The place and distribution variable deals with having enough products available for consumer demand and being able to supply these efficiently to the customer, at the same time keeping transport, inventory and storage costs as low as possible.
ASOS is an e-commerce business so their online shop is the best place for their customers to access the retailer. However, ASOS has utilised the place variable by thinking about where to distribute their brand and their introduction to the overseas markets.
ASOS is an e-commerce business so their online shop is the best place for their customers to access the retailer. However, ASOS has utilised the place variable by thinking about where to distribute their brand and their introduction to the overseas markets.
ASOS have became a global retailer now have offices all over the world
in the US, Australia and Germany. (ASOS, 2016)
For their UK customers, ASOS now offers a click-and-collect service through 61 Boots
branches and with plans to add to this in 2017. (Mintel, 2016)
ASOS Premier Delivery is also available, which offers free next day delivery to your house on unlimited items on a yearly subscription for only £9.95 a year.
ASOS Premier Delivery is also available, which offers free next day delivery to your house on unlimited items on a yearly subscription for only £9.95 a year.
For their international customers, ASOS has introduced unlimited free
next day deliver to store for Premier Delivery subscribers in France and next
day home delivery to German and Irish Premier customers. ASOS also offer next
day delivery in Austria, Luxembourg, Poland and Portugal. EU countries
currently do not have free returns but ASOS are planning to extend this policy
across all EU countries later in 2016. (Mintel, 2016)
By giving customers these options, ASOS has conquered the issue of online shopping, of not being able to try before you buy. Customers can now have an experience close to trying something on in store, receiving the item the next day and without having to pay extra to return the item if it is not suitable.
By giving customers these options, ASOS has conquered the issue of online shopping, of not being able to try before you buy. Customers can now have an experience close to trying something on in store, receiving the item the next day and without having to pay extra to return the item if it is not suitable.
With this comes an increase of orders and ASOS are required to keep up
with this increase in demand. They have recently expanded their warehouse in
Barnsley, Yorkshire, and added an extension approximately 150 thousand square
feet. According to the ASOS website, this new space will allow them build the
business that is capable of handling £2.5bn global sales demand and will
double the stock capacity to 22 million units. (ASOS, 2016)
To tackle the growth of popularity in the European market, ASOS began
work on a new European distribution centre in January 2016 in Germany. This new hub will be large enough to hold 20
million units of stock, the warehouse will enable ASOS to extend the next-day
delivery option to more European countries. (Mintel, 2016)
Net-A-Porter offers a wide range of delivery options to their customers. The company offers express worldwide shipping in more than 170 countries. Including same-day delivery to Manhattan, London and Hong Kong and next day delivery to the UK, US, Germany, France, Australia and Singapore. (Suarez, 2014) If your item is not suitable, you won't even have to leave the house to return it. Net-A-Porter will arrange to have the package collected from your door. However, express delivery will cost you £20 in most countries, which is not cheap for the average consumer.
Net-A-Porter offers a wide range of delivery options to their customers. The company offers express worldwide shipping in more than 170 countries. Including same-day delivery to Manhattan, London and Hong Kong and next day delivery to the UK, US, Germany, France, Australia and Singapore. (Suarez, 2014) If your item is not suitable, you won't even have to leave the house to return it. Net-A-Porter will arrange to have the package collected from your door. However, express delivery will cost you £20 in most countries, which is not cheap for the average consumer.
Net-A-Porter has two distribution centres and two head offices; London and New York. These warehouses use 'robot pickers' instead of staff which speeds up the selection process of items, moving at speeds of up to 30 mph.
Orders are processed on the website then the information is passed to the robot pickers. Goods are then passed to staff on another floor where they are processed for packing to meet their high quality standards.
Net-A-Porter have improved their customer service by bringing in robots to speed up delivery times and process orders quicker. They still use staff as the final point of processing the order to make sure the package is of high quality to meet customer expectations. (Graham, 2012)
Both companies offer next day delivery to various countries and easy return options. By offering this to customers, both companies have conquered the issue of online shopping, of not being able to try before you buy. Customers can now have an experience close to trying something on in store, receiving the item the next day and without having to pay extra to return the item if it is not suitable.
Net-A-Porter has tackled the problem of increased demand by using a robot picker system, while ASOS uses employees for all stages of the distribution process. At the moment, ASOS are coping well with demand and keeping to their next day delivery promises, but this is unlikely to continue if orders increase over time.
Orders are processed on the website then the information is passed to the robot pickers. Goods are then passed to staff on another floor where they are processed for packing to meet their high quality standards.
Net-A-Porter have improved their customer service by bringing in robots to speed up delivery times and process orders quicker. They still use staff as the final point of processing the order to make sure the package is of high quality to meet customer expectations. (Graham, 2012)
Both companies offer next day delivery to various countries and easy return options. By offering this to customers, both companies have conquered the issue of online shopping, of not being able to try before you buy. Customers can now have an experience close to trying something on in store, receiving the item the next day and without having to pay extra to return the item if it is not suitable.
Net-A-Porter has tackled the problem of increased demand by using a robot picker system, while ASOS uses employees for all stages of the distribution process. At the moment, ASOS are coping well with demand and keeping to their next day delivery promises, but this is unlikely to continue if orders increase over time.
References
Graham, F. (2012) Logistics: Rise of the warehouse robots. Available at: http://www.bbc.co.uk/news/business-20754979 (Accessed: 16 November 2016).
ASOS (2016) How we do it. Available at: http://www.asosplc.com/how-we-do-it.aspx (Accessed: 26 October 2016).
Suarez, F. (2014) PowerPoint presentation. Available at: https://www.net-a-porter.com/alfresco/nap/webAssets/webPage/advertise-with-us/desktop/common/NAP_Media_Kit.pdf (Accessed: 31 October 2016).
Mintel (2016) Executive Summary - Online Retailing UK. Available at: file:///C:/Users/fionaclark/Downloads/Online%20Retailing%20-%20UK%20-%20July%202016%20-%20Executive%20Summary.pdf (Accessed: 14 November 2016).
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