Amazon and the Fight to Fulfill Orders Through Optimized Store Fulfillment
Retail’s future belongs to the retailer that provides the best possible customer service. Customers want to buy products and services on their terms. Mastering omni-channel fulfillment will allow retailers to provide the best possible customer experience.
According to a recent Forrester Report, e-commerce sales will be 11 percent of total retail sales by 2018. That is $414 Billion! As Millennials, Gen Y, and Gen Z gain purchasing power they will drive a greater percentage of sales online. Stores will fulfill approximately 60 percent of these orders.
This is the forecast for retail and the race is on to create the ultimate omni-channel experience. E-commerce must sync with brick-and mortar. Applications must engage customers. Stores must become fulfillment centers.
Amazon wants to beat other retailers to the punch. The company recently announced plans to hire 6,000 new fulfillment employees. These additions will bolster the company’s already robust customer and delivery services. Amazon also revealed plans to offer free same day-shipping for Amazon Prime members. Amazon is taking no time in brewing up a perfect storm for brick-and-mortar retailers.
Even the most advanced retailers are falling behind. A global Top 10 retailer touted that they were delivering 5 percent of their orders within two days according to a recent ISR Survey. This may seem great, but in comparison it is not competitive. The comparison is stark. Amazon is offering free, same-day delivery. The Top 10 retailer is struggling to make their deliveries within two days.
Retailers must respond by perfecting omni-channel execution. Retailers must turn every store into a fulfillment center. Retailers can provide seamless omni-channel experiences with proper labor management and real-time store execution.
Reflexis StorePulse® real-time store execution gives retailers the ability to perfect omni-channel fulfillment. StorePulse puts action-based directions into the hands of mobile-enabled, digital store managers and associates allowing them to fulfill orders in real-time to meet any deadline. Unlike Amazon, retailers cannot simply increase labor. The key for retailers is to optimize the labor in their stores so they can deliver the best possible omni-channel experience.
StorePulse allows your stores to create the perfect omni-channel experience. Your stores will be able to respond in real-time to online orders for shipping or for in-store pick-up. Without perfecting those fulfillment options, retail will always play second fiddle to Amazon.