As 90% of consumers yearn for consistency across their shopping channels, the spotlight turns to omnichannel logistics, where the promise of a connected and uninterrupted online delivery from screen to store becomes tangible. However, the path to achieving this is strewn with obstacles. Nearly half of sellers have watched over a million dollars dissipate due to the intricacies of omnichannel logistics.
So, in this blog, let’s talk about the top challenges of omnichannel logistics and supply chain that e-commerce businesses face.
What is OmniChannel Logistics?
OmniChannel Logistics represents the evolution of retail logistics, marking a shift from traditional, siloed channels to an interconnected, customer-centric approach. It’s the backbone of modern eCommerce, a strategic orchestration of a brand’s entire supply chain, from inventory management to delivery, across all available sales and marketing channels.
The aim is to provide customers with a seamless and cohesive experience, irrespective of how and where they choose to engage with your brand. Whether a customer purchases online via a desktop, taps on a mobile app, or strolls into a physical store, the journey should feel effortless and unified.
The magic of OmniChannel Logistics lies in its ability to allow a customer to start a transaction in one channel and complete it in another without any friction. For instance, someone could add a product to their cart on their smartphone and finish the checkout process on a laptop or choose to pick up an online order at a nearby store location.
Challenges in OmniChannel Logistics and Supply Chain
Inventory Visibility
One of the most formidable challenges in OmniChannel logistics is achieving unfaltering inventory visibility. Today, consumers shop across many channels—from websites and mobile apps to physical stores and pop-up shops—keeping track of every item becomes complex. The struggle is not just about knowing what is in stock but understanding where items are at any given moment, how they are moving, and predicting where they need to be.
To combat this, businesses must employ sophisticated inventory management systems with real-time insights and predictive analytics. These systems must transcend traditional boundaries, offering a unified view that cuts across the entire network of sales channels and storage locations.
Channel-Specific Processes
Channel-specific challenges often stem from distinct operational and logistical frameworks. For instance, eCommerce channels require robust digital infrastructure to handle online transactions, customer service interactions, and return processes. In contrast, physical stores deal with in-person sales, instant customer feedback, and immediate replenishment needs. Synchronising these diverse processes to present one cohesive brand front requires deeply integrating systems and procedures.
It requires a shift in perspective for businesses, viewing the supply chain not as a series of independent streams but as a singular, fluid ecosystem that feeds into and from each sales channel.
Speed of Delivery
The OmniChannel logistics landscape is marked by its relentless pace, where the click of a button sets into motion a series of events that culminate with a package landing on a doorstep, often within a mere 24 to 48 hours. Speed of Delivery is the heart of eCommerce customer satisfaction, yet it presents various operational challenges that can stretch businesses to their limits.
eCommerce businesses must invest in cutting-edge technology platforms like NimbusPost that can streamline every link in the supply chain, ensuring reduced delivery time up to 30% to 50%.
Ease of Return
In OmniChannel logistics, returns must be as frictionless as the initial purchase, offering customers the flexibility to return products through any channel – online, in-store, or via a third-party drop-off point. However, managing returns across multiple channels introduces complexity into the supply chain. The challenge for eCommerce businesses lies in designing and implementing a returns system that is both customer-friendly and logistically viable, balancing the scales of customer expectations with operational capacity.
It demands a robust infrastructure that can process returns quickly, update inventory in real-time, and ensure that products are returned to the sales cycle or disposed of efficiently.
Finding The Right Transportation
In the quest for delivering a purchase to a customer’s doorstep, the choice of transportation is pivotal. For eCommerce businesses, this means sifting through many transportation options, each with its price points, delivery speeds, and area coverage.
Selecting the most cost-effective yet efficient option is a strategic decision that can significantly impact the bottom line and customer satisfaction. It involves intricate analysis and negotiations, often requiring a blend of different transportation modes to achieve the optimal mix of speed, cost, and reliability.
Integrating Different Sales Channels and Carriers
Each sales channel, from online marketplaces to physical stores, has its system for processing sales, managing customer interactions, and handling logistics. Similarly, each carrier brings technology for tracking, delivery, and returns.
Merging these systems into a coherent, functioning whole is no small endeavor. It requires sophisticated software solutions capable of speaking multiple technological languages, translating, and synchronising them into a single, fluid process. The challenge extends beyond mere technical integration; it requires a nuanced understanding of each channel and carrier dynamic, an ongoing process that demands technological investment and strategic foresight.
Manual Processes
Manual processes, with their penchant for errors and inefficiencies, can become the weakness of a logistics operation that should be nimble and responsive. Consider the meticulous task of inventory management: done manually, it’s a laborious process susceptible to human error. A single miscount can ripple across the supply chain, leading to incorrect stock levels, delayed orders, and disgruntled customers.
Automation in OmniChannel logistics can streamline operations, from order entry to shipping, reducing the need for human intervention and minimising the error margin.
Traditional Order Fulfillment Processes
Traditional order fulfillment methods are like trying to fit a square peg in a round hole when it comes to the demands of modern OmniChannel logistics. These outdated processes, often designed for linear, single-channel sales, falter under the complexity and dynamism of today’s retail landscape. In a traditional setup, orders might be processed in batches, with little flexibility for the quick turnarounds and personalised handling that OmniChannel orders demand.
Conclusion
For eCommerce businesses, the horizon is broad and the possibilities limitless, but only for those prepared to invest in the advanced eCommerce logistics solutions and strategies that today’s marketplace demands. The businesses that will thrive see these challenges not as hurdles but as stepping stones to innovation, seizing them as opportunities to refine their operations and enhance the customer journey.
Platforms like NimbusPost help businesses like you in seizing these opportunities. You can manage multiple carriers through the NimbusPost seller panel, enabling speedy omnichannel last-mile delivery and helping you track the supply chain from a single platform. So leverage the power of real-time data, embrace the fluidity of automated processes, and craft omnichannel fulfillment experiences that resonate with a discerning, tech-savvy consumer base.
FAQs
What is required in omni-channel supply chains?
An omnichannel supply chain requires a flexible network that handles bulk orders to physical stores and individual items to online customers. Key elements include integrated inventory management systems for real-time visibility, agile logistics for rapid delivery, seamless integration of sales channels and carriers, and robust processes for efficient order fulfilment and hassle-free returns.
What is the difference between a multichannel and omnichannel supply chain?
Multichannel supply chains operate through various independent channels, such as physical stores and online platforms, often with different pricing and promotions for each channel. In contrast, omnichannel supply chains integrate all channels to provide a consistent and seamless shopping experience, allowing customers the flexibility to purchase products anytime, anywhere, with uniform pricing and service across all platforms.
What are the major issues in logistics for eCommerce trade?
Here are some challenges that eCommerce logistics face:
- Delivery delays
- International delivery
- Warehousing
- eCommerce returns
- Sustainability
- Delays in order processing
