Regardless of the geographies in which a retailer operates, peaks in demand are an inevitable yet very welcome fact of life in operations. Where once retailers spent many days in the run-up to a big sale event or promotion readying their physical retail outlets, today most stores also have to make ready their online retail operations: the virtual storefront, warehouses, distribution network, payment platforms, online marketing activities and a dozen more elements besides.

Whether it’s Singles’ Day, Cyber Monday, Christmas, or Eid al-Fitr, surges in demand for retail stores, both online and offline, contribute significantly to many businesses’ revenues. The ability to preserve excellent customer service and fulfil every order seamlessly depends on many of those moving parts functioning as themselves, but more critically, as cogs in the machinery of a larger retail machine.

At the consumer’s end, a late delivery or two may go largely unnoticed, but failing systems that underpin the retail experience at a significant scale can unleash a deluge of bad press that is difficult to recover from. Attempts to repair the damage after the fact and extraordinary measures taken during peak demand periods can be so costly that increased sales revenue is lost in additional costs.

Complex Stack

The potential for problems stems from the complexity of operations rather than an inability to plan and anticipate periods of peak demand. Like fashion, retail preferences and markets change very quickly, and in this vertical, the definition of legacy technology is less forgiving than elsewhere.

For example, a decision to make large investments in online retail made just a few years ago may now be eclipsed by the recent trend in consumers wishing to try before they buy in a physical retail store. Warehouse networks and associated technology platforms like DOMs (distributed order management systems) may be optimised for a channel that’s less favoured this year. And next year…who can say?

While XaaS solutions for retailers offer answers to some of the issues around the speed and cost of IT deployments, in some ways, cloud-based solutions exhibit the same underlying problem that so-called legacy platforms present. The issue of interoperability remains to a significant degree, regardless of whether core systems are in-house, cloud-based, monolithic or container-based and cloud-native.

Given that an agile approach to the software used to run a retail operation is optimal (to handle peaks and to change to reflect changes in the market), it’s the interconnection of operational technology that is critical to get right.

API Answers

In an ideal world, every piece of software in the stack would be built using open standards and an API-first approach. However, with many proprietary systems, that’s not entirely the case, and it often isn’t with bespoke, black box software that forms a basis in some enterprises.

Even with every part of the core infrastructure presenting API layers, there remains the significant overhead of developing the data layer that GETs and POSTs to APIs, parses EDI, negotiates FTP, and maintains robust connections.

Setting a development goal of stringing together a unified system that does all that is a fine concept, but it does not account for the moving target of the retail operator’s IT stack: finish an API-based data layer in 12-18 months, and it’s likely that at least one of the connected platforms will change significantly in that timeframe.

Self-made Solutions

A team dedicated to maintaining multi-system interoperability will always find itself reacting to events out of its control, like an API update or application upgrade. In fact, such a team may only be made aware of changes somewhere in a complex topology when production systems break. It’s Sod’s Law, of course, that breaking changes will occur under the real-life stress tests of Black Friday, Cyber Monday or similar.

The number of moving parts in a modern retailer’s technology includes backbone ERPs, point-of-sale, warehousing and distribution, e-commerce platforms and a host of ancillary systems like CRM and Martech. It’s difficult to simulate peak demand stresses to determine where failures or bottlenecks might occur in such a multi-faceted whole and, therefore, develop coherent plans that ensure high levels of performance throughout a retailer’s sales cycle with its inevitable highs and lows.

However, specialist providers exist whose sole purpose is to provide robust connectivity between all the technology elements in modern retail.

Patching for Perfection

Patchworks is a vendor-agnostic cloud platform that addresses the challenge of integration complexity faced by retailers and partners. It creates the data layer concept discussed above and lets users see information flowing in real time from system to system. Via its intuitive interface, it gives up-to-the-minute metrics on orders, stock, distribution system status, and so on – the details are determined, of course, by the platforms used throughout the chain.

Patchworks deployment can be achieved in-house or via one of their certified partners, with a no-code/low-code interface that helps visualise and simplify connectivity between data sources: e-commerce platforms, WMS, DOM, common ERPs, CRMs, databases and business analytics platforms. Essentially anything with an API. Retailers can synchronise inventory, orders, and customer data across various platforms with no specific vendor lock-in or dependent system. That means IT teams can change the elements of the IT stack in production and still retain the rich source of meta-operational data and know that systems will continue to update one another.

It allows a high degree of flexibility and scale and lets companies test their systems under load to better plan and provision for periods of peak demand. The cohesive operational structure means that as the retailer’s business model evolves, new and changing elements can plug-and-play with the rest of the stack. There are also pre-built connectors and applications designed solely for the retail industry, so many operators will find that their production systems can be integrated quickly and reliably.

You can learn more about one of their customers Triumph Motorcycles here, who needed help integrating John Lewis’ The Edge marketplace, as well as Commercetools, VirtualStock and Torque ahead of last year’s peak trading season.

Jim Herbert, CEO at Patchworks emphasised the importance and value of staying connected in a recent interview where he said, “As retailers prepare for peak season, staying connected and agile is crucial. As a proud member of the MACH Alliance and a leader in composable commerce, Patchworks empowers businesses to seamlessly integrate their systems, ensuring a smooth, efficient operation that can adapt to demand surges. This connectivity not only enhances customer experiences but also drives cost effectiveness and revenue growth by optimising every aspect of the retail process all year round.”

You can learn more about Patchworks and the ways it’s unifying retail platforms online and in-store by heading to its website and speaking to a retail sector advisor.

The post Interoperability the Key to Managing Peak Retail Demands appeared first on TechHQ.

• Could Shein be shifting to London?
• What could a London listing deliver for Shein?
• And what obstacles standin the way of Shein finding a new home on the London Stock Exchange?

Shein, a world leading fast-fashion brand, could be making plans to relocate its initial public offering (IPO) to London from New York. But scrutiny over its supply chain and links to China could make this a challenging move.

Founded in Nanjing, China in 2008, Shein is now headquartered in Singapore, though it continues to list in the US. The company officially became the world’s largest fashion retailer in 2022, with a valuation of $80 to $90 billion being sought in late 2023 ($10 billion less than its value in 2022, a reduction mainly down to a sector-wide decline in venture funding).

