How much stock inaccuracy can you actually get away with in omnichannel operations?
Not much, in fact, very little. If a customer places an order online and doesn’t get it within the expected delivery window because it wasn’t in stock, odds are high that customer won’t be returning.
Likewise, if a website tells customers a product is available “in store” and it isn’t, that experience will erode customer loyalty. Understanding why those errors happen is key to preventing them.
Omnichannel operations that POS systems such as Retail Pro Prism give retailers lessens the likelihood that these scenarios that are detrimental to customer loyalty and business overall will occur by updating the inventory across channels automatically.
Challenges in the world of instantaneous omnichannel
With omnichannel fulfillment, online orders are filled from brick and mortar store locations. This type of fulfillment provides retailers tremendous flexibility: For example, customers can buy online and then pick up their orders directly from the store, or retailers can have inventory shipped from a fulfillment center to the customer.
Using stores to fill ecommerce orders offers advantages such as:
Faster delivery
Increased profit margins
Lower shipping costs
Fewer returns
Problems arise when retailers use the store to fulfill online orders but don’t account for a scenario in which a single item is sold twice: once online and then again in the store. Such sales generally happen simultaneously – or close to it.
Omnichannel encourages different order types, such as retail orders, e-commerce orders, or wholesale orders, but they all must be filled from the same inventory stock.
That’s why it’s critical to have a system that communicates with each channel, allowing seamless management of inventory and stock replenishment.
Safety Stock and Dropshipping
Safety stock is always held by traditional and ecommerce retailers to buffer against the supply of an item and its demand.
While a high safety stock level means a retailer is more likely to be able to respond to uncertainty, the carrying cost also increases. The amount of safety stock must therefore be carefully considered. Inventory management is crucial for companies to contain costs and remain profitable.
Dropshipping, where a store doesn’t keep the products it sells in stock, can help alleviate out-of-stock scenarios. Orders are passed to their suppliers, which pack and ship orders directly to customers.
Dropshipping eliminates the middleman and reduces the timeline to delivery. If a retailer has limited stock in-store to fill online orders, it can use dropshipping from its suppliers to deliver orders seamlessly to customer.
Research indicates that dropshipping in omnichannel leads to increased revenue as well: Inventory is handled by suppliers or manufacturers, freeing up shelf and floor space at retail and eliminating costly holding expenses.
Omnichannel fulfillment helps retailers provide customers the best service at the best prices. That’s a potent combination that leads to loyalty at a brand’s digital as well as real-world outlets.
With Retail Pro Prism, you have access to omnichannel operations that become more and more necessary with every year, and to every integration your business might need for existing or new sectors of your operations along the way.
Optimizing the omnichannel experience in your stores? Let’s talk.
Ecommerce got an enormous boost during the last 18 months, as shoppers’ health-related concerns ramped up online sales as they took to shopping from the safety of their homes. But with vaccinations rising and people feeling more confident in being able to safely leave their homes, customers are headed back to brick and mortars.
However, customers’ expectations have been heightened during the past 18 months.
In August, Mastercard Spending Pulse reported that U.S. retail sales excluding automotive and gasoline increased 8.1% year-over-year, and 7.7% compared with August 2019.
Clearly, customers still want an in-store experience for certain items.
Retail Pro Prism is a modern and easy to use POS software and retail management system that makes the last impression, at the point of purchase – the most consistent thing across the board – an easy, flexible interaction.
Using Retail Pro Prism on mobile devices enables your sales associates to complete a sale at any spot in your store, making for a more personal and meaningful exchange.
Omnichannel Expectations and Inventory
However, they also want some of the retail enhancements that came about due to COVID protocols. For example, customers want to find stock availability in store when on a retailer’s website. Driving out to the store without inventory knowledge is unnecessary and frustrating.
Having omnichannel operations that allow customers to purchase items on their own terms is key to gaining their loyalty. Retail Pro Prism sets up retailers for omnichannel operations they can personalize to their own business needs.
Receiving inventory information is the ticket to admission customers want.
