- Joined
- Oct 3, 2018
- Messages
- 3,116
The best part about this is that shifting hours instead of adding them has directly hurt fullfillment. They cant ship what they cant find, we cancel orders all the time because the sales floor is a mess and the item can not be found. Same could be said due to the increased theft in various sections of the store that lack proper coverage.
You cant just keep taking from the salesfloor/backroom in order to fund your online sales. It ends up hurting how reliable your online order system is while also making your core consumers who are the foundation of the company deal with a messy subpar shopping environment.
You dont want to alienate your core consumer base, for one you just recently began trying to capture in online shopping. If you dont capture that new pool of consumers and sustain that relationship, you just burned ties with many of your previous shoppers and gained nothing in return.
Thats a quick road to failure.
SFS just seems like a very short-sighted strategy for being competitive in online sales. Orders can be fulfilled cheaper and faster by shipping them from a store that has "extra" of the items ordered. But, there's a hard limit of how much extra stock stores can have. If your orders increase more than that limit, then you either have to ship from a different store, meaning you don't get it done faster or cheaper, or you have to cannibalize your sales floor. This increases your need to replenish the stock at the store level quickly so that shoppers aren't alienated. However, there are also limits to how fast you can replenish your stores because the stores and the distribution centers have limits there too. The more successful you are capturing online sales using SFS, the more likely it is that your entire system breaks down because you've stressed your stores beyond their capacities.
You can only go so far with online sales when you are fulfilling them from brick and mortar stores designed for physically present shoppers. It's not a strategy for long term growth. Modernization can't change that. At best, it can increase your capacity somewhat. Although there are reasons to doubt that it will do that at all. Contrast SFS with Amazon who if they need to increase capacity to fulfill online orders, they just need to build more warehouses.