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How do you measure your cost-to-serve for omni-channel fulfillment?


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Cost to serve is skyrocketing as retailers compete to satisfy new customer fulfillment expectations. Learn how you can measure the impact of omni-channel fulfillment, eliminate unnecessary complexity and cut costs.

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How do you measure your cost-to-serve for omni-channel fulfillment?

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