Enhanced inventory visibility allows associates to know where any product is at any time, and also provides the customer with real-time inventory views across all store outlets.
With Retail Pro Prism POS associates have visibility across stores and channels, and can go further in helping customers if they’re unable to find a certain color or size in one store.
Inventory Visibility Benefits for All
While associates can see stock location within warehouses and the supply chain, customers can use the insight to determine the best available fulfillment option of their orders, including-ship to-store, BOPIS, curbside pickup, or delivery.
Why do customers prefer in-store purchasing then, when an online purchase is in many ways easier? Because customers want:
Immediate fulfillment
To verify the product is what it appears to be – dimensions, color, etc.
To support local merchants
According to enVista’s 2019 survey, 67% of consumers consider inventory visibility across stores, online and mobile is an important service to offer. An optimized supply chain and POS solution are imperative to obtain accurate physical inventory counts that reconcile with the data that reflects what’s on the floor.
Innovations and Customer Experience
Having enjoyed the innovations retailers came up with to entice and satisfy customers during the lockdown, shoppers are eager to continue – and enjoy enhancements to — many of the new conveniences.
As retailers recover from the restrictive lockdowns of the past year, sales associates are focused on delivering a superior customer experience.
That includes providing real-time product availability to avoid the disappointment of customers arriving at the physical store who find that the website’s promise of product availability was not kept.
Omnichannel inventory management eliminates any hesitation consumers have around the purchase relating to stock levels, timing and convenience, enabling customers to purchase with confidence.
Going to the
2022 Retail Technology Show?
26-27 April 2022 | Olympia, London | Stand 6e28
About Pinnaca Retail & IT Solutions
Founded in 2015, Pinnaca Retail & IT Solutions is a family-run business offering retail solutions, specialist management consultancy and IT services. Our company is UK based, with offices in London, and a client base across the globe.
We work with all levels of business to define and develop strategies focused on our clients’ needs and objectives. Our tailored solutions are developed and optimised to fulfil your key business demands.
Over time we have added to our 20 years’ experience in the field and built up a team of experts, with a wide range of experience and in-depth knowledge, who are eager to help your business succeed and grow.
About DataScan Retail Systems
Datascan Retail Systems are a leading UK and European supplier of solutions to the retail sector, from small businesses through to mid-tier and international enterprises. We have vast experience in the analysis and design of retail IT and the implementation of EPOS and Stock Control Systems and provide all the services required to plan, implement and maintain an effective Retail Management System. We are committed to match the Retail Pro System to the exact needs of the retailer, utilising our development, training and help desk teams.
About RIOT
RIOT is turning traditional RFID solutions for retail on their head with RIOT Insight. Insight is RIOT’s real-time inventory accuracy service offered as a simple but powerful add-on to a retailer’s existing systems. 100% inventory accuracy to support Omni-channel is now yours on demand.
About PAR
PAR Technology Corporation provides industry leading software and hardware solutions that are always there when you need them but never in your way.
State of the Art Point of Sale Systems.
Tablets and Portable Devices.
About XRetail
XRETAIL is a Global leader in Unified Commerce solutions, with a prime mission to empower enterprise retailers by helping to boost their sales and retain their clients. Through state-of-the-art technologies, integrations, and solutions, the XRETAIL platform creates unified sales channels including eCommerce, Mobile commerce, and Social commerce. XRETAIL’s Cloud-based platform creates seamless end-to-end solutions allowing enterprise retailers to blend brick-and-mortar and digital retailing into one unified platform, with notably enhanced customer experience both online and offline.
About Loqate
Combining leading technology with the richest data, Loqate provides several solutions to help bring businesses across the globe closer to their customers:
Address Validation A faster, easier way to capture and verify addresses in real-time for your online forms and checkouts.
Email validation Increase email delivery rates, boost customer marketing and reduce bogus registration when you verify email addresses upfront.
Mobile & phone validation Take the guesswork out of reaching customers. Capture the right phone number, mobile or landline at the point of entry.
