Ship From Store successful strategy:
A project payback in 93 days
Since the summer of 2017 OneStock has been assisting Kaporal in implementing its omnichannel strategy. The objectives of this high-class French denim brand are simple: increase online sales, increase profitability and revitalise stores.
Product unavailability, a high rate of unsold stock, consequences of a lack of inventory management optimisation
In 2015, like many other retailers, the brand realised that stock unavailability online was constantly increasing (22% on average), whilst at the same time the number of unsold products returned to the DC warehouse from stores at the end of the season was also growing significantly. These alarming facts point to two major problems:
- Customer dissatisfaction due to online stock-outs
- Loss of profits caused by discounting unsold stock
To remedy this Kaporal sought to rethink its omnichannel strategy by optimizing its current inventory management, which was fragmented between store stock, web stock and wholesale stock.
Ship From Store: unify stocks in order to sell better
We now have the ability to mitigate online stock-outs by shipping orders from all our storage points, including our points of sale. Thanks to OneStock, Order Orchestration will enable us to increase our online sales whilst optimizing our shipping costs and improving our customer's purchasing experience.
E-Business & Customer Relation Director at KAPORAL
Orchestrating orders to increase profitability
In addition to seeing a net increase in its web turnover (+12%) thanks to Ship From Store, Kaporal can now better manage the balance of its stock.
Using self-learning algorithms and customisable business rules, OneStock routes Kaporal orders from the storage point (store/warehouse) that can fulfill the entire order. The goal is to reduce the delivery costs as well as the split rate.
Another rule of orchestration: shops with lower footfall are favoured in the allocation of online orders with the aim of maximising the productivity of the staff at the point of sale.
in 30 days with Ship From Store
of web orders shipped from stores
only until the project became profitable
Increase in the number of online orders
By increasing the availability of its products on the website, Kaporal now has the opportunity to display its entire catalogue (Endless Aisle). As a result, the average product unavailability rate has fallen, down from 21% to 7% overnight, following the implementation of Ship From Store capability in fifteen stores.
Immediate Commercial Success
In the context of 2018’s difficult retail world, Kaporal has achieved 26% more sales than the previous year over the same period.
Today, the jeans brand has achieved an average of 12-14% of additional sales thanks to the implementation of Ship From Store.
The project was an immediate commercial success. The Kaporal teams admit to having underestimated the results. “Ship From Store will be standard for the retailers of tomorrow,” says N. Ciccione.
Among future projects for the brand is the deployment of Order In-Store scenarios allowing customers to order from store a product that is out of stock on the shelves and have it delivered at home or to another point of sale.