Ship from Store

Pick up the product at the store or receive it at home? More convenience and choices offered to the consumer. However, depending on what the consumer chooses, the final delivery logistics are different. A simple change, but one that has a direct impact on business planning.

By choosing more and more the modality Ship from Store, the consumer demonstrates that the availability of the product in the right place and the speed of delivery are increasingly important at the time of purchase. And what is the impact of this on the logistics operation?

First of all, it is important to have the product in the right store. If before stock planning was for a few DCs (recalling that the large retailers in Brazil have around 10 to 15 DCs to serve the whole of Brazil), when we go to the modality Ship from Store the challenge of having the right stock often goes up to hundreds of stores. Understanding and having adequate tools to help with demand planning becomes essential, after all, now it will be necessary to define with much greater precision where the product should be.

Let's exemplify: if before a consumer in the interior of São Paulo, which was 250 km from the capital, placed an order today and received it tomorrow, this meant that this process between receiving the order at the DC, picking, shipping and transporting the package revolved around 24 hours. Now when placing an order and choosing the modality Ship from Store, that same consumer expects to receive his order within hours and, for that to happen, the product must be shipped by a store. And for that to happen, you need to have that product in the store.

Once you have the product in the store, we move on to the second stage of the process: picking and shipping. Stores need to be able to pick and pack the product as quickly as possible, so that there is still enough time left for transport. Although these are simple activities, many times the store team will need to be trained, the internal space reorganized and systems adapted. It's no use having the product in the right place if the process doesn't contribute.

Finally, there is no point in having the product and the store being efficient in the separation if the transport is not adequate. The consumer's expectation is to receive the product as soon as possible. In this way, the final challenge is to develop and have suppliers available and able to carry out fast deliveries with quality, thus guaranteeing the consumer experience.

One click was enough for the consumer to choose the option Ship from Store so that all the logistics of the company have to be different. Going through planning, inventory and transport, the way of operating is different when switching from the classic model (delivery via CD) to the Ship from Store.

The question that remains is: is your company already prepared for this type of delivery?