Retail is a risky industry. With consumer purchasing tendencies trending towards the online marketplace, business owners must think outside-the-box on issues which could affect their bottom line and reputation. We’ve compiled ten tips that will help in changing this focus to major risks associated with the retail industry.
Here are three points to get you started: Risk Ownership, Protecting your Brand, and Safeguarding the Supply Chain. These are simple measures that can help lessen the severity in case of an incident. Say a potential customer wants to buy product from you but it is out of stock. “Not a problem!” you say and offer to order it in for them - only to find out your supplier doesn’t have any either. The last batch of product was just sold to your competitor and won’t have more available for a month. You try to explain this to the customer but it’s no use. They head to Facebook where they post a complaint. As quickly as that, a potential customer can switch to a competitor and tarnish the reputation of your business, all at the same time. Head over here for a real-life supply chain scenario between Nokia and Ericsson which discusses a similar situation.
The above scenario could happen to any business, but what can set you apart is how you anticipate these potential disasters and account for them before they occur. Safeguarding your supply chain will ensure that the customer always leaves with what they came for. Protecting your brand means that you’re ready when that dreaded negative Facebook review pops up, and risk ownership will ensure that someone is accountable for each scenario and a plan is in place. You’ll find more detail on these topics in the full text.
Once you’ve read all ten tips, you’ll have a better idea of what to keep in mind while preparing for the future. To download the whitepaper click here.