Retailers across the UK and Europe face mounting pressure to protect profitability. Rising operational costs, omnichannel complexity, sustainability requirements, and fragmented systems are reshaping how supply chains operate. Complex omnichannel operations and the difficulties in managing returns are increasing fulfilment costs and impacting customer service. At SCCG, our independent logistics and supply chain consultants specialise exclusively in this field. With more than 700 projects delivered, we know that no two retailers face the same issues.
SCCG highlights the most common retail supply chain challenges and how to address them.
#1 Rising Costs, Inflation & Margin Pressure
Energy, labour, warehouse space, and transport costs continue to climb while tariffs and regulations add further strain. At the same time, consumers are more price sensitive. Global retailers have adapted by sourcing closer to European markets to reduce costs and lead times.
Solutions
•Optimise inventory and improve forecasting to avoid overstocking or stockouts
•Improve warehouse layout for more efficient workflow.
•Automate low-value or repetitive tasks
•Source nearer to your markets or diversify suppliers to avoid delays.
•Consolidate deliveries and improve load planning using routing software.
#2 Omnichannel Complexity & Customer Expectations
Customers expect seamless experiences whether shopping online, via mobile, or in retail stores. Next-day deliveries, click-and-collect, easy returns and consistent loyalty programmes are increasingly being taken for granted. Many retailers are struggling with order and inventory management across multiple channels, for example, where customers buy online and want to return to a store.
Solutions
•Unify inventory and order management across all channels
•Offer flexible delivery and returns
•Improve real time stock visibility
•Streamline logistics with smart routing
•Train staff to deliver consistent service at every touchpoint
#3 Technology Adoption and Data Management
Many organisations have legacy ERP and non-integrated systems with data silos. Applications such as WMS, CRM and OMS that do not communicate lead to fragmented customer data, inaccurate inventory visibility, and inconsistent buying experiences. Lack of reliable data is especially challenging for omnichannel operators where real-time stock, pricing, and promotions must align across physical stores, online, and mobile.
Ways to Improve Data Management
•Start with pilot projects before scaling
•Modernise core systems and ensure integration
•Invest in cybersecurity and ethical AI practices
•Focus on staff training
#4 Supply Chain Disruption & Inventory Risk
Supply chains continue to be volatile: geopolitical instability, labour disruptions and transport delays occur every day. Lead times are unpredictable and consumer needs are becoming more demanding, making inventory planning difficult. Too much stock risks markdowns or obsolescence; too little leads to lost sales.
Solutions:
•Implement demand forecasting using advanced analytics / AI. Use data to predict demand better.
•Diversify suppliers and sourcing locations
•Build flexibility into logistics with satellite warehouses or alternative transport
•Run regular scenario planning and risk reviews
#5 Sustainability Challenges
Sustainability is no longer optional. Consumers expect ethical practices, and regulations increasingly mandate Scope 1, 2, and some even Scope 3 emissions reporting. Retailers must embed sustainability across the supply chain to remain competitive and compliant.
Solutions:
•Integrate carbon reporting with ERP and supply chain systems
•Collaborate with suppliers on standardised reporting frameworks
•Adopt recyclable and right sized packaging
•Invest in clean energy transport and warehousing
Let’s Talk About Your Retail Supply Chain Strategy
Whether your priority is cost control, omnichannel fulfilment, technology, disruption management, or sustainability, each challenge requires a tailored approach.
Join SCCG at the Retail Supply Chain and Logistics (RSCL) and White Label Expo, 12 to 13 November 2025, ExCeL London – Stand E1080.
If you can’t make the date, book a free consultation with us to discuss your supply chain challenges.
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