|By PR Newswire||
|December 12, 2012 04:01 AM EST||
- New Research from CEBR Sponsored by NetSuite Reveals That Limited Supply and Poor Demand Planning is Driving Out-of-Stock Situations for Retailers in Vital Christmas Period
- Retailers stand to lose around 1.87 billion pounds Sterling in revenues by not being able to satisfy consumer demand
- 1.7 billion pounds Sterling could be lost to competitors this Christmas due to lack of product availability
- A total of 147 million pounds Sterling may be lost to retailers altogether, as consumers are unable to purchase out-of-stock products
- More than half of retailers surveyed (66 percent) experienced stock-outs of particular products last Christmas, with these retailers not being able to fulfill an average of 21 percent of their Christmas orders due to a lack of product availability
- Half of the top causes of stock-outs are entirely within the retailers' control: inaccurate demand planning, wrong retail channel mix and a lack of a holistic view of the business
- Multi-channel retail may continue to challenge retailers this Christmas – 20 percent of consumers surveyed say they plan to shop through a mobile device this Christmas, while 68 percent of consumers plan to spend more online compared to in-store
LONDON, Dec. 12, 2012 /PRNewswire/ -- A research report sponsored by NetSuite Inc. (NYSE: N), the industry's leading vendor of cloud-based financials / ERP software suites, today reveals that UK retailers could lose an estimated £147 million of revenue this Christmas due to missed sales opportunities through out-of-stock products, and an additional £1.7 billion to their competitors, as consumers shop elsewhere for their Christmas gifts. The research is based on economic models provided by the Centre for Economics and Business Research (CEBR) and primary research with UK retail businesses, and a nationally representative study of 2,000 UK consumers conducted by Vanson Bourne. The findings are available for free download as part of NetSuite's latest retail report The Christmas Gamble at www.thechristmasgamble.co.uk.
The research found that the average retailer is losing 10 percent of its Christmas revenue to out-of-stock situations:
- More than half of retailers surveyed (66 percent) were out-of-stock of particular products last Christmas, with clothing (52 percent), food and drink (44 percent) and electrical goods (44 percent) most commonly out-of-stock. With 41 percent of consumers surveyed stating that they plan to go to a competing website or retailer to get the Christmas gift they want, retailers are set to lose as much as £1.7 billion to competitors this Christmas.
- On average, these retailers could not fulfill 21 percent of Christmas orders last Christmas due to a lack of product availability – leading to a potential overall revenue loss of £147 million through missed sales opportunities.
A truly multi-channel Christmas, but online product availability hampers retailers' revenues
UK consumers are now looking for a true, multi-channel experience this Christmas season, with the average consumer conducting 43 percent of their shopping in-store and 57 percent online. Shopping via mobile devices can play a key role in driving sales this festive season; almost 20 percent of consumers say they plan to shop through a mobile device this Christmas, and almost one in 10 of consumers under 35 said that their mobile device is their primary shopping tool. A quarter of consumers also plan to spend more on their Christmas shopping this year, with 68 percent expecting to spend more online compared to in-store.
Andy Lloyd, General Manager of Commerce Products for NetSuite said: "Delivering an omnichannel retail experience is a key challenge for retailers as consumer shopping habits continue to shift, both in-store and online. Stock-outs in particular cost more than lost revenue; they can tarnish a brand, especially over the highly emotionally charged festive season. Retailers need to take steps to avoid stock-outs wherever possible, and ensure their commerce systems allow them to quickly recover from misallocated inventory by helping customers to purchase products from alternate store locations or channels, such as eCommerce, when the store is out of stock."
The causes of stock-outs
When exploring reasons for stock-outs over the Christmas period, 52 percent of retailers surveyed put this down to inaccurate demand planning; 42 percent said that they did not have the right products available in the right place (online or in-store) at the right time; while 34 percent said that they lacked a holistic view of the business. In preparation for this Christmas:
- Almost 20 percent of retailers have not ordered additional stock ahead of Christmas.
- 10 percent of these retailers claim financial constraints to be the cause of lack of stock.
- Over half of retailers have ordered additional stock across their entire product range.
- 30 percent of these retailers have ordered additional stock across items that were popular last Christmas.
