Today, consumers are becoming more demanding. They want a convenient, quick, and efficient shopping experience with the least stress. Leading retailers and service providers are responding. They are using an omnichannel strategy to provide more channel choices, faster deliveries, and highly flexible solutions.
Omnichannel fulfilment means bringing every option offered to the consumer within one seamless process. The sales channels will include both offline and online solutions. Bricks-and-mortar stores will continue alongside e-commerce sites, apps, and social media platforms. A customer may buy from a store, order via a website or app, and choose to have it delivered or collect it from the store. Omnichannel has its terminology:
An omnichannel strategy delivers a seamless shopping experience using different sales and communication channels. With omnichannel solutions, every process is interconnected. This is significant in ensuring a uniform communication experience for the consumer. For the seller, the key is to streamline inbound and outbound flows of goods across the different channels. Omnichannel also drives customer retention and sales, improving supply chain productivity and profitability. Multi channels are not the same; they operate independently of each other without information sharing.
To implement an omnichannel strategy, companies with more than one warehouse or store need logistics-specific software to organise their operations, control inventory and determine the most cost-effective method of fulfilment per customer order.
Systems and data
For omnichannel fulfilment, you will need a warehouse management system (WMS) that keeps track of stock in real-time. Inventory information must be shared between stores, warehouses, and distribution centres to prevent stockouts or overstocking. Real-time data interconnectivity is vital. You will also require a robust order management system (OMS) for efficient picking, packing, and shipping from the optimum location.
AI-based forums, chatbots and augmented reality (AR) innovations are becoming the norm. Cosmetic retailer Sephora has an AR marketing strategy designed to boost customers’ confidence in its products. Sephora gives customers in-depth views of different makeup products, colours, and shades as they appear on different skin tones. It has also fully integrated online marketing with its mobile app, allowing customers to get all tutorial videos, beauty news, fashion trend information, and new product launches on their phones. Timberland has pioneered an (AR) campaign that allows customers to photograph themselves “trying on” clothes by projecting their faces onto a digital mannequin.
The benefits of an omnichannel strategy
To manage omnichannel fulfilment in-house, you will need suitable systems and resources. Without the complete visibility of inventory and the ability to synchronise stock levels across all channels, there is the risk of either overstocking or stockouts. Lack of technical expertise, lack of access to staff, and time pressures are the reasons many retailers choose to outsource their fulfilment. Boots, the UK’s leading pharmacy retailer, has integrated its omnichannel marketing strategy through partnerships with major tech companies. ASDA is a supermarket chain with significant success and an outsourced omnichannel marketing approach. ASDA has integrated its website, mobile app, and physical stores to provide interrelated shopping experiences. A hybrid solution may work for you: fulfil some orders yourself and partner with an outsourced third party to process orders from a specific channel.
Omnichannel is not a fad. It is a way to increase sales and introduce flexibility into your business. Implementing an omnichannel supply chain strategy requires commitment, investment, and a continuous improvement mindset. Regularly assess performance and adjust to stay agile in a rapidly changing business environment.
Omnichannel requires the seamless coordination of all supply chain processes. It is unclear how WMS and technology solutions can streamline workflows and fulfilment. SCCG can help you build the best strategy for your business. Our consultants can provide tailored recommendations to help you minimise costs without compromising your customers’ needs.