Fulfillment

The current business environment has put pressure on fulfillment capabilities around ecommerce, split shipments, curbside pickup, buy online pick up in store (BOPIS), and ship-from-store. These cost drivers can highjack profitability and increase inventory levels. Using our proprietary modeling capabilities, BRG’s Retail team can quickly pinpoint the cause and develop and implement solutions to improve not only profitability, but also the customer experience.

Current Market Challenges

• Freight costs continue to increase as package volumes grow.
• Omnichannel ordering introduces new complexities in fulfillment operations.
• “The Amazon” effect, though present for many years now, is still driving consumer expectations for free two-day shipping.
• Other major players (e.g., Walmart’s new “Walmart Plus” membership service) offer same-day delivery in some zip codes, and free two-day delivery.
• Consumers want visibility into order fulfillment progress and shipping at every step.
• Increasing ecommerce volumes have resulted in strained logistics networks and package delays, particularly around the holiday season.

Our Approach

• In-depth, data-driven approach analyzing end-to-end supply chain operations to understand the baseline performance profiles
• Work with management and gather qualitative data to supplement the quantitative analysis, creating a holistic picture of the supply chain, areas for opportunity, and future strategic requirements

BRG uses a comprehensive approach, analyzing all elements of fulfillment and considering multiple scenarios, to ensure the outcome is the best fit to support the business’ strategic goals.

Current State Baseline – Profile demand, seasonal peaks, and order complexities – Analyze inventory management, planning, and allocation processes – Baseline operational costs, product flows, and return flows
Projected Future Baseline – Create growth assumptions by channel and product – Translate impact of strategic vision into supply chain needs – Develop projected future baseline with sensitivity ranges
Develop Scenarios – Develop scenarios without constraints – Force rank and screen scenarios to model – Model scenarios versus projected baseline – Calculate viability of each scenario, and select best fit
Design and Implementation – Detail requirements for best-fit scenario – Finalize and approve business plan with scenario built in – Create roadmap for implementation

An accelerated approach can be completed in as few as six weeks, delivering a custom supply chain assessment focused on: (1) sourcing strategies and vendor base development, (2) inbound logistic mapping and optimization, (3) distribution center four-wall operational improvements, (4) distribution footprint and order fulfillment optimization, and (5) omnichannel process design and implementation.