10/08/2012
O'Reilly Uses Cross-Channel Fast Fulfillment
O’Reilly Auto Parts has increased sales and customer satisfaction as well as streamlined access to its inventory through its use of cross-channel fast fulfillment. The retailer has made access to inventory a core capability of its consumer and B2B strategy by integrating the processes of reporting, ordering, moving and tracking inventory.
Endless aisle is thought of as the ability to purchase an item from another store or e-commerce when physically in a store and the item is not present. As explained by Duane Keys, director of application development and information systems for O'Reilly Auto Parts at last week's sixth annual RIS News Cross-Channel Retail Executive Summit in San Antonio, TX, "I thought, what endless aisle? O'Reilly uses a horizontal, multi-dimensional strategy that facilitates movement among channels without barriers so that customers can select, locate and purchase items."
70% of the retailer's in-store inventory is a stock of one, so if a customer needs a certain part that isn't currently present, O'Reilly needs to be able to get it quickly. Stores have visibility into the inventory of O'Reilly warehouses, districts, hubs, sister stores and regional stores, which permits the sale of parts at the right time. Merchandise is moved from one store to another as needed with pre-set shipping routes that are run daily. If a store needs a particular part that’s stocked at another store, it can be delivered in as little as 24 hours. Choosing which store transfers the item is also decided by what store is before me on the route to deliver the products most quickly.
95% of O'Reilly's online business is buy in-store, the highest researched products online aren't purchased – online serves as a tool for customers to research and locate products or locations. The customer is able to choose what they want and how they want to do business, O'Reilly creates the seamless customer experience that allows that to happen.
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