How retailers can gain a competitive edge by utilising smart fulfilment

As consumer expectations continue to evolve, fulfilment has emerged as a critical competitive differentiator in the retail industry. Today, meeting consumer demand for speed, reliability, and transparency is no longer just a logistical task, it is a strategic imperative that drives customer loyalty, acquisition, and profitability.

Retailers that adapt to these demands gain a competitive edge. In a recent Inside Retail article, we explored how brands like Shien and Temu have leveraged innovation to achieve this. By embracing smarter fulfilment strategies, these retailers differentiate themselves, build stronger customer relationships, and establish a sustainable competitive advantage.

In the same article, we also discussed how smarter warehousing is transforming Australia’s fashion industry. Technologies such as real-time inventory management, automated picking systems, and flexible fulfilment models are playing a key role in enhancing operational efficiency. These innovations are essential to meeting growing customer expectations, forming the backbone of modern fulfilment strategies, and enabling faster, more accurate, and cost-efficient order processing. [Read more here.]

Fulfilment as a Strategic Differentiator

Today’s consumers are more demanding than ever, expecting quick, reliable, and convenient delivery options. As the retail environment grows more competitive, retailers need to view fulfilment as a strategic advantage. Superior fulfilment creates customer trust, builds loyalty, and enhances lifetime value, whereas subpar fulfilment can quickly damage a brand’s reputation and lead to lost customers.

By embracing best-in-class fulfilment practices, retailers can ensure that customer experiences are seamless, reliable, and efficient. These practices not only help retailers stay competitive but also ensure they are positioned for long-term success in an increasingly fast-paced, digitally-driven world.

Automation and Intelligent Efficiency: The Key to Meeting Consumer Demands

Automation and robotics are among the most transformative forces in fulfilment today. Technologies such as goods-to-person systems, sortation robots, and autonomous mobile robots (AMRs) are enhancing warehouse operations, improving throughput, and increasing accuracy. By integrating automation, retailers can scale their operations to meet increasing consumer demand, particularly during peak periods such as Black Friday, Boxing Day or the holiday season.

Strategic automation, combined with data analytics, plays a critical role in meeting high consumer expectations profitably. By automating processes, retailers can reduce human error, optimise inventory management, and speed up order fulfilment, all of which lead to improved EBIT and better customer satisfaction.

In our previous article on smarter warehousing, we highlighted how fashion retailers can leverage automation to optimise their fulfilment systems and prepare for demand spikes. For example, Ferag’s Skyfall system can automate the sequencing and sorting of high-demand items, allowing retailers to better manage peak order volumes and deliver orders faster, more accurately, and with greater efficiency.

Adaptability and Resilience: Core to the “New Standard”

In addition to speed, fulfilment today demands agility. Retailers need to be able to adapt quickly to shifts in demand, disruptions in the supply chain, or changes in consumer behaviour. This adaptability is critical for maintaining high levels of customer satisfaction, especially when unexpected events occur.

Smart warehousing plays a vital role in ensuring flexibility. With real-time stock visibility, retailers can optimise order picking, balance supply and demand, and shift fulfilment methods as needed. Whether it’s re-routing orders, accessing alternative supply channels, or adjusting delivery methods, the ability to respond quickly to market changes ensures retailers can continue to meet consumer expectations.

As the market becomes increasingly unpredictable, the ability to pivot quickly is key to staying competitive. Retailers with flexible, scalable fulfilment solutions will be better equipped to handle disruptions and continue delivering exceptional service, regardless of external challenges.

The Impact of Fulfilment Innovation on EBIT

The benefits of fulfilment innovation go beyond customer experience—they also have a direct impact on the bottom line. By adopting automation and optimising fulfilment processes, retailers can lower operating costs, reduce inefficiencies, boost profitability and positively impact EBIT.

Improved pick/pack accuracy reduces costly errors and customer service interactions, while enhanced order orchestration and inventory management can streamline operations. This ultimately leads to lower labour dependency, improved throughput, and higher margins. Retailers investing in automation are not just improving their service offering—they are also positioning themselves for long-term profitability.

Ferag’s solutions, such as the Skyfall pouch system, demonstrate how automation can streamline fulfilment operations. The system enables retailers to pre-sort high-demand items, optimise order sequencing, and enhance packing efficiency. By pre-sorting stock for the sales floor, retailers can quickly move stock to the floor, bypassing the back-of-store processes. This approach reduces stock-outs, increases sales, and boosts customer satisfaction. Additionally, by reducing bottlenecks and prioritising VIP orders, retailers can better manage peak order volumes and deliver superior service during critical times.  All of which improves EBIT.

Retailers Who Embrace Innovation in Fulfilment Gain a Competitive Edge

Fulfilment is no longer a mere logistical function—it is a strategic differentiator. Retailers who embrace automation, efficiency, and adaptability in their fulfilment processes are not just meeting consumer demands—they are outpacing them. These retailers are setting new standards in service, customer experience, and operational excellence.

Ultimately, the new standard in retail fulfilment is about exceeding consumer expectations and using fulfilment as a competitive weapon to drive customer loyalty, reduce operational costs, improving profitability and positively impacting EBIT. By leveraging innovative fulfilment technologies, retailers can gain a competitive edge that leads to stronger growth, improved EBIT, and long-term success in a rapidly changing market.

For more insights on smarter warehousing and how it can boost your fulfilment strategies, explore our previous article on Inside Retail.

