What’s the Big Deal About Omnichannel Fulfillment?

Let’s face facts. eCommerce has spoiled your customers. They expect more from you, and if they don’t find what they want, the next stop is a click away. So, you develop an omnichannel strategy to meet customer demand however they want to buy. But, what do you do about omnichannel fulfillment?

Apparently, many retailers say they lack confidence in their ability to meet customer expectations of omnichannel fulfillment. Thus, they plan to change their strategy, policy, and technology this year to balance capability and expectation.

In fact, according to a survey of 351 retailers conducted by consulting firm PwC, retailers have less confidence in their ability to meet customers’ omnichannel fulfillment expectations than they did in 2014.

Only one in ten respondents say they make a profit with omnichannel fulfillment. That’s why 70% plan to lower sales by transforming their digital sales and fulfillment channels.

Businesses Realign for Omnichannel Fulfillment

While industry observers say omnichannel fulfillment drives continues to drive growth, businesses with established channels and fulfillment processes appear to have trouble making it work.

The cost of fulfillment through existing, siloed sales channels is one thing. It costs some businesses more to switch to multiple online and in-store fulfillment options. Customers may want to buy online and have the product shipped to their home. Or they might buy online for in-store pick-up (also known as click-and-collect).  All those channels, furthermore, imply the need to handle returns more flexibly.

Customers may want to buy online and have the product shipped to their home. Or they might buy online for in-store pick-up (also known as click-and-collect).  All those channels, furthermore, imply the need to handle returns more flexibly.

Control Inventory for Omnichannel Fulfillment

The secret to omnichannel fulfillment is keeping your inventory in balance. Businesses at one time only used warehouses and 3PL partners to replenish their physical retail stores or your retail trading partners.

Now, omnichannel fulfillment requires agility. Businesses have to accommodate shipping to customers from store locations. They have to fulfill from warehouses and 3PL partners. And they still need to replenish their channels from warehouses and branches.

As the PwC survey suggests, this presents a bigger problem for companies that have long-term investments in how they fulfill orders. The good news for smaller companies growing in the omnichannel world is that they can develop an omnichannel fulfillment strategy early on and without the need to invest a lot of money in the right solution.

This entails merging your inventory processes to avoid overselling. For instance, if you sell online and in a store, and two customers buy the same item at the same time, one of those customers will go away empty-handed, and never come back.

An inventory management process that tracks all online and in-store purchases in real-time will ensure you never oversell again. Furthermore, having an inventory solution that updates stock from the POS to the 3PL to the marketplace or a 3PL, allows a business to deliver on its omnichannel fulfillment process.