engelhorn – this name is indivisibly linked with the city of Mannheim, and the Rhine-Neckar region more broadly; it is one of Germany’s leading shopping addresses for fashion, accessories, bags and shoes, for sports fashion and sports articles. In eight retail stores, the family-run company offers a wide-ranging product programme. In addition to its physical shops, engelhorn operates two online shops.
engelhorn is a classical retail-outlet company, and one of the first companies to have quickly become successful in e-commerce. The e-commerce orders were serviced exclusively via the central storage facility. If the article was unavailable in central storage, a cancellation was sent to the customer. To reduce the proportion of such cases, we wanted to make it possible to gain access to the stores‘ data on stock levels. To do this, existing logistics arrangements needed to be extended to meet e-commerce requirements.
Driven by a strategic orientation moving towards multi-channel business, and by the urge to wind-down the use of in-house-developed software in favour of standard solutions, there was a need to adapt the organisation of the processes with regard to mail order and returns.
Implementation / Project
A central requirement faced by logistics is to ensure that online-shop orders are serviced not solely from the stocks at central-storage; the wish is that they increasingly also use the stocks from the physical stores (the ‘pick from the store‘ model). Both sales channels command a shared pool of stock, consisting of more than 8 million articles.
„By making the switchover of processes and by deploying the software, we were able to reduce by more than 80% the number of cases where online-shop orders had to be declined; this resulted in a substantially higher level of customer satisfaction.“
Gerhard Fähr – Managing Director, engelhorn GmbH
Results for the customer
Harmonising the core data and the stocks (physical shops, central storage)
Upgrading of the products in storage
Minimising the number of interfaces
Reducing the proportion of orders declined
Supplying online orders by taking into account the physical stores and central storage
High level of automation in Central Logistics
Futura – Filialanbindung
You can see a brief summary of the result in the following video: