Understanding Omnichannel Fulfillment & How to Ace it

 
Currently, the supply chain industry is also abuzz with omnichannel fulfillment as one of the most important fulfillment strategies for eCommerce businesses to adopt. After all, the logistics industry is dynamic and changing rapidly to cope with market dynamics driven by ever-changing consumer behavior and expectations.
 
As per industry experts, omnichannel fulfillment has huge potential to impact the business growth of the third-party Logistics provider who offers this service. With the massive growth of retail and eCommerce, omnichannel will soon become a must-have for all 3PLs.
 

 
Omnichannel fulfillment is a strategy that has a unified approach to managing inventory and order processing from multiple channels. It enables a 3PL provider to streamline and organize their fulfillment process to distribute orders from various channels efficiently. The significant factor, though, is being unified and organized.

 
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An effective omnichannel strategy equips you to handle the inventory, order, and returns processes irrespective of the channel. It enables a 3PL to meet the requirements of eCommerce or retail brands efficiently.
 

 
Today, with the changing market dynamics and consumer behavior, most leading retail and eCommerce brands embrace the omnichannel framework to keep their customers happy, grow revenue and expand their business. Here are the five most significant benefits of omnichannel fulfillment:

• Improves Order Performance. Synchronizing your complete supply chain and logistics processes in one platform, from warehousing to packing to delivery, improves your order performance.
• Data-Driven Accuracy. Driven by technology, omnichannel fulfillment enables you to monitor your delivery process at every step for improved success. The platform or dashboard 3PLs provides real-time data and lets you keep evaluating the key performance indicators for improved efficiency.
• Order Management Efficiency. Managing orders from all avenues through a single platform simplifies tracking. Thus, it provides you with better consistency and efficiency.
• Customer Satisfaction. This is the ultimate parameter of success for any retail and eCommerce business. Regardless of the channel, your customers are happy if the orders are delivered on time, accurately, and in perfect condition. After all, the omnichannel concept emerged due to customer expectations and purchase behavior.
• More Brand Awareness. Helping customers access your products with in-store pickup, online store browsing, and then facilitating speedy home delivery helps you establish your brand as a leader. So, if you offer omnichannel fulfillment, the customers will perceive you as dependable and forward thinking.

 
Now getting aware of the benefits of omnichannel fulfillment is not sufficient for you to embrace it without considering and analyzing in detail all the other aspects of it.
 
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Here are the essential best practices you must remember to make the transition efficient and seamless:

• Select the Right Strategy. Numerous channel options are there. So, analyze your business well and select the most suitable strategy with the right mix of channels that works for you and your customers.
• Managing Multiple Carriers. Adopting omnichannel fulfillment becomes effective with a multi-carrier shipping system platform with end-to-end multi-carrier shipping system deployment, configuration, and support.
• Effective Collaboration. Fulfilling orders from multiple channels successfully can’t happen if your departments work in silos. You must break the departmental silos for effective omnichannel fulfillment.
• Top-Class Inventory Management. Omnichannel fulfillment requires more efficient inventory management as the orders come from multiple channels and are shipped from various locations. Your 3PL provider must have workflows and processes automated for better visibility and tracking.
• Technology-Driven. Technology is the most significant driver of a successful omnichannel fulfillment process. Any drop in inventory management, sorting, picking and packing, shipping management, and product replenishment can lead to crucial errors in product delivery. Only the right supply chain and logistics technology can make the process seamless and efficient.

 
Now that we have seen the importance and best practices of omnichannel fulfillment let’s see how you can embrace this fulfillment strategy and become a pro at it:

• Centralize Inventory Management. A centralized inventory management system that tracks all products across all channels is essential for successful omnichannel fulfillment. It will ensure you have accurate inventory data and can quickly fulfill orders from any channel.
• Use Real-Time Data Analytics. Use real-time data analytics to monitor inventory levels, sales trends, and order fulfillment rates. It will allow you to make informed stock replenishment and fulfillment strategy decisions.
• Optimize Order Routing. Optimize order routing to ensure you fulfill orders from the most appropriate channel. For example, suppose a customer orders a product that is out of stock in a physical store. In that case, you can route the order to an online store instead.
• Implement a Flexible & Scalable Fulfillment System. Implement a flexible and scalable fulfillment system that can handle high volumes of orders and adapt to changes in demand. It may involve leveraging technology such as automation and artificial intelligence to improve efficiency.
• Multiple Delivery Options. Offer customers different delivery options such as in-store pickup, home delivery, and same-day delivery. It will provide customers with flexibility and convenience, which can improve their overall shopping experience.
• Prioritize Customer Service. Prioritize customer service by providing customers with accurate and timely information about their orders. It includes sending automated updates on order status, providing tracking information, and offering responsive customer support.

ALSO READ: Reverse Supply Chain & How to Embrace it?
 

 
Ultimately, with the changes in the market and consumer expectations, and purchase behavior, you need to adapt your business to continue in a growth trajectory. However, as the stakes are highest in the dynamic, ever-changing eCommerce and retail industry, you must analyze carefully before adopting the omnichannel strategy. You also must ensure that you partner with the right 3PL provider.
 

 
XPDEL is not another 3PL supply chain and logistics provider. We help eCommerce brands accelerate their growth, empowering them with multi-channel fulfillment, whether shipping directly to consumers, delivering to businesses, or selling through retail stores. Powered by advanced technology and led by industry experts, we thrive on data and insights for making smart business decisions.