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Case Study
Strategic Roadmap to Optimize Store Fulfillment for a Leading Sporting Goods Retailer
See how Nextuple’s Strategy & Consulting services helped a leading sporting goods retailer optimize store fulfillment, driving faster order pickups, higher fill rates, and lower fulfillment costs. Discover the roadmap that’s transforming their operations and fueling digital growth.
Executive Summary
A major North American sporting goods retailer sought to modernize its omnichannel store fulfillment solution to support rapid digital commerce growth and improve its operational efficiency. Nextuple conducted a comprehensive assessment of the retailer's current state and developed a strategic roadmap for a next-generation store fulfillment solution. This resulted in a projected increase in order fill rates, reduced picking times, faster customer pickup, and lower fulfillment cost.
The Customer
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The Opportunity
The retailer aimed to create a modernization roadmap for their next-generation store fulfillment solution. This solution needed to be flexible and extendable to support accelerated digital commerce growth and future business needs. Their key objectives included improving the cost-effectiveness and profitability of store fulfillment operations by optimizing the system and operations for the scale of their business demand, increasing store labor productivity and efficiency by leveraging real-time store inventory data and item location information, and enabling more accurate store inventory management.
The Solution
Nextuple took a comprehensive strategy and consulting approach to address the retailer's challenges. This involved a thorough assessment of the current state, including identifying existing architectural backlogs, challenges, pain points, and opportunities for additional sales and cost efficiencies. Nextuple conducted several deep-dive sessions with key business leaders and multiple levels and roles at the company to thoroughly understand the retailer's operations, goals, and priorities. Based on this assessment, Nextuple defined a future state vision and target state architecture for the store fulfillment solution, prioritizing opportunities based on business and customer value. The final deliverable was a prioritized implementation roadmap outlining the steps required to achieve the desired future state.
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The Results
By implementing Nextuple's strategic recommendations, the sporting goods retailer is poised to deliver significant improvements in store fulfillment operations. These improvements include an increase in the ship-from-store order fill rate to 96% (from 91%), a reduction in average picking time to 2 minutes per unit (from 4 minutes per unit), a reduction in average customer pickup time to less than 3 minutes per order (from 4 minutes per order), and a reduction in the cost to serve for store fulfillment from $1.50-$2.00 per order to less than $1.00 per order.
Nextuple empowers retailers to transform their fulfillment operations by combining strategic guidance with actionable roadmaps. The result? Improved customer satisfaction and significant business results, like the projected increases in order fill rates, reduction in picking times, and lower fulfillment costs.