Process Mining in Retail

Impact & Opportunities

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Process Mining in Retail: Comprehensive Optimization

Retailers must continually meet growing demands - factors such as increasing digitalization and growing competitive pressure from online commerce are putting brick-and-mortar retailers under pressure to act. At the same time, customer expectations are rising in terms of product availability, delivery speed, and omnichannel experience. For retailers, it is crucial to optimize processes and make them more efficient in order to remain competitive in this environment.
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By implementing intelligent Process Mining for retail, merchants can gain the decisive competitive advantage. This innovative method enables retail companies to analyze, visualize, and optimize business processes based on existing data in IT systems. This allows systematic identification and resolution of typical challenges such as long lead times in order processing, inefficient inventory management, or bottlenecks in supply. With the intuitive tools from process.science, you can uncover patterns and optimization potentials and derive targeted improvement measures.

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Utilizing Process Mining in Retail

Process Mining is a technology at the interface of data science and process management. The basis of Process Mining is formed by so-called event logs. These logs contain structured data about events that occur during the execution of business processes. Each entry in an event log typically includes information such as the timestamp, the activity performed, and the associated process instance. Our Process Mining tools visualize the actual flow of processes based on these event logs. By comparing with a predefined target process, you can identify deviations and derive optimizations.
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Process Mining offers enormous potential for increasing efficiency and competitive differentiation in retail. Using this method, you can comprehensively examine complex process landscapes. For example, insights can be gained regarding order acceptance, inventory management, purchasing, and delivery. Inefficient processes, media breaks, and bottlenecks are made visible, enabling targeted improvement measures. Our Process Mining solutions create transparency across departmental and system boundaries - allowing retailers to combine and analyze data from various sources such as ERP systems, merchandise management systems, and point-of-sale systems. This end-to-end view of processes can uncover previously unknown connections.

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Why Process Mining is Important in Retail

Process Mining offers diverse applications in retail. Large retail chains and e-commerce companies face the challenge of continuously optimizing processes due to high competitive pressure. Areas often characterized by inefficiencies include inventory management, supply chain, returns management, and staff scheduling. The use of Process Mining is an efficient way to optimize processes as it creates transparency, identifies bottlenecks, reveals automation potentials, measures process performance, and ensures compliance.
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The method visualizes actual processes and uncovers deviations from the target process. By analyzing millions of data points, bottlenecks become visible that would remain undetected without the use of Process Mining solutions. Activities that can be automated are also identified. Additionally, Key Performance Indicators (KPIs) such as lead times or error rates are made transparent.
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Process Mining helps your company achieve data-driven decision-making, which you can use to increase operational efficiency and improve customer satisfaction. Through process analysis, you can flexibly respond to market changes and strengthen your position in the highly competitive retail market.

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Our Process Mining tools display for every step in realtime, where outliers currently occur, to correct them before they establish. Improve lead times, costs and quality. Reduce commercial risks through process optimization.

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Use Cases of Process Mining in Retail

Process Mining offers retail various opportunities to optimize business processes and increase efficiency.

Warehouse Logistics and Inventory Management Optimization

Process Mining provides comprehensive analysis of inventory movements and sales data, enabling you to identify and reduce over- and under-stocks. The optimization of picking and order picking processes uncovers inefficient walking routes and bottlenecks in the warehouse and enables their elimination. Automated reordering processes can also be initiated to avoid supply bottlenecks and minimize capital commitment.

E-Commerce Efficiency Increase and Omnichannel Integration

With Process Mining, customer behavior on your website can be analyzed, identifying reasons for abandonments in the purchasing process, for example. Process Mining supports the creation of a seamless customer experience across various sales channels. The analysis of customer data contributes to personalizing your offer and product recommendations.

Returns Management Analysis and Supply Chain Optimization

Process Mining can provide insights into the reasons for returns and allows you to derive measures to reduce the return rate. At the same time, the return processing can be optimized, shortening throughput times and reducing costs. Finally, end-to-end analysis enables supply chain optimization in retail, allowing you to prevent delays and increase delivery reliability.

Customer Experience Improvement

Process Mining can significantly contribute to an improved customer experience - comprehensive customer journey mapping reveals customer paths across all touchpoints, allowing you to derive improvement measures. The analysis of complaint processes helps to identify systematic problems and increase customer satisfaction.
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Implementing Process Mining in Retail - with process.science

Companies often hesitate to implement Process Mining because integration into the existing IT infrastructure is perceived as complicated and time-consuming. At process.science, we make this process intuitive and uncomplicated. Our Process Mining tools are not stand-alone solutions but can be seamlessly integrated into your Business Intelligence (BI) platform. You can continue to use your familiar BI environment without interruption. Our software ensures absolute data security, both for on-premise installations and in cloud environments. No data is transmitted to process.science. With Process Mining, you drive process optimization in your company and strengthen your position in the competitive retail business.

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