Omnichannel fulfilment is used in the logistics industry as more than just a buzzword. The explosive growth of the eCommerce industry has led to a huge upliftment of the omnichannel fulfilment industry. Most of the transactions of the shipment and eCommerce industry are now internalized. All thanks to the involvement of omnichannel fulfilment. Now even the sales are faster and smoother than they used to be for online businesses. Handling as many as 35 orders in just a matter of one second seems impractical to hear. But you can do it! Omnichannel fulfilment has made it understandable for eCommerce businesses.
Now you have read this term on many logistics and shipping partners’ plans and platforms, you must wonder what omnichannel fulfilment is? How is it helpful for online businesses? To give you a clear idea, we have a simple explanation.
What is Omnichannel Fulfilment?
Assuming that you are aware of the process behind the order fulfilment of a product. If not, here’s your clue. From the purchase on the website to doorstep delivery, everything in between including packaging, locating, assignment, and delivery, is a part of order fulfilment. This process requires resources right from the retailer to the client and the customer on the ground level. This process is called omnichannel fulfilment when it is done across various channels at the whole process level.
How Omnichannel fulfilment is Different from Order fulfilment?
Order fulfilment is distinctive among the traditional modes of delivery of orders. In a traditional mode of delivery, the most commonly practised way is the direct “demand in – storage fulfils” operation. It does not use the complete resources of the retailer or the client. It seems like a single business rule has been running for years. Nevertheless, it comes at the expense of optimizing many possibilities. It may suffice. As much as the old retailer might want to convince you of the delivery mode efficacy, it still stands incompetent when juxtaposed with omnichannel fulfilment.
Types of Omnichannel Fulfilment
For a merchant, omnichannel fulfilment is the best choice for competent and efficient delivery. Omnichannel makes the process smooth for the retailer as well as the customer. As opposed to the traditional method, omnichannel refers to several order finishing procedures. It is all about picking the choice that makes the most sense for that particular order. The following are the types of omnichannel fulfilment.
- Ship directly from the warehouse
- The 3PL from the retailers’ shipment
- In-store shipment
- Ship to a physical location (for in-store pickup)
With such a variety in front of you, you would not miss any chance at a satisfactory delivery to the customers. Instructions can be used by the order management engine to pick the optimum choice. The retailer can establish all these instructions or rules. The administration of the retail system can select the rules from a drop-down menu. They can also use the OR, NOT, AND commands to state rules.
As a study conducted by Forrester and NRF states, the stakes were as high as 12% for omnichannel fulfilment. While 15% still preferred in-store shipping, the increase in likability of omnichannel is high.
Benefits of Omnichannel Fulfilment
Now that you know omnichannel and its types, let us show why we praise it.
1. Help in the business
Omnichannel fulfilment has several advantages. For starters, it provides shops with a tool to assist company management. A retailer can save costs by optimizing. For instance, the OMS might choose the best technique for shipment. On the other hand, a merchant may feel that client happiness is critical. In any case, business administration may establish the order fulfilment parameters they wish for.
2. Customer satisfaction is on point
For any eCommerce business, the concerned priority is customer satisfaction. To complete orders anyhow is ever the target. Every business wishes to create an impact on the customer. They do not want to lose out on their valuable consumers. Rather, they wish to build a good relationship with them. For example, consider a retail business that takes care of the environment in its endeavours. Naturally, this ideology and brand messaging of the company will attract customers. This leads the retailer to activate the order consolidation. As a result, all the orders will be delivered packed up together in a single package. This will be happening from the nearest location to the customer’s address. This might take a little longer than usual. But there is no compromise in the retailer’s brand promise. Regardless of the delay, the greater benefit for the environment maintains its consumers pleased and loyal.
3. Robust all the way
The third and most important aspect of omnichannel is the robust and promising delivery. Irrespective of the situation, they are ready with their product at the order instead of excuses. Locking up stores and warehouses is common among the traditional modes of order completion. But, with omnichannel, the setup is to have the order well in advance than at the time you expect.
Challenges with the Omnichannel Fulfilment System
There is always scope for some issues with every system. Likewise, omnichannel also faces some challenges on its way. The first challenge is the cultural challenge. The change is difficult for many retailers. They stick to the traditional ways even after knowing the system’s benefits.
Secondly, if they ever decide to change, it is difficult to comprehend which step to take. The decision of where to start is very tedious.
Full of rewards and a few challenges, omnichannel is the best way for various ventures. Looking at the stats, omnichannel fulfilment is here to stay.