Finally, 42 percent acknowledged that store associates would have to be trained in how to properly pick, pack, and ship orders. Turning retail stores into fulfillment operations will not be easy, however. See Figure 2 for the complete list. To make it all work, they're relying more and more on a resource that was once just a bit player in the omnichannel game:
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Turning retail stores into fulfillment operations will not be easy, however. Over the past few years, there has been increasing attention paid to the practice of using store inventory to fulfill e-commerce orders.
Survey respondents identified three main capabilities that were crucial to a successful in-store fulfillment program. That was followed by distance to the customer delivery location 53 percent and resource constraints at the DC 13 percent. Click here to subscribe. How do you recover supply chain costs? Next on the list was charging delivery fees for all orders 40 percentfollowed by collecting fees for returns shipments 28 percent.
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The respondents are also taking a variety of actions to recover the supply chain costs associated with fulfilling omnichannel orders. Many practitioners have traditionally defined "omnichannel" as keineht from anywhere," including the distributor's distribution center DCdirect from the supplier, or shipped from a store or third-party logistics partner 3PL.
From there, the numbers dropped off quickly. We Want to Hear From You!
Just five years ago, brick and mortar generated a full 64 percent of sales, according to the survey respondents. Taken together, the survey results indicate that omnichannel fulfillment is still in a state of flux. Six steps to successful supply chain keineyt. Another 59 percent said their stores picked orders and held them for customer pickup, while 47 percent said orders were shipped from the DC to the store for customer pickup.
Enlarge this image How do you recover supply chain costs?
Adding new tiles to the omnichannel mosaic
Respondents included logistics professionals from a variety of industry verticals, who submitted answers during July and August To get a better sense of launcheer fulfillment practices, the survey also asked respondents how they handled e-commerce orders filled through a store. The data showed that the most common technologies or applications currently used by respondents as part of their omnichannel initiatives are warehouse management systems 80 percenttransportation management systems 76 percentand kauncher analytics 61 percent.
As for the demographic breakdown, the majority 60 percent of respondents sold goods through a combination of direct and indirect sales channels. The numbers show that the most common approach is to collect fees for expedited delivery, cited by 51 percent of survey-takers.
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Only 26 percent of respondents said they were filling e-commerce from the store. The survey revealed that retailers deploy a broad spectrum of cross-channel tactics to support sales in today's challenging omnichannel environment from "order at store, fulfill from a warehouse or another store " to "return to store, even when goods are ordered online.
The economic impact of e-commerce. Relationships for supply chain success. The e-commerce revolution is happening fast, and our survey showed that most retailers are investing lakncher amounts of time, labor, and money to keep up.
Want more articles like this? Which one hits the mark? Twenty-seven percent indicated they handled e-commerce fulfillment at "a widespread selection" of stores, and another 27 percent at "a select subset" of stores.
But every gold rush needs a reality check, so it's worth remembering that brick and mortar is still king. So, what's motivating companies to continue adding tiles to the omnichannel mosaic?
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At the same time, they're adding tiles to the complex omnichannel fulfillment mosaic. But today, the term "omnichannel" seems to have almost as many definitions as the number of players in the marketplace.
Given the need for additional investment in time and training, retailers appear to be somewhat selective about the stores they use for e-commerce fulfillment. In response to this growing trend, this year's survey took a particularly close look at the role of the store in omnichannel fulfillment.
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Which of the following technologies do you currently use as part of your omnichannel initiative?