The Changing Role of Operations and Fulfillment in Omni-Channel Retail

Post on 15-Jul-2015

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Martin PriestManager, Business Development & Operations,

eCommerce, Lowe’s Canada

What is Omni-Channel?

What is driving Omni-Channel Fulfillment?

Where Lowes.ca started

Lowes.ca launched in late 201237 locations, 4 provinces

Platform is owned by LoweseCommerce-dedicated call centre

Store pick-up and truck delivery available

All items are shipped from store, parcel shipping works on a hub store matrix

Ship-from-warehouse introduced in 2014

Customers can gain insights to product availability with Real-Time Inventory

90% of in-store SKUs available online65,000 Extended Aisle SKUs

Omni-Channel is changing the way business is doneLearnings from forming an omni-channel strategy at Lowe's

Organizational silos between the online and offline divisions drive the

wrong behaviours

Tactical LessonsOps says it works one way, but the stores tell the real story.

Store inventory data is less accurate than a warehouse.

Tactical LessonsBuffers, Picking, Inventory in hands - high velocity.

Extended aisle SKU’s are much less productive on average, we’re finding 5% of SKU’s do 80% of the work, recognized

brand names have good traction.

Tactical LessonsQuantity limitations for parcel shipping

Real-time inventory visibility is a must

Key Lesson #1

Don’t assume everyone understands eCommerce or that it is a priority.

Key Lesson #2

Learn the rest of the business

Key Lesson #3

Training, Training, Training

Key Lesson #4

Supply Chain will never be the same

Key Lesson #5

Information is King

Key Take Away

The new role of Operations is of a student and a teacher.