It’s no secret that “going omnichannel” is a significant challenge for most retailers, which is why it’s important to learn from exemplary retailers who succeed in creating omnichannel fulfillment strategies in today’s increasingly technological landscape.
In the most recent edition of STORES Magazine, Craig Guillot investigated American Eagle Outfitter’s (AEO) innovative omnichannel fulfillment strategy. In the article, Organize, Optimize, Synchronize, Guillot notes that AEO, after investing heavily in optimizing its online and mobile capabilities, was struggling to fulfill both put-to-store and direct-to-consumer orders because the original distribution centers were not built to handle the increased demand.
It was taking AEO about 5-7 days to fulfill orders, and it became clear that, as AEO’s director of operations put it, “We needed a facility that could… do it more efficiently,” so they worked with Vargo to transform their existing operational approach into an omnichannel fulfillment solution.
The result? A seamless, state-of the-art distribution center in which the number of forklifts, much like the number of physical touchpoints, has dropped from 70 to two, and 90 percent of orders are fulfilled within 2-3 days.
Gain a complete understanding of how AEO created a seamless omnichannel fulfillment process here.