Customers today expect products to be available at all times, orders to be processed smoothly and information to be available in real time – regardless of whether they use Click & Collect, shop online or in the store. Behind this seamless shopping experience is a complex network of commerce platforms, merchandise management, logistics and supply chains. Thomas Henzler, DSAG's Head of Sales, Production & Logistics, explains in a guest article what companies should pay attention to so that these areas work together smoothly.

Between stability, resilience and innovation – this is the area of ​​tension that retail currently finds itself in. On the one hand, there are fundamental transformation projects such as migration to SAP S/4HANA, the modernization of existing system landscapes and the introduction of new CRM or customer loyalty platforms. On the other hand, customers' expectations are constantly increasing: they want to know at all times whether a product is available, when it will be delivered and which channel is the most convenient way for them to obtain it. There are also external challenges such as regulatory requirements, volatile supply chains or geopolitical developments, which can have a direct impact on international flows of goods. Competition is also increasing the pressure with more and more new platform providers.

How do companies manage to survive successfully under these dynamic conditions? This question is not trivial to answer.

Integration as the key to success

What is certain is that it is not enough to modernize individual software components or introduce new applications. A clear strategy for their use and interaction is essential: commerce platforms, customer portals and loyalty solutions must be closely linked to merchandise management, warehouse management, product data management and logistics. Solutions such as SAP S/4HANA, SAP EWM or SAP Customer Experience can create the technological basis for this. However, they only develop their potential if they are part of an integrated system landscape in which data can flow across system boundaries. Only then do companies receive a reliable overview of inventories, orders and delivery processes and can reliably keep promises to customers.

Omnichannel requires cross-system processes

The importance of integration and cross-system processes is particularly evident in the omnichannel environment. Today, customers expect to be able to switch flexibly between online shops, branches and mobile channels. Whether Click & Collect, displaying the availability of products in a nearby branch or delivery from a regional warehouse – all of these services require that the underlying processes and systems mesh seamlessly.

AI and data: First the basis, then the intelligence

This interaction also forms the basis for the successful use of AI, as well as context to business processes – and data. Because AI is only as good as the data it accesses. For retail companies, this means: If you want to use AI for customer contact, product recommendations or process optimization, you must first create a reliable, well-maintained database. In the next step, agents or tools such as generative voice and chatbots – which SAP would like to provide as part of its partnership with Parloa, for example – can automatically and effectively support customer conversations via telephone, chat or messenger. In this way, service processes can be made more efficient. What's more: The new SAP Business AI platform will in future be able to ensure the context between business processes, data and AI throughout the entire life cycle.

Transparency in supply chains and logistics

The ability to transparently control supply chains and flows of goods remains just as important. Current events, such as those in the Strait of Hormuz, show how quickly geopolitical developments, trade conflicts or bottlenecks can unsettle established processes. With solutions such as SAP EWM or supply chain applications, SAP offers a broad portfolio for this. The real added value can also be seen here when companies seamlessly connect these solutions and thus create transparency along their processes – end-to-end. This transparency is increasingly becoming a competitive factor, especially in retail, where availability and delivery times directly influence the customer experience.

Complex regulations, increasing requirements

Topics such as customs clearance, sustainability requirements, guarantees of origin and reporting obligations no longer only affect corporations. Increasing regulatory requirements now pose challenges for all companies of all sizes.

This once again shows the importance of an integrated ERP platform. SAP S/4HANA can help bring together financial, procurement, logistics and sales processes and provide the necessary transparency for compliance and reporting requirements. Nevertheless, introducing software remains only part of the task. Companies must regularly review their processes and adapt them to new market requirements.

Technology is only part of the answer

Whether it's about using AI sensibly, making supply chains more robust or meeting regulatory requirements – the tasks in retail are not getting any smaller. SAP solutions can help companies overcome these. However, your success depends on a clear target architecture, consistent processes and a reliable database. Anyone who creates this basis lays the foundation for more resilience, better customer experiences and the necessary ability to innovate in retail.