With the advent of digital e-commerce, the current challenge that the retail industry is facing is to efficiently provide a product from the source to the customer with the minimal cost incurred by the businesses. The retail businesses need more efficient systems to handle their supply chains as they are not linear now with increasing fulfillment centers.
Businesses have to make immediate adjustments when a customer opts for cash on delivery or changes the delivery mode from home delivery to in-store pickup or vice versa or when a customer cancels the order and opts for a return or an exchange. Moreover, It is customary for a retail business to provide a seamless shopping experience. Thus, the omnichannel software has to be robust enough to handle any such situations that might arise.
Many retailers have expanded their omnichannel strategies as per the customer's demand for Free Shipping, Fast Delivery, Free Returns, Exchanges, and other personalized offers. Retailers have started offering customers more visibility and control into their deliveries to enhance their shopping experience. Even Customers are more likely to shop with retailers that provide personalized recommendations and offers as per their interest.
Maintaining an optimum supply chain can provide profitability to the business. An omnichannel supply chain management solution can simplify and integrate supply chain operations like Procurement, Warehousing, Logistics, and Inventory Management.
Here are all the aspects of supply chain management that can be covered by an omni channel retail software -
Procurement
Whether you manufacture a product or not, procurement of product is an important aspect of the supply chain, it includes all the processes like making a purchase requisition, purchase indent, getting quotations, sharing purchase orders and confirming payment for procurement of the product. The entire process can be easily streamlined and managed by an omnichannel software solution.
Warehousing
A warehouse is a central point at which the procured goods are assembled and then transferred to other locations. A retail enterprise may have a single warehouse or multiple warehouses where the inventory is kept and product movement needs to be tracked. Complete warehouse automation can be achieved through omnichannel retail software resulting in reduced labor costs and human errors.
Inventory Management
The entire inventory management can be done through an omnichannel software which includes tracking stock, it's ordering, allocation, replenishment, and delivery plan with respect to e-commerce store plus the brick and mortar stores. The inventory is auto-synced in real time whenever an order is received.
It may seem quite complex but an efficient omnichannel supply chain management software solution covering the entire supply chain can save a lot of money and increase operational efficiency to a great extent. It reduces human dependency and brings transparency within the entire supply chain process.
Omnichannel Logistics Supply Chain Management
Logistics form an important part as far as the delivery of the products or order fulfillment is concerned. An omnichannel software covering the entire order management and order processing cycle is a boon for any retail business. Software integrated with logistics agencies can reduce hassles related to the timely delivery of orders.
Logistics Management is the process of organizing, implementing, and controlling the flow of items from point of origin to delivery in an efficient manner. The purpose of logistics is to synchronize all efforts of the organization to maintain a cost-effective flow of items to the end-user. It is the backbone of any supply chain strategy and depends highly on the distribution centers, warehouses, stores, and customer locations.
Logistics Management include-
- Packaging
- Transportation
- Distribution
Effective logistics management or omnichannel logistics supply chain management makes sure that the items are shipped in a safe, and timely manner which leads to high customer satisfaction. In contrast, inefficient logistics management can lead to delayed shipments, customer dissatisfaction which can affect your brand in the marketplace. To avoid these loopholes and to minimize operating expenses, retailers outsource some of their logistical operations to Third Party Logistics (3PL) providers. Logistics Management leads to faster delivery, smooth returns, and great customer experience(CX).
Integration of Third-Party Logistics (3PL) with the Supply Chain - For a low cost, better service, and great customer experience, brands automate their logistics operations through an integrated platform with 3PLs for fulfillment services.
Nowadays, omni-channel retailing solutions provide a pre-integrated interface with 3PLs like:
- FedEx
- DHL
- Delhivery
- Blue Dart
- Gati Ltd.
- Postal Services
- Couriers agencies
- With a pre-integrated 3PLs interface, the retailers/ e-tailers can reap the benefits of lower transportation rates and faster delivery services.
- 3PL providers help retailers to test out new markets across geographies where your brand does not have any presence without a distribution center.
- It effectively manages product returns, customers can return the product through returns management service of 3PL be it Return-to-Origin (RTO) or Customer Initiated Returns (CIR)
- Besides, 3PLs integration, an Omni-channel Retailing Solution provides a dashboard for retailers to track logistics stages.
