Omnichannel Operations: 10 of the top KPI’s for Store Fulfillment
Key to any successful initiatives is the ability to monitor it’s performance and benchmark the benefits, but more often than not retailers under-invest or invest too late in this part of the project. Without this visibility to the operational metrics the proximity of a BOPIS solution, for example, becomes even bigger impact and the result is lost sales and poor customer satisfaction. With the right focus on metrics, the leading retailers gain valuable insight into what changes to make, which to make first, and how to make them.
Below are a few store-fulfillment focused KPI’s. In a later blog, we’ll explore the benchmarking for each.
THE TOP STORE FULFILLMENT KPI’S AND WHY THEY’RE IMPORTANT
|Metric||BOPIS||SFS||What it Impacts|
Fill Rate %
|X||X||Lifetime Value (returning customers)|
|2||# of Splits||X||Transportation Cost|
|3||Cost of Picking (Labor/Time)|
|X||X||Payroll at stores|
Amount of capacity/orders
|4||Store Capacity |
|X||X||SFS: Routing/sourcing decisions|
BOPIS: Order-to-Pick SLA
|5||‘Abandoned Orders’ (Days)||X||Inventory replenishment cycles|
|X||Inventory Available to foot-traffic|
Abandonment Rates post-purchase
Lifetime Value of (BOPIS) Customer
|8||Cancel Reason Codes||X||X||Inventory Accuracy: Lift/Shrink|
|9||Add On Sales %||X||Total Sales and Margin|
|10||Average Transportation Cost |
Labor Cost for Stores
WHO MONITORS KPI’S AND HOW OFTEN
Either a store operations team or an omnichannel operations team is responsible for leading the intra-day and week-to-week review of the KPIs noted above.
- We advise our clients to meet weekly in an operations meeting to talk about trends in order-volume, anomalies in the data at a weekly level, and to establish trends or begin to red-flag trends beginning to establish.
- In these weekly operations review meetings, four key departments need to be represented:
- Store Operations
- Inventory Control
- Supply Chain
Typically, the representatives are analyst up to Sr. Manager level.
- Either monthly or quarterly, we also advise our retail clients to meet to discuss overall trends in the business and meet to discuss any large initiatives necessary to study or alter the metrics seen (by capital investments or follow on projects, where needed).
BUILDING AN AUTOMATED DASHBOARD IS CRITICAL
To avoid siloed information, we always recommend the organization align to once source of truth for operational metrics related to store fulfillment by sending an automated dashboard to a set distribution list.
Visualization tools, such as Tableau, allow the communication of metrics to be easily sent and understood across numerous roles within the organization. Where possible, this automated dashboard should identify risk or trending areas which are above pre-determined benchmarks, to visually represent problems within the operations.
Avoid the tendency to have an analyst or BI professional manually compile reporting and manually send out within your organization. Design these in a way that all core data and supporting (static) data, such as the classification of a store’s audit score or “store type”, can be maintained under one reporting BI tool.
CONTINUED OPTIMIZATION THROUGH INSIGHTS IS KEY TO SUCCESS
Your weekly and monthly operations review meetings can be one of two things: a ‘read-out’ or an insightful meeting. The difference is found in the teams understanding of the overall store fulfillment solutios andmesund a strong grasp of the data involved in the fulfillment of orders in the store.
To ensure your meeting attendees don’t leave saying “I could have just read this myself”, what we find helpful is to have the meeting leaders establish specific topics to talk about in the ongoing meetings. With the “top-down” reporting we’ve mentioned above to show the same reports consistently, the meeting agenda can turn towards a “bottom-up” analysis based on the reporting we’re seeing.