May 17, 2020

Target reduces costs by 40% through its store fulfilment

Supply Chain
Technology
Sean Galea-Pace
1 min
Target has begun the move of digital fulfilment from its distribution centres to stores and has experienced a 40% decrease in costs, according to Supply...

Target has begun the move of digital fulfilment from its distribution centres to stores and has experienced a 40% decrease in costs, according to Supply Chain Dive.

In the retailer’s first quarter earnings call, Target CEO, Brian Cornell, said: “When we go from an upstream DC to some of our same-day fulfilment offerings, like Order Pickup and Drive Up, we see a 90% reduction in costs.”

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The firm hopes to fulfil over two-thirds of e-commerce orders from its stores during 2019. Target has begun to remodel around 300 stores annually and hopes to complete 1,000 store remodels by the end of the year in a bid to, according to Chief Operating Officer, John Mulligan, “reconfigure space in operations to support all of our new fulfilment options.”

The company provides same-day fulfilment options such as Drive Up, where online or mobile orders are brought to the customer’s car, as well as in-store order pickup and its partnership with Shipt for same-day delivery service. “Target now offers more digital fulfilment options across more of the country than anyone else in retail” Mulligan commented.

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Jun 21, 2021

Pandora and IBM digitise jewellery supply chain

supplychain
IBM
Pandora
omnichannel
2 min
Jewellery retailer Pandora teamed with IBM to streamline supply chains as sales of hand-finished jewellery doubled across ecommerce platforms

Pandora has overhauled its global supply chain in partnership with IBM amid an ecommerce sales boom for its hand-finished jewellery. 

The company found international success offering customisable charm bracelets and other personalised jewellery though its chain of bricks and mortar retail destinations. But in 2020, as the COVID-19 outbreak forced physical stores to close, Pandora strengthened its omnichannel operations and doubled online sales. 

A focus on customer experience included deploying IBM’s Sterling Order Management, increasing supply chain resiliency and safeguarding against disruption across the global value chain.

Pandora leverages IBM Sterling Order Management as the backbone it its omnichannel fulfilment, with Salesforce Commerce Cloud powering its ecommerce. Greater automation across its channels has boosted the jeweller’s sustainability credentials, IBM said, streamlining processes for more efficient delivery. It has also given in-store staff and virtual customer service representatives superior end-to-end visibility to better meet consumer needs. 

Jim Cruickshank, VP of Digital Development & Retail Technology, Pandora, said the digital transformation journey has brought “digital and store technology closer together and closer to the customer”, highlighting how important the customer journey remains, even during unprecedented disruption. 

"Our mission is about creating a personal experience and we've instituted massive platform changes with IBM Sterling and Salesforce to enable new digital-first capabilities that are much more individualised, localised and connected across channels and markets,” he added. 

 

Pandora’s pivot to digital 

The pandemic forced the doors closed at most of Pandora’s 2,700 retail locations. To remain competitive, it pivoted to online retail. Virtual queuing for stores and virtual product trials via augmented reality (AR) technology went someway to emulating the in-store experience and retail theatre that is the brand’s hallmark. Meanwhile digital investments in supply chain efficiency was central to delivering on consumer demand. 

“Consumer behaviour has significantly shifted and will continue to evolve with businesses needing to quickly adapt to new preferences and needs,” said Kareem Yusuf, General Manager, AI Applications and Blockchain, IBM. “To address this shift, leading retailers like Pandora rely on innovation to increase their business agility by enabling and scaling sustainable supply chain operations using AI and cloud.”

Yusuf said Pandora’s success was indicative of how to remain competitive by “finding new ways to create differentiated customer experiences that protect their enterprises from disruptions to help mitigate risk and accelerate growth”. 
 

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