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Home » Industry News » Study: Multitasking DCs deliver the goods for omnichannel retailers

Study: Multitasking DCs deliver the goods for omnichannel retailers

Study: Multitasking DCs deliver the goods for omnichannel retailers

View original at www.dcvelocity.com

Three-quarters of retailers fulfill orders from multiple channels at a single DC, according to our fourth annual omnichannel fulfillment survey. Once upon a time, the retail industry was a safe, predictable way to make a living. Businesses simply had to take delivery of inventory, stock the shelves, and greet eager customers at the door. Sign on for a retail job in 2016, however, and you’d better buckle up for a wild ride. This industry is one of the fastest-changing sectors of the U.S. economy, with companies hustling to adapt to trends like drone delivery, virtual reality, and mobile commerce. One change looms over all the others, however: the rush to join the omnichannel revolution. To get a better understanding of how companies are meeting the challenges of omnichannel commerce, DC Velocity and ARC Advisory Group, a Dedham, Mass., management consulting firm, teamed up to conduct our fourth annual survey on retail fulfillment practices. Respondents answered 37 questions on their approach to meeting current challenges in omnichannel commerce and their plans for the future. The results showed that in spite of an array of new logistics strategies and processes, most retailers have simply bolted their new omnichannel operations onto existing infrastructure, fulfilling multiple order streams in the same DCs where they handle traditional store fulfillment. The survey statistics that follow tell the story of why, how, and where businesses are performing omnichannel fulfillment. PRESERVE MARKET SHARE When it comes to why companies embark on the omnichannel journey, the answer seems to be all about preserving their slice of the market. Asked for the top three reasons they were participating in omnichannel commerce or intended to do so, respondents said they wanted to boost sales, increase market share, and improve customer loyalty. Those responses finished far above cost-focused alternatives such as […]

Sue Boczenowski

About the Author

Sue Boczenowski is the Marketing Manager for Abel Womack.

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