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Will Shein leap and go for an IPO in the US?

Shein of London?

Shein is known for its vast range of affordable, trendy clothing, accessories, and other fashion items, primarily working via its online platform. With its extensive selection of products and a high turnover, the e-commerce company is able to keep up with the rapid nature of altering fashion trends. Its low prices and continuous, constant introduction of new staples has gained a substantial following, particularly among younger consumers.

IPO change of location

Currently, Shein’s IPO is based in New York, but reports suggest it is in early talks to switch to London. This relocation is reportedly influenced by the suspicion that the US Securities and Exchange Commission is unlikely to grant approval for Shein’s IPO. Other possible IPO locations allegedly being discussed include Singapore and Hong Kong.

The US remains the retailer’s preferred location, but it is still working on its application to list in the country. If Shein decides to switch to another country, it will have to file a new listing application overseas with Chinese regulators.

A listing in London could present a much-needed boost to the IPO market after a torturous period over the last year. Valued at $90 billion, Shein could potentially raise $9 billion if 10% of its shares go public, just slightly behind the $9.1 billion IPO Porsche enjoyed in 2021.

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The US government has its eyes on Shein and Temu now, and here’s why

Given the challenging IPO market conditions and the comparatively lower fundraising in the UK through IPOs in 2023 (approximately $1 billion, the lowest in decades), a potential London listing could introduce renewed capital and attention to the beleaguered market, attracting investor interest and helping revitalize the IPO landscape.

This move goes against the current trend of firms upping sticks and moving from the UK to pastures new in the wake of Britain’s severing of ties with continental European markets. For instance, TUI AG shareholders voted to delist from the London Stock Exchange (LSE) and move its trading to Germany. Arm Holdings Plc moved its IPO to New York from London in 2023, deepening the UK’s struggle to stop the mass business exodus. The UK government tried to intervene by lobbying for a domestic listing, but its attempts failed.

Experts believe that Shein’s discussions to list on the LSE is a short-term compromise. It’s about choosing certainty over valuation and liquidity in the immediate term. While this move could be a substantial one, especially in the realm of IPO, it’s unlikely other Chinese firms will follow suit and list in the UK, as the London market is much smaller compared to other major financial hubs, like the US and China.

Shein faces challenges

Why would Shein benefit from the LSE?

In 2023, Shein filed, albeit confidentially, to go public, but it faces various challenges to do so in the US. There is scrutiny and certain concerns surrounding Shein’s supply chain, with US lawmakers lobbying to delay the company’s public offering until it is proven that there is no forced labor in its supply chain.

Shein has faced allegations that it uses forced labor to help produce its $5 t-shirts and $10 sweaters, but the retail giant has repeatedly denied such reports, stating that it does not manufacture in Xinjiang, a region where allegations of human rights violations have been raised. Government officials and advocates have accused China of using Muslim minority groups and Uyghurs to work under poor conditions, but Beijing has (naturally) denied any abuses.

The main regulatory hurdle faced by Shein will be convincing regulators and governments that its supply chain is clean. Congresswoman and Democratic Representative Jennifer Wexton said that Shein must “prove to American consumers that its products are not sourced from forced labor.” In 2023, Wexton also led a bipartisan call for the SEC to stop Shein’s IPO, until it can verify no forced labor is used in its supply chain.

There have also been calls for the SEC to audit Shein by another group of Republican attorneys general from 16 US states.

A spokesperson for Shein said the company has a “zero-tolerance policy for forced labor” and was “eager to engage and continue to be transparent with all stakeholders, including Representative Wexton and her staff.”

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Shein vs Temu: an ecommerce explainer

Intellectual Property (IP) issues, as well as the forced labor allegations, will undoubtedly make it difficult for Shein to achieve its public status, even if the company provides additional disclosures about its operations. Tie in the growing US-China trade tension and worries of Shein’s possible connections to the Chinese Communist Party, and the company faces more questions about how much control Chinese regulators have over it.

Shein’s potential move to the LSE from New York is ultimately a response to geopolitical tensions and regulatory scrutiny in the US. By listing in London, Shein may benefit from a perceived tax loophole, as well as geopolitical shifts.

With Jeremy Hunt, the British Chancellor, reportedly encouraging this move by having discussions with Donald Tang, Shein’s chairman, we could see the relocation this year, though Shein has some serious questions to answer before this becomes a viable prospect.

The post London calling: Shein could be moving its IPO across the pond but faces challenges appeared first on TechHQ.

We’ve all got to eat, and so food production should be a lucrative business to be in. But as an industry, some argue that food costs more than it earns when you take into consideration the medical costs associated with bad diets. Plus, there’s the impact that food production has on the planet and its resources. However, there’s a glimmer of hope, and that operational lifeline could be food digitization.

“Digitization is a way that we can drive the efficiencies to do it,” Rini Greenfield – a Founding General Partner at Rethink Food, a VC firm supporting the digitization and decarbonization of the food system – points out. “If you want to solve climate change, you cannot ignore what is a third of the problem.”

The fact that VC firms have become interested in food is encouraging for those who believe in market forces. When it becomes profitable to save the planet, there’ll be no shortage of investment. However, things are far from perfect currently.

“This food system that we have today is excellent at distributing calories, but it is terrible at distributing nutrition,” Greenfield cautions.

Rethink Food is investing its multimillion-dollar fund in early-stage food and agtech companies, which are digital-first with a computational front end. Examples include Gro Intelligence, which Greenfield dubs ‘the Bloomberg of agriculture and climate’.

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Brick-and-mortar stores stock up on retail operations software

The thinking is that access to better information gives producers more opportunities to plan ahead – software platforms will be increasingly important to help businesses build climate resilience into their operations. But food digitization helps in other ways as well, and this gets to Greenfield’s first comment about driving efficiency.

