Franchise stores and e-commerce:
what are the possibilities?

Franchise stores can be implemented in the global e-commerce strategy, but it is important to set up the right business rules in your IT infrastructure. 

A retailer with franchised stores or a brand with B2B orders for consignment stock for a retailer with stores can and should be handled differently in a number of ways:

• When allocating orders, parameters like margin and cost need to be taken into account, since these can be different. Leading to a higher or lower rating of these locations when determining the optimal fulfilment location
• Franchised stores can be given a different priority (from a masterdata perspective) in the allocation process
• In some use cases we’ve implemented, franchised stores have the “right” to fulfill orders that have been placed in their geographical area. In this case, OIL allocates these fulfilment orders to these locations.
• Depending on the franchise agreement, commissions need to be calculated related to fulfilled orders by franchised stores, turnover in geographical area etc.