Quantifying the impact on the cost-to-serve of specifically the online ordering workstream.
Our client, a UK retail & wholesaler, were taking steps to reduce the overall running costs of their growing ecommerce category. Our challenge was to balance cost with a high-quality customer experience, while utilising their existing brick and mortar network to aid with distribution.
A detailed cost-to-serve analysis.
We performed a detailed cost-to-serve analysis of the nation-wide store network and online sales, by product categories, types of customers, time of year, and suppliers. The aim was to prioritise improvement opportunities and create strategy for the introduction of ‘regional hubs’ to bolster (while reducing the cost of) their e-commerce offering.
Boiling down the challenge: To balance cost with high-quality customer experience, while utilising the existing brick and mortar network to aid with distribution.
Additional insights.
Through this exercise, we also identified new insights pertaining to the best and worst performing stores in their portfolio, allowing them to take a fresh look at working practices across all of their network.
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