One of the reasons that manufacturing has seen mass automation is because repetitive, step-by-step processes are tailor-made for it. Knowledge work, in comparison, is a much messier mix of tasks. And it’s why raising the productivity of a law firm is harder than trying to get a factory to make more widgets. That being said, generative AI promises to do for knowledge work what robots have done for factories (and for more on this, Hamish McRae’s ‘The World in 2050’ is a useful read).

Similarly, food digitization sets the scene for deploying computing power and software to produce more with less, faster, and at a scale that traditional methods can’t match.

Industrialization of the grocery store

On TechHQ, we’ve written about how grocery stores are integrating compact warehouse automation technology into their operations to reduce the cost of order picking. It’s a trend that analysts believe will continue with traditional supermarkets looking more like fulfillment centers to grow profits from customers ordering online.

Bristol, UK, is one of many cities with so-called ‘dark supermarkets’ where only staff walk up and down aisles stocked with fast-selling essentials and popular comfort food. Outside, wait delivery drivers with no walk-in customers in sight. Digital food shoppers prefer to let their groceries come to them, and the proportion of in-store customers could decline substantially as supermarket digitization ramps up.

Absolute primer on digitization of food industry from @zbfuss via @patrick_oshag @InvestLikeBest #DigitalTransformation #tech #Grocery https://t.co/IrmaS1yUZ5

— Curtis Kopf (@ckopf1) January 12, 2021

Supporting the growth in online orders is an ecosystem of food delivery apps, which pay great attention to user-experience and leverage other digital smarts such as gamification that encourages drivers to accept more pick-ups. Delivery apps provide lead generation for grocery stores and give supermarkets and restaurants the opportunity to micro-target their online audience.

Technology can provide a huge revenue boost to independent food businesses, which would otherwise have struggled to compete with bigger chains. But food digitization isn’t purely about chasing profits. There’s scope to reduce the environmental impact of food production and grow produce with bespoke nutritional profiles.

Growing microgreens to order

For example, researchers in Italy – in collaboration with agtech firm Ortogourmet – have demonstrated that it’s possible to grow microgreens to order, customizing nutrition profiles on a large scale. The team grew crops of radish, pea, rocket, and chard, focusing on two nutrients in particular – iodine and potassium.

Rather than fortify table salt with iodine – a common strategy used to combat iodine deficiency – the group showed how it was possible to elevate iodine levels in microgreens, which is beneficial to those who have to watch their sodium intake.

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Agtech: molecular farming uses nature’s factories to make future foods

As well as raise nutrient levels, it was also possible to reduce the amount of unwanted elements – by 45%, in the case of potassium. “Since vegetables contain high concentrations of potassium, patients with impaired kidney function are sometimes advised not to eat vegetables, or that they should be soaked in water and boiled to reduce the potassium content through leaching,” explain the scientists involved in the work.

All of the microgreens were grown using a liquid medium in place of soil, which paved the way for better control over food production with more predictable yields thanks to the climate-controlled environment.

And, just like how dark supermarkets and ghost kitchens benefit from being sited in lower rent city locations, metro adjacent greenhouses and highly-efficient plant growing facilities could also turn out to be profitable in these spaces.

Food digitization could end up bringing the farm closer to the city, maximizing land use, and reducing food miles, which is an appetizing thought for urbanites.

The post Food tech – digitization unlocks efficiency gains in production appeared first on TechHQ.

Much has been said about the role of LEDs in creating energy-efficient lighting. And, without a doubt, it’s a technology worth celebrating. But the story isn’t over yet, as researchers in the US believe that they’ve found a pathway to unlock even more energy-efficient LED lighting by plugging the so-called green gap.

The white LED bulbs that are all around us today are mostly based on blue light emitters covered with a layer of yellow (or sometimes separate green and red) phosphor. The photoluminescent coating absorbs some of the blue-LED emission and reemits yellow (or green and red) light to produce a white glow when the colors combine.

LED lighting has been credited with saving vast amounts of energy as solid-state emitters convert more energy into light compared with incandescent bulbs, which radiate large amounts of heat. The payback time for businesses that switch from using incandescent bulbs to energy-efficient LED lighting can be as little as 12 months or less.

However, the phosphor-based color mixing process, known as down-conversion, has its downsides. Firstly, there’s an energy penalty involved in turning high-energy blue light into lower-energy emission at longer wavelengths – in this case, yellow light. Regular white light LEDs emit around seven times more heat than light, according to reports.

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The good news is that there’s a way to side-step these losses by using individual red, green, and blue LED chips to produce energy-efficient lighting.

Solid state white lighting featuring blue LEDs and phosphor coatings is said to have a theoretical luminous efficiency of 255 lumens/watt compared with 408 lumens/watt for devices based on individual color mixed elements. For comparison, incandescent bulbs – even halogen-based lamps – top out at around 20-25 lumens/watt, in practice.

There are other reasons to avoid using phosphor coatings, as they can degrade over time and add to the packaging costs of the device. And, having mentioned these drawbacks, it’s only right to point out that color-mixed LEDs have their own issues as well – principally concerning the emission of green light, which is why the latest news has raised hopes amongst developers.

.@bruce_munro’s ‘Field of Lights’ puts an otherworldly twist on the usual garden landscape, illuminating @nycgov with 18,750 #LED spheres! @corcorangroup has more on the galaxy-inspired light show: https://t.co/jeOAexeJ1F pic.twitter.com/4GGUMB7v8E

— Lumileds (@lumileds) January 22, 2024

Typically, pushing more current through green LEDs – to make them brighter – produces an effect referred to as LED droop, which dims performance. But the researchers, based at the Innovative COmpound semiconductoR LABoratory (ICORLAB) in the US, believe that they’ve found a way to grow the necessary compound semiconductor layer with fewer defects to avoid such a scenario.

Looking ahead, they believe that the development of higher-performance green LEDs could unlock a 3x boost in the efficiency of white light LEDs compared with devices that are available today.

Don’t forget to turn off the lights

Innovations in solid-state lighting are welcome, helping to reduce energy costs at facilities. However, building management systems have an important role to play too in making offices and other business premises cheaper to run.

Using motion sensors to turn lights off when rooms and corridors are empty can further reduce the amount of energy consumed by buildings. What’s more, collecting occupancy sensor data can help building managers to determine how often different parts of the facility are being used.

