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How do you measure
your cost-to-serve
for omni-channel
fulfillment?
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.
TWO REALITIES
Giving customers what they want,
when and where they want it...
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
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
You must understand
the primary cost
factors that impact
your omni-channel
margins:
Shipping
Load Variance
DC / Store
Operational
Cancellation
Carrying Inventory
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
How can you
ensure omni-channel
fulfillment options
are not eroding
your margins?
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
Find out more about
IBM Watson Order Optimizer
READ THE SOLUTION BRIEF

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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.
  • 3. TWO REALITIES Giving customers what they want, when and where they want it...
  • 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