Retailers Are Warned to Step Slowly Into One-Day Shipping

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Retailers anxiously watching Amazon.com Inc.’s one-day shipping push need to get a better handle on their inventory and true demand for super-speedy delivery before setting on a costly scramble to match the e-commerce giant, analysts and industry executives say.

Many retailers are chasing “same-day shipping when they have fundamental issues around where inventory is sitting in the supply chain,” Jim Barnes, chief executive of supply-chain software and consulting firm enVista, said at a supply-chain conference in Brooklyn, N.Y., this week.

Amazon’s plan to shorten the delivery window for members of its Prime program from two days to one is ratcheting up the pressure on competitors that are already spending millions to upgrade technology and reshape distribution networks as more shoppers buy items online.

The move announced last month is expected to boost overall e-commerce growth and drive additional investments as retailers race to catch up with Amazon’s formidable logistics operation, which includes hundreds of fulfillment, sortation and delivery centers.

The success of Amazon Prime has made two-day shipping the default expectation for many online shoppers. But as retailers battle for market share, being fast may not be as important as being clear about when orders will be delivered and then living up to those promises.

“A lot of ultrafast last-mile delivery solutions that consumers don’t even really ask for…ultimately are high-cost endeavors that don’t necessarily help a retailer’s bottom line,” Sucharita Kodali, an e-commerce analyst at Forrester Research Inc., said at the D3 Retail Supply Chain Summit in Brooklyn.

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GNC strengthens back-end capabilities for omni-channel retailing

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GNC Holdings is building the core of its omnichannel enterprise.

The specialty health-and-wellness retailer is rolling out enVista’s omnichannel order management solution (OMS) within the cloud-based enVista unified commerce platform. GNC will deploy the OMS to obtain enterprise inventory visibility and optimize order orchestration and fulfillment across its network of distribution centers, suppliers, and 4,800 North American retail stores.

As a result, GNC hopes to be able to offer more products online to meet customer demand, as well as provide buy online, pick up in store (BOPIS) and ship from store options. The solution also provides a single view of the customer, inventory, order, item and payment across the enterprise. This will aid GNC in its efforts to deliver a consistent, customer-centric brand experience across all channels and locations.

“The customer is at the center of every decision we make at GNC,” said Tricia Tolivar, executive VP and CFO at GNC. “We selected enVista’s OMS to help us rapidly advance our omnichannel commerce initiatives and respond to customer expectations for additional fulfillment options and seamless, convenient, personalized shopping experiences. When it comes to health and nutrition products, customers expect to rapidly receive or pick up orders, track their orders, and receive very personalized service.”

GNC currently leverages enVista’s vendor drop ship solution on the unified commerce platform. The retailer directly uses inventory from vendors to fill orders. This eliminates the step of processing batches of inventory in GNC fulfillment centers and distributing goods to stores, reducing order fulfillment time while making products more accessible to consumers.

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GNC Bolsters Its Fulfillment With Enterprise-Wide Inventory Visibility

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Global health and wellness retailer GNC is implementing a new retail technology solution to enable its omnichannel transformation strategy and initiatives, including its store-based fulfillment methods.

GNC will deploy enVista’s order management system (OMS) within enVista’s cloud-native Unified Commerce Platform to obtain enterprise inventory visibility and optimize order orchestration and fulfillment across its vast network of distribution centers, suppliers and 4,800 North American retail store locations.

By leveraging the OMS, strategically built on an integration framework, GNC will rapidly advance its omnichannel fulfillment capabilities in early 2020 for buy online, pickup in store (BOPIS) and ship from store.