The retail supply chain encompasses a range of functions that drives value for the modern consumer, who demands fast and inexpensive delivery for any given product, anywhere, at any time. An optimized retail supply chain is crucial for efficient logistics and fulfillment operations to help minimize lost sales from inventory overstocks and out-of-stocks.
Advancements in technology such as machine learning and advanced analytics, enable optimization of the supply chain to intelligently leverage physical stores and effectively manage inventory - ultimately maximizing revenue and profit margins across the board.
Retailers are rethinking the role of the store to improve supply chain performance and master order fulfillment challenges in a $2.3 trillion global e-commerce market that is growing exponentially.
To ensure the delivery of product in the most efficient way possible, traditional retailers must utilize the assets they have available, which include mounds of customer data and their physical store network.
Shoppers expect a seamless experience across all channels – both digitally and physically. As such, retailers are introducing more options, like ship-from-store or click-and-collect, to bring together the online and in-store shopping experience.
By effectively utilizing inventory held in stores, retailers can enhance fulfillment offerings and speed delivery lead times, but at what cost? To avoid missed sales, retailers often purchase excess inventories that aren’t fully aligned to demand. On top of this their focus is on logistical costs, which in the end is a losing battle.
Customer preference insights and demand prediction at a localized level is fundamental to ensuring the right product is stocked at the right store to ultimately fulfill online orders from the best possible location.
"The shift toward online commerce is driving many supply chain and operations leaders in retail to rethink the role of the store to improve all types of fulfillment performance."
Gartner, Survey Analysis: Multichannel Supply Chain Success Driven by Three Factors
CONSUMERS DEMAND FAST DELIVERY
The reality is that ship-from-store is really tough to get right.
Understanding how a potential shopper is likely to interact with a given assortment of products in-store can help retailers intelligently leverage the right store inventory for online orders. Without predictive demand forecasting, it’s nearly impossible to fulfill every e-commerce purchase profitably.
Learn more from our webcast recording about why and how major retailers are turning to predictive analytics to optimize their ship-from-store strategies.
By intelligently leveraging store inventories, Celect helps the ALDO Group achieve an optimal balance across multiple, conflicting order fulfillment objectives to determine the best outcome for any given ship-from-store scenario.
Learn more about how Celect Fulfillment Optimization uses advanced analytics to help increase gross margins through: