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Chain Reaction: Virginie Blot of Akeneo on Reducing Returns and Enhancing Customer Experience
Andre Claudio
5 min read
Chain Reaction is Sourcing Journal’s discussion series with industry executives to get their take on today’s logistics challenges and learn about ways their company is working to keep the flow of goods moving. Here, Virginie Blot, senior principal product marketing manager at Akeneo, discusses how the software development company is using data to help retailers reduce returns, improve customer satisfaction and promote sustainability in logistics.
Virginie Blot, Senior principal product marketing manager, Akeneo
Akeneo is a global product experience (PX) and product information management (PIM) company that enables organizations to build and deliver world-class product experiences across every customer touchpoint, guiding consumers and professionals to the best purchase—anytime, anywhere.
What is the main thing brands and retailers could do (or stop doing) right now that would immediately improve logistics?
In the highly competitive retail landscape, brands are not only focused on delivering quality products but also on consistently offering something new. Achieving this requires operational efficiency, a centralized and constantly evolving product catalog and the ability to provide customers with rich, accurate and engaging product information that drives purchasing decisions.
The first critical step for brands and retailers is gaining a thorough understanding of their product data. While this may seem simple, it is often overlooked. A product experience is only as good as the data it relies on. Retailers must ask themselves where their data is stored, its quality, how many products are being managed and whether it can be compiled into a clear inventory. By avoiding the burden of cumbersome data management, retailers can more easily expand product offerings, gain clearer insights into inventory management and respond more swiftly to changing market demands.
When it comes to supply chain logistics challenges, there are things companies can fix, and things that are beyond their control. How can the former help the latter?
The customer’s voice is undoubtedly the most important, but there are other entities retailers must answer to as well. In the past decade, regulations—especially around environmental, social and governance (ESG)—have skyrocketed. While many of these are beyond their control, retailers can take proactive steps to prepare for regulatory compliance, helping them avoid last-minute logistical scrambles, costly mistakes and—most importantly—lead in sustainability and transparency.
By focusing on what they can control—tracking, managing and optimizing crucial data—companies can position themselves for success in the face of what they cannot control, such as evolving regulations and global supply chain disruptions.
What is your company doing to make the movement of goods more sustainable?
Akeneo’s primary focus has been on the environmental impact of returns. While the convenience of online shopping offers many benefits, it also comes with a significant downside: the environmental toll of returns. In 2022, emissions from return shipping alone totaled 24 million metric tons of carbon dioxide, with returns adding up to 30 percent of the carbon emissions from the initial delivery, according to our research. However, many consumers still expect free and easy return processes. So, what’s a business to do?
Instead of cracking down on returns with fees or shortened return windows, retailers should aim to reduce returns through smarter practices. Consumers often return items because the sizing or description was unclear, leading them to purchase multiple sizes or options and return those that don’t work. In fact, our latest research found that 59 percent of consumers have returned an item specifically due to misleading or inaccurate product descriptions. By providing accurate measurements, high-quality images, videos and information on materials, care instructions or compatibility, retailers help customers make more informed decisions. When the product matches the description and meets expectations, consumers are more likely to keep it and feel satisfied with their purchase. Every return avoided is a step toward a more sustainable retail industry.
What area of logistics isn’t receiving the industry attention it deserves?
With the rise of social commerce and the ongoing dominance of e-commerce, in-person shopping has taken a backseat. However, many people still miss the experience and human connection that comes with shopping in-store. As a result, the gap between online and in-person shopping is narrowing, returning to pre-pandemic levels. Our research found that 93 percent of consumers planned to shop both online and in-person during the recent holiday season.
Whether browsing a product detail page or walking down a store aisle, consumers expect to find all the information they need to make confident purchase decisions. This requires coordinating product and supply chain data across multiple stakeholders and channels. By focusing on the logistics of this hybrid approach, retailers can ensure a seamless and unified shopping experience, no matter which channel consumers choose.
What is the one thing brands and retailers could be doing to make better use of technology to improve logistics?
Artificial intelligence (AI) and machine learning tools have the potential to significantly impact the future of logistics, simplifying the extraction of key insights, and in many ways, they already are. However, as AI has become more mainstream, one thing is clear: It’s only as good as the data it works with.
AI systems—especially those based on machine learning—rely on large volumes of data to learn, make decisions and generate insights by identifying patterns within the data they receive. If the input data is flawed—whether incomplete, biased, inaccurate or poorly structured—the output will inevitably suffer. Before businesses can leverage AI to streamline logistics, they must ensure their data meets the necessary quality standards.
Are you optimistic about the state of supply chains in the next few years?
Despite the numerous disruptions and evolving regulations, I remain optimistic about the future of supply chains. As an industry, we should view these challenges not as burdens but as opportunities to accelerate the initiatives we’ve been striving to advance. The supply chain is already complex enough, so let’s not make it any more complicated.
