Key strategies for success in the omni channel fulfillment market
A lot of retailers fail to pacify their operations in pace with the evolving trends in the eCommerce market as well as the rising demands of the eCommerce customers. Due to this, the margins from the direct to customer channels are at a high risk of falling short of expectations. Fulfillment is often at the heart of such problems.
The customers of today who make a purchase from an online source have helped in redefining the fulfillment landscape since a dozen of more channel variations has emerged in the past few years. With the rise in evolution, it becomes important to carefully plan and manage the Omni-channel fulfillment program of the company. But what is Omni-channel? Let’s find out!
What is Omni-Channel?
Benefits of Omni-Channel Fulfillment
When properly executed and seamlessly enabled, the Omni-channel fulfillment strategy can reap in several significant benefits to your customers and retail companies.
- Improvement in the rate of Customer satisfaction
- Avoidance of capital investment and repurposing
- Better delivery mechanism – right product at the right place at the right time
- Improvement in the revenue performance
- Reduced number of back orders and stock outs
- Savings in transportation cost
- Retail store morale improvements
- Store productivity gains via in-store pick up and shipment from store
- Gains in inventory productivity by leveraging of inventory across different channels
Key Strategies for success in the Omni-Channel Fulfillment Market
Now, that you are aware of the multitude of benefits Omni-Channel Fulfillment Market can bring it is important for you to know and understand the strategies so as to find success in the Omni-channel fulfillment market. Here we have compiled 4 key strategies that will serve as a guide for both software suppliers and practitioners to continually grow in the market and evolve to best satiate the customers.
Growth in eCommerce
The paradigm shift seen in the current Omni-Channel retail is largely driven by the out-pour in the eCommerce. This is arguably the most vital supply chance management trend that has come up in the past one decade. Ever since the advent of the internet, the brick and mortar sales have been relatively flat whereas the digital sales are growing progressively. This trend in eCommerce is indeed stimulating interest in technology so as to modernize and streamline order fulfillment.
Adequate Investment in Fulfillment Technology
Despite the fact that eCommerce is growing at a soaring rate there is not enough investment where it needs to be. There are several technologies such as DOM, TMS and demand planning that are still not utilized optimally. Had these been utilized to their full potential companies would have undoubtedly become a lot more efficient by allocating the inventory to warehouses, stores and the distribution centers thereby efficiently, effectively and reliably moving the freight from the source to the destination. It also involves capturing of the necessary information in the order management process across every relevant channel.
Don’t limit the innovation
Innovation is one of the most important aspects of expanding the current footprint of the Omni-Channel Fulfilment market. Companies need to keep seeking new technologies and innovations so as to keep pace with the changes happening in the market. The crowd-sourced options for delivery are indeed a cost effective option for home delivery, however, these solutions haven’t been explored enough. Several companies are waiting eagerly to find out how the companies pan out but the key emphasis needs to be on taking bold moves backed with high reward potential. This means that there is a plenty of white space that can be well utilized by the suppliers. It can be catered to by way of acquisitions or new and improved solutions.
Focus on Markets with higher growth potential
It is believed that the Omni-Channel Fulfilment market will showcase a phenomenal growth by crossing over $3.7 billion by the beginning of the year 2020. To be able to achieve this objective, companies need to focus largely on the markets that depict higher growth potential. For this, the companies must research all the Tier 2 and 3 markets. With most of the key players targeting the Tier 1 market, there are several small and mid-sized companies that are venturing into the Omni-channel world. The customers of the second and third tier market will definitely claim a share in the market thereby providing ample growth prospects for suppliers.
This new paradigm of Omni-Channel Fulfillment market is here to stay. So all the software suppliers, as well as the practitioners, must find ways and means to establish themselves in the market, else they’ll lag behind. For this, investment in technology, targeting the markets with high growth potential like the Tier 2 and Tier 3 retailers, investment in innovation and finally keeping pace with expanding eCommerce is mandatory.
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