Retail supply chains have become the backbone of customer experience in today’s omnichannel world. With rising consumer expectations, shorter product life cycles, and increasing logistics complexity, retailers face growing pressure to maintain agile, cost-efficient, and responsive supply networks. Balancing lean inventory levels with high service availability is a necessity.
However, many retailers still operate with fragmented visibility across procurement, warehousing, and fulfillment functions. This limits their ability to accurately forecast demand, optimize inventory turnover, and manage supplier performance effectively. To bridge this gap, Operational Benchmarking offers a structured approach to evaluate performance across critical supply chain parameters and compare them with best-in-class players.
By analyzing metrics such as inventory velocity, order fulfillment accuracy, warehouse productivity, and logistics costs, retailers can identify inefficiencies, uncover improvement opportunities, and redesign their operations for greater agility.
Nexdigm’s Retail Supply Chain Operational Benchmarking Framework
Nexdigm’s Retail Supply Chain Operational Benchmarking Framework is built to provide retailers with a comprehensive understanding of how their supply chain and inventory processes perform against leading industry standards. The framework integrates data analytics, peer comparisons, and process evaluation to uncover performance gaps and improvement opportunities across the retail value chain.
- Peer Group Identification and Market Mapping: We begin by identifying relevant peer groups to ensure meaningful benchmarking. This step sets the foundation for accurate, context-specific analysis that reflects both local and global retail practices.
- Supply Chain Process and Efficiency Evaluation: Nexdigm maps the entire supply chain, covering procurement, replenishment, distribution, and last-mile fulfillment. Each stage is assessed for cost efficiency, lead time accuracy, and responsiveness. This enables retailers to pinpoint bottlenecks, streamline vendor collaboration, and enhance logistics synchronization.
- Inventory Management and Turnover Benchmarking: We benchmark key inventory performance indicators such as stock turnover ratios, replenishment cycle time, SKU-level productivity, and carrying costs. This helps retailers maintain optimal inventory levels, balancing stock availability with working capital efficiency.
- Technology and Automation Assessment: Nexdigm evaluates the role of technology in improving supply chain visibility and speed. This includes assessing the adoption of Warehouse Management Systems (WMS), Transportation Management Systems (TMS), AI-driven demand forecasting tools, and IoT-based tracking solutions.
- Strategic Insight and Performance Roadmap: The final stage translates benchmarking outcomes into actionable insights. Nexdigm provides strategic recommendations to optimize inventory flows, reduce logistics costs, and improve end-to-end visibility. The result is a customized roadmap that empowers retailers to enhance agility, minimize waste, and accelerate turnover efficiency.
Through this structured framework, Nexdigm helps retail organizations transform operational complexity into competitive advantage, ensuring that supply chains become smarter, faster, and more resilient.
Strategic Benefits for Retailers
In a sector where margins are tightening and customer expectations are rising, operational benchmarking provides the clarity retailers need to improve both agility and profitability. Nexdigm’s Retail Supply Chain Operational Benchmarking Studies deliver data-driven insights that help retail leaders identify where performance lags, why inefficiencies occur, and how to bridge those gaps effectively.
Key strategic benefits include:
- Optimized Inventory Turnover: Gain visibility into SKU productivity and replenishment cycles, reducing excess stock while improving product availability across channels.
- Enhanced Supply Chain Agility: Benchmark fulfillment timelines and supplier responsiveness to design a faster, more adaptive logistics ecosystem.
- Improved Forecast Accuracy: Use peer-based insights to align demand forecasting and procurement planning, minimizing stockouts and markdowns.
- Cost and Efficiency Gains: Compare warehousing, logistics, and sourcing costs with global benchmarks to uncover areas for immediate optimization.
- Technology-Led Transformation: Identify the most impactful automation and digital tools that can streamline operations and enhance supply chain transparency.
- Sustainability and Waste Reduction: Adopt best practices in reverse logistics and lifecycle management to improve resource utilization and environmental efficiency.
By leveraging these insights, retailers can move from reactive supply chain management to strategic operational control, ensuring every link contributes to stronger profitability, faster turnover, and superior customer experience.
To take the next step, simply visit our Request a Consultation page and share your requirements with us.
Harsh Mittal
+91-8422857704