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-serveomni-channel customers can be

3x more than traditional fulfillment.

WHY?Giving customers what they want,

when and where they want it...Simply the complexity of fulfillment.

TWO REALITIESGiving 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 UPMargins 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