Retail Supply Chains Use ‘Ship-From-Store’ to Keep Up with E-Commerce

Retail Supply Chains Use ‘Ship-From-Store’ to Keep Up with E-Commerce

CX Day is an annual event that puts customer experience top of mind and focuses on ways to serve customers better. At West Monroe, we help our clients discover areas of operational improvement which will make the biggest impact for their customers. This ensures a customer centric approach to operations doesn’t happen only one day a year.

Recently, we published an article on how brick-and-mortar stores are competing with internet retailers and increasing customer satisfaction through a model known as “ship-from-store.” This model allows retailers to fulfill their online orders not from far away distribution centers, but from stores nearby. Across the board, more retailers are hopping on the ship-from-store bandwagon including local retail giant Target and middle market retailer DSW.

Investing in ship-from-store processes and technology has provided retailers with numerous benefits:

  • Increases supply network distribution points by tens, hundreds or even thousands of locations
  • Serves customers faster to compete with quick shipping options, such as Amazon Prime
  • Evenly-distributes inventory across an extensive network
  • Reduces inventory and storage costs by sharing products across channels
  • Makes use of pre-existing labor and capital in stores

In addition to the utilization of storefronts, back-end system optimizations have afforded retailers the opportunity to re-evaluate other assets in the supply chain. The maturity of warehouse management systems (WMS) and distributed order management (DOM) systems has streamlined distribution processes to help deliver a seamless customer experience.

With internet sales rising 23% last year and continuing to grow, the retail industry is likely to undergo more changes in the coming years. Though asset-reliant brick-and-mortar stores may see the rise of e-tailers as a threat, ship-from-store and DOM approaches can help them navigate the competitive retail landscape and keep their doors open.

To read the full article as it appeared in Material Handling & Logistics, please click here.

To learn more about West Monroe’s involvement in CX Day across the country as well as locally in Minneapolis, please click here.

Phone: 312-602-4000
222 W. Adams
Chicago, IL 60606
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