Andy Lloyd continued: "While it's great to see that a large proportion of retailers are prepared for Christmas this year, our research shows that many of the reasons behind out-of-stock products comes down to factors which are within retailers' control, with inaccurate demand planning affecting more than half of retailers alone."
"The figures from the CEBR demonstrate the cost of taking a gamble this Christmas when it comes to demand planning. To remain competitive, retailers must invest in their systems and processes to ensure that they have full business information transparency, greater customer insight and better demand planning capabilities. Being able to tightly align sales forecasts with inventory replenishment plans can eliminate stock-outs, improve customer satisfaction, whilst ultimately ensuring a retailer can remain competitive during such an important shopping period."
Colin Edwards, economist at CEBR, added: "The Christmas period represents the most lucrative revenue opportunity of the year for retailers, comprising one fifth of annual revenues on average. This means at this time of year it is more important than ever for retailers to manage their stock levels effectively, allowing them to successfully compete with their peers and capitalise on the potential revenues offered by Christmas."
NetSuite's SuiteCommerce platform is a new commerce-aware platform that provides a central system to manage all transactions and associated interactions with consumers and other businesses over multiple touchpoints (website, tablet, smart phone, social media site, in-store, etc.). SuiteCommerce delivers Commerce as a Service, which is a presentation independent, globally accessible capability supporting transactional channels, and providing sophisticated demand-planning and supply chain management capabilities. For more information, please click here.
About the research
The research is based on economic models provided by the Centre for Economics and Business Research (CEBR) and primary research with 100 IT decision makers at UK retail businesses, as well a nationally representative study of 2,000 UK consumers conducted by Vanson Bourne. The findings are available for free download as part of NetSuite's latest retail report The Christmas Gamble at www.thechristmasgamble.co.uk.
About Vanson Bourne:
Vanson Bourne is a specialist research-led consultancy carrying out user research within a technology context. Vanson Bourne's clients range from start-ups to well-known companies that need expert guidance, delivering robust and credible research-based analysis.
Today, more than 12,000 companies and subsidiaries depend on NetSuite to run complex, mission-critical business processes globally in the cloud. Since its inception in 1998, NetSuite has established itself as the leading provider of enterprise-class cloud ERP suites for divisions of large enterprises and mid-sized organizations seeking to upgrade their antiquated client/server ERP systems. NetSuite excels at streamlining business operations, as demonstrated by a recent Gartner study naming NetSuite as the fastest growing top 10 financial management systems vendor in the world. NetSuite has continued its success in delivering the best cloud ERP/financial suites to businesses around the world, enabling them to lower IT costs significantly while increasing productivity, as the global adoption of the cloud is accelerating.
For more information about NetSuite, please visit www.netsuite.co.uk.
NOTE: NetSuite and the NetSuite logo are service marks of NetSuite Inc.
Cautionary Note Regarding Forward-Looking Statements:
This press release contains forward-looking statements relating to expectations, plans, and prospects including expectations relating to the future growth of the retail and mobile commerce markets. These forward-looking statements are based upon the current expectations and beliefs of NetSuite's management as of the date of this release, and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements including, without limitation, the risk of continued adverse and unpredictable macro-economic conditions. All forward-looking statements in this press release are based on information available to the Company as of the date hereof, and NetSuite disclaims any obligation to update these forward-looking statements.
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
Sep. 28, 2016 06:00 PM EDT Reads: 1,760
[session] How Disruptive IoT Will Be for the Enterprise By @Citrix | @ThingsExpo #IoT #BusinessIntelligence
Businesses are struggling to manage the information flow and interactions between all of these new devices and things jumping on their network, and the apps and IT systems they control. The data businesses gather is only helpful if they can do something with it. In his session at @ThingsExpo, Chris Witeck, Principal Technology Strategist at Citrix, will discuss how different the impact of IoT will be for large businesses, expanding how IoT will allow large organizations to make their legacy ap...
Sep. 28, 2016 05:15 PM EDT Reads: 217
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the protocols that communicate data and the emerging data analy...
Sep. 28, 2016 05:00 PM EDT Reads: 1,714
As ridesharing competitors and enhanced services increase, notable changes are occurring in the transportation model. Despite the cost-effective means and flexibility of ridesharing, both drivers and users will need to be aware of the connected environment and how it will impact the ridesharing experience. In his session at @ThingsExpo, Timothy Evavold, Executive Director Automotive at Covisint, will discuss key challenges and solutions to powering a ride sharing and/or multimodal model in the a...
