The delivery concept “Collect in store”, where customers can pick up their online purchases in store, is part of a larger growth strategy at the Swedish chain store Clas Ohlson. Supply Chain Developer, Daniel Thyberg from Clas Ohlson, reveals what the logistics behind the new and cheap delivery concept looks like.
In order to survive as an online as well as a physical store today, it is important to meet customers’ high demands.
“Customers increasingly want more delivery options, where flexibility and convenience are keywords. This challenges online shops to find new and innovative ways to deliver to customers, ” explains Daniel Thyberg, as the reason why they at Clas Ohlson expanded their online delivery options to include “Collect in store ” this summer.
There are several advantages to the new delivery concept. By bringing customers into the physical store, Clas Ohlson keeps the proximity to their customers and at the same time achieves the opportunity for upselling. “Collect in store” is also a cheap delivery option for both Clas Ohlson and their customers, as Clas Ohlson saves freight costs by delivering online orders together with the regular deliveries to their stores. These savings benefit the customers, as “Collect in store” is a free delivery option. The logistics behind “Collect in store” has been easy to set up for Clas Ohlson.
“We use Consignor as our Delivery Management System to print freight labels, send, track, receive and analyze our shipments. When we wanted to expand our delivery options with “Collect in store”, it was easy to set this up in Consignor, as we could use existing system integrations to print labels and create new shipping routines in the warehouse. With Consignor’s web service, we can automatically send notifications about the location of the parcel to the customer, so the experience will be just like a traditional delivery,” explains Daniel Thyberg.
Here is how the shipment process behind “Collect in store” looks like at Clas Ohlson:
- Clas Ohlson creates a shipment via their ERP System on the online order with a so-called “custom carrier” in Consignor and places the product on a pallet to the store.
- The shipment is automatically uploaded to Consignor Portal, where it can be tracked.
- When the product has arrived at the store and is ready for pickup, the clerk updates the status of the shipment in the ERP system to “received in store”, which via Consignor’s web service triggers a notification about pickup to the customer.
- If the customer has not picked up the product after X number of days, the shipment is updated with the status “not yet picked up”, which triggers a new notification with a reminder to the customer.
- When the customer has picked up their online order in the store, the shipment is updated as “delivered”.
The logistical advantages of this solution are that Clas Ohlson can use the same procedure when handling “Collect in store” orders as with any other order. The difference is just that these parcels are placed on the pallets to the stores instead of being sent to a sorting terminal.
The “Collect in Store” option also include parcel lockers.
Parcel lockers streamlines “Collect in Store”
Clas Ohlson wants to make Collect in Store even more convenient for their customers and at the same time more efficient and profitable for the store by installing parcel lockers in their stores.
“The parcel lockers streamline the handing over process in store, as the store employees don’t have to spend time locating customers’ parcels. Also, this is more convenient and Covid-19 compliant for the customer, as they don’t have to wait in line and avoid physical contact,” said Richard Lindeen, eCommerce Supply Leader at Clas Ohlson.
When the store receives online orders to be collected in store, they decide which ones are suitable for the parcel lockers, and the store employee scans the parcels for the lockers via the locker terminal. The locker, supplied by Quadient, then sends Consignor a message containing the barcode, locker location code, pickup code for the consumer and finally an event code. This triggers Consignor to send a SMS to the customer with the pickup code notifying them that their online order is ready for pickup.
Attractive delivery options like “Collect in store” and competitive logistics make up the foundation of Clas Ohlson’s ambitious growth plans, in which Consignor plays a crucial role.
“Our goal of doubling Clas Ohlson‘s online sales every two years requires us to stay relevant and attractive in everything we offer our customers. Here, Consignor contributes with two important factors: a stable software platform for handling shipments and quick integration towards new carriers. We are in a phase where our e-commerce grows rapidly, and we are continously in need of integrating to new carriers. With Consignor, we can, in dialogue with new carriers, simplify the process by saying: If you can integrate with Consignor, you can integrate with us, ” concludes Daniel Thyberg.
"Consignor contributes with two important factors: a stable software platform for handling shipments and quick integration towards new carriers. We are in a phase where our e-commerce grows rapidly, and we are continously in need of integrating to new carriers. With Consignor, we can, in dialogue with new carriers, simplify the process by saying: “If you can integrate with Consignor, you can integrate with us."
Daniel Thyberg, Supply Chain Developer, Clas Ohlson