Fulfilment capability is currently one of the essential things a shopper checks before they will consider you as potential provider.
Same day delivery options will soon change from being a source of distinction to a normal customer expectation.
These days, the time clients are willing to await delivery has significantly dropped from less than a week to below two days. Same-day delivery alternatives will soon change from being a source of distinction to a normal customer expectation. Additionally, the requirement for what we want and when we need it has to be done with minimal impact on the environment.
Clients expect multiple delivery options in store and online.
- Free home delivery (with online monitoring and date rescheduling)
- Inter-store transport
- Online ordering (if the stock is unavailable in-store)
- Quick and convenient delivery
- Free delivery within a certain threshold
- Click & Collect
- Delivery to third party collection points (like Australia Post, ParcelPoint and Hubbed)
- Vendor backorder and drop ship
To increase the efficiency and speed of shipping, Informed Retailers are utilizing two fulfilment versions:
Using shops as virtual warehouses, retailers can have more control over inventory and orders. Where multiple shop store locations are involved, Informed Retailers use systems to ascertain the perfect store that an order becomes fulfilled from.
This system takes into account location, inventory levels, planned promotions, projected sales, staffing and pickup frequency, in turn fulfilling orders quicker and cheaper with fewer mistakes.
Warehouse, Hub & Spoke Model
For many multi-store retailers, another evolution from virtual warehousing is a Warehouse, Hub & Spoke version.
With this version, the warehouse sends merchandise to shops (all hubs and spokes), however, hub-stores retain most the inventory based on geographic proximity to central client locations. Hub-stores also have Spoke-stores in close proximity, to have the ability to send an item to the client via the Spoke-store within two to three hours for Collect and Click or same day shipping.
Informed Retailers also use A-B-C based performance evaluation of different store locations to ensure the best performing shops get priority access to stock.
►►► ConnectPOS is a cloud-based POS software compatible with multiple platforms including Magento, Shopify & Shopify Plus, and BigCommerce.
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