Background
Between 2016 and 2020, on-line shopping saw significant growth, driven by factors such as increased internet penetration, improved technology, changing consumer behaviour, and the convenience of e-commerce.
The global e-commerce market experienced robust growth, with many consumers shifting towards on-line shopping for a wide range of products and services.
Various reports and studies indicated that the annual growth rate of on-line shopping during this period ranged from around 15% to 25% globally, with some regions experiencing even higher growth rates.
The COVID-19 pandemic in 2020 further accelerated the shift to on-line shopping, as lockdowns and social distancing measures forced more consumers to shop on-line rather than in physical stores.
The COVID-19 pandemic continued to have a lasting impact on consumer behaviour, accelerating the growth of e-commerce and on-line shopping even further in the period 2020 and 2024.
Many traditional brick-and-mortar retailers invested heavily in their on-line platforms and digital capabilities to meet the increasing demand for on-line shopping.
With the increasing adoption of mobile shopping, social commerce, and other on-line shopping trends, the e-commerce landscape is evolving rapidly, requiring support from improved logistics, enhanced customer experiences, and the rise of omnichannel retailing.
The Ask:
A renowned global brand wanted to become a formidable omnichannel player, catering seamlessly to its retail stores, wholesale outlets, and e-commerce clientele. Fuelled by robust historical growth, the brand decided to embark on a transformative journey to revamp its entire supply chain and collaborate across cross-functional teams in crafting a future-proof omnichannel strategy.
The Approach
The brand initiated an in-depth market exploration, encompassing customer interviews, store immersions, and competitive assessments to grasp the evolving expectations of omnichannel consumers regarding shopping experiences and delivery services. Distinct customer segments were identified and aligned with tailored services and delivery timelines. Subsequently, the brand delineated a supply chain framework tailored to cater to these customer segments effectively.
The Challenges:
- Existing infrastructure and partnerships;
- Traditional fulfilment methods, such as centralised and decentralised warehouse shipments;
- A mix of customised solutions per location;
- Proximity to or distance from customers;
- Swift retail store replenishment;
- Warehouse capacity.
Results and Benefits
An agile implementation roadmap was meticulously developed to facilitate rapid testing and learning cycles. Each component underwent swift piloting and evaluation to ascertain the scalability and efficacy of fulfilment options, enabling prompt decisions on scaling or discarding solutions from the roadmap.
The success of this project lay in transcending mere modelling and quantitative analysis, as a cross-functional team diligently ensured the holistic consideration of all pertinent factors:
- Marketing championed the prioritisation of customer expectations;
- The supply chain team scrutinised the operational viability of fulfilment strategies;
- The logistics team rigorously evaluated transportation costs; and
- The commercial team expanded the collaborative partner ecosystem.
The result was that the brand achieved THE simple, yet challenging, central requirement for same-day delivery – a dense network of warehouses that stock the same assortment and are able to move it from click-to-ship in two hours or less to cover all tier-1 and tier-2 cities incorporating innovative fulfilment approaches like shipping from dark stores, retail outlets, or temporary nodes and forging a collaboration with a partner e-tailer possessing surplus warehouse capacity.