"The 83 Wal-Mart Supercenters that are shipping out online orders now handle more than a fifth of the goods bought on walmart.com."
Inventory productivity is up as inventory is brought online and becomes more decentralized. Implications are extensive with each retailer asking the following questions:
- Can our store associates match the productivity and efficiency of our distribution center employees?
- Is the cost of shipment from UPS/FedEx higher or lower with decentralized shipping although shipping may be closer to end customer demand when coming from stores?
- As stores allocate selling space and associate time to fulfillment, what are the implications on selling space and payroll?
- How do we ensure profitability on orders that require split shipments and thus 2x cost of shipment?
- Shrink (inventory loss) rates are much higher at store level. What are the minimums we need to set for products to ensure the fill rate is met?