Retail Insight snippets: fulfilment diversification

by | Mar 19, 2018

From Retail Insight Australia, 2018, commissioned by SPS Commerce from Roy Morgan Research:  

Two-day delivery is the best optimised fulfilment operation, with around a third of companies reporting that as fully optimised, and another third at some stage of implementation. Fulfilment from stores is the next best operation for all company types, which retailers had informed us was a major priority in 2017. Surprisingly, more than half of all companies have no plans for ship-to-store (Click & Collect), which is typically considered popular with retailers, due to the 75% chance of additional purchase during pick up.  Returns by different channel to original purchase, same-day delivery and automated reorder fulfilment operations are also low priority. The least amount of planning is for Ship-to-store (Click & Collect), followed by returns by different channels to original purchase. These operations present opportunities for all types of Australian companies – particularly those farther up the supply chain that are pursuing direct-to-consumer channels.

Retailers have plans in place for two-day deliveries with 40% being fully optimised. Ship-to-store is the next best fulfilment operation with a third of retailers being fully optimised. However, that said, a third have no plans for ship-to-store, and negligible interest was shown in automated re-ordering – these present an opportunity for retailers, with Click & Collect a natural progression of good inventory control, and viable even for cafes to implement! Most manufacturers and distributors do not have plans for the various fulfilment operations presented, except for two-day deliveries, however these will become mandatory for those operating direct channels to the customer. All these options present opportunities for Australian manufacturers, particularly those that explore diversified direct channels to the consumer.

Please use the link below to download the report. 

Download Retail Insight Australia, 2018

Download Retail Insight Australia, 2018

This report draws on almost 500 responses from Australian retail professionals, prepared by Roy Morgan Research for SPS Commerce.

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