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Best Practices in Strategic Multichannel Fulfillment
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Multichannel retailing is growing explosively, moving proactive retailers to reinvent the role of traditional stores and fulfillment. Walmart, for example, is experimenting with smart phone checkout, while Macy’s offers in-store customers the ability to have items delivered from a different location when not available at the point of purchase. Getting fulfillment right is much more mission-critical in a multichannel setting compared to a traditional brick-and-mortar one. <br><br>Multichannel fulfillment leaders follow three core fulfillment-related practices: 1. Define customer strategy and fulfillment solution simultaneously (and iteratively). Establishing a clear vision of the customer promise is the first step to breakthrough fulfillment. Promised delivery speed, by category, dictates many distribution-network and store-role requirements. 2. Harness flexible, “no-regrets” fulfillment-solution activation. Built-in flexibility must allow for the evolution of target customers, products, speed, etc. A “no-regrets” fulfillment build-out ensures adaptability and helps stage the development of the system over time. Fulfillment leaders can help ensure solution agility by using external partners (e.g. third-party logistics providers). 3. Use metrics and incentives aligned with multichannel fulfillment. Multichannel financial incentives should be established, and the adoption of shared financial performance across channels is a must. A balance must be struck between growth and profit, and leading multichannel key performance indicators should be defined, as they track fulfillment-system success more proactively than financial metrics.