receive information and react in real time,
improving the replenishment process as
well.
In a similar way, mobile technologies
are being used for point-of-sale (POS)
transactions, helping improve the in-store
experience for both online and in-store
shoppers, Bomber adds. Although most
retail stores still use traditional point-of-sale terminals, many are beginning to complement that approach with mobile POS
technology to speed up the checkout process for both click-and-collect and walk-in
traffic. Mobile POS technology includes
handheld tablets and smaller devices used
for payment—think of the last time you
purchased something at an Apple store—as
well as more rugged industrial handheld
devices you may see in a big box retail
outlet.
Although convenience and efficiency are driving many of these changes,
experts also point to underlying demand
for faster delivery service as a key component of the evolving retail store. Waiting
for home delivery can take too long for
some customers, who will prefer more
immediate click-and-collect options, for
instance. There is also growing demand for
“access point” pickup, according to Louis
DeJianne, director of retail marketing for
Atlanta-based global transportation and
logistics giant UPS. Through UPS’s Access
Point Network, customers can buy online
and pick up at a conveniently located access
point when home delivery won’t work or
there is no retail outlet nearby (provided
the retailer has included UPS Access Point
locations in its shipping options). UPS’s
network includes nearly 9,000 locations
in the U.S. and more than 27,000 globally
for both business and consumer use—
the latter driven by changing consumer
purchasing habits. Access points include
independently owned and operated neighborhood businesses, UPS Store locations,
and self-service lockers.
“What we’re seeing is retailers looking for
any number of opportunities to improve
the customer experience and shorten
the period between the time of purchase
online and the consumer’s receiving it,”
says DeJianne, emphasizing the need for
a customized approach to adapting retail
fulfillment services. “Every retailer has to
look at what it needs to accomplish
in terms of that customer experi-
ence and then design [its processes]
according to those needs.”
FOCUS ON TRAINING
Bomber, Daugherty, and DeJianne
agree that employee training is a crucial part of the mix no matter what
approach retailers take to respond
to changing fulfillment demands.
Training employees on how to use
new technology is one thing, but
they also need to learn how to perform distribution center-like functions if they are to successfully integrate the online and physical store
experience, Daugherty says. Store
associates must learn how to pick,
stage, and ship orders as well as gain
an understanding of the logistics
process. This becomes increasingly challenging in an environment
staffed by part-time workers and
temporary or seasonal help.
“That’s a big challenge that retail-
ers face,” he says, adding that they
must “put discipline into the train-
ing process and into filling those
e-commerce orders.”
DeJianne agrees, emphasizing
the need for a more disciplined
approach to hiring as well. This
becomes especially important in a
strong economy, as business picks
up across many industries, as well
as when staffing up to meet seasonal
demand. He says he is already see-
ing retailers invest in this aspect of
their business today.
“Retailers are starting to hire people much earlier in the process and
bring them on board so that they are
comfortable,” he says. “[Increased]
volume and growth requires retailers to ramp up their personnel and
ensure new technology works properly. Staffing has become a very
important piece of the brick-and-mortar retailer’s day.”