Can Smarter Warehousing Boost Australia’s Fashion Industry? 

2024 presented some challenges for the Australian fashion industry. A series of shifts and challenges have placed the sector under strain. Iconic brands like Dion Lee and Mosaic Brands closed their doors, and IMG’s departure from Australian Fashion Week disrupted the sector. Rising operational costs, increased global competition, and shifting consumer behaviours are among the contributing factors. 

Micro-Trends: A New Frontier in Fashion  

A key factor influencing Australian fashion is the rise of “micro-trends”—short-lived fashion movements amplified by platforms like TikTok and Instagram. This fast-moving cycle pressures brands to accelerate production and delivery. Ultra-fast fashion brands like Shein and Temu have leveraged advanced analytics and agile supply chains to dominate the market. Local Australian brands, burdened by higher production costs and slower logistics, find it increasingly difficult to compete at the same speed. 

Fast Fashion’s Dominance and Its Impact  

Fast fashion has transformed retail dynamics. Shein utilises advanced data analytics to predict trends and manufacture new designs with speed, while Temu’s aggressive pricing strategies have captured cost-conscious consumers. This shift also presents an opportunity for Australian brands to differentiate themselves through quality and sustainability—areas where fast fashion often faces criticism. 

The Role of Supply Chain Efficiency  

Supply chain efficiency has become crucial in today’s market. Fast and reliable delivery is no longer optional, it is essential. Smart warehousing and automation technologies offer a path forward, enabling local brands to streamline operations, reduce delays, and improve fulfilment speed. These innovations allow Australian fashion brands to remain competitive, even in a global market increasingly dominated by fast fashion giants. 

Ferag’s Role in Fashion Retail Innovation 

To remain competitive, Australian fashion brands need scalable fulfilment strategies that support both in-store and e-commerce operations. Ferag offers smart solutions for both B2B and B2C that combine both speed, accuracy, and lower labour costs 

1. Getting Product to Shelf in Stores Quicker 

How it works: 

  • Ferag’s Skyfall sequencing and doWarehouse’s smart waving and cubing modules pre-sort items in a sequence that allows product to be directly unloaded to shelf or rack. 
  • Product is sequenced into a carton or tote, in order line sequence, allowing layering of product via automation. This allows for direct unpacking from the carton onto the shelf in order 
  • Hangered garments can also be sequenced in order line sequence allowing garment trolleys to be built in a smart SKU sequence, for easy transfer to racks on the store floor 

Key benefits: 

  • Reduces lost sales through faster restocking 
  • Improves space utilisation in-store 
  • Streamlines back-of-house operations, reducing labour costs 
  • Improves supply chain Service Level Agreement (SLA) metrics to stores 

2. E-Commerce Fulfilment Excellence 

  • Managing Peak Demand with Automation 
  • Predictive loading: Ferag’s doWarehouse can utilise demand forecasts to pre-load products that are expected to have high demand e.g. new product launch or sales event. Skyfall pouch sorter: Stacks high-demand items for fast retrieval during peak periods, allowing orders to be automatically picked and then to packing in one-step handling 
  • Volume: Ferag’s smart solutions are designed to handle high volumes at speed 

Key benefits: 

  • Increases fulfilment speed while reducing temporary labour costs 
  • Reduces the need for large automation costs to cover highest peak period, by flattening the peak 
  • Fast and Accurate Order Fulfilment 
  • Skyfall Fast-Track Lane: Dedicated lane for priority orders, ensuring rapid processing. 
  • High inventory accuracy: doWarehouse directs operators to the exact product location, displaying a visual product verification for accuracy. 
  • Automated Picking: doWarehouse supports a range of automated picking solution to ensure fast and labour efficient picking 

Key benefits: 

  • Faster order processing leads to improved customer satisfaction 
  • Higher SLA performance reduces delays and enhances brand trust 
  • More repeat orders contribute to increased revenue 

3. Freight Cost Reduction and Sustainability 

  • Reducing the number of cartons/satchels for the one consignment, as Skyfall and doWarehouse can logically group order lines together from the same or different storage areas, without the warehouse operator having to travel 
  • Inventory accuracy minimises returns: Fewer incorrect shipments lead to fewer unnecessary returns and increased customer loyalty. 

Key benefits: 

  • Reduces shipping costs with fewer packages and reduced returns 
  • Enhances processing speed for high-demand periods 
  • Supports sustainability by reducing freight and consumables 

Ferag’s range of smart solutions including Skyfall and doWarehouse unified control system (UCs) are designed to help fashion brands in Australia optimise their fulfilment operations, improve efficiency, cut costs, and deliver a better customer experience. 

The Economic Impact of Fulfilment Innovation  

Investing in supply chain efficiency does not just meet consumer expectations—it also drives profitability. Ferag’s doWarehouse UCS and Skyfall solutions reduce labour dependency, boost equipment efficiency, and lower return rates through more accurate fulfilment. This allows brands to optimise their operations, reduce costs, and improve EBIT, creating a more financially resilient business model. 

Conclusion: Opportunity comes from challenges  

Could the challenges of the Australian Fashion Industry in 2024 offer an opportunity for reinvention? By embracing innovation, sustainability, and smarter supply chains, Australian fashion brands can not only survive but thrive. Meeting the demands of the modern market will require significant investment in technology, but the potential rewards—an efficient, sustainable, and competitive industry—make it a step worth taking. 

Read the Inside Retail article here