Analysts credit LED lighting as saving millions of tons of CO2 emissions compared with the continued use of incandescent bulbs and fluorescent tubes. However, the challenge is being able to raise the efficiency of solid-state devices to keep up with the increased demand for lighting globally.

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Smart tech for the 15-minute city

The International Energy Agency (IEA) reports that despite the falling carbon intensity of electricity, CO2 emissions from lighting rose slightly in 2022, which makes breakthroughs in green LEDs all the more important.

“To stay on track with the Net Zero Scenario, all lighting sales need to be LED technology by 2025, with higher efficacy levels by 2030,” writes the IEA in its analysis of lighting use in buildings. “Although the trend towards LED technology is positive, governments need to continue their efforts to realise this goal.”

Global electricity consumption in lighting needs to fall to 1041.45 TWh for services and 325.43 TWh for residential by 2030, which represents a reduction of around 20 – 30% from current levels.

The post Going green – more to come from solid-state lighting appeared first on TechHQ.

It is predicted that the e-commerce industry will produce 25 million tonnes of carbon dioxide emissions by the end of 2023, a statistic that should not come as a surprise. Online retail has skyrocketed since the pandemic, bringing retailers over $1 trillion in 2022 alone. According to the International Trade Administration, online e-commerce sales share is projected to increase from 16 percent of the total global retail market in 2021 to 22 percent in 2025. The logistics and transport sector, which e-commerce directly connects to, contributes just over a third of global emissions and is the largest-emitting sector in developed countries.

As both the e-commerce and logistics industries’ growth shows no sign of slowing down, decision-makers must focus on implementing sustainable practices and solutions to mitigate the environmental impact.

Source: Route

Evan Walker, the founder of  Route, the industry leader in post-purchase experience and package protection with carbon neutral shipping, told TechHQ: “Making the industry more sustainable is not just a moral imperative—it’s a necessity. As e-commerce continues to thrive globally, it becomes increasingly crucial to reduce its environmental footprint. Sustainable practices not only align with our responsibility to the planet—and what consumers are starting to demand—but also contribute to the long-term viability of the e-commerce sector.”

Indeed, achieving sustainability in an industry that relies on transport is not simple. Logistics optimization, packaging waste, and energy consumption are all hurdles to environmentally friendly operations, according to Mr. Walker.

He said: “Striking a balance between sustainability and operational efficiency while considering cost-effectiveness poses a complex challenge for the industry. Overcoming these obstacles requires innovative solutions.”

These challenges are why Route developed a simple solution that allows e-commerce businesses to reduce their carbon footprint significantly. Brands can give their customers the option to offset the emissions associated with their orders with just one click at checkout.

When an order is placed, the app calculates its CO₂ emissions and can make an equivalent donation to one of its certified sustainability projects. As a result of supporting a project, the emissions associated with the order are neutralized.

Mr. Walker said: “Shipping is a significant contributor to e-commerce’s environmental impact, and direct efforts to reduce emissions are paramount. By integrating sustainability practices, the industry can mitigate its carbon footprint, contribute to environmental conservation, and address the urgent need for climate action—which also aligns with what consumers want to see brands do more.”

Sustainability projects that Route supports include the Freres Biochar Project in Oregon, where ‘biochar’ (a type of charcoal produced from biomass) is generated by its lumber operations and used in agriculture and environmental applications, such as soil improvement, carbon sequestration, and sustainable farming practices. The wood waste would otherwise be disposed of—typically by burning—and pollute the environment. The equivalent of approximately 2.64 tonnes of carbon dioxide emissions is removed per tonne of biochar produced.

The initiative also supports the Indus Delta Mangrove Restoration, which aims to rehabilitate and restore the mangrove forests in the Indus River Delta region of Pakistan. The mangrove ecosystems in the Delta have degraded due to human activities in the last 50 years. Replanting these important trees is expected to sequestrate the equivalent of 142 million tonnes of emissions over the next 60 years.

“By choosing projects carefully, Route guarantees that our carbon offset contributions genuinely contribute to reducing carbon dioxide emissions and align with our commitment to sustainability,” said Mr. Walker.

For brands that sign up for Route’s Basic plan, carbon-neutral shipping is included on orders covered by Route Package Protection, where Route also refunds or replaces items that are lost, stolen, or damaged. Brands using Route’s Pro or Custom plans will have their emissions offset on all of their orders.

LoveShackFancy, Beis, and Solo Stove are among the thousands of Route’s 13,000 brand partners that offset their shipping emissions and are actively building a more sustainable e-commerce industry. As of December 2023, Carbon Neutral Shipping has neutralized the emissions from 35 million shipments and is projected to remove over 55,000 tonnes of carbon dioxide annually. Route itself is on track to becoming fully carbon neutral by 2025.

Source: Route

The platform presents an unparalleled opportunity for merchants to revolutionize their post-purchase customer experiences, in addition to their sustainability commitment. Brands can retain revenue with premium package protection, reduce support tickets with immersive package tracking and with Route’s issue resolution, and boost sales with personalized product recommendations.

At its core, however, Route prioritizes its environmental  mission. Mr. Walker said: “Sustainability is a game-changer for the future of e-commerce. As consumers increasingly prioritize eco-friendly practices, the businesses that integrate sustainability will stand out.

“To put it in perspective, 87 percent of buyers will purchase a product because its company advocated for an issue they cared about, and 77 percent of companies surveyed found that sustainability leads to brand loyalty. Using Route, companies can ensure their brands are synonymous with sustainability initiatives that make an impact on the global community.

“We actively engage with partners in various industries, fostering collaboration for a greener e-commerce future. As Route grows, so will our ability to implement and expand initiatives that contribute positively to the planet.”

If you are interested in making carbon-neutral shipping part of your brand identity and contributing to a greener future for the e-commerce industry, book a Route demo today.

The post Why e-commerce businesses should offset their shipping emissions appeared first on TechHQ.

