Brick-and-Mortar Retailers Preparing for an Online Christmas

One of the strategies in offering more variety to online shoppers is making in-store merchandise available online and having those orders fulfilled by the store.  I think the question still remains, is this a viable option?

Shipping from stores can have benefits when all forces align, but what is the impact of subpar performance? The likelihood of a delayed shipment from the store is far greater than from a DC, and not by the fault of the associates. For example, merchandise is frequently moved by shoppers, shoplifting will cause inaccurate inventory, negotiating later parcel pick-up will be more difficult at the store level, and shipping systems need to be installed and integrated at the store level. What is in place at the store to (1) help the associate locate misplaced merchandise (2) Notify customers - in a timely manner - that the item they ordered is not available (3) process order as filled in the system, deduct it from store inventory, notify customer an order has shipped and (4) ensure shipping materials are adequately stocked at each store?

To add to that when making in-store merchandise available online, a customer could order 5 different items and receive shipments from up to 5 different locations. What business rules can be systematically implemented to reduce or eliminate these occurrences? 

Fulfillment/Delivery - U.S. Postal Service will test same-day delivery for e-retailers - Internet Retailer

Another advancement in the rush to provide same day delivery for customers.

A Network Design is Never Done

This article, "A Network Design is never Done" by James A. Cooke, highlights the importance of continually analyzing supplier relationships and customer needs to identify changes that adversely impact your Supply Chain operation.  Assumptions made when a network was designed may quickly change, as is especially the case with the current retail landscape rapidly trending toward excellence in omni-channel sales.  I am interested to hear your thoughts on the beneficial roles that third party logistics provider play within your supply chain. You can comment directly to this blog or email me at kmelendez@mkm-logistics.com.

How is Your Distribution Network Evolving with E-commerce Growth?

There are many strategies to expedite or improve service to the customer while also trying to minimize logistics costs.  A recent DC Velocity article, "E-commerce Driving Regionalization of Distribution Networks" by  Mark B. Solomon, cites studies that have found: (1) 3/4 consumers will abandon online shopping carts if free shipping is not offered (2) inability to return merchandise impedes online shopping for most consumers. 

To overcome these barriers and still cost effectively service the customer, Mark suggests that many retailers will regionalize their distribution networks.  While this can have great advantages in reducing time in transit and shipping costs of orders, it may also drive up other logistics costs related to inventory allocation, storage, and transportation.

What have you found to be the most viable option for providing free shipping while reducing time in transit? Please post your thoughts here or email me at kmelendez@mkm-logistics.com. I look forward to hearing from you!