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Case Study
North American Luxury Retailer Rolls Out Same-Day Delivery Across 2,000+ Stores in Just Eight Weeks
Customer Profile
North America’s largest luxury goods retailer – with more than 2,800 stores and nearly $8B in annual sales – chose Nextuple Order Management Studio (NOMS) to add same day delivery (SDD) capabilities for omnichannel order fulfillment.
The retailer was finding that traditional shipping partners could not meet the increased demand from customers for same day delivery of luxury items. An opportunity was identified to engage with gig delivery providers, such as Roadie and Doordash, to provide same day delivery services from store locations. Recent studies show that nearly half of consumers indicated that same day delivery makes them more likely to shop online, with 60 percent indicating that ideally, they would like to receive their packages within one to three hours of placing an order.
The Challenge
With more than 2,000 stores, operating under different brands in different geographies, the retailer wanted the flexibility to engage with different delivery providers depending on their geographic coverage and pricing. At the same time, having to create point integrations with each service would be time-consuming and labor-intensive.
It was also important to automate delivery booking, while taking into account store hours and providing the ability to provide proof of delivery via photographs. And the retailer wanted to be able to provide delivery tracking to both customer care and the end-consumer. Surveys show that over 90 percent of consumers actively track packages after ordering from online retailers.
The Solution
Microservices provide an effective way to build new capabilities on top of the existing tech stack. The retailer chose Nextuple Order Management Studio (NOMS), a modern cloud-native suite of flexible and scalable Order Fulfillment microservices. The technology allows omnichannel retailers to quickly and effectively respond to consumer demands for speed and convenience while optimizing the cost to serve.
Using the Same Day Delivery Microservice, the retailer was able to launch a single interface to serve as the gateway to multiple delivery providers and implement track and trace capabilities to troubleshoot delivery exceptions. The new system was rolled out in eight weeks, across more than 2,000 stores under multiple banners. Online orders are routed to stores within a specified distance from the buyer for fulfillment. The Same Day Delivery microservice integrates seamlessly between the retailer’s order management system and the most prominent gig delivery services. By integrating with the order management system, retailers maintain visibility into transactional data.
The Results
Today, the retailer offers same day delivery across the United States, with the ability to optimize for lowest cost and speed-to-delivery. In the 24 months since deploying the capability, the retailer has delivered more than 16,500 orders valued at $6M in revenue.
