DC to Store for Pickup is yet another tool in leading retailers arsenal that keeps customers delighted and returning, but shipping cost become a major consideration for this flow.
It’s unique because, unlike any of the other flows, the goods start in a different source than where the customer receives them.
The Benefits
Retailers who implement ship-to-store from DC flows see:
- Reduction in “free shipping” cost done on behalf of customer, when goods not in store
- Optimized cubing of material in parcel delivery to store during replenishments
- Increases to foot-traffic to drive add-on sales
- Maintains retail inventory already in store and minimizes disruption to stock placed specifically for retail
The Ship-to-Store for Pickup Process
Explore your potential.
The Preparation
Each of the four sections below are preparation areas to consider before starting your project. Hover over each line item to get more details and validating questions.
Research & Requirements
- Understanding Current Replenishment Model?
- Are your customers willing to wait?
System Design & Implementation
- Data Flow across enterprise systems
Project Planning
- Duration of pilot prior to launching
- Size of pilot group
Change Management Considerations
- Implications to WMS / Distribution Center
- Implications to Store Operations
The Challenges
Supply Chain Considerations
Challenges
- When LTL replenishment, space limitations may vary
- Less frequent replishment trucks can extend customer SLA
- Flowing all data across supply chain systems to enable customer experience
Considerations
- End to end solution architecture across all systems
- Evaluation of change-impact to both WMS and OMS from systems perspective
- Change-impact to distribution center for process changes
- Ability to move inventory across channels in an ‘omni-DC’
Client Facing
Challenges
- If no payment captured up-front, client could no-show for the pickup, leaving inventory in store
- Client returns back to pickup location may not have planogram space and have to therefore be discounted to move (if larger items)
- Items could be damaged during shipment, and either delay delivery to client or customer takes receipt only to find out it’s damaged
- Like BOPIS, for larger items, where those are staged in store to be picked up (sometimes ship to store flow occurs because larger dimension items aren’t stocked well in stores).
Considerations
- Hold times for customer pickup
- When the settlement occurs (ship or pickup)
- Where to stage order in stores for pickup
- Overall in e-comm exclusive and store exclusive SKUs
The Ship to Store for Pickup Insights
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How It Works
Here is our methodology to ensure the success of your omni-channel business solution.
Business Case & Roadmap
Key Services Delivered
- Define Current Capabilities
- Define the Future State
- GAP Analysis
- Solution Alternatives
- ROI Analysis
- Business Solution Roadmap
Requirements & System Selection
Key Services Delivered
- Solution Requirements
- Key Business Scenarios
- RFI/RFP Demos
- References
- Contract Negotiation
- System Selection