Store Shipping The Future of Retail
In a fast-changing world, new retail trends come and go. But ship from store—which means the fulfillment of e-commerce orders from in-store inventory—is set to stay around for the future .
“Most of the massive retailers have either introduced a ship from store model or are evaluating occupation that direction after the implementation of a buy online, pickup future process,” she says. “The evolution continues: even the retailers who have offered ship from store for several years now still say they’re refining the small print of their implementations.”
The emergence of ship from store
The rise of ship from store as a fulfillment model reflects the growing convergence of e-commerce with brick and mortar stores.
It wasn’t always the case. When distribution centers only served retail stores, life was relatively simple for the retailers. Along came e-commerce, and everything changed. “Consumers buying individual items online posed new logistical challenges for the retailers,” Jenkin explains. “Items that were previously shipped in bulk from the distribution centers to the retail stores now needed to be picked and shipped individually to satisfy online orders.”
E-commerce distribution centers emerged in response, sometimes initially a corner of the regular distribution center. Eventually, as e-commerce became bigger and retailers wished to serve customers in regional areas faster, they opened dedicated e-commerce distribution centers. during this way, e-commerce fulfillment evolved as a separate division for retailers and have become isolated from the most revenue driver for the corporate , which— for the foremost part—remained the stores.
The situation was hardly ideal. E-commerce databases often proved more limited than their in-store counterparts, leading to stockouts and lost sales. End-of-season items would sometimes show as out-of-stock online, albeit an equivalent sweater was sitting in stores round the country, quite possibly on clearance racks.
Weighing the advantages of ship from store
With a well-functioning ship from store program, both the retailer and therefore the shopper stand to profit in defined ways.
For the retailer, using store inventory to satisfy e-commerce orders can help clear end-of-season inventory while avoiding retail markdowns . For the web shopper, they gain access to not only what’s within the e-commerce distribution centers but on store shelves and backrooms.
“It may make more sense to ship a jacket still on the shelf in Atlanta in March to a customer in ny , albeit stores in ny still stock that item,” says Raman Ahuja. “That item may otherwise sit on the clearance rack in Atlanta for a reduced price taking over valuable store space.”
Ship from store also helps meet growing customer expectations around next-day delivery, a serious driver for retailers developing a ship from store program. By pushing orders to local stores that have the inventory available, the consumer may receive the item faster instead of shipping an order from a distribution center that’s further away.
The ability to increase reach and reduce shipping distance is powerful. “With five shipping locations, a retailer can deliver to 98% of the U.S. population in two days with UPS Ground,” He says.
Tips for testing and implementing ship from store
Despite the challenges, the upsides of successfully implementing a ship from store program are significant, says Jenkin, who gives the subsequent pieces of recommendation to retailers deciding the way to launch a program of their own:
Gain the support of store operations
Store operations provides the labor and is liable for accurately fulfilling online orders pushed right down to them, so it’s important that the shop gets the credit for selecting the order. A dual or split crediting system should be designed therefore the store team doesn’t feel as if they’re donating labor to the digital team’s revenue numbers. When store associates understand their new role within the organization and therefore the importance of accuracy and speed, implementations are successful.
Define store metrics
Are the stores expected to satisfy the order the day it’s dropped to them? How long do they need to reject the order if they can’t locate the item in order that the order are often sent to a different store or back to the DC? These are common metrics and KPIs that a retailer must define.
Create packaging guidelines and training
Deciding what percentage carton sizes to store then training the associates on how best to pick package sizes and to package items may be a key element of ship from store success. The unboxing experience may be a crucial a part of online buying, so items got to be packed safely and efficiently. confine mind that a lot of store associates might not have previous shipping experience.
Select stores wisely
It’s very common for a retailer to show on a subset of stores first, and tweak business rules and procedures before a full rollout. Also, for retailers with an outsized footprint, they don’t got to ship from every store to realize nationwide coverage. “21 stores in major metropolitan areas will cover the country with next-day UPS Ground service, although it’s likely such retailers will deploy anywhere from 50 to 100 stores to balance out inventory. What you do not want is to jeopardize the supply of inventory future for walk-in customers.”
Rationalize the shop inventory offered
Ship from store are often a far better option surely items or orders than others. Footwear are often challenging to supply , for instance , due to the amount of sizes that retailers got to confine stock per SKU to make sure the walk-in customer features a good experience. Fragile items, like glass, could also be better packed by the professionals within the DCs. Apparel may be a great start line .
Devise smart rules for inventory
Inventory moves around within a store—just consider the pile of garments at the doorway to a fitting room. To account for this, retailers must use their inventory management software to plan rules, such as, “only push an order to a store if multiple items are in stock” or “drop the order to the distribution center if it’s a multi-piece order and no store carries all the things .”
Support picking through technology
Finding inventory within a store quickly remains a challenge for many retailers. Imagine watching a bolt with no barcode trying to work out if it’s the right part. “Without technology, associates are often having to manually check out SKU numbers on a pick ticket then visually compare them against labels. Now, for the best-in-class retailers, tablets visually display an image of the item and offer scanning for accuracy confirmation, which may make picking far more efficient,” says Jenkin.
Offer other shipping options also
Offer ‘ship to store ’ and ‘buy online, devour in store’ as alternatives, or complements, to a ship from store program. “Sometimes consumers like better to attend the shop , but before leaving the house they need confirmation that the item they shall buy are going to be available,” says Jenkin. For the retailer, ‘ship to store’ and ‘buy online, devour in store’ can save on shipping costs and drive in-store traffic.
Expert support for ship from store programs
Developing a ship from store program isn’t easy, and retailers will need all the assistance they will get. UPS offers deep expertise in retail management and may assist retailers to implement their ship from store programs in many areas, including:
Determining the ship from store footprint: what percentage stores, and which of them , are needed to make a one-day or two-day transit model?
Retail inventory management: what proportion inventory to store within the distribution centers versus the stores? what proportion safety stock to keep?
Packaging optimization and training: Store-specific analysis on what percentage carton sizes to stay future and what packaging filler to use.
Systems for manifesting: Cart Logistic offers fully integrated technology, including support with hardware deployment, in order that store associates can print labels easily and accurately.
Business process design: Designing procedures and training manuals to make sure associates are working as productively as possible which the customer experience, from online ordering to fulfillment, is perfect .
“Cart Logistic has helped many large retailers that have gone accept a ship from store model in multiple ways, from the fundamentals like deciding the simplest time for driver pickup or help with UPS label creation technology all the thanks to detailed business rule and process design,” says Jenkin. “We use our expertise to assist small and mid-size businesses also .”
Ship from store and therefore the evolution of the shopping experience
E-commerce and brick and mortar retail will still converge, with the ship from store model a central feature of this convergence. As consumer expectations increase, physical stores give retailers the footprint they have to satisfy same-day and next-day orders without heavy additional investment.
“The brands that are getting to thrive are those that promote the simplest experience for consumers over and above what everybody else offers,” He concludes.