Cost to serve is skyrocketing as retailers compete to satisfy new customer fulfillment expectations. Learn how you can measure the impact of omni-channel fulfillment, eliminate unnecessary complexity and cut costs.
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Scaling API-first – The story of a global engineering organization
How do you measure your cost-to-serve for omni-channel fulfillment?
1. How do you measure
your cost-to-serve
for omni-channel
fulfillment?
2. Customers expectations
are evolving… demanding faster
and more flexible order fulfillment for
how, when and where they receive
their orders.
In fact, the cost-to-serve
omni-channel customers can be
3x more
than traditional fulfillment.
WHY?
Simply the complexity of fulfillment.
4. and the reality of fulfillment
Meeting short
delivery demands
Needing to leverage
omni-channel to increase
store foot traffic Eroding margins
Lacking visibility into
KPIs that impact to-
tal cost-to-serve
Conflicting business goals
Impacting fulfillment
strategies across channels
5. Retailers must find the
balance… between the competing
objectives of customer
service and the cost to fulfill
Cost-to-serve is UP
Margins are GOING DOWN
… all while online order volume is on the rise
6. You must understand
the primary cost
factors that impact
your omni-channel
margins:
Shipping
Load Variance
DC / Store
Operational
Cancellation
Carrying Inventory
7. You can attain omni-
channel proficiency by:
Minimizing cost-to-serve while meeting
customer delivery expectations
Simulating sourcing and fulfillment
schemes using historical data
Maximizing fulfillment capacity
Utilizing inventory at the most profitable
price point
Making dynamic adjustments to your
fulfillment network without involving IT
8. How can you
ensure omni-channel
fulfillment options
are not eroding
your margins?
9. Ensure you can:
Evaluate and analyze fulfillment costs,
capacity and margin results, down to
individual SKUs and node levels
Easily run different simulations and
create new sourcing logic to meet
customer demands
Empower cross-functional teams to
execute sustainable, efficient fulfillment
processes without involving IT
10. Find out more about
IBM Watson Order Optimizer
READ THE SOLUTION BRIEF