Consumers are becoming more demanding. Leading retailers and service providers are responding by providing more choices, faster deliveries, and highly flexible solutions, using an omnichannel strategy.
What is omnichannel fulfilment?
Omnichannel brings every option offered to the consumer within one seamless process. Sales channels include both offline and online solutions. Stores continue alongside e-commerce sites, apps, and social media platforms. A customer may buy from store, order via a website or app, and choose to have it delivered or collect it from the store.
Omnichannel has its own terminology:
•BOPIS – Buy online, pick up in store.
•BORIS – Buy online, return in store.
•SFS – Ship from Store.
•Click-and-Collect.
The importance of omnichannel in the retail sector
An omnichannel strategy delivers a seamless shopping experience using different sales and communication channels, every process is interconnected which ensures uniform communication for the consumer. For the seller, the key is to streamline inbound and outbound flows of goods across different channels.
The role of technology
To implement 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 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. You will also require a robust order management system (OMS) for efficient picking, packing, and shipping from the optimum location.
AI and augmented reality
AI-based forums, chatbots and augmented reality (AR) innovations are becoming the norm. Cosmetic retailer Sephora has an AR marketing strategy designed to boost customer confidence in its products. Sephora provides customers with in-depth views of different makeup products, colours, and shades as they appear on different skin tones. It has also integrated online marketing with a mobile app, allowing customers to get all tutorial videos, beauty news, fashion trend information, and new product launches on their phones.
The benefits of an omnichannel strategy
•Better order fulfilment efficiency with more options for cost savings
•Increased customer satisfaction and retention through more flexibility
•Enhanced brand image
•Accurate customer data providing insights.
Challenges in omnichannel fulfilment
To manage omnichannel fulfilment you need the right systems and resources. Without full visibility of inventory and the ability to synchronise stock levels across all channels, there is the risk of overstocking or stockouts. Boots, the UK’s leading pharmacy retailer has integrated its omnichannel marketing strategy through partnerships with major tech companies. ASDA, a supermarket chain, has seen success with an outsourced omnichannel marketing approach by integrating its website, mobile app, and physical stores to provide interrelated shopping experiences.
How to successfully implement an omnichannel strategy
1. Understand your market and customer: Research target customers and their buying behaviours.
2. Systems and technologies: Understand current resource capacity including technical expertise. Invest in solutions that communicate with real-live data including inventory management, order fulfilment, and customer relationship management. Enhance visibility into your supply chain by using advanced analytics, IoT devices, and real-time tracking.
3. Offer various options: ship-from-store, pick-up in-store, same-day delivery and alternative returns processes to suit the consumer’s needs.
4. Collaborate with suppliers, distributors, and logistics partners to streamline communication and coordination.
5. Train employees to understand the omnichannel strategy and provide them with the tools and knowledge to deliver a quality customer experience.
6. Monitor and analyse order fulfilment data against metrics to identify processes to optimise. Collect and analyse feedback from customers to identify areas for improvement.
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