Excerpts from the full article are as published in the January – February 2016 WERCSheet… “Retailers are entering the year in a mixed economy, with e-commerce sales growing at a double-digit pace, more customers making purchases via mobile devices, and store sales running at lower single-digit growth rates." JANUARY/FEBRUARY 2016 WERCSheet WERC members can see more of this article at WERC. About Johnson Stephens Consulting Johnson Stephens Consulting is a supply chain operations consulting and integration firm that provides practical, interactive, consulting assistance to retailers, wholesalers, e-commerce/direct to consumer companies, 3PLs, and consumer products distributors. Our focus is to provide our clients with the most cost-effective, service focused solutions for supply chain operations. Services include supply chain strategy, supply chain execution systems, facility design and implementation, and operations improvement. Founded in 2003, JSC professionals have completed over 400 projects and served over 200 different organizations. Click here to see our full list of supply chain services.
Steve Johnson, Managing Principal of JSC, provided insight into the omnichannel distribution challenges of 2016 in the January/February WERCSheet edition.
“Subscription-based online programs are popular. The large millennial generation is proving this: they shop online and only go to the store if they can find what they want and in their size. There is pressure on retailers to focus on much better distribution center and store inventory visibility through the web for millennials to find store-based retail relevant."
“We have seen an increased demand for the proper siting, planning, design and implementation of new e-commerce fulfillment centers to provide the in-stock position and best service levels to the customer."
“Proper assessment and selection of MHE technologies, such as goods-to-person, high speed unit sortation, pick modules with zone divert conveyor systems, productive picking and order consolidation tools (light- or voice-directed or sight-directed work, etc.) ensures that service levels are attained while also achieving high after-tax return on investment (ROI) results."
“Labor management systems (LMS) implementations are documenting productivity improvement and reduced labor costs of between 12 percent and 25 percent. With real-time feedback to associates, and through the use of “near real-time” staffing of work areas that result from the LMS, the results have been shown to increase the savings beyond 25 percent—up to 40-plus percent savings. This has reduced labor hiring requirements in some overly competitive labor markets."
The Omnichannel Distribution Challenge - Johnson Stephens Consulting
March 7, 2016