Just because introducing AI into the restaurant industry paves the way for greater automation doesn’t mean that every kitchen is going to be run by robots (although some might be in the future, and a tiny handful are already). “At the end of the day, it’s a people business,” Zhong Xu – CEO and co-founder of Deliverect, a provider of food ordering software – told TechHQ. What’s more universal is the need for food outlets to build a presence online and convert that audience into sales, and that’s a big part of how AI is transforming the restaurant industry.

Xu has been helping restaurants to go digital since a young age and that journey led him to co-found Deliverect. The Belgium-based tech firm’s software platform not only abstracts away the complexity of receiving food orders online and via social media, it gives restaurant owners the opportunity to personalize their offerings to customers, and brings a wealth of analytics.

Deliverect CEO and co-founder, Zhong Xu.

Today, the company has offices in major cities around the world and has helped clients process 500 million meal orders in five years. Food ordering and fulfilment software enables restaurants to become omni-channel operations, much like how retail platforms have transformed brick-and-mortar stores into more versatile digital shopping hubs.

Digital tools support customers who want to dine in, those who’d like to pick up their orders at the restaurant, as well as integrating well-known delivery partners such as Uber Eats, Deliveroo, DoorDash, and Hungry Panda – to give just a few examples.

Writing social media posts and taking orders

Highlighting how AI is transforming the restaurant industry, algorithms help users to prepare their social media posts and launch promotions around specific events. Menus can be changed dynamically – for example, to reflect that a major soccer match or a music concert is taking place near one of the outlets in a medium to large chain of restaurants.

Deliverect is a Meta partner, which enables the food ordering software provider to integrate its solutions with massive social networks such as Instagram and WhatsApp. Consumers can browse their Instagram feed and order directly from an Instagram story that appeals to them – a feature that has a very high conversion rate of clicks to food sales, according to Xu.

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Menus can also be adjusted on the fly. If a menu item is going out of stock, it can be snoozed until more food supplies arrive – avoiding having to deal with disappointed diners and enabling a better customer experience. The food ordering software gives restaurants the opportunity to tailor their offerings to different audiences and run multiple menus at the same time – naturally, only showing one to each of the segments.

On TechHQ, we’ve written about how AI enables firms to create a digital personal shopper for each of their customers on a huge scale. And this strategy plays out in the restaurant industry too. Food outlets have the opportunity to remember their customers’ favourite orders and make recommendations based on those analytics.

AI is transforming the restaurant industry by streamlining menu adjustments at busy times – for example, when fewer staff are on shift, the number of options can be reduced. Complicated menu items can be paused at busy times. Alternatively, pricing can be adjusted dynamically. Xu points out that raising prices during busy times might mean that you lose a few potential orders, but it’s an opportunity for food outlets to capitalize on their popularity.

Data insights can be a game changer for restaurant owners. Digital tools can quickly highlight which menu items are the most profitable and put them in front of more eyeballs. Conversely, analytics help chefs to identify which meals need to be revised or dropped from the menu.

An operational helping hand on wheels.

Describing the benefits of these various operational helping hands begin to show how AI is transforming the restaurant industry. And being able to digitalize and appeal to the tastes of a new online audience without needing any specialized tech skills has helped businesses to survive.

AI has also meant that software providers such as Deliverect, which typically market themselves to mid-size and larger restaurant chains, can support smaller customers too – by integrating the latest automation tools for onboarding and fielding support calls.

Returning to the topic of robot kitchens, it could be something that will catch on if it’s made part of the show – restaurant dining is experience-based, after all. However, the design would need to be significantly more entertaining than a giant vending machine to tempt this author to the table.

The post How AI is transforming the restaurant industry appeared first on TechHQ.

• Delivery tracking is becoming a norm in the process of online ordering.
• Whether the delivery is local, national, or international, delivery tracking can help the process feel more managed.
• Drones and robots can help reduce pollution for relatively local deliveries.

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Logistics and last mile delivery tracking

Delivery tracking might just be the answer to customer satisfaction when it comes to delivery speeds. International shipping is the quiet enabler of the global e-commerce landscape, the great facilitator of shopping around for the cheapest deal. As consumers worldwide wonder when their parcels will arrive, we take a look at the technology that helps deliver them.

Ordering a product from overseas almost always means a longer wait for delivery. That’s just common sense: the further away your product is, the longer it’ll take to arrive. Until we invent the transmat, factors like geographical distance, as well as customs processes and carrier-specific variations will continue to make overseas delivery schedules uncertain.

There’s nothing more annoying than hitting BUY NOW, only to receive the product in 14 working days. It feels almost like someone somewhere has forgotten the meaning of the word “NOW” – but also, in business operations, delivery delays can have significant knock-on effects throughout ongoing supply chains.

The only thing that lessens the blow of having to wait is logging into an online portal detailing exactly where your parcel is – or at least which stage of the shipping process it’s reached.

Precision delivery tracking – taking out the guesswork

Traditionally, the buying process involved several intermediaries and delivery tracking meant having to click through third-party sites until a grainy timeline declared your purchase IN TRANSIT.

Terrific. To paraphrase The West Wing, if we went up to high ground with a good pair of binoculars, we’d be as informed as we are now – thank you, advanced technology.

More information needed, please!

The rise of online tracking tools though has been incredible, with the tools evolving from providing the most basic tracking information to incorporating advanced technologies like machine learning and AI to offer more than just real-time updates on packages.

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Drone delivery costs on par with couriers

ML and AI algorithms analyze multiple data points including historical shipping patterns, weather patterns and customs clearance time, meaning that not only is the parcel’s real-time location available, but its accurate projected arrival is, too.

User satisfaction is markedly improved by understanding delivery schedules on packages. Which (ahem) tracks, because if you can watch a parcel’s every movement, it’s easier to rationalize the three-more-days of waiting you’ll have to do.

Utilizing online package tracking tools that incorporate machine learning and AI not only provides real-time updates but also offers a glimpse into the future of logistics, ensuring a more informed and satisfying online shopping experience.

