Agility in Retail Means Flipping the Fulfillment Center on Its Head

Last updated on July 25th, 2024 at 04:40 pm

Amazon and Walmart are encroaching on each other’s turf as they compete for market share in a crowded commerce landscape. Case in point, Amazon just opened its first brick-and-mortar clothing store, and Walmart recently announced that its stores would act as shoppable fulfillment centers. Two of the world’s biggest retailers are shaking things up on opposite ends of the spectrum and showing us that digital and physical experiences are increasingly interconnected.

As consumer expectations evolve, convenience has become the second most important factor for brand loyalty, as reported in Fresh Relevance’s 2022 data pulse. One way retailers can meet the demand for more convenient experiences is to increase their omnichannel fulfillment capabilities. And in today’s competitive retail space, that means identifying opportunities to merge digital and physical experiences–fulfillment capabilities included.

Consumers crave convenience.

Brand loyalty is growing more elusive as expanded product options and consumer expectations rise. In the current retail marketplace, Fresh Relevance found that 35% of consumers have no problem switching to a new brand from one they’ve previously shopped with.

A big part of this willingness to switch brands relates to convenience–consumers want to purchase the products they want how and when they want them. In fact, a third of U.S. consumers will switch retailers if items are out of stock, and nearly 40% will switch brands or products. Only 13% of consumers wait for the item they were looking for to come back in stock at the original retailer.

Consumers nearly always purchase from the retailer that offers the most convenient shopping experience or the fastest shipping and delivery services. People no longer buy from a brand simply because they bought from it in the past.

So, retailers must go beyond basic capabilities to capture the attention of consumers. It’s time to start thinking about elements of convenience that will actually drive customer loyalty. This is where omnichannel fulfillment comes into play.

Create comprehensive experiences with omnichannel fulfillment capabilities.

Omnichannel fulfillment gives customers access to a retailer’s entire inventory with multiple options for pickup and delivery. For example, when a shopper orders a product online, they can pick it up at a nearby store or have the product shipped to their house from that store. A strong omnichannel fulfillment strategy provides flexibility, convenience to customers and more sales for the retailer.

Rather than viewing each store location as a separate entity, it’s time to embrace the idea that a retailer’s stores and online presence are fully connected. Amazon and Walmart are laying the groundwork for successful omnichannel fulfillment, and brands need to realize they don’t need the resources of these organizations to do the same. With the right strategy backed by the right technology, retailers of any size can benefit from omnichannel fulfillment. Here’s how to get started.

1. View operations through a new lens. Expanding fulfillment capabilities means considering added layers of logistics. With a shoppable fulfillment center, you need to schedule store associates to assist customers as well as pick, pack and ship orders. Will you have separate teams for each function or train your associates to become omnichannel associates? Additionally, implement fulfillment rules that outline how orders are routed to a store for consistent customer experiences.
2. Invest in technology that facilitates omnichannel experiences. Get rid of outdated point-of-sale (POS) technology and adopt solutions that increase efficiency and connectedness. Equip sales associates with tools—more specifically mobile ones—that provide real-time visibility into inventory and orders. While inventory accuracy has always been critical, real-time inventory becomes paramount when executing omnichannel fulfillment.
3. Identify new ways to connect with customers. As your omnichannel fulfillment strategy evolves, you must find new ways to reach your customers to keep them engaged. For example, my company helps with branded mobile apps. I suggest that leaders interested in those solutions make sure the app empowers shoppers to make purchases and power in-store capabilities like mobile checkout, buy-online, pick up in store (BOPIS) services.

It is also important to nurture and proactively communicate with your most loyal shoppers. To do this, retailers can establish an effective social media presence that allows for two-way communication. Not only is social a useful tool for brand recognition and marketing, but social apps are always adding new tools for integrating product info into posts or even adding order status details into DMs. By equipping your social team with information about product inventory levels across store locations, they can help customers purchase, track and receive their orders more quickly and efficiently.

Achieving Omnichannel Fulfillment

Your first step toward omnichannel fulfillment doesn’t have to involve a huge investment. Start small and celebrate each win. Take time to understand what your customers want, devise a strategy, implement the right technology and most importantly, iterate and improve your processes. And remember, you don’t have to be a retail giant like Amazon or Walmart to succeed in this arena. Omnichannel is for everyone.

Stephan Schambach is the Founder and CEO of NewStore. This article originally appeared on Forbes.com.