Dive Brief:
- While adapting omnichannel options, most retailers are looking for the simplest means possible by which to integrate the new platforms within their existing infrastructure, according to a recent DC Velocity study.
- About 75% of respondents said they fulfill online orders from the same warehouse as traditional orders, while only 32% said they operate a web-only distribution center.
- More than half of the respondents marked in-store online ordering, in-store reverse logistics processes and store-to-store inventory rebalancing as omnichannel priorities. Retailers also noted their top reasons for adopting omnichannel strategies were to increase market share, boost sales and improve customer loyalty.
Dive Insight:
Consumption trends are changing, and the retail supply chain is adapting. Prior to the rise of omnichannel as a sales model, brick-and-mortar stores relied on "traditional" fulfillment centers to deliver large pallets of goods to the department store or wholesaler.
But omnichannel capabilities, which first require the integration of various stores' inventories into a single system, mean distribution centers must now be able to simultaneously fulfill large and small orders. The warehouse, then, became more than just a link along the supply chain — it has become an essential opportunity for cost savings and optimization.
As inventory needs become more diverse yet lean, and consumers expect more connected services, retailers may find well-integrated or connected warehouses could provide a competitive advantage.
