Sunday, September 11, 2016

DOING OMNICHANNEL FROM STORES?????

Must challenge points in this.  Up-to-date inventory--based on? Employees both sell and ship? Versus "lower" shipping costs? Glosses over real omnichannel supply chain issues.


Omnichannel Retailers Use Supply Chain to Lower Shipping Costs

samuel zellerOmnichannel retailers struggle with shipping costs: Charge too much, and customers flee, but charge too little and retailers are left with dwindling profits.
Customers who abandon shopping carts online, it often is a signal that your shipping costs are too high. It’s not uncommon: According to Baymard Institute, 67.45% of carts are abandoned. And CPC Strategy found retailers lose $18 billion annually due to shopping cart abandonment.
But lowering shipping costs while providing products at reasonable prices is a difficult balancing act. Solvency depends on making a decent margin on goods, but if prices are perceived as too high (because shipping is built into that figure), then the retailer risks having languishing product.
Customers often want free — not just inexpensive —shipping, delivered within a day or two. Many retailers struggle mightily trying to satisfy those demands. But for smaller chains, who may have less purchasing power with their suppliers, fulfilling that request is often impossible.
However, an omnichannel program with a strong foundation can help retailers identify where products are within their supply chains, and deliver them most efficiently to their customers. Ship-to-store capabilities help companies sell inventory wherever it resides, whether that’s at a store in Sacramento, CA, or Newark, DE.  Once located, retailers can direct the product to a store where it’s needed, or have it shipped directly to a customer. Not only does that “save the sale” but it also nurtures customer loyalty.
A ship-from-store strategy can reduce delivery costs for the customer because the retailer uses its own outlets as fulfillment centers. The closest location takes delivery of the product and ships it to the customer. The retailer must use its supply chain in the most efficient manner possible, and that includes being diligent about inventory visibility. Retailers must have up-to-date inventory count at all locations to reduce delivery costs.
It is a practical solution to the “delivery problem” to fulfill an order from a customer who lives virtually around the corner from a retail store with product from that location rather than have it shipped from a distribution center hundreds of miles away. Being able to take a close look at inventory lets retailers provide customers the delivery they want, without sacrificing good business sense.

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