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Rebuilding retail after the pandemic

To help retailers understand the new normal, Zebra Technologies has identified the pandemic-related industry changes as the 3 Waves. This outlines the recovery process of most retailers, spanning the immediate changes that ensured stability in the early days and the longer-term, strategic changes that will become institutionalized.

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Photo by Kaique Rocha from Unsplash.com

The pandemic has caused a noticeable change in consumer behavior, which in turn necessitates a corresponding change in every retailer’s business processes. As the Philippines reopens its economy, businesses are reassessing their strategies and recovery plans differently. In fact, about 45% of business owners are hesitant to resume their operations, according to a survey by the World Bank, National Economic and Development Authority and Department of Finance.

Retailers are used to reacting to evolving market demands, and they understand that the pandemic’s impact on the industry is likely to be long-lasting, even after a vaccine is found. To help retailers understand the new normal, Zebra Technologies has identified the pandemic-related industry changes as the 3 Waves. This outlines the recovery process of most retailers, spanning the immediate changes that ensured stability in the early days and the longer-term, strategic changes that will become institutionalized.

WAVE 1: MAINTAINING BUSINESS STABILITY

Wave 1 started when global economies began to shut down in early March 2020, and many retailers were forced to stop operations in response to quarantine protocols. Many had to cut back on costs to stay afloat. Those that kept their operations had to optimize resources and labor hours while ensuring employee health and safety.

When panic buying started to strain supply chains in the early months of the lockdown, retailers realized that conventional demand planning models no longer worked. They had to find new ways to meet consumer needs without compromising their employees’ safety or incurring greater costs.

Retailers immediately started investing in technologies that could give them a crystal-clear picture of what was happening within their four walls and their supply chains. Many retailers increased their use of mobile computing and scanning solutions, helping boost their capacity to replenish orders, speed up end-to-end fulfillment and accommodate customers’ basic needs and wants both in-store and online.

Based on the collective feedback from retail leaders and store associates, the biggest lessons during Wave 1 were the importance of:

1.  Real-time operational visibility

Retailers should invest in technologies that improve their capacity and speed in managing their inventory to cope with the demand, while providing them with real-time visibility across the supply chain at the same time.

According to Zebra’s APAC Shopper Study, 88% of retailers agree that maintaining real-time inventory visibility is a significant challenge. And up to 85% say their companies need better inventory management tools to ensure accuracy.

Having access to data on operations in real time will help retailers to address consumer needs immediately and avoid either under- or over-inventory situations. This enables retailers to ensure operational efficiency and business resilience even amid pandemic constraints.

2. Distributing actionable intelligence to store associates and supply chain partners

In any given day, especially during the pandemic, store employees and supply chain partners face challenges in assisting customers. Retailers must provide them with the right tools to attend to customers’ needs by swiftly locating inventory within their stores and knowing how much inventory is left so they can get it replenished. This prevents loss of sales and translates to greater customer satisfaction thereby improving business outcomes.

This is where prescriptive analytics, intelligent automation, wearables and handheld mobile computers become exceptionally handy.

3. Overcommunicating with customers, especially when you aren’t going to be able to deliver what they want on time or at all

When stay-at-home orders were issued, many consumers had to stop going to physical stores and relied solely on online shopping for their groceries and other essentials. Being unable to see store shelves, consumers had to rely on real-time stock inventory information presented on the website or mobile app to know whether an item was available.

According to a study conducted by Nielsen during the Enhanced Community Quarantine, 27% of Filipino consumers switched brands in certain categories because the products from their preferred brands were out of stock. In such cases, the lack of communication about what is available and the inability to provide alternatives to consumers created frustration among consumers. This compromised their trust in the retailers’ capability to meet their demands and needs.

4. Prioritizing worker and customer safety above all else and compensating associates for the risks they’re taking on the front lines

Some retailers provided financial aid to their employees to help them during the pandemic. But beyond the monetary assistance, store associates are more inclined to come to work and give their 100% when they feel they are being taken care of and are physically protected. Employees expected and appreciated efforts by retailers to maintain strict social distancing and sanitization measures, especially during the early months of the quarantine when paranoia about the virus was so high. These measures included frequent disinfection of shared scanning and mobile devices and the investment in “personal” protective wearables. 

WAVE 2: A NEW RETAIL NORMAL

As operations started to stabilize, essential retailers were able to focus on institutionalizing new ways to engage customers with online and in-store experiences. Retail leaders made efforts to get people in and out of stores as quickly as possible. They ensured physical distancing through several measures, such as limiting the number of people allowed in the store at any given time, setting up directional flow lines and installing dividers to prevent contact. Temperature checks, regular disinfection and other cleaning regiments helped provide a safe environment for both shoppers and store associates. 

Even when the pandemic quiets down, retailers will still take precautions to maximize the health and safety of both customers and employees in stores, corporate offices and warehouses. Services such as “buy online, pick up in store” (BOPIS) with curbside pickup options, contactless purchases and increased integration between digital and physical experiences will become the standard means of engaging with customers.

