JLL Industrial once again explores ship-from-store fulfillment and how it has evolved in the past three years. This solution allows retailers to leverage stock from their brick-and-mortar locations and answer e-commerce challenges with more flexibility.
Consumer and retailer advantages
Retail locations are typically closer than distribution centers are to masses of consumers. Shipping to consumers’ homes from local stores could potentially lower delivery or transportation costs, depending on the item and increase speed to market. This tactic helps to keep shoppers loyal to both the store and brand in retailers’ efforts to keep market share.
Adding stores to a retailer’s fulfillment network can mitigate risk because of the added distribution points those stores offer to the overall logistics network. If weather or fire impact a major retail distribution center, stores can minimize the impact by assuming fulfillment duties.
For the ship-from-store practice to be successful, certain factors need to be considered. Cost is a main consideration. Converting to this model requires the upgrading or replacement of legacy systems and a flattening of supply chains. Selecting the most suitable pilot store locations for implementation is also important, as is training staff and having functional back-of-the-store space to pull it all together. Making sure stores are well located within parcel carrier and ground sortation hubs is also a top consideration.