Droning on

In 2015, Jeff Bezos claimed that delivery drones would soon be as common as mail trucks. That hasn’t come to pass yet, not least because of the need for a flightpath infrastructure and the right people to manage it, but companies are actively investing in the delivery method. In August this year, Walmart announced it would add two more supercenters to its network of drone delivery hubs to offer 30-minute delivery to an additional 60,000 households in the Dallas-Fort Worth area.

It does look pretty cool… Admit it, you’re curious.

For local deliveries, drones have significantly faster delivery times compared to traditional methods. For retailers, that means faster order fulfilment and, as a result, happier customers.

In the UK, Starship technologies has pioneered AI robots to deliver shopping to people’s front door. The knee-high robots use sidewalks across the UK, rather than being allowed on the open road, adding a dimension of localized convenience to the business of your grocery shopping. As yet though, the technology has not evolved to include stair-climbing robots, so if you live in a fifth-floor walk-up, you might be well advised to wait for the airborne drone revolution.

You want coupons with that?

In many cases, AI-enabled delivery modes like drones are more envrionmentally firendly than their traditional counterparts, but overseas shipping is always going to have an ecological cost. Delivery tracking though is becoming both a business and consumer expectation, whether it’s covering fast food from down the road or task-specific gaskets from Dubai.

Ultimately, transparency from businesses is key. As long as consumers can see where their parcel is and work out why it’s going to take time to be delivered, there’s little grounds –  besides impatience! – for negative feedback.

Everyone’s favorite delivery tracker is Dom by dominos. What a friendly guy!… Anyone else feeling hungry right now?

The post Shipping solutions and how to use them appeared first on TechHQ.

• Circular economy trends in technology could play a significant role in building sustainability into the industry.
• The circular economy depends on three phases – recover, refresh, and remarket.
• Many tech items can be recycled at near net-zero cost.

Online retailers of refurbished technology are encouraging shoppers to opt for a Green Friday when looking for bargains on November 24^th. However, it’ll take more than a change of messaging for the circular economy to achieve its full potential, and one of the biggest trends is happening right inside the buying basket.

In the past, consumers may have received a voucher for handing in their old tech when purchasing a new device. Early adopters could have drawers full of electronic goods, having never gotten around to selling unwanted items – despite their best intentions. And this is where circular technology economy enablers – such as Alchemy – are helping to change behavior through device trade-in services and systems.

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“The experience from the customer perspective wasn’t good,” James Murdock – Alchemy co-founder – told TechHQ, referring to the gap that he and his colleagues saw in the market when setting up the business back in 2017. Since then, Alchemy has grown to become one of the largest and fastest-growing circular tech companies in the world.

Its services fall into three categories, which the company – headquartered in Dublin, Ireland, and with global operations – refers to as ‘recover,’ ‘refresh,’ and ‘remarket.’

Recover, refresh, remarket – circular economy trends

“When a user buys a new tech product, we enable them to trade in their current device,” writes Alchemy on its website. “We do this for some of the world’s most prominent retailers and carriers, as well as managing large programs for enterprises and their resellers.”

This first action is key when it comes to circular economy trends – it removes the roadblocks that stopped purchasers of new devices from contributing to the secondary technology market. As Murdock points out, buyers of new devices are important as they start the circle.

On TechHQ we’ve written about how firms such as Back Market recreate the buzz of buying a new device to attract buyers of refurbished smartphones and other electronics. And there’s more to expanding the circular technology economy than just getting consumers to avoid shiny new things.

Happy #earthday2023
Let's recognize one of the most impactful sectors to reduce e-waste
The Global #refurbished #smartphones industry grew by 5% in 2022 while new smartphone shipments fell.#CounterpointTR #circulareconomy #sustainability #Apple #Samsung pic.twitter.com/cee81qBiVW

— Glen (@GlenCardoza) April 22, 2023

In fact, Murdock’s comments suggest that there’s room for different types of purchaser. “We are enabling the journey at the same time as shoppers are buying the new thing,” he said. “And that’s strengthening the circular economy.”

He draws parallels between top-end smartphone firms and leading carmakers, explaining how devices made by premium brands such as Apple and Samsung hold their value, much like vehicles manufactured by BMW, Mercedes, and Audi fare well in second-hand automotive markets.

Reuse and repurpose

Helping electronics partners to recover, refresh, and remarket devices allows customers to experience brands at lower price points, and can contribute directly to profits. For example, automakers add revenue through servicing, even though the customer didn’t buy new. And cell phone carriers benefit financially from all subscriber devices connected to their networks – not just ones that are box-fresh.

Considering other circular economy trends, Murdock agrees that blockchain technology is an interesting idea for product passports – particularly at the component level. However, there are operational issues to consider.

Running a refurbished technology business is cash-intensive, requiring large amounts of working capital and lines of credit. And no firm is going to invest heavily in setting up a product passport scheme only to see competitors reap the rewards.

That being said, larger players such as Alchemy do see the same devices come through their system multiple times as owners’ device needs and tastes change. Apple’s iPhones are reportedly designed for a seven-year lifecycle, which means that devices can efficiently serve three owners or more before being sent for recycling.

Murdock and his colleagues – today, the firm has over 350 staff – help clients not just with the mechanics of how to participate in the circular economy, the team brings expertise in pricing too. For example, services include residual value modeling and commercial forecasting.

“The iPhone is worth more today than it’s ever been worth, as a percentage of its new value,” Murdock reveals.

Devices will fall in price over their lifetime, but there will still be movements up and down. And things can change quickly when global events impact supply chains.

Money saving RFP knowhow

In conversation with TechHQ, Murdock notes that North America is no laggard when it comes to capitalizing on the savings of buying used devices. In the US, organizations are ahead in recognizing that circular economy trends include being able to write an RFP that specifies not just the number, age, and types of devices required – for example, by a large school or college –  but also spells out the equipment that will be traded in as part of the contract.

However, sustainable purchasing decisions are less common elsewhere, with many public bodies and governments continuing to buy new devices – even when capable refurbished technology is available in large quantities.

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Trends in other sectors, such as fashion, could help to change that – where buying vintage clothes and choosing items made from recycled materials is seen as responsible, given the resources needed to grow cotton.

