Omnichannel Order Management: A Modern Solution for Inventory and Fulfillment
Posted by Julia Morrissey on May 14, 2024
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Here’s what we already know: consumer expectations in retail have evolved. (Thanks, Amazon.) This is nothing new. The on-demand economy has contributed to a lot of these changes in consumer behavior. Instant gratification is the name of the game, ladies and gentlemen.
So, what can brands do to acquire and retain customers? That answer is plain and simple. Make shopping easy and deliver exceptional customer service, coupled with fast delivery and convenient fulfillment options.
Order management systems (OMSs) are at the foundation of a great retail experience, and today, it’s vital that OMSs are omnichannel and provide a view of the entire shopping journey.
Omnichannel order management is the key to edging out other brands and staying at the forefront of the ever evolving world of retail.
Omnichannel order management is a software system that allows you to access customer, order, and inventory information across all channels. It orchestrates all orders across the enterprise while providing the relevant information needed for ecommerce and point of sale systems to operate efficiently.
The key features include omnichannel order routing, store fulfillment, and enterprise inventory. It’s also a customer service platform, allowing you to see a complete view of your business with real-time insights in a single, unified spot.
In short, an omnichannel OMS allows customers to shop anywhere and return anywhere. A well-rounded omnichannel OMS powers both your employees and your customers.
Regardless of which channel captures an order, it goes through various states and a series of steps that all live within the omnichannel order management system. No two orders are the same, and so the lifecycle of each order may vary—certain stages or steps may be extremely unique to that particular order.
Once a consumer hits the buy button, it’s game on. Time and transparency are of the essence. What’s my order status? How fast will it be shipped? When will it be delivered? These are the burning questions your customers want answers to.
Let’s say a customer in Nashville places an order online for a few different products. Once the order is captured, the OMS determines the fastest way to get the order in the hands of the consumer is to fulfill it from the New York store.
However, it’s quickly determined there isn’t sufficient inventory for one of the items in that store. That triggers an exception because the whole order can’t be fulfilled there. In a matter of minutes, the order is rerouted for fulfillment from the LA store location.
It’s possible the order could have been fulfilled from a warehouse depending on available inventory and speed of delivery. However, in this scenario, the intelligent order routing determined the LA store to be the most efficient option.
The end result? A happy, satisfied customer because you didn’t have to cancel the order.
The benefits of an omnichannel order management system are abundant. Below, we address the key advantages from reduced costs to improved customer satisfaction.
Order management used to be entirely powered by employees. They would look over various shipping methods, attempt to figure out which one was the best based on metrics, and deliver that option to the customer.
An omnichannel OMS that uses cutting-edge technology and a powerful, intuitive UI removes much of the decision-making from the employee. Instead of asking the employee to route complex shipping methods, omnichannel OMSs do it instantly and provide suggestions to employees – freeing up their time to focus on things like selling and customer service.
Simply put, omnichannel OMSs make shipping products more efficient. The system accounts for location, time, and shortages, and also will ship products from overstocked locations to reduce discounting. It maps out suggestions based on metrics that are identified immediately and accurately. The end result is lower overall shipping costs for the retailer and a satisfying price and quicker delivery time for the customer.
The impact of an omnichannel OMS on customer satisfaction is unparalleled. Key advantages include:
With an omnichannel OMS, store associates have the power to see real-time inventory, availability by location, and online shopper history. This helps associates cater to their customers’ needs more accurately and more thoroughly. Nothing is worse than not being able to answer a customer’s question or give them the information they need.
By offering a seamless shopping experience across all channels, retailers can create loyal customers. Moreover, the ability to leverage data insights and personalized marketing strategies enables retailers to upsell and cross-sell relevant products, further driving sales and revenue growth. Ultimately, an omnichannel order management system serves as a catalyst for unlocking new revenue streams and maximizing the lifetime value of each customer relationship.
