How retailers can unlock value in omnichannel delivery by increasing speed
In today's fast-paced world, retailers must keep up with rising customer expectations around speed and convenience. McKinsey's article "Retail's need for speed: Unlocking value in omnichannel delivery" highlights the importance of faster omnichannel order fulfilment and the value it can add to businesses. The article examines the challenges retailers face in providing fast and efficient delivery, outlines strategies for improving speed, and provides case studies of retailers that have successfully implemented these strategies. This blog post will summarize McKinsey's article and explain how Seeplus by Inovretail can help retailers overcome the challenges of providing faster fulfilment and optimization.
The article emphasizes the importance of speed in omnichannel delivery and the challenges that retailers face in achieving it. Slow delivery times can impact customer satisfaction and loyalty, and according to McKinsey's research, almost half of omnichannel consumers will shop elsewhere if delivery times are too long. Additionally, more than 90% of US online shoppers expect free two- to three-day shipping. However, providing faster delivery requires overcoming challenges such as inventory accuracy, SKU complexity, demand forecasting, picking costs, and execution quality. Despite these challenges, faster delivery can bring numerous benefits to the business, including increased sales, enhanced customer loyalty, and better overall customer experience.
To improve speed and efficiency in omnichannel delivery, retailers can leverage data and analytics, optimize inventory management, and streamline supply chain operations. For instance, retailers can use data analysis to understand where speed matters the most and how to segment their approach to meet customers' needs. Adopting machine learning algorithms can help optimize inventory management by predicting demand, ensuring accurate inventory placement, and reducing stockouts. Streamlining supply chain operations can also improve speed by minimizing the time it takes to pick and pack deliveries, reducing order cutoff times, and enabling faster parcel carrier pickups.
Several retailers have successfully implemented these strategies and experienced the benefits of faster omnichannel delivery. One such example is Ulta Beauty, which uses data analytics to optimize inventory management across its online and physical stores. By doing so, Ulta Beauty has significantly reduced stockouts, improved delivery times, and increased sales. Another example is Walmart, which has streamlined its supply chain operations by investing in automation technologies such as robots and machine learning algorithms. This investment has resulted in a 40% reduction in the time it takes to restock items and a 59% increase in the number of items that can be restocked per hour.
Seeplus by Inovretail
Seeplus by Inovretail is a comprehensive retail management system that can help retailers with the strategies and issues explained in the article. The system provides inventory management, order fulfilment, and supply chain optimization functionalities that can help retailers improve their inventory accuracy, demand forecasting, and supply chain operations. Seeplus can also assist retailers in using their store network to fulfil orders and optimizing their supply chains for faster delivery. The real-time inventory tracking and order routing features can help retailers fulfil orders quicker and more efficiently while minimizing picking and packing costs.
In conclusion, McKinsey's article highlights the importance of faster omnichannel order fulfilment for retailers and the challenges and strategies involved in achieving it. To succeed in today's market, retailers must focus on providing fast, efficient, and cost-effective delivery. The case studies provided in the article show how successful implementation of these strategies can add value to the business. With Seeplus by Inovretail, retailers can optimize their inventory management, order fulfilment, and supply chain operations, enabling them to provide faster and more efficient delivery while remaining competitive in today's market.