Data maintenance The foundation of any customer management strategy, Loqate’s cleansing and maintenance software helps build lasting customer relationships.
The struggle is real for customers hoping to take some of the legwork out of shopping by researching products online before heading to a store – only to make the drive and discover the product they decided on isn’t available, as it is in omnichannel experiences they have at other stores.
For retailers, such deflating experiences can mean a loss of loyal customers as well as a damaged reputation.
As shoppers become more strapped for leisure time and less willing to browse for hours just for fun, connecting a physical and digital store experience is increasingly critical for retail longevity.
It’s all about what some refer to as Retail FOMO: That is, customers’ fear of missing out on things they want, and retailers’ fear of missing a sale.
Here are 6 ways you can connect your physical and digital store experiences with Retail Pro Prism POS and retail management software to remove some of the friction shoppers are experiencing while retailers are building their omnichannel strategies.
1. Show in-store stock availability online
Research suggests that roughly a quarter of customers won’t visit a store if they aren’t sure what they are looking for is available. In addition, more than half will leave a store disappointed if they can’t find the item they had in mind.
One way to avoid that is by showing customers stock availability online. That way e-window shoppers can be assured that what they are looking for is available when they visit.
And, in the unfortunate case that a particular item is sold moments before a shopper arrives, enabling in-store ordering for free home delivery is one way to compensate the customer.
Retail Pro Prism has accessible APIs and hundreds of Plugins and integrations on the Retail Pro App Market to help retailers connect their ecommerce with inventory information in Retail Pro.
The ability to straightforwardly integrate any technology retailers already use (or might choose to use in the future) gives retailers control over decisions like which platform will be the data master through which they’ll reference and report on stock availability and needs across all their store locations, including ecommerce.
2. Show off your full selection with endless aisle
Endless aisle can accommodate retailers that, often because of a small physical footprint, can’t stock a wide range of products.
The technology lets customers virtually browse or order a wide range of products that are either out of stock or not sold in-store and have them shipped to the store or their home.
Because Retail Pro Prism is browser-based software and not solely a mobile or desktop app, retailers can run Retail Pro both on their desktop computer or laptop at the till – or on an iPad or other mobile device so that sales associates can access inventory information when helping customers on the sales floor.
So when a product is not available at this store, sales associates can easily show customers the item images for the product they want and place an order for them, saving the sale.
In addition to providing a better customer experience, providing inventory information drives customers into stores, opening the door to additional purchases.
Impulse buys are more common for shoppers at brick-and-mortar retailers, because those stores can influence customer shopping experiences by tailoring layout and staffing decisions based on their clientele.
According to A.T. Kearney, 40 percent of customers make unplanned purchases at physical stores and spend more money, compared to 25 percent of online shoppers.
4. Reward their loyalty across channels
Aligning physical and digital stores also means ensuring that shopping benefits are equivalent.
Loyalty rewards should be earned in the same manner, for example, and coupons should be valid online and in-person. Being a rewards member should be the ultimate frictionless experience.
Using an integrated loyalty platform like AppCard or OptCulture with Retail Pro Prism not only saves your associates and customers time at checkout when handling loyalty, but also ties in the POS transaction data with your loyalty platform so you can run campaigns based on actual purchase data.
Despite the best intentions of retailers and customers, sometimes merchandise must be returned. How a retailer handles this onerous process with the customer is reflective of its overall commitment to customer service.
By working through the kinks for in-store returns of online purchases, retailers can offer their shoppers a less stressful initial purchasing experience, because they are assured that if they are unsatisfied, returning is a simple process.
Because all inventory items (whether online or in-store) would have been created in Retail Pro Prism and then used to populate a retailer’s online inventory when integrated, retailers will be able to accept the online inventory without the backend hassle of accounting for online versus in-store purchase origin.
Once the item is returned, it can be assimilated into the physical store inventory, accounted for and ready to be resold.
6. Help your store staff get to know your omnichannel shoppers
When a customer begins a journey online, or has a history of shopping through a retailer’s online channel, that data can and should be used to personalize the in-store shopping experience.
