As a retailer, keeping up with the demand for your products is a good problem to have, right? You’re constantly striving to meet the needs of your physical store replenishments, as well as fulfilling the surge of online consumer orders.
There’s no doubt that retailers today need to deliver an integrated customer experience across multiple channels – bricks and clicks. According to a study from Deloitte, the multi-channel consumer is worth more in value, spending 82% more in one transaction than customers who only shop in-store. When you consider that the ABS recently estimated a consumer spend of around $4.55 billion annually with Australian online retailers, and online sales are increasing by 20%-30% annually, there is little doubt as to where the future of retail is heading.
Retail warehouse managers are now faced with the dual challenge of regularly distributing large volumes of stock to physical stores, as well as fulfilling online orders that are increasing in number and average very low item quantities per order.
Recognising the need for improved warehouse systems to service online growth is a step in the right direction. Warehouses now more than ever must cater for increasingly diverse product lines and volumes, have the scalability for rapid additions, and maintain inventory accuracy and efficiency. There is a clear requirement today to increase order picking speeds to enable prompt shipping to meet customer expectations.
So the question is, how is your warehouse performing in response to today’s multi-channel retail environment? Are you achieving the best results? Or is something indicating that your efficiency (and profitability) could be improved? Are there constraints that are hindering or limiting your fulfilment? There is no doubt that the surge in online shopping has increased the need for many retailers to review the performance and efficiency of their warehouse.
One retailer that recognised this need to change is MECCA Brands. Due to rapid business expansion and substantial growth in online orders, MECCA Brands existing warehouse facility was literally bursting at the seams! Changes were required to improve stock inaccuracy, throughput constraints, cramped conditions and poor performance of their fulfilment system; all typical logistical issues experienced by growing retailers.
For MECCA it was essential to have a scalable, customised system that was able to handle fluctuations in product sizes, consumer demand and stock levels. The solution needed to cater for bulk storage of incoming palletised goods, supplying the active picking and replenishment of 55,000 SKU’s for online and store despatch.
The Super 123 system from Bowen Storage was the perfect solution. Installing this storage system resulted in order fulfilment rates increasing by 25%, inventory accuracy improving from 80% to 95%; and inventory rotation improving by up to 100%. Want to know more about how Super 123 transformed MECCA’s business? Take a look at this Case Study.
For any savvy retailer, effectively managing your online and retail stock inventory is the key to business growth and profitability. Find out how Bowen Storage could partner with you in customising the Super 123 system to take your brand to the next level; and call us today on 1300 780 654.