DC Velocity - April 2020

those uses yet—for pure walk-in, BOPIS, or buy online/shipfrom store,” Dunlap says. “[Retailers are all performing]ongoing analysis as the infrastructure changes, volumeschange, and consumers adapt to new shopping patterns.”

NO SILVER BULLET

As retailers continue to struggle with this issue, they’relooking to both high-tech and low-tech solutions, according to Jim Barnes, CEO of supply chain consulting and ITservices firm enVista. On the low-tech side, the solutionscan be as simple as scheduling e-commerce fulfillmentwork for off-peak times such as early mornings and latenights to minimize inconvenience to shoppers. “Storesdon’t want … their sales associates to pick food duringpeak shopping times, when they might be competingwith in-store shoppers for that last container of Chobaniyogurt,” he says.

As for technology-based solutions, retailers are investingin handhelds and tablets as well as exploring their automation options—although progress on that front has beenslow to date. For example, according to a white paper fromenVista titled CMOs and CFOs Take Control: Don’t Let YourShip From Store Strategy Break the Bank, less than 25% ofretailers have well-defined, automated processes for shipfrom store.

Still, when it comes to multistep operations like shipfrom store, simply upgrading your technology is no silverbullet, Barnes warns. It’s more complicated than swappingout a basic order management system (OMS) for a “light”warehouse management system (WMS), he says.

“What you don’t want to do is think you can turn onyour WMS and … be able to ship from store, becausethere are so many other variables,” Barnes adds. By way ofexample, he points to the need to train employees on howto package and ship delicate goods like lamps or glassware.

A LONG ROAD AHEAD

Launching omnichannel fulfillment operations within abrick-and-mortar store remains an enticing option forretailers caught between skyrocketing e-commerce demandand the need to keep shipping costs in check. But it alsorequires them to meet the sometimes competing needs ofin-store and online shoppers. And when it comes to thequestion of how best to do that, industry analysts warnthere’s no clear path forward yet.

“There is overlap between pure industrial and pure retail;there’s a gray space in between brick and mortar, pick upin store, and ship from store,” CBRE’s Dunlap says. “Thereare blurred lines between what’s an industrial space andwhat’s a retail space. There’s still a long road ahead.” ;