By analyzing and connecting transactional data from their Retail Pro POS into one holistic view, retailers can learn how often a customer shops, what they purchased, where they are from, how much they spend across different channels, and whether they are new or repeat buyers.
That can help inform associates in the physical store as they engage with shoppers, as well as help form future decisions for an omnichannel product and customer engagement strategy, especially when retailers use an integrated business intelligence and visual analytics solution with the rich data they collect at the Retail Pro Prism point of sale.
The information conduit flows both ways now, not just as a funnel into one channel or another, so retailers can fix broken customer journeys and convert more sales, improve efficiency and increase loyalty.
Bringing both worlds together – digital and physical – will mean some parts of the journey will still have bumps along the way.
But addressing the operational challenges in each of these areas will help retailers smooth some of the friction that arises as they build their omnichannel strategy.
Going to the
2022 Retail Technology Show?
26-27 April 2022 | Olympia, London | Stand 6e28
About Pinnaca Retail & IT Solutions
Founded in 2015, Pinnaca Retail & IT Solutions is a family-run business offering retail solutions, specialist management consultancy and IT services. Our company is UK based, with offices in London, and a client base across the globe.
We work with all levels of business to define and develop strategies focused on our clients’ needs and objectives. Our tailored solutions are developed and optimised to fulfil your key business demands.
Over time we have added to our 20 years’ experience in the field and built up a team of experts, with a wide range of experience and in-depth knowledge, who are eager to help your business succeed and grow.
About DataScan Retail Systems
Datascan Retail Systems are a leading UK and European supplier of solutions to the retail sector, from small businesses through to mid-tier and international enterprises. We have vast experience in the analysis and design of retail IT and the implementation of EPOS and Stock Control Systems and provide all the services required to plan, implement and maintain an effective Retail Management System. We are committed to match the Retail Pro System to the exact needs of the retailer, utilising our development, training and help desk teams.
About RIOT
RIOT is turning traditional RFID solutions for retail on their head with RIOT Insight. Insight is RIOT’s real-time inventory accuracy service offered as a simple but powerful add-on to a retailer’s existing systems. 100% inventory accuracy to support Omni-channel is now yours on demand.
About PAR
PAR Technology Corporation provides industry leading software and hardware solutions that are always there when you need them but never in your way.
State of the Art Point of Sale Systems.
Tablets and Portable Devices.
About XRetail
XRETAIL is a Global leader in Unified Commerce solutions, with a prime mission to empower enterprise retailers by helping to boost their sales and retain their clients. Through state-of-the-art technologies, integrations, and solutions, the XRETAIL platform creates unified sales channels including eCommerce, Mobile commerce, and Social commerce. XRETAIL’s Cloud-based platform creates seamless end-to-end solutions allowing enterprise retailers to blend brick-and-mortar and digital retailing into one unified platform, with notably enhanced customer experience both online and offline.
About Loqate
Combining leading technology with the richest data, Loqate provides several solutions to help bring businesses across the globe closer to their customers:
Address Validation A faster, easier way to capture and verify addresses in real-time for your online forms and checkouts.
Email validation Increase email delivery rates, boost customer marketing and reduce bogus registration when you verify email addresses upfront.
Mobile & phone validation Take the guesswork out of reaching customers. Capture the right phone number, mobile or landline at the point of entry.
Data maintenance The foundation of any customer management strategy, Loqate’s cleansing and maintenance software helps build lasting customer relationships.
It was a long time coming: Retailers have for many years positioned themselves with the technology and supply chains to become not simply multichannel, but omnichannel.
Whether shopping through an app, their computers or by walking through the door, customers are shopping again.
As a result of COVID, consumer behavior has changed, with e-commerce gaining steadily in popularity. During the pandemic, online buying increased by leaps and bounds: A survey from PYMNTS found that roughly 36% of consumers were buying goods online in the second half of 2020, up from 29% in mid-April when most brick-and-mortar stores were locked down.
The Statista Digital Market Outlook reports that total revenue from e-commerce in the United States came to $431.6 billion in 2020, and estimates that by 2025, revenue will rise to $563.4 billion.
