Leigh Williams - eStore Logistics - The Evolution of the Traditional Bricks and Mortar Retailer

The evolution of the traditional bricks and mortar retailer eStoreLogistics.com.au29 April 2016

Melbourne & Sydney

Agenda!!" Introduction to eStore Logistics!

" Order fulfillment models for omni-channel retailers!

" Successful warehouse fulfillment strategies:!

" Streamline data flow from shopping cart to warehouse to freight carrier!

" Developing order fulfilment processes to suit your order and stock profile!

" Supporting technology and equipment!


Introduction to eStore Logistics!!" One of Australia's largest outsourced warehousing and order fulfilment providers specialised in

servicing online and omni-channel retailers!

" Warehousing, order fulfillment, inventory management, reverse logistics, freight management/brokerage, logistics consulting.!

" Fulfil 20,000 to 30,000 B2C orders per day for some of Australia’s largest online retailers!

" Apparel, lifestyle products, electronics, travel goods, furniture, home wares, health products, alcohol etc.!

" Derrimut, VIC: 16,000 sqm / Truganina, VIC: 5,000 sqm / Erskine Park, NSW: 6,000 sqm!

" 100 to 160 staff engaged across all sites each day based on volumes!

" Running Manhattan SCALE warehouse management system (WMS)!

" Contract out delivery for domestic and international!

" Greater than 99.9% order fulfilment and 99.8% inventory accuracy.


Order Fulfillment Models for Omni-Channel Retailers


Retail Store Fulfillment!!" Leverage store locations - quick speed to market, low capex, dedicated

inventory for online store not required!

" Staff balancing between online and store customer required!

" Requires specialized training at each store!

" Difficult to implement repeatable processes for lower volumes!

" Risk of timeliness or accuracy issues when doing low store volumes!

" Difficult to monitor quality and performance!

" Complicated order management system software required to allocate to stores based on available inventory and distance from customer!

" Shipping cost efficiencies may not be realized due to small multi location pick ups!


Click and Collect!" Provides almost instant customer gratification for urgent orders!

" Has many same considerations and challenges as retail store fulfillment!

" Fraught with danger if not designed and implemented well:!

" Store inventory incorrect resulting in unavailable stock!

" Customer arriving at the store and the order not being yet ready for pick up despite contrary advice!

" Store staging area required for fulfilled online orders!

" Little control over customer pick up day/time


Drop Ship!!" No inventory risk for business which provides cash flow positive outcome!

" Reduced control over fulfillment resulting increased risk of order fulfillment accuracy, timeliness and inventory issues!

" Sophisticated order management systems required to distribute sales orders to multiple suppliers and receive consignment/fulfillment information in return!

" Little control over delivery branding!

" Potential for split deliveries resulting in poor customer experience!

" Shipping cost calculation complex when sales order includes items from multiple suppliers resulting in increased risk of shipping cost loss!

" Shipping cost increase typically realised from multiple location carrier pick ups each day!

" Not all suppliers will fulfill B2C orders and therefore will require a cross dock solution


Showroom Only!!" Display stock only in retail store provides customer experience center!

" Customers order online in store after experiencing product!

" Provide ability for staff upselling!

" Increased flexibility by not taking inventory risk at certain showroom locations!

" Can reduce retail footprint in a higher rent area and get more foot traffic!

" Potential for decreased logistics costs – customers pay delivery!


Warehouse Fulfillment!!" Provides centralised DC from which online orders are fulfilled which typically

provides economies of scale for inbound/outbound handling and freight resulting in cost efficiencies!

" Easier to manage supplier ordering to bulk warehouse locations!

" Lower rent to store stock!

" Single freight carrier pick up’s each day typically resulting in lower cost!

" Customer entire order can always be fulfilled from a single location!

" Provides ability to develop and implement B2C order fulfillment processes which can be carried out at largest scale providing greatest benefits



Streamlining data flow from shopping cart to warehouse to freight carrier



Developing Wave Flows!!" Batch pick for lick and stick items!

" Batch pick for orders with multiple items per container – hot SKU’s!

" Fulfillment at the pick face (online orders / small store orders)!

" Very small item (letter) fulfillment!

" Fulfillment at the pick face by order (very large store orders)!

" Cross dock including least cost PO routing and combining multiple suppliers!

" Put wall / put to store


Supporting Technology & Equipment!!" Tier 1 warehouse management system!

" Freight optimization software!

" Middleware / data integration solutions!

" RF equipment (wearable computers to keep hands free)!

" IT infrastructure to cost effectively support multiple sites:!

" Data center!

" Rapid rollout wireless networks!

" Reverse labour plan tools!

" Narrow aisle equipment (maximize utilization)!



Thank you!If you have any further questions, please do not heistate to contact me.!

Leigh Williams!

Managing Director!

M. 0402 870 352!

E. [email protected]!!!eStoreLogistics.com.au!

101 - 115 Paramount Blvd!

Derrimut VIC 3030!

P. 1300 735 133!

D. (03) 9095 8693


mailto:[email protected]