WAVE 3: LONG-TERM TRANSFORMATION

At some level, the long-term transformation in Wave 3 should occur simultaneously with Wave 2. The pandemic is accelerating retail digitization by several years. As retailers prioritize new technologies and solutions to ride the tide of increased online shopping, such new approaches will be part of efforts to ensure retail business viability moving forward.

Retailers have no choice but to accelerate planned efforts to increase product sourcing diversity, leverage intelligent automation and scale e-commerce fulfillment capabilities. As such, businesses should consider prioritizing increased product sourcing diversity, intelligent automation and optimizing last-mile delivery to achieve greater resiliency and backend efficiency.

When demand for certain non-discretionary products spiked as news around COVID-19 broke, Philippines’ Department of Trade and Industry imposed limitations on the purchase of basic commodities to prevent supply shortage. Many retailers, however, have not yet diversified their product sources to a point where backend shortages remain “invisible.”  This reinforces the need for product sourcing diversification to ensure enough supply. 

The combination of artificial intelligence (AI) and robotics can bring data-driven approaches to supplier quality, merchandising, distribution, and logistics and fulfillment, giving retail leaders the insights necessary to maximize value capture. Instead of reacting to external forces and rapid changes in consumer behavior, intelligent automation creates opportunities to operate more proactively.

As the pandemic emphasizes the need to improve e-commerce and logistics capabilities, retailers are realizing the need to enable and optimize last-mile delivery to satisfy customer expectations, reduce marginal costs and improve overall efficiencies. To optimize last-mile delivery, retailers can provide flexible delivery options based on delivery method and location, create a collaborative network with suppliers to maximize visibility on the backend, leverage brick-and-mortar stores as fulfillment centers and use technology to maximize the value of delivery routes. All these will help ensure a safer and more efficient business flow that minimizes the impact of the pandemic while positioning the business for future success.

The pandemic has stressed the need for retailers to reassess their business processes and study the importance of innovation. Understanding the industry and choosing the right combination of solutions will assure business continuity for retailers, and service reliability for their customers. Retailers that can strengthen their digital capabilities and ensure a better online shopping experience will gain end-user trust and encourage more online transactions. This translates to greater business success not just during the pandemic-recovery phase but also in the future.

Strategies

‘Ugh, not that song!’ Background music impacts employees

When background music at a workplace is out of sync with what workers need to do their jobs, it can affect their energy, mood – and even performance.

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Have you ever gone to a store or a restaurant where the music was so annoying that you walked right out? Now imagine what it must be like for the employees.

In a study, researchers found that when background music at a workplace is out of sync with what workers need to do their jobs, it can affect their energy, mood – and even performance.

“Music that doesn’t fit what an employee needs to feel energized, manage emotions, and focus on task can have a real negative impact,” said Kathleen Keeler, co-lead author of the study and assistant professor of management and human resources at The Ohio State University’s Fisher College of Business. “We found that a music misfit can lead employees to feel more fatigued, have trouble focusing, and not really enjoy being at work. And that in turns prompts them to engage in behaviors that can harm the organization.”

The problem is worse for people who have difficulty screening out background noise from their environment, the study found.

It is an understudied issue, Keeler said.  About 13.5 million people work in occupations where background music is common. But the music is often chosen with only customers in mind.

“It is a mistake for managers to assume that music doesn’t affect employees,” Keeler said.

The study was published online in the Journal of Applied Psychology.

Study in focus

The researchers conducted two studies. One study involved 166 full-time workers who participated online. Before they began, participants rated how much they needed four features of music: volume, speed, complexity and emotional intensity. The participants then listened to one of two playlists while they conducted a creativity task.

One playlist was upbeat, happy pop music with moderate complexity. The other was slower, more somber music played at a lower volume.

After completing the task, participants rated how much the music they heard fit their needs for volume, speed, complexity and emotional intensity.

Results in focus

The findings showed participants experienced a negative impact if the characteristics of the playlist they listened to was out of sync with what they said they needed. Those who had a music misfit showed a decrease in pleasant feelings and emotions and also more cognitive depletion – a feeling of mental exhaustion, Keeler said.

The problem was particularly acute for people referred to as non-screeners. “Stimulus screening” is the ability to focus on one sensory input at a time. Non-screeners have difficulty doing that and – in this case – were unable to ignore the music in the background while they concentrated on their task.

“The bad effects of music misfit are worse for those who are non-screeners,” Keeler said. “They have difficulty blocking out the music and so they feel less positive emotion and feel more depleted after listening to the music that was out of sync with what they needed.”

The second study was a real-world sample of 68 workers in health care offices, retail stores and dining halls where background music was a feature of their everyday work life. Participants completed three email surveys every day for three weeks about their musical needs, the music they heard, their moods, cognitive depletion and various actions at work.

The findings confirmed results of the first study and added another wrinkle: Music misfit had an impact on job performance.  Participants were more likely to act in ways that hurt the company – and less likely to do positive things – on days when they felt out of sync with the music they heard.