Murdock sees the use of social media platforms such as TikTok as another driver of the circular economy, especially when they include e-commerce features. And he wants more to be done to accept old cables and chargers – noting how Apple’s switch from Lightning to USB-C designs will add to the amount of e-waste.

The good news is that many of these items can be recycled at near net-zero cost. In other words, the value of the reclaimed materials supports that step of the circular journey. And the incentives are stronger still for precious and rare-earth materials found in chips and other high-end electronics. Even sim cards can be turned into gold.

The post Green Friday? Circular economy trends for 2024 appeared first on TechHQ.

When you open the sci-fi book on warehousing, the future is one where humanoid robots are walking between storage racks, picking and packing goods. However, considering trends in warehouse automation systems and selecting the right robots for the job, sci-fi stereotypes may not serve as the best guide.

Rather than having bipedal humanoid robots roaming warehouse aisles, another option is to have automated cubes on wheels, riding on a grid of tracks above towers of inventory bins. It’s a robot design choice that – in the words of AutoStore – means less ‘airhousing’ and more warehousing.

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Having a dense arrangement of bins in the middle of a facility, accessed by cube robots from above, rather than opting for a more conventional warehouse layout with shelves and aisles, means that firms can store 4X the inventory in the same space.

There are other reasons too, why having a cube- rather than a humanoid-shaped robot makes more sense when picturing the future of warehouse automation systems. The ergonomics of Autostore’s grid-based warehousing design means that human workers save having to walk distances of up to 12 km per day fetching inventory.

It makes no sense to replace humans with humanoid robots if those futuristic bipedal machines still have to navigate large distances around a traditional warehouse layout. Plus, the efficiency of cube-storage automation has been proven over decades. Today, AutoStore has more than 1250 of its automated storage and retrieval systems (ASRS) operating in over 50 countries.

Grid-based storage using warehouse robots

To picture the grid-based ASRS system in operation, imagine containers of warehouse inventory stacked one on top of the other, and grouped closely together. Aisles disappear, and goods are retrieved by cube robots from above, which travel backward and forward and from side to side on smooth tracks.

Depending on the depth of the container, bins can be stacked 24 high up to a total of 5.4 m (17.75 ft). Each has a weight limit of 30kg and can be subdivided to hold more than one SKU per bin. They are sturdy too, with bins – and the original grid – still going strong at AutoStore’s first customer installation, commissioned in 2005.

Thinking about other practical considerations, the grid-based ASRS system can be designed around pillars, pipes, and walls. And there’s even a so-called Bin Lift that allows bins to move between grid systems on different floor levels.

The system manages stock induction and picking in parallel, with bins transported to workstations to keep orders rolling. What’s more, the control software can integrate customer requests for items that may not have yet been placed into bins, and add them to the workflow.

Seeing the system in action, you start to understand the magic that’s required to meet e-commerce demands to have goods delivered faster to customers. It means that many warehouses now run 24/7 rather than operating on eight-hour shifts. And warehouse robots, whether they are cube-shaped or humanoid, have to accommodate that trend.

AutoStore has just released a ‘Pro’ upgrade to its popular R5 warehouse robot, which is optimized for extended operations. Thanks to lithium-Titanium oxide (LTO) battery technology, the R5 Pro can be charged more rapidly, improving individual warehouse robot availability.

Autostore’s Chief Product Officer, Carlos Fernández. Image credit: AutoStore.

Much is written about how advances in battery technology is helping to extend the range of electric vehicles, but there are benefits in other industry sectors too, and warehousing is one of them. AutoStore reports that 86% fewer chargers are required with a fleet of R5 Pro robots equipped with LTO batteries. And that space can be used to provide extra SKU storage or accommodate a smaller footprint layout.

Speaking with TechHQ about warehouse trends, Carlos Fernández – Chief Product Officer at AutoStore – says that high-density warehouse automation systems make the economics of having goods in brownfield sites – which have a higher cost per m², but are closer to consumers – add up.

He also has thoughts on the topic of robots and employment. “There is a myth about automation removing jobs, it allows companies to grow and become more resilient,” he comments.

There’s a lot to like about warehouse automation, which includes having robots handling repetitive tasks. Done right, it paves the way for more interesting and fulfilling roles, with staff spending time on value-added services.

Road-testing warehouse robots

Given how critical warehouse operations are to a company’s success, it’s important to make sure that new automation technology is validated thoroughly before it’s released commercially. Fernandez explains that the R5 Pro was tested at five sites for six months over different periods to make sure that the warehouse robot was ready for launch.

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The warehouse automation systems company also runs simulations ahead of any installation to test that its algorithms will deliver the results that are expected. Less popular items will be lower in the stack of inventory holders – for example, ski gloves during summer months – rising to the top as demand increases.

Measuring as they go, the drop-down grippers know when they are at the correct depth, and the cube-shaped robots work in parallel to remove bins and optimize inventory locations. The warehouse automation system also includes tools that provide status updates, so that operators can plan maintenance.

Clients that benefit the most from having warehouse robots are the ones who have mapped their processes well and understand what they are trying to achieve. Warehouse robots might be the most visible part of the solution, but the bigger picture is being able to optimize product management, eliminate picking mistakes, and meet expectations on customer service.

Lastly, as those customer service gains translate into business growth, warehouse operators need to have an automation system that scales.

One of AutoStore’s largest third-party logistics (3PL) clients is DHL Supply Chain, which currently has nine ASRS systems operating 800,000 bins. And, following expansion plans announced this month, that figure will rise to 1.2 million bins as additional warehouses come online.

A micro-fulfilment installation in Finland – featuring a chilled AutoStore – reduces the number of in-store pickers from 50 to less than 10, which frees up the supermarket aisles for shoppers. The warehouse automation system has doubled the daily volume of online orders that can be fulfilled and makes it easier to service larger business customers.

The post Cube warehouse robots square up against humanoid designs appeared first on TechHQ.

• Voice AI is an evolving technique that can help businesses answer the all-important question – how to retain customers.
• This is not your momma’s voice bot – the technology has become incredibly sophisticated.
• Just because it’s not a human collecting call data, there’s no reason to lose out.

