Strengthening retailer Return on Assets (ROA) through new transportation models
November 19, 2019

The retail landscape is more competitive than ever, driven by consumer expectations for personalized experiences and the rise of digital technology. To meet these demands and to capitalize on the opportunities, retailers must design unique retail experiences and transform their supply chain to remove friction from their delivery network.


Disruption in Retail: The Amazon Effect

The continuous evolution and disruption of the retail market, both online and in physical outlets, emerging from increased e-commerce is known as the Amazon effect. Going from an online bookstore upstart to inventing a new retail experience, Amazon is a true retail disruptor and is constantly innovating around the consumer experience. With their recent acquisition of Whole Foods, they’re creating a hybrid retail experience that traditional retailers and supply chain models are challenged to meet.

Amazon’s delivery network is a logistics phenomenon that allows for the delivery of virtually any item to a shopper’s doorstep in a matter of days or even hours. With little evidence of consumer expectations easing, retailers are pressured to match Amazon’s speed and efficiency. This pressure has increased stress on retailer assets and processes from manufacturing to transportation.

Building agility and flexibility into transportation models is essential to creating the differentiated buying experience consumers demand. This needs to be done in parallel with new operating models that retailers need to grow, improve efficiencies, and increase Return on Assets (ROA).

Measuring Retail Transformation

ROA is a significant gauge of efficiency measuring how well a business uses its assets to make a profit. Efficient supply chain management will help gain a competitive advantage by streamlining how products move through your operation and get to your customers. Improving supply chain management efficiency will boost ROA through its effect on both profit and assets.

This transformation does not come without challenges to manufacturers, warehousing, and transportation carriers. In our latest infographic, see how retailers can strengthen ROA and deliver experiences customers demand through new transportation models.


How Cardinal Helps Retailers

Cardinal Logistics helps retailers reduce friction in their supply chain and protect their brands through custom-designed solutions, integrated transportation IT, and streamlined processes. Retailers achieve the benefits of highly trained dedicated drivers, built-in fleet capacity and consistent last mile delivery, installation, and assembly services without the capital investment and overhead of a private fleet. Learn how we can help your retail business.

Fill out the following form to see more about the Amazon Effect

Contact Cardinal Logistics to explore how we can create innovative transportation and technology solutions that meet your needs today and keep pace with the evolving retail market. Call us today at 704-789-2000.

You might also like