Combine that with the U.S. Census Bureau’s findings that consumers spent $211.5 billion online during the second quarter of 2020– a 31.8% increase quarter-over-quarter–and it’s clear that shoppers have embraced the convenience of e-commerce.
Embracing Digital Sales
While COVID-19 propelled brick and mortar retailers to get creative with their approach to sales, it was the catalyst for some shoppers to take their business digital.
According to a March 2020 consumer survey by Statista, nine percent of U.S. consumers bought a product online for the first time ever due to physical distancing and quarantine mandates during the pandemic.
And although brick and mortar retailers may have long had online components to their shopping experiences, COVID-19 forced many to try to integrate them into the in-store experience, including buy online, pick up in-store offerings and curbside pick-up.
For some retailers, omnichannel operations were assembled quickly as a way to keep revenue coming.
Now, as retailers are reopened and slowly lengthening their hours of operation, they have the time and experience to make adjustments for the long-haul, rather than just meeting the needs of the moment.
To standardize operations and make them scalable, retailers will need to optimize use of their technology. The Retail Pro Prism POS and retail management software acts as a platform for unifying data across channels and helps retailers manage omnichannel tasks in-store, including curbside pickup and order management.
Mobile POS for curbside shopping
With the web-based Retail Pro Prism software, retailers get full POS functionality on the mobile device of their choice and integrated EFT to complete the transaction where it began – whether on the salesfloor or sidewalk.
Retailers with using Retail Pro Prism POS on mobile devices can be ready at any time and in any place to take credit or debit card payment for items, and the shopper can stay outside.
mPOS systems can also be used for curbside pickup, a solution crafted out of necessity but now — without a doubt– certain to stay. The ease of convenience of curbside pickup is not lost on anyone who has ever done errands with a toddler.
Order management & data visibility across channels
Around the globe, people have changed their shopping habits in response to COVID, and retailers are needing to streamline order management across channels.
In Vietnam, more customers are shopping online and ACFC as the market leader is doing its best to bring a convenient shopping experience to its customers by launching the company’s eCommerce platform, Magento, as part of its New Retail program.
ACFC has more than 200 stores in major city centers across the country, and it plans to expand soon to 250. It is the exclusive retailer of well-known brands including Nike, Gap, Banana Republic, Tommy Hilfiger, Calvin Klein, Levi’s, Old Navy, Mango, Dune London, Cotton: On, Typo, Owndays, Parfois, Mothercare, Fitflop, OVS and French Connection.
With service from their Retail Pro Business Partner, LBC International, ACFC has successfully integrated Retail Pro Prism with the company’s eCommerce platform, helping the retailer satisfy the increased demands of shoppers who prefer to buy online and pickup in-store through the interface between the two systems.
“With data integrated between Retail Pro Prism and our ecommerce, it is easy to keep track of inventory and display online whether an item is out of stock or ready to be picked up, resulting in less frazzled associates and happier customers,” commented Vo Thi Phi Phuong, Managing Director at ACFC.
“When customers buy and pay on the eCommerce website, that order information is sent to Retail Pro Prism at the store, and the goods will be picked and packed, ready for customers to collect. The transaction data is also being captured, so stores will collect data on which styles are popular, which will influence product orders in the future,” explained Ms. Vo. An omnichannel retail strategy strengthens the customer experience and provides more avenues for shoppers––whether it is on mobile, web or in physical stores.
Going to the
2022 Retail Technology Show?
26-27 April 2022 | Olympia, London | Stand 6e28
About Pinnaca Retail & IT Solutions
Founded in 2015, Pinnaca Retail & IT Solutions is a family-run business offering retail solutions, specialist management consultancy and IT services. Our company is UK based, with offices in London, and a client base across the globe.
We work with all levels of business to define and develop strategies focused on our clients’ needs and objectives. Our tailored solutions are developed and optimised to fulfil your key business demands.
Over time we have added to our 20 years’ experience in the field and built up a team of experts, with a wide range of experience and in-depth knowledge, who are eager to help your business succeed and grow.
