RPA in Retail: Key Use Cases and Practical Applications

The retail industry has transformed in recent years as customers expect a faster and more seamless shopping experience. Fast deliveries, easy returns, reliable post-sale support, and smooth transitions are now the standard. For retailers, meeting these demands requires operating with more efficiency and accuracy in a highly competitive market.

To achieve this, many retailers are turning to Robotic Process Automation (RPA). By automating repetitive tasks, RPA helps streamline operations, cut costs, and improve accuracy in key areas like returns, supply chain management, and invoice processing.

What is RPA for Retail?

Robotic Process Automation (RPA) refers to the use of software robots or “bots” to automate repetitive, rule-based tasks across various applications. RPA in retail can be a game-changer, allowing businesses to improve efficiency and free up valuable human resources for more strategic initiatives. As consumer demands continue to rise, the adoption of RPA for retail has become essential for retailers looking to maintain their competitive edge.

Key Use Cases of RPA in Retail 

Invoice Processing:

Invoice processing is a prime candidate for RPA, as automating it minimizes data entry errors and accelerates payment cycles. RPA bots handle data extraction, categorization, and integration with accounting software, reducing human error and time spent. This reduces invoice processing times from days to mere hours, allowing the finance team to negotiate early payment discounts and avoid late fees.

Examples:

• Audit Trails: RPA maintains detailed logs for easier audits and compliance.
  
  
• Cash Flow: Accelerates payments and improves cash flow through timely processing.
  
  
• Error Reduction: Minimizes discrepancies between orders and invoices.
  

Document Retrieval:

With vast amounts of transaction records, product histories, and compliance documents stored across various systems, RPA can facilitate instant document retrieval. For example, in customer support or audit scenarios, bots can fetch relevant files—like invoices, warranties, and purchase orders—in seconds. RPA bots integrated with document management systems help ensure organized, indexed, and retrievable records for immediate use.

Examples:

• Centralized Access: Enables quick retrieval of documents across multiple systems.
  
  
• Search Optimization: Advanced indexing allows for rapid document searches.
  
  
• Version Control: Tracks document versions for accurate information.

Inventory Management:

Retailers experiencing fluctuating demand and high stock volumes can use RPA in retail manegement to keep inventory updated in real time. Bots track inventory levels, sales patterns, and demand forecasts, triggering automatic reorder processes to maintain optimal stock. This helps reduce stockouts and overstock issues, saving costs associated with lost sales or excessive warehousing. 

Examples:

• Real-Time Analytics: Provides insights into inventory levels and turnover rates.
  
  
• Automated Reporting: Generates inventory reports to aid decision-making.
  
  
• Supplier Coordination: Automates communication for timely restocking.

Return Processing:

For retailers processing high volumes of returns, especially after peak shopping seasons, RPA in returns management​ can streamline the entire returns process. Bots log return requests, validate eligibility, update inventory records, and initiate refunds or restocking orders. 

Examples:

• Customer Experience: Quicker refunds enhance overall customer satisfaction.
  
  
• Data Accuracy: Reduces errors in inventory and customer data.
  
  
• Insights on Returns: Analyzes patterns to improve product quality.

Accounting and Finance:

RPA in accounting can handle repetitive financial tasks, like account reconciliations and report generation. Bots can automate month-end closing by consolidating data, verifying transactions, and flagging anomalies. 

Examples:

• Streamlined Reporting: Automates the generation of financial reports.
  
  
• Fraud Detection: Flags anomalies in transactions for early fraud detection.
  
  
• Compliance Tracking: Ensures adherence to accounting standards.

Logistics and Supply Chain Management:

In complex supply chains, RPA can manage real-time shipment tracking, coordinate inventory across multiple locations, and provide automatic notifications for delays. For example, bots can pull tracking data from logistics providers and update internal systems, alerting teams to potential disruptions in real-time. 

Examples:

• Real-Time Visibility: Enhances shipment tracking across the supply chain.
  
  
• Exception Management: Quickly addresses delays and exceptions.
  
  
• Cost Savings: Optimizes logistics to reduce shipping costs.

