Online Fulfillment Operations Strategy — Advanced Solutions Workshop

Client Success Story

Through the Advanced Solutions Workshop, a top fashion retailer developed a well-defined operations strategy that will drive Multichannel Operations Excellence and achieve 3- to 5-year growth goals.

Online FulfillmentClient Overview

  • One of the leading fashion specialty department store retailers in the US, with more than 230 stores located in 31 states and high volumes of online orders, including international

Challenge

  • The retailer’s online business was experiencing year-over-year growth of 30-plus percent, while its in-store sales growth was at par with the industry.
  • This online sales growth, along with expanding service policies, was close to exceeding the capacity and capabilities of the current order fulfillment network.
  • While facing fierce competition from other e-commerce companies, the retailer was in need of a well-defined operations strategy that would best drive Multichannel Operations Excellence.

Tompkins’ Role

  • Plan and conduct an Advanced Solutions Workshop (ASW) with selected leaders to facilitate both a common understanding of the business imperatives and an effective Operations Strategy that will enable the achievement of their 3- to 5-year growth goals.

The Results

  • The special leaders team created a clear definition of the (1) target markets; (2) products and services to be provided, along with their value propositions; and (3) operational capabilities required to deliver these.
  • A comprehensive operations strategy identifying the capabilities needed by the fulfillment network was defined. It included short-term improvements, as well as the criteria for longer-term fulfillment operational leadership consistent with the business strategy, to provide exceptional online shopping experiences for its customers.
  • Executive team approval of the strategy and operational dependencies needed to successfully drive continued market growth and enhance customer experience and satisfaction, which is now driving the design of the new Fulfillment Network. This will result in the retailer gaining a competitive advantage in the new Multichannel world.
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