About DataScan Retail Systems
Datascan Retail Systems are a leading UK and European supplier of solutions to the retail sector, from small businesses through to mid-tier and international enterprises. We have vast experience in the analysis and design of retail IT and the implementation of EPOS and Stock Control Systems and provide all the services required to plan, implement and maintain an effective Retail Management System. We are committed to match the Retail Pro System to the exact needs of the retailer, utilising our development, training and help desk teams.
About RIOT
RIOT is turning traditional RFID solutions for retail on their head with RIOT Insight. Insight is RIOT’s real-time inventory accuracy service offered as a simple but powerful add-on to a retailer’s existing systems. 100% inventory accuracy to support Omni-channel is now yours on demand.
About PAR
PAR Technology Corporation provides industry leading software and hardware solutions that are always there when you need them but never in your way.
State of the Art Point of Sale Systems.
Tablets and Portable Devices.
About XRetail
XRETAIL is a Global leader in Unified Commerce solutions, with a prime mission to empower enterprise retailers by helping to boost their sales and retain their clients. Through state-of-the-art technologies, integrations, and solutions, the XRETAIL platform creates unified sales channels including eCommerce, Mobile commerce, and Social commerce. XRETAIL’s Cloud-based platform creates seamless end-to-end solutions allowing enterprise retailers to blend brick-and-mortar and digital retailing into one unified platform, with notably enhanced customer experience both online and offline.
About Loqate
Combining leading technology with the richest data, Loqate provides several solutions to help bring businesses across the globe closer to their customers:
Address Validation A faster, easier way to capture and verify addresses in real-time for your online forms and checkouts.
Email validation Increase email delivery rates, boost customer marketing and reduce bogus registration when you verify email addresses upfront.
Mobile & phone validation Take the guesswork out of reaching customers. Capture the right phone number, mobile or landline at the point of entry.
Data maintenance The foundation of any customer management strategy, Loqate’s cleansing and maintenance software helps build lasting customer relationships.
Retailers face REAL and costly problems due to inventory inaccuracy – and it’s getting worse as retailers attempt to use store inventory to fulfill online orders for pickup or shipments.
Watch this webinar from Retail Pro and RIOT to see how with RIOT RFID for Retail Pro, you can get:
Labor Savings – Save 100s of hours and 1,000s of dollars per year, per store in Physical Inventory and Receiving labor
Reduced Shrink – Cut your losses from shrink by an average of 25% when you identify theft earlier
Fewer Lost Sales – Increase sales with better on shelf availability and improved re-ordering
Happier Customers – Shoppers can find what they want based on accurate stock levels
About RIOT
RIOT is the developer of RIOT Insight, the industry’s first turnkey RFID inventory system, and is now Retail Pro International’s official RFID partner with RIOT for Retail Pro. Leveraged in over 4000 stores in 32 countries, RIOT for Retail Pro dramatically decreases the time required to count physical inventory in stores, helping retailers quickly achieve 98%+ inventory accuracy to support online sales and store pickup. For more information, visit www.riotinsight.com
Omnichannel retailers aim to satisfy customers no matter how they choose to engage: Online, in-store or a combination of the two.
It’s never an easy feat, as success depends upon a tightly integrated front and back end in order to provide customers a seamless, successful shopping experience.
But since reopening after COVID-19 lockdowns, many retailers have had to carefully assess how they were navigating the use of store inventory for their omnichannel order fulfillment strategies.
Inventory visibility across channels
Management of inventory is a particularly thorny issue for any retailer with an omnichannel philosophy.
The retailer must first accommodate multiple sales channels simultaneously: An online shopper must be able to “see” what products are in stock just as easily as one who is physically in the store.
Then, the retailer turns that multi-channel strategy into an omnichannel one when, for example, it allows a customer to: shop for items on a mobile device; log onto a retailer’s site hours later on a computer and access the same shopping cart; check availability online and place an order for curbside pickup.
