As
Retailers make store stock available for purchase online they immediately see
an increase in online sales – it’s a significant game changer!
Online shopping has brought retailers and
customers closer together, but it has put huge strain on many supply chains.
They have been required to evolve the processes by which they organise, store
and transport goods at a much quicker clip than they had to in the past. The
opportunity exists for most retailers with stores to fulfil online orders from
store stock, especially where the online order is for customer collection.
Recent research from IDC has found that
retailers’ estimates of what they have in their stores range from 60 to 90 per
cent accuracy. This is the challenge facing retailers looking to satisfy the
multi-channel delivery demands of consumers.
Modern retail stores need to behave more like
mini distribution centres as an extension to the supply chain, with stock
control disciplines to drive stock accuracy substantially higher.
The multi-channel supply chain has many
components – which makes compounds challenges with inventory visibility and
availability. If you are able to understanding and manage some of the common
problems such as the following you are on your way to improving the store’s
ability to integrate into your supply chain.
Accurate receiving against ASNs, regular and
frequent cycle counting to monitor shrinkage, accurate recording and management
of return stock and real-time reconciliation of POS data are just some of the
new disciplines required in store.
Although, once store inventory is accurate
that’s not the end of the job. The main benefit comes only when an accurate
picture of availability is taken into account. Shoppers are filling their
baskets or trying on garments every minute of the day so there are other supply
chain disciplines to be introduced to gain sufficient confidence to sell store
stock online. Assumptions about safety stock levels by product need to be made
and then managed and maintained in the Order Management System.
Once store stock is being sold online there
are yet more new disciplines needed in store where store staff will be needed
to pick orders and pack ready for collection. None of this is ‘difficult’ but
it’s all essential as retailers move towards the goal of integrating all
channels into a single, modern, efficient way of working.
The potential benefits are huge; who wouldn’t
want to see a sales increase without opening new channels and without
increasing stock levels!
Contributed by:
Michael Badwi, Managing Director, Supply Chain Junction
