59 percent of respondents said
yes. That indicates that retailers run their e-commerce and
traditional fulfillment streams in
a single building but use separate operations, employees, and
inventory.
TOOLS OF THE TRADE
Within the warehouse, retailers
are using a range of sophisticated software tools to manage
their operations. When we asked
respondents what technologies they used to support their
omnichannel initiatives, the top
seven answers were: warehouse
management systems (WMS),
demand management software,
distributed order management
(DOM) systems, total-landed-cost analytics software, inventory optimization software, transportation management systems
(TMS), and labor/work force
management systems (LMS).
EXHIBIT 1
HOW DO YOU FULFILL E-COMMERCE ORDERS?
(% of respondents)
Method 2016 response 2015 response
Through a traditional DC that also
handles e-commerce 75 63
From the store 44 43
Direct from manufacturer or the
retailer’s supplier 38 36
Through a Web-only DC 32 47
Note: Participants were allowed to select multiple responses.
EXHIBIT 2
DO YOU HANDLE E-COMMERCE FULFILLMENT
AND TRADITIONAL FULFILLMENT AT THE SAME
FACILITY?
(% of respondents)
2016 response 2015 response
Yes 77 69
No 23 31
EXHIBIT 3
WHAT TECHNOLOGIES DO YOU USE TO SUPPORT OMNICHANNEL INITIATIVES?
(% of respondents)
Currently use Do not use, but plan to use
Warehouse management system 43 7
Demand management 37 11
Distributed order management (DOM) system (offers common view of
systemwide inventory, event management) 34 13
Total-landed-cost analytics 33 11
Inventory optimization 32 17
Transportation management system 32 13
Labor/Work force management system 32 12
Bar-code scanning on the store floor or in the backroom (not at point of sale) 29 14
Real-time inventory location application for the store 25 15
Cost-of-quality analytics (analyzes what fulfillment mistakes cost in terms of
lost customers) 15 22
Reverse logistics system (robust returns processing) 14 24
RFID at the store 6 15
Note: Participants were allowed to select multiple responses.