However, since stores reopened, inventory counts are becoming muddled as retailers had been using store inventory to fulfill online orders.
Being able to reconcile what has just been purchased online with in-store inventory – and meeting the expectations of both types of customers — is a gargantuan task.
Customers should never see an item in stock online and discover it is sold out once they reach the store.
Some of the reasons for such discrepancies include:
Shrinkage: Shoplifting and employee theft account for substantial loss of inventory. Fraud and administrative errors are also to blame.
Data inconsistency: Online ecommerce, in-store POS systems aren’t tightly integrated or are being manually updated, so floor count may be inaccurate.
Resource strain: Sales associates are performing fulfillment tasks, so they have less time to help shoppers on the sales floor locate items.
Payment timing for BOPIS orders
In addition, payment timing can cause inventory challenges. Items that are part of orders that are paid for online but picked up at a store are likely removed from inventory earlier than those that are paid at the time of pick up.
Paying before pickup not only expedites that process for ecommerce shoppers, but for those in-store as well. In-store shoppers experience longer wait times when online customers must join the line to pay and pick up their orders.
Poor fulfillment has a significant negative impact on customer retention. It is difficult to have the entire picture of what inventory is where throughout all channels.
Having accurate inventory visibility – which provides stock, order monitoring and tracking information — is crucial for a successful retail operation.
Because retailers are fielding orders from different sources – including online purchases with home delivery, online purchase with an in-store pickup (“click and collect”) and in-store purchases — keeping track of those sales and inventory is mission critical.
Omnichannel inventory management helps the customer make purchases confidently
Robust inventory management provides the means to get the correct products to customers quickly and efficiently.
Omnichannel inventory management is integrated across all sales channels, offering clear data visibility to retailers, as well as stock information to customers. It’s often coupled with smart warehousing, which automates back-end decisions and tasks, improving employee efficiency.
Omnichannel inventory management ensures that customers who want to use different devices and buy through various platforms are able to do so successfully. Omnichannel is a unified process in which each platform communicates with another, creating a seamless whole.
While multichannel retailers sell using many platforms, most of them are unintegrated. Store and online inventory management must be integrated with your other systems, including order and CRM software.
By integrating the inventory management systems, retailers have improved data visibility. All data on sales, suppliers, returns are in one centralized location.
When orders are placed – in any channel – stock is updated in real-time. Therefore, all employees, from the inventory picker to the store manager to the customer checking online supply, can be confident in the data they access, even if the orders were placed in a different country or channel.
RFID innovates, making taking inventory fast
Despite the heavy-hitting technology omnichannel retailers rely on today to conduct their daily business, physical inventory counts continue to be invaluable.
Such counts verify inventory and ensure there are no variances caused by overages or shrinkage, for instance.
However, this activity doesn’t have to be manual. RFID technology can help speed up inventory counts while providing workflow automation.
An RFID tag is placed on stock and read with a handheld device. RFID can scan or “read” many items at once and doesn’t require line of sight.
Products or pallets can be quickly read without positioning the tag directly in front of the reader, a big advantage in warehouses or other dense environments.
How RFID further empowers omnichannel operations
Keeping inventory counts accurate requires the integration of in-store POS that reflects the actual count on the floor, which is reflected in online data.
Although back-end technology is important to maintain accuracy, inventory is a customer-driven aspect of business.
Improving practices and systems assists retailers to meet more customers’ expectations, increase satisfaction and retain more customers.
Tailoring an omnichannel inventory management system to focus on customers helps retailers reap the benefits of having a loyal, satisfied customer base.
Today’s customers are looking for a seamless purchasing experience, whether that’s in-store, online, or a combination of both. But the so-called “last mile” — the time it takes for a shipment to reach a customer —can be a thorn in the side of a retailer. Enter in-store fulfillment.
Benefits of in-store fulfillment
Mounting shipping costs are costly for retailers who are reluctant to pass them along to customers who are looking for the best price for every item, as well as free shipping.
By offering in-store fulfillment, the delivery process can be seamless as customers choose from curbside delivery, click and collect, and buy online/return in-store options.
