changing role of operations and fulfillment in omni-channel retail
TRANSCRIPT
Martin PriestManager, Business Development & Operations,
eCommerce, Lowe’s Canada
What is Omni-Channel?
What is driving Omni-Channel Fulfillment?
Where Lowes.ca started
Lowes.ca launched in late 201237 locations, 4 provinces
Platform is owned by LoweseCommerce-dedicated call centre
Store pick-up and truck delivery available
All items are shipped from store, parcel shipping works on a hub store matrix
Ship-from-warehouse introduced in 2014
Customers can gain insights to product availability with Real-Time Inventory
90% of in-store SKUs available online65,000 Extended Aisle SKUs
Omni-Channel is changing the way business is doneLearnings from forming an omni-channel strategy at Lowe's
Organizational silos between the online and offline divisions drive the
wrong behaviours
Tactical LessonsOps says it works one way, but the stores tell the real story.
Store inventory data is less accurate than a warehouse.
Tactical LessonsBuffers, Picking, Inventory in hands - high velocity.
Extended aisle SKU’s are much less productive on average, we’re finding 5% of SKU’s do 80% of the work, recognized
brand names have good traction.
Tactical LessonsQuantity limitations for parcel shipping
Real-time inventory visibility is a must
Key Lesson #1
Don’t assume everyone understands eCommerce or that it is a priority.
Key Lesson #2
Learn the rest of the business
Key Lesson #3
Training, Training, Training
Key Lesson #4
Supply Chain will never be the same
Key Lesson #5
Information is King
Key Take Away
The new role of Operations is of a student and a teacher.
