The MHEDA Journal - Third Quarter, 2014 - (Page 76)

SALES & OMNI-CHANNEL MARKETING Omni-Channel Retailing The trend toward regional distribution and same-day delivery BY DAVE LODWIG, SYSTEMS MANAGER, W&H SYSTEMS I n the past, retailers built two types of distribution centers: one (or two) on the East and West coasts of the US to handle store fulfillment, and another to handle strictly e-commerce. These distribution centers were built to handle their own specific type of fulfillment and none other. The retail stores on the East coast were fulfilled from the closest DC, while the outlets on the West coast were fulfilled from a DC located in the Western US. Fulfillment typically took one to two days, but for stores in the Central US, they had to live with 3-5 day fulfillment. If the retailer received an e-commerce 76 MHEDA | themhedajournal.org order, regardless of the location of the buyer, that order was fulfilled out of the e-commerce-only warehouse. The consumer could be located next door to the West coast distribution center, but since he ordered his item online, it would only be shipped from the e-commerce DC, and he'd have to wait to receive it. This scenario was more like customer "no satisfaction" than customer satisfaction. Many larger retailers and department stores with growing e-commerce sales decided to use ship-from-store to fulfill these orders and therefore defer investing capital in additional distribution centers. With increasing e-commerce business beginning to stress fulfillment capacities to the breaking point during peak season, retailers without ship-from-store capabilities are often operating at maximum capacity. Amazon has set the bar for product selection and fast delivery. You can buy almost any type of product in any quantity from them and have it delivered no later than tomorrow. Omnichannel retailers who want to compete http://www.themhedajournal.org

Table of Contents for the Digital Edition of The MHEDA Journal - Third Quarter, 2014

President’s Perspective
From the Desk of Liz Richards
Editor’s Note
Ask Your Board
A Seat at the Table
Women in Business Trends
@work
Happy Anniversary!
MHEDA at 60
A Powerful Marketing Advantage
MHEDA University Calendar
Best of the Best
An Untapped Resource
16 Tools to Build Your Service Labor Business
Personal/professional Relationships With Customers
Calling All Emerging Leaders
Omni-Channel Retailing
Design of the Mheda Disc Report
Convention 2014 Recap
New Members
Spotlight on Association News
MHEDA Milestones
Index of Advertisers by Product Category

The MHEDA Journal - Third Quarter, 2014

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