Winning customers is hard, and once clients have purchased a product or service, it makes great business sense to hold onto them. Twilio pictures the process as spinning a flywheel, and Jeff Lawson – CEO of the business communications and data firm – was in London, UK, to say more about how technology helps to retain customers.

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Back in August, Lawson announced that Twilio had partnered with OpenAI, which sent a clear signal on how important large language models (LLMs) will be in maximizing the opportunities for businesses to engage with clients. And sharing the stage at Twilio SIGNAL London, the European leg of the firm’s developer conference tour, were users with fascinating case studies on how to retain customers using advances in AI and related tools.

Setting the scene in his opening keynote and energized by the event’s return to London for the first time in seven years, Lawson told the packed auditorium that apps built using Twilio’s communications APIs had enabled 34 billion voice calls to customers last year. He also highlighted the work of the company’s social impact arm – Twilio.org – which supports non-profits, social enterprises, healthcare, and education institutions.

How to retain customers and recruit more volunteers

Participants in the lively customer discussion panel on how technology creates opportunity included Alasdair Stewart – director of National Services at Age UK, which runs an advice line for older people and their families among its other activities. Stewart described how the charity was now using Twilio’s tech stack to enable voice calls between its volunteers and those in need – something that had been done previously using a patchwork of seven different telephony systems.

“Twilio Flex allows volunteers to jump on a call from anywhere in the country,” he told the audience, explaining how it’s helped the charity to scale up capacity and recruit more widely. “We’re not so wedded to where our call center properties are.”

Excitement is building at SIGNAL London!
Join us at our stand with as proud Twilio Gold partners. Today, Twilio is taking customer engagement to new heights, exploring the possibilities of AI, and helping you build a customer-focused business that truly resonates.#Twilio pic.twitter.com/11osQz0EBn

— Ciptex (@ciptex) October 31, 2023

AI fits in by helping the organization meeting its safeguarding obligations, and Stewart explained that sentiment analysis of voice transcription data was a helpful tool in making sure that all was well. Technology brings the benefit of scale and helps staff to prioritize the issues that need to be addressed.

From a utilities perspective, James Eddison – CTO at Octopus Energy, and another panellist at the SIGNAL London event – explained how customer service is key to beating the competition, with industry regulator Ofgen setting a price cap on how much suppliers can charge.

Like Lawson, who spoke about the need for guardrails when deploying AI, Eddision described how Octopus Energy applies a ‘belt & braces’ approach – removing PII before feeding data to models – when exploring how to retain customers. And currently, the energy firm is using AI to drive efficiency and quality, rather than fully automate calls.

The future is now – customer-led voice AI

However, in a ‘the future is now’ moment, Yan Zhang – COO of PolyAI, a developer of next-generation voice assistants, showed how capable AI can be in handling spoken customer queries today. Zhang played recordings of PolyAI’s customer-led voice bots to attendees during breakout sessions later in the afternoon. The voice AI was strikingly lifelike and effective in handling restaurant reservations and vehicle insurance queries, to list just a couple of the examples.

PolyAI creates a synthetic voice for clients that sounds like their best member of staff. And because AI doesn’t get tired or mind repetitive work, it’s a great example of how technology can help to retain customers by providing a consistently great experience.

Growth market for customer-led voice AI: Yan Zhang, COO of PolyAI, with a slide showing some of the big names using automation to boost caller experience. Photo credit: JT

The wrinkle is that when people make a call to a company, it’s generally because they want to talk to a human. And historically bad experiences of speaking with interactive voice response (IVR) software mean that when told that they are conversing with a bot, callers will often switch to using fewer words and speak differently.

Zhang told the audience that AI models do better with more words rather than fewer. In countries where it’s mandatory to tell customers that they are talking to a bot, such as in Germany, systems reveal themselves to be voice AI – despite the risk of callers then truncating their speech in response. However, in other geographies, such as the US and UK, where there’s currently no such requirement, PolyAI leaves the choice to the client.

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In these scenarios, A-B testing will guide the decision. And you can picture how other design choices could be used. For example, offering callers a customer-led voice assistant to provide a faster resolution to their query, if they are waiting in line for a human agent.

Judging by the high quality of the real-life calls played by Zhang in his presentation, it won’t take long for people to put unhelpful IVR interactions to the back of their mind and find it completely natural to talk to voice AI. And while the output might sound effortless from the audio, there’s a lot happening behind the scenes.

In fact, the AI responses are cleverly designed to hide what would otherwise be pauses as API calls are made. For example, when setting up a table booking, the customer-led assistant lengthens the word ‘check’ in ‘let me just check’ – as a human would if they were scrolling to find availability. And because it sounds natural, it works brilliantly.

PolyAI uses a hybrid approach that combines intent blocks and generative AI to provide customer responses within the timescale of natural conversation. Companies can also learn from their own data. Just because there’s no staff member involved in a call, it doesn’t mean that the firm has to miss out on those insights.

Specific response: customer-led voice AI is a dramatic improvement on older generation IVR systems. 

What became clear, hearing the developer examples of AI implementations, is that the justification for using automated approaches needed to be explainable to customers. And if you get it right, you’ll make rapid progress in understanding how technology can help to retain customers.

PolyAI was spun out of Cambridge University and today has offices in London and New York. In 2 years, its team has grown threefold and company revenue by a factor of ten as clients discover how good voice AI can be for their businesses. The company has big-name customers in financial services, retail, logistics, global hospitality, healthcare and insurance.

Communications platforms as a service (CPaaS)

There are other success stories too, supported by customer communications tech stacks. Alice Woodhead – digital product owner at NatWest – shared how the bank has modernized its systems to support the delivery of more than 10 million SMS messages and in the region of half a billion push notifications to customers every month.

Efficiency gains feed into better customer experience and have also reduced losses due to fraud as alerting is more rapid. Tracking back to Lawson’s keynote, if you spin the tech flywheel – for example, by making websites more relevant through customer journey data, getting your email targeting right, and using CPaaS to grow your community – the potential for success adds up.

The post How to spin the tech flywheel and retain customers appeared first on TechHQ.