Webers Inc: An Omni-Channel Retailer With 250 Stores

Webers Incwebers Is An Omni Channel Retailer With 250 Stores Through

Webers Incwebers Is An Omni Channel Retailer With 250 Stores Through

Webers Inc. is an omnichannel retailer operating 250 stores across the United States, supplemented by six distribution and fulfillment centers. The company specializes in men's and women's clothing featuring various designers and styles. Historically, Webers faced little competition in its clothing line, which led to a primary focus on operational productivity rather than customer service, especially for online shoppers. Currently, Webers employs an order management system (OMS) that handles online orders, checks inventory in real-time, and manages the order fulfillment process through integration with warehouse management systems (WMS) and transportation management systems (TMS).

Initially, the order process was straightforward: customers would place an order online, receive a confirmation, and then the OMS would verify inventory. If items were unavailable, a backorder notification was sent; if available, the order proceeded to the warehouse for picking, and then to shipping. Customers were not able to select delivery dates, simplifying the logistics but decreasing customer satisfaction. To remain competitive, Webers decided to allow customers to select preferred delivery times, such as next-day or two-day shipping, which impacts how the OMS, WMS, and TMS coordinate to meet these new delivery expectations.

Paper For Above instruction

Process Maps for the "Before" and "After" Order Management Processes

Before Process Map

The traditional order processing system at Webers was linear, emphasizing internal efficiency over customer flexibility. The process begins with the customer placing an order online, initiating a notification from the OMS confirming receipt. The OMS performs an inventory check in real-time. If stock is available, the order is sent to the WMS, which schedules the picking process. Orders are executed in a set order, typically FIFO (first-in, first-out). Once the order is physically picked, the WMS forwards it to the TMS for shipment scheduling. The TMS determines the most efficient carrier and shipping method, without customer input on delivery timing. After shipping, a notification is sent to the customer specifying the shipment date. Throughout this process, there is no interaction or flexibility for the customer concerning delivery times, which streamlined operations but limited service options.

After Process Map

The updated process starts similarly, with the customer placing an online order that triggers the OMS. However, the immediate differentiation is the introduction of customer-selected delivery options. The OMS, at this point, must communicate with the TMS to determine achievable shipment schedules corresponding to customer preferences such as next-day or two-day delivery. The TMS, in turn, collaborates with the WMS to plan pick-up and shipment schedules aligned with delivery windows. This requires dynamic adjustments: the WMS may need to expedite certain orders or recalibrate pick and pack activities to meet specific delivery commitments. Once scheduled, the TMS arranges for carrier tendering based on the customer-selected timeline. The entire process involves tighter integration among systems and real-time communication to ensure seamless delivery, improved customer satisfaction, and operational adaptability.

Major Changes to the Order Management Process

  • Introduction of customer-selectable delivery options: Customers can now choose delivery times, requiring OMS, TMS, and WMS to coordinate to meet these commitments.
  • Enhanced system communication: The OMS must communicate with the TMS to determine logistics schedules based on customer preferences.
  • Dynamic scheduling and fulfillment: The WMS's picking and packing processes are now influenced by real-time delivery window requirements, possibly requiring expedited handling.
  • Real-time logistics adjustment: TMS needs to dynamically allocate carriers and shipments to meet customer-defined delivery dates, impacting overall planning and execution.

New Performance Metrics for Webers

To measure the performance of this revised order fulfillment process, Webers should implement targeted performance metrics aligned with customer service, operational efficiency, and system responsiveness:

  1. Order Cycle Time: Measure the total time from order placement to shipment, emphasizing the speed of the entire process, especially for expedited deliveries.
  2. On-Time Delivery Rate: Percentage of orders delivered within the customer-selected delivery window, directly reflecting system coordination and reliability.
  3. Order Accuracy Rate: Accuracy of order fulfillment, ensuring that the correct items are shipped within the requested delivery timeframe.
  4. System Responsiveness: Time taken for OMS, WMS, and TMS to communicate and adjust schedules in real-time when delivery options are specified.
  5. Customer Satisfaction Scores: Ratings and feedback specifically regarding delivery timing and overall order experience.
  6. Backorder Rate: Frequency and volume of backorders, indicating system capability to meet immediate delivery requests.
  7. Fulfillment Cost per Order: Cost efficiency analysis considering expedited handling and dynamic scheduling efforts.
  8. Carrier Performance: Reliable delivery standards of chosen carriers in meeting scheduled delivery dates.
  9. Inventory Turnover: Rate at which inventory is replenished, ensuring enough stock to fulfill expedited and flexible delivery options.
  10. IT System Downtime: Measure of system reliability affecting real-time communication and responsiveness during peak or complex order processing.

Implementing these metrics helps Webers monitor both customer-centric outcomes and internal efficiencies, ensuring that the process adjustments translate into tangible improvements in service levels and operational performance (Vaidyanathan et al., 2017; Chopra & Meindl, 2019).

References

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