Sep. 28, 2016 04:45 PM EDT Reads: 357
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management solutions, helping companies worldwide activate their data to drive more value and business insight and to transform moder...
Sep. 28, 2016 04:30 PM EDT Reads: 2,804
Whether they’re located in a public, private, or hybrid cloud environment, cloud technologies are constantly evolving. While the innovation is exciting, the end mission of delivering business value and rapidly producing incremental product features is paramount. In his session at @DevOpsSummit at 19th Cloud Expo, Kiran Chitturi, CTO Architect at Sungard AS, will discuss DevOps culture, its evolution of frameworks and technologies, and how it is achieving maturity. He will also cover various st...
Sep. 28, 2016 04:15 PM EDT Reads: 1,863
SYS-CON Events announced today that eCube Systems, a leading provider of middleware modernization, integration, and management solutions, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. eCube Systems offers a family of middleware evolution products and services that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...
Sep. 28, 2016 04:15 PM EDT Reads: 1,485
Creating replica copies to tolerate a certain number of failures is easy, but very expensive at cloud-scale. Conventional RAID has lower overhead, but it is limited in the number of failures it can tolerate. And the management is like herding cats (overseeing capacity, rebuilds, migrations, and degraded performance). Download Slide Deck: ▸ Here In his general session at 18th Cloud Expo, Scott Cleland, Senior Director of Product Marketing for the HGST Cloud Infrastructure Business Unit, discusse...
Sep. 28, 2016 04:15 PM EDT Reads: 2,428
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of So...
Sep. 28, 2016 04:00 PM EDT Reads: 1,481
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Sep. 28, 2016 03:15 PM EDT Reads: 4,144
What are the new priorities for the connected business? First: businesses need to think differently about the types of connections they will need to make – these span well beyond the traditional app to app into more modern forms of integration including SaaS integrations, mobile integrations, APIs, device integration and Big Data integration. It’s important these are unified together vs. doing them all piecemeal. Second, these types of connections need to be simple to design, adapt and configure...
Sep. 28, 2016 03:15 PM EDT Reads: 350
Digital innovation is the next big wave of business transformation based on digital technologies of which IoT and Big Data are key components, For example: Business boundary innovation is a challenge to excavate third-party business value using IoT and BigData, like Nest Business structure innovation may propose re-building business structure from scratch, as Uber does in the taxicab industry The social model innovation is also a big challenge to the new social architecture with the design fr...
Sep. 28, 2016 03:15 PM EDT Reads: 1,308
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
Sep. 28, 2016 03:00 PM EDT Reads: 3,868
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
Sep. 28, 2016 02:45 PM EDT Reads: 1,741
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
Sep. 28, 2016 02:30 PM EDT Reads: 2,925
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2016 Silicon Valley. The 19th Cloud Expo and 6th @ThingsExpo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Interne...
Sep. 28, 2016 02:30 PM EDT Reads: 3,323
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Sep. 28, 2016 02:00 PM EDT Reads: 4,422
We’ve been doing it for years, decades for some. How many websites have you created accounts on? Your bank, your credit card companies, social media sites, hotels and travel sites, online shopping sites, and that’s just the start. We do it often without even thinking about it, quickly entering our personal information, our data, in a plethora of systems. Sometimes we’re not even aware of the information we are providing. It could be very personal information (think of the security questions you ...
Sep. 28, 2016 02:00 PM EDT Reads: 4,782
[session] Cloud Adoption and Digital Transformation By @TIBCO | @CloudExpo #Cloud #DigitalTransformation
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lea...
Sep. 28, 2016 01:57 PM EDT Reads: 273
[session] How to Become a 'Digital Predator' By @Alfresco | @CloudExpo #IoT #Cloud #DigitalTransformation
According to Forrester Research, every business will become either a digital predator or digital prey by 2020. To avoid demise, organizations must rapidly create new sources of value in their end-to-end customer experiences. True digital predators also must break down information and process silos and extend digital transformation initiatives to empower employees with the digital resources needed to win, serve, and retain customers.
Sep. 28, 2016 01:23 PM EDT Reads: 291