One of the most challenging aspects of operating in the retail industry today is the competition from online-only businesses. Major competitors like Amazon and eBay have not only made the competition in retail fierce, but they’ve also made customers more demanding and less patient.
With an inclusive OMS, you can deliver shipping and pickup methods that rival major online businesses, while retaining that in-store feel and experience.
Omnichannel order management systems give retailers a lot of power when it comes to product management. But most important is the power to compete in an age where shopping is customer-first and channel-agnostic.
An omnichannel order management system facilitates seamless transactions, simplifies inventory management, and improves customer experiences. Let’s delve into the key features of an omnichannel OMS.
A robust omnichannel order management system provides brands with real-time visibility into their entire inventory landscape, encompassing warehouses, distribution centers, stores, and even third-party suppliers. This unified view enables retailers to accurately track product availability, prevent stockouts, and fulfill orders from the most optimal location, thereby minimizing costs and maximizing customer satisfaction.
Smart order routing enables brands to seamlessly process orders from various channels, including online, mobile apps, and in-store. By intelligently routing orders based on factors such as proximity to the customer, inventory availability, and shipping preferences, you can ensure timely order fulfillment while minimizing shipping costs and transit times.
Empowering customers with flexible fulfillment options is paramount today. Customers want items quickly and conveniently. With an omnichannel OMS you can offer a plethora of fulfillment options, including buy online pick up in-store (BOPIS), ship from store, curbside pickup, and same-day delivery. This flexibility not only caters to diverse customer preferences but also optimizes inventory utilization.
An omnichannel OMS also offers the flexibility to split and re-route orders in case of missing, damaged, or inaccurate inventory. For instance, if a particular item is out of stock or damaged at the designated fulfillment location, the Omnichannel OMS can automatically split the order, sourcing the unavailable item from an alternate location with available inventory.
An omnichannel OMS enables retailers to deliver hyper-personalized experiences by accessing customer information, such as transactions across all channels, average transaction amount, customer purchase activity, customer statistics, and more. By offering convenient and seamless shopping experiences, retailers can foster deeper connections with their customers and drive loyalty.
Data-driven insights are instrumental in optimizing operations, refining strategies, and driving business growth. An omnichannel OMS system aids brands in gaining actionable insights into sales performance, inventory movement, customer behavior, and channel effectiveness. Armed with these insights, retailers can make informed decisions, identify opportunities for improvement, and stay ahead of the competition.
Marine Layer is a San Francisco-based retail brand with nearly 50 stores in the U.S. specializing in absurdly soft and comfortable clothes that are enjoyed by all.
The company understood the importance of its stores for customers—they want to see and touch the products—as part of the overall brand and shopping experience. They also understood their customers were true omnichannel shoppers, buying both in-store and online. This meant the brand had to deliver a truly frictionless shopping experience for its customers.
Marine Layer chose NewStore to overhaul its retail operations and go all-in on omnichannel retail. By unifying its online and in-store business, the business could deliver modern shopping experiences while also helping grow the business and drive more revenue through omnichannel use cases like store fulfillment.
Since rolling out NewStore, 15% of all Marine Layer online orders were shipped from a store which lead to a 21% increase in sales. With a modern OMS, store fulfillment is easy—significantly reduced friction and pain for the customer because it gets into their hands faster, and more efficiently.
The benefits of an omnichannel order management system are pretty clear. From reduced opex costs to increased customer satisfaction and beyond. Unfortunately, most legacy systems that brands use today are built on decades-old foundations that aren’t flexible enough to adapt to meet the needs of modern retail. These systems weren’t built to support complex customer journeys.
In today’s retail environment, to win and retain customers, brands must provide consistent and unified shopping experiences. An omnichannel order management system will allow you to orchestrate the entire customer shopping journey with simplicity and ease.
Integrate and share data with every solution in your tech stack. From inventory to customers to orders. With real-time intelligence, your teams will be empowered to provide superior experiences across all touchpoints, every time.
Contact us to learn how we can help make omnichannel retailing work for you.
