronic market. In 1971, it was a turn from traditional floor-based trading models to automated data centers. As a result, automation allowed more efficient and faster transactions, which was a step closer to volume levels that modern market processes today. Being one of the first businesses to implement new technologies brought NASDAQ to the success of today.

When Amazon purchased Whole Foods, the logistics company went to lengths to maintain Whole Foods' customer-friendly shopping experience while improving the chain's technology. Amazon implemented Prime loyalty savings with discounts and free delivery for members shopping at Whole Foods. Now, Amazon Fresh rocked the market in 2020 with its contactless delivery option. As Amazon Fresh focuses more on savings and value, Whole Foods mainly provides healthy top-shelf products. Amazon understands the importance of user experience and applies this knowledge by introducing two grocery stores with different demographics and benefits, creating competition in both sectors, and setting a higher standard for customer expectations.

With its new partnership with Ocado, Kroger is also setting a new standard for efficiency – a seamless consumer experience. But that does not mean the human touch will leave retail. Instead, as online and offline channels mix into a seamless omnichannel experience, new opportunities for interactions and development emerge.

As retail companies of all sizes work to stay up-to-date with the growing demands of clients, the risks of those decisions grow larger. Thankfully, technology experts at DataArt can take the guesswork out of the decision-making process. Are you ready to bring new software solutions to your business?