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.

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800.933.2839

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marketing@datexcorp.com

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Datex Corporation

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www.DatexCorp.com