Ship-from-Store
Also known as: SFS, Store Fulfillment, Store-Based Fulfillment
Definition
Ship-from-store (SFS) is an omnichannel fulfillment strategy that uses retail store inventory to fulfill e-commerce orders. Instead of shipping everything from centralized warehouses, orders are picked, packed, and shipped directly from nearby stores.
How Ship-from-Store Works
- Order placed - Customer orders online
- Routing decision - OMS determines best fulfillment location
- Store assignment - Order sent to optimal store
- Store picking - Associates pick items from shelves
- Packing - Order packed for shipping
- Carrier pickup - Carrier collects from store
- Delivery - Package delivered to customer
Benefits of Ship-from-Store
For Retailers
- Faster delivery - Stores closer to customers than DCs
- Inventory utilization - Sell-through slow store inventory
- Reduced markdowns - Move product before it discounts
- Lower shipping costs - Shorter delivery distances
For Customers
- Speed - Same-day or next-day delivery possible
- Availability - Access to broader inventory
- Flexibility - More fulfillment options
Challenges
| Challenge | Solution |
|---|---|
| Inventory accuracy | Real-time inventory systems |
| Store associate training | Dedicated fulfillment staff |
| Packaging supplies | Pack stations in stores |
| Carrier coordination | Regular pickup schedules |
| Customer experience | Separate fulfillment from shopping floor |
Key Metrics
- Units per hour - Store fulfillment productivity
- Order accuracy - Correct items shipped
- On-time shipment - Meeting carrier cutoffs
- Inventory availability - Orders successfully filled
- Cost per order - All-in fulfillment cost
Retailers Using Ship-from-Store
- Target
- Best Buy
- Nordstrom
- Macy’s
- Dick’s Sporting Goods
- Many specialty retailers
Technology Requirements
- Integrated order management system (OMS)
- Real-time inventory visibility
- Store fulfillment mobile apps
- Carrier integration
- Performance dashboards
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