ERP Automation:

ERP systems handle critical business functions, and RPA can automate repetitive tasks within these systems, such as billing, price adjustments, and stock updates. Bots integrated with ERP systems pull data from daily transactions, adjust inventory records, and automate billing processes. This reduces manual ERP entry costs, enhances data accuracy, and frees staff to focus on high-value activities like supplier negotiations and market forecasting. 

• Cross-Functional Integration: Ensures seamless data flow between ERP modules.
  
  
• Consistent Updates: Maintains up-to-date information across all systems.
  
  
• Decision Support: Provides real-time insights for better decision-making.

Key Benefits of RPA For the Retail Sector

Industrial Shift And The Rise in Retail Deductions

With the increase in retail automation, retailers now monitor their supply chains more closely to ensure compliance with operational standards. This shift often leads to more frequent deductions, which are automatically triggered when discrepancies—such as shipment shortages, pricing issues, or non-compliance with shipping requirements—are detected.

For suppliers, frequent deductions can be a major challenge. These deductions often lack clear explanations or effective dispute guidance, making it difficult for suppliers to address them quickly. Without an efficient system for handling deductions, suppliers may find themselves constantly reacting to deductions, which drains resources, disrupts cash flow, and reduces operational efficiency.

Leveraging Automation to Get Ahead of Retail Deductions

As retail operations become more automated, suppliers need a proactive approach to manage deductions effectively. While understanding deduction types and dispute processes is essential, suppliers increasingly benefit from automation to handle deductions at scale and stay ahead of the cycle.

This is where iNymbus steps in, offering a robust automated solution that enables suppliers to manage deductions seamlessly, from identifying types to filing disputes. With iNymbus, suppliers can focus on core business operations while automation efficiently manages the entire deduction process.

RPA Case Study in Retail: iNymbus

Case Study 1: Deduction Management Automation for a Beauty and Wellness Company:

A large organization in beauty, health & wellness, and home & outdoor, with $2B in annual revenue, aimed to streamline deductions management by improving processing speed, reducing costs, and increasing visibility across retail partners like Amazon and Walmart.

Challenge:

The organization managed deductions through a 40-person team using manual processes. Key issues included:

• Slow Document Processing: It took 3-4 weeks to compile documentation and 3-4 hours to resolve claims.
  
  
• Inefficiency and Backlogs: Manual handling led to a backlog of claims, especially as dispute windows closed.

Solution:

Partnering with iNymbus, the organization implemented the iNymbus RPA Solution, focusing on:

• Standard Operating Procedures (SOPs): Defined SOPs for automation.
  
  
• Data Mapping: Identified sources for documentation to streamline implementation.

Results:

• Faster Processing: Reduced deduction processing time from 3-4 weeks to minutes.
  
  
• Automated Retrieval: Automated documentation retrieval from various sources.
  
  
• Efficient Disputes: Matching and submitting disputes now took minutes, with only staff members needed for exceptions.
  
  
• Enhanced Visibility: Improved reporting and root cause analysis capabilities through simplified dashboards.
  

Case Study 2: Return Processing Automation for a Large Distributor:

A large distributor faced significant challenges managing 5,000 returns per month, which tripled during the holiday season. They struggled with:

• Long Processing Times: Returns often take months to process.
  
  
• Financial Losses: Hundreds of thousands of dollars were lost due to unreconciled return variances.

RPA Implementation:

To address these issues, the distributor partnered with iNymbus to implement Robotic Process Automation (RPA). Key actions included:

• Automated submission of return variance analyses to retailer portals.
  
  
• Integration with ERP systems for data retrieval, cross-system validation, reconciliation from web portals, and document uploads.
  

For more info read: Reverse Logistics: A Guide to Managing Returns Variance with iNymbus

Outcomes:

• Workforce Optimization: Employees could shift from repetitive tasks to analytical roles.
  
  
• Enhanced Accuracy: Reduced errors improved data reliability and reduced discrepancies.
  
  
• Improved Morale: Automation of tedious tasks contributed to higher employee satisfaction.
  
  
• Future Readiness: The distributor is now better prepared for peak season volumes.
  

Schedule a quick call below to learn how iNymbus can automate your unique business needs and processes!