Why should I digitalize my supply chain?

The pressure on modern supply chains is greater than ever. In retail, you know your success hinges on the consistent delivery of goods. Any delays can erode profits, brand reputation, and customer loyalty.

Supply chain digitalization allows your retail business to act nimbly and quickly when unforeseen disruptions occur—be it a natural disaster, cyberattack, or bottleneck. When a container ship blocked the Suez Canal in 2021, for example, $9.6 billion in goods were held up each day. Speedy, effective responses can save retailers millions of dollars.

Unlike analog systems, where delays can take hours to weeks to be reported, digital supply chains provide real-time updates that can help you plan and reroute goods more efficiently to meet customer demand. That’s why two-thirds of companies predict cloud-based solutions will change how supply chains operate.

Digitalization can also boost revenues by 20%, while cutting process-related costs by as much as half. But take note: To capture the most value from your supply chain digital transformation, you need the right solutions on the right network. Business Internet from T-Mobile provides reliable connectivity that is quick and easy to deploy, backed by America's largest 5G network.

What do digital supply chains have to do with customer satisfaction?

The short answer: everything. Digitalization improves inventory forecasting and planning, allowing you to anticipate demand, reduce the likelihood of stockouts, and respond quickly when an item’s popularity suddenly spikes. If a product goes viral on social media, retailers with the right digital supply chain solutions can pivot quickly to accelerate deliveries, engage additional suppliers, or take other measures to get that product onto store shelves or customers’ doorsteps.

Radio frequency identification (RFID) tags can raise inventory accuracy to as high as 98%, so employees can give customers accurate information about what’s in stock and where it’s located. Earlier in the supply chain, geofencing—which uses RFID and GPS—can alert your retail operation when a shipment leaves the factory or warehouse, enabling you to act swiftly if delays occur. With better visibility into products’ locations and greater control over their movement, retailers can offer customers options like same-day pickup or choice of delivery day.

Customers expect this level of service from retailers. Bain found that in the U.S., more than 75% of online grocery orders arrive the same day—and that shoppers’ most common source of frustration is when they can’t find an item they want or it’s unavailable.

In 2023, retailers lost out $1.2 trillion due to stockouts. And an IBM report showed that for about a third of consumers, the desire for greater product availability is one of the top three reasons they’d change brands.

Happy customers, on the other hand, are more likely to become repeat customers. Nearly three-quarters of consumers say a better ecommerce shopping experience makes them more loyal to a brand or retailer. And McKinsey found that by improving the customer experience, companies can increase sales revenues by 2% to 7% and profitability by 1% to 2%.

How will digital supply chains impact our employees?

A survey of Harvard Business Review readers found 79% believe that digitalizing workflows improves the employee experience. Digitalized supply chains empower your employees and make them more productive by giving them quick, easy access to the information customers care about—like when a product is likely to be in stock or when it’s expected for delivery.

When digital supply chains are paired with AI capabilities, the impact on employees can be even more powerful. The Boston Consulting Group found that when employees are empowered with AI tools or capabilities, they tend to feel more competent, autonomous, and connected to their work and co-workers—and more than three times as likely to be satisfied with their jobs. This, in turn, benefits employers: BCG also found when employees get value out of AI, their organizations are 5.9 times as likely to reap significant value from the technology.

How can I protect my data and business from cyberthreats?

Protecting your business and customer data is critically important. As cyberattacks are on the rise, retail has one of the highest rates of ransomware attacks, with 69% of retailers hit in the past year. Retail and wholesale companies were breached an average of 6.8 times in 2023, according to Forrester, twice as often as in 2022. And IBM estimates that each security breach cost retailers $2.9 million on average. The impact of a cyberattack has far reaching implications, ranging from negative media attention that can irreparably damage a brand to a drop in sales. Sourcing an ISP with strong security helps to ensure data remains encrypted while moving through the network.

Retailers can defend against cyberattacks and threats while also enabling remote employees to work from anywhere with seamless access to company data and apps. T-Mobile SASE offers a comprehensive suite of advanced security features in a single, unified solution. And with T-SIMsecure, our industry-first SIM-based authentication, it offers the ease of automatic data protection for T-Mobile devices when on the T-Mobile network, without the need for a device client.

This solution can replace vulnerable traditional VPNs with a modern, zero trust network access (ZTNA) VPN for highly secure access to company apps and data. And it safeguards against online threats such as ransomware and malicious websites with cloud-based features like Secure Web Gateway, next-generation firewall, advanced threat detection, and web content filtering. It also offers a SASE device client for use with T-SIMsecure for Wi-Fi or for SASE protection on other devices and carriers.

Why do I need a 5G network to have a digital supply chain?

The right network lays the foundation for success. Once you have a solid foundation, you can deploy the solutions you need to fuel growth and innovation. Not only does T-Mobile offer nationwide coverage, but it can also be deployed as a backup to ensure location uptime. And keeping critical systems—like Internet of Things (IoT) devices and more—online is essential for meeting customer demand, generating potential profits, and safeguarding a business’s reputation.

5G is about more than faster speeds. 5G reduces latency, which is essential to digital responsiveness, while increasing reliability. It has been designed with the goal to support up to 1 million devices per square kilometer, making a 5G-powered supply chain essential as your retail business integrates new digital solutions.

Why should I choose T-Mobile for Business as my 5G network provider?

T-Mobile has the largest 5G network in the U.S. And for more than a year, we’ve been undefeated in every category for network performance in Ookla’s quarterly Speedtest Global Index Market Analysis. Ookla found that we provide the fastest speeds, most consistent service, best mobile video experience, and lowest multi-server latency.

If your retail business seeks a purpose-built 5G solution for its digital supply chain, we can help. T-Mobile 5G Advanced Network Solutions offers a comprehensive, end-to-end portfolio of 5G-powered solutions, applications, and connectivity.