Adjusting distribution centers for omnichannel success at the retailer John Lewis

An article in CSCMP’s Supply Chain Quarterly (Quarter 2, 2014) titled “A Supply Chain Redesign for Omnichannel success” describes changes to the distribution center at the retailer John Lewis to ensure omnichannel success – a 7.2% sales increase in the 2013 season over the 2012 season with a 22.6% increase in online sales. The changes include reducing the number of distribution centers, coordinating the click and collect (at the store) with store shipments to ensure a smooth flow, and merging all items in an order to ensure the customer gets to pick up the entire order in the 41 retail locations. Given that the flows to the store are batched boxes or pallet loads while customer orders are for eaches, will the merging of these flows generate efficiency ? Should customers be encouraged get deliveries directly in their homes instead of store pickup to increase system efficiency ? Or will store sales increase as customers stop by to shop in the store when they come to pick up online orders ?

About aviyer2010

Professor
This entry was posted in Collaboration, consumer, Cost, Ecommerce, productivity, Supply Chain Issues and tagged , , , . Bookmark the permalink.

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