Omni Channel Retailing in Warehousing and Distribution
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Omni-Channel Retailing in Warehousing & Distribution “Brick to Click” By Angela Cox
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Omni channel retailing is a distribution strategy where retail, wholesale and e-Commerce channels merge together to give consumers a seamless end-to-end experience from anywhere. This strategy is becoming more prevalent due to the increase in information availability online and via mobile access. Consumers are making the effort to further educate themselves before making a purchase to ensure product or service satisfaction. Consumers now have higher expectations about the shopping experience, expecting fast and efficient delivery times while using whichever channel or combination of channels that they prefer. Recent trends have shown that mobile and online shopping is capturing a large portion of buyer activity regardless of age or demographic. Distribution and fulfillment centers must optimize their network in a few key areas to ensure a positive experience for consumers. These areas include, but are not limited to: shipping, in-store customer pick-ups, inventory visibility, network speed and agility, and order capture across all channels. The tools that many companies are incorporating into their omni channel strategy include a robust warehouse management system (WMS), an order management system (OMS), cartonization configurators, and shipping rate shopping tools. The functionality held within these tools, typically powered by strong workflow foundation, can make any facility omni channel ready. If warehousing and distribution facilities have any desire to effectively and efficiently manage an omni channel strategy acquiring these tools and adopting a more modern mindset should be at the top of their task list. For more information contact me at [email protected], 800.933.2839 ext. 243 or visit www.datexcorp.com.
Transcript of Omni Channel Retailing in Warehousing and Distribution
Omni-Channel Retailing in Warehousing & Distribution
“Brick to Click”
By Angela Cox
What is Omni-Channel Retail?
What is Omni-Channel Retail? -A distribution strategy where retail, wholesale and e-Commerce channels merge together to give consumers a seamless end-to-end experience from anywhere
Why is Omni-Channel Retail increasing in popularity?
Consumers expect fast and efficient delivery times
Increase in online shopping activity worldwide –
More than ¾ of online adults recently surveyed order products and
services online
Consumers are educating themselves before they are making purchases,
many times this is done online
Mobile consumer activity has increased –
84% of store visitors use their mobile devices before or during a
shopping trip
Trends in Consumer Online Shopping
Trends in Consumer Online Shopping
What Do You Need to Optimize Your Omni-Channel Network?
The most common areas needing strong focus are:
Shipping network & rate shopping
In-store customer pick-up
Inventory visibility across all business channels
Network speed and agility
Order capture from all sources
What Tools Do You Need to Optimize These Areas?
1. Warehouse Management System (WMS)
2. Order Management System (OMS) – this is typically included in your
WMS suite
3. Cartonization configurator – this may be included in your WMS suite
4. Shipping Rate Shopping Tool
WMS Needs for Omni-Channel Retailing
Picking & Inventory Handling Logic
*The average online order has 1.2 order lines
Does your system effectively pick 1-2 line orders?
Strictly Define Your Logic in Advance
Pick and Pack processes
How will you handle backorders and substitutions?
Will you fulfill orders from all or select locations?
Will you share inventory across all channels?
Where can items be returned?
How will your system capture orders from all sources?
*TIP : Determine and set up your picking logic to ensure efficient order picking.
OMS Needs for Omni-Channel Retailing
Inventory Visibility and Availability is Key Develop order processing and inventory allocation rules
Consider factors such as:
Order fill rate
Service levels
Delivery times
Freight costs
Order priority (e-Commerce or Store?)
Cartonization Needs for Omni-Channel Retailing
Optimize Packaging to Save on Material and Shipping Costs
Set up cartonization rules based on:
Business Rules
Order Data
SKU information
Cartonization software will select packaging based on the best fit of:
• Dimension
• Weight
• Position
• Fragility
• Other associated factors
Shipping Rate Shopping Needs for Omni-Channel Retailing
Streamline Operations by Rate Shopping with Top Rated Carriers
Most tools allows users to do all this together:
Shop for best rates
Generate associated shipping documents
Prepare labels
Verify weights
Manifest both FTL and LTL shipments for direct to consumer or direct to store
order fulfillment.
Contact Us
800.933.2839
Online Demonstration
Web Chat
Datex Corporation
@Datexcorp
www.DatexCorp.com