Music affects actions

Negative actions could include working more slowly, talking negatively about the workplace with other employees, and pilfering office supplies. Positive actions included helping a fellow worker on a project that was outside their direct responsibilities.

“It can affect the bottom line of companies if their employees are not being productive because they are being drained and distracted by the music they hear all day,” Keeler said. “Their performance suffers.”

The results suggest that employers need to take into consideration the musical wants and needs of their employees.

“Employers should try to strike a balance between making sure their music appeals to both customers and employees, because this is not a trivial matter,” Keeler said.  “If their employees aren’t happy, that is not going to be good for the business.”

Employers can also ensure there are places in the workplace where employees can escape the music during their breaks. In addition, they could invest in earbuds using smart technology that allows wearers to hear conversations from customers while screening out some background noises, including music.

And while this was not a focus of this study, the results also suggest that workers may be happier and more productive if they are allowed to listen to their own music when appropriate.

Let them listen to their music

“I know some managers are reluctant to allow employees to listen to their own music, but our research suggests that there are a lot of benefits, including productivity, engagement and well-being,” she said.

Harshad Puranik of the University of Illinois-Chicago was co-lead author.  Other co-authors were Yue Wang of the University of Illinois-Chicago, and Jingfeng Yin of The Hong Kong, Polytechnic University.

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Strategies

Crucial electrical safety advice for customers 

Before getting started on outdoor projects, it is important to be aware of the electrical safety hazards you may encounter.

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Spring is about to arrive, and the longer days will inspire business owners to get outdoor projects underway. But before getting started, it is important to be aware of the electrical safety hazards you may encounter.

“Starting on outdoor projects is a great way to welcome the warmer weather, but it’s crucial to be aware of potential electrical hazards at home,” said Tim Frankenberg, fire safety engineer for the St. Louis-based Ameren Corporation. “A little prevention goes a long way in keeping your family safe.”

The St. Louis-based Ameren Corporation recommended four electrical safety hazards to avoid this spring:

Electric equipment near water

Water and electricity don’t mix, so a great rule of thumb is to keep electric equipment at least 10 feet away from wet areas. You should also plug into ground fault circuit interrupters (GFCIs), which are designed to shut off the power as needed to prevent a shock. These are typically found in kitchens, bathrooms, garages and outdoors. It is highly encouraged that GFCIs are tested monthly. 

Underground utilities

You can disrupt utility service, including electric, natural gas and more, and even put your life in danger by failing to have underground utility lines clearly marked before digging. Plan the simple do-it-yourself projects that may seem small, including planting trees or installing a mailbox.

Overhead power lines

Stay clear of power lines and wires when trimming vegetation, raising ladders and performing outdoor home maintenance. Always assess your surroundings while trimming or working in your yard or simply call a certified professional to safely handle the work. Remain at least 10 feet away from any overhead power line near your home. 

Indoor electrical cords and electronics for outdoors

Before plugging into an exterior electrical socket, double-check that your cords, lights or fans are rated for outdoor use. Look for labels on packaging that clearly mark them as suitable for outdoor use. Also, avoid running cords through door or window openings where they can be damaged, and pair them with GFCIs instead. 

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Strategies

How your business can cut costs related to plumbing

Business owners should take proactive measures to identify and fix plumbing leaks heading into the warmer months.

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Business owners should take proactive measures to identify and fix plumbing leaks heading into the warmer months.

“Warmer temperatures are headed our way as spring begins to take hold,” Levi Torres of High 5 Plumbing, Heating, Cooling & Electric said. “Pretty soon, air conditioners will stay on a little longer and energy bills will begin to rise. One of the best ways to offset those costs is to check your plumbing for any leaks that could be increasing water usage.”

According to the EPA, people wastes nearly 10,000 gallons of water every year due to unknown leaks in the home, offices, et cetera. In addition, 10% of establishments waste 90 gallons or more per day.

To help your business cut costs related to plumbing, the experts at High 5 recommend the following tips to help recognize plumbing leaks:

  • Check the flapper in the toilet periodically to ensure it isn’t old or worn out. This can cause the toilet to silently leak thousands of gallons of water a year or cause it to flush on its own. Replacing the flapper can be an easy, cost-effective way to prevent toilet leaks.
  • Inspect the washers and gaskets on your faucets. Old washers can be a primary culprit for leaky faucets, causing a home to waste more than 3,000 gallons per year.
  • Check the showerhead for frequent dripping after usage. A showerhead that drips 10 times per minute can waste over 500 gallons per year. Simply tightening the connection or replacing the showerhead can be a cheap option to prevent leaks.

“While some simple leaks can be prevented by replacing small parts, it’s always important to call a licensed plumber if you suspect you have major leaks inside your home,” said Torres. “Leaks behind a wall or with a water heater can be much more complicated and need professional attention. If left untreated, they can cause thousands of dollars worth of damage. Never leave a leak left untreated.”

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