Employees can address customer requests in real-time, monitor inventory, and deliver attentive service.
In-store fulfillment means retailers no longer have to route products exclusively to a warehouse.
Nordstrom and Kohl’s are excellent examples of putting the strategy into practice.
They can fulfill orders from the store closest to the customer’s location, leveraging their stores as fulfillment centers and shipping orders directly to customers, reducing costs and speeding up deliveries.
Ship-from-store, ship-to-store, and in-store pickup can then be handled with one solution that optimizes in-store inventory usage and reduces the time and cost for fulfilling online orders.
Perhaps the most daunting part of the process is getting a 360° view of inventory by connecting data from e-commerce sales with in-store transactions.
Determining the correct timing for syncing online data and orders with in-store POS is vital; solutions can be configured to sync data at any interval, including real-time, hourly, nightly, or at other intervals that make sense for a retailer’s operations and network capacity.
If syncing lags, inventory can fall behind, and there’s a risk of selling out of products that have already been committed to online orders.
With seamlessly connected channels, shoppers can buy products online and pick them up in the store that same day.
Store associates can receive pick lists to select and package the products ordered online.
Selecting off-the-shelf products increases inventory turn and decreases the duplication that comes with holding a separate online order inventory.
In-store fulfillment completes the frictionless purchasing experience.
Customers get quick, free delivery — often receiving their items even faster than ordering online.
Retailers, in turn, move inventory more rapidly, helping to maintain price stability.
Both shoppers and retailers benefit from a more efficient customer experience.
Handling a supply chain is always part art, part skill — but during 2020, it sometimes seemed like it was also part magic act.
Getting products on shelves was a testament to the relationships retailers had built over the years with their suppliers, and only the strongest survived.
COVID inventory crisis
A little more than one year ago, COVID-19 lockdowns began — ushered in by a period of consumer buying never before experienced.
Within days, paper goods and disinfectants were out of stock, available only on the black market for outrageous prices.
A year later, quarantines are gradually being lifted, in some areas more quickly than in others, and most — if not all — of the items once in short supply are reliably back on retailers’ shelves.
A year ago, however, many retailers were forced to close very quickly, with little notice and stockrooms full of inventory.
Those retailers not considered “essential” were left with a surplus of stock that during the ensuing weeks and months became outdated and unwanted; many people weren’t leaving their homes, so foot traffic hit all-time lows.
Adapting stock strategies
Online retailers and brick-and-mortar shops alike depend on good inventory management to run an efficient business.
Now that stores are open on a more regular schedule, their managers are recognizing that inventory strategies must change.
By offering a more curated selection than pre-COVID, retailers can more adeptly handle the ongoing uncertainty in customer traffic and buying behavior.
A number of retailers, including Gap and Nordstrom’s, reportedly reopened with a limited stock strategy, to hedge against a less-than-robust shopping season.
BOPIS challenge
In some respects, offering customers the option of buying online, picking up in-store (BOPIS) saved the day.
Many retailers further simplified the process for customers by offering curbside pickup; customers never had to leave their cars to retrieve their purchases.
By allowing customers the flexibility of purchasing online and retrieving products safely without leaving their cars, retailers eliminated a point of customer friction: Customers had the convenience of ordering online plus, in many cases, same-day pickup.
However, retailers faced the challenge of maintaining the right amount of inventory in stores to keep brick-and-mortar shoppers happy while still profiting from opportunities to move inventory through digital channels.
Stores that came up with the perfect balance will likely continue to offer the service post-COVID because of its popularity with customers.
Visibility into inventory movement
Retailers can only be successful at both in-store selling and e-commerce with accurate insight from trading partners into what is coming in and when.
For example, sending shipment information within two hours of shipment departure, and including scannable barcode labels on all packages can help retailers manage appropriate safety stock thresholds for in-store and BOPIS experiences.
Inventory management tools like Retail Pro also make the process more efficient for retailers.
When ordering merchandise on a multi-store Purchase Order in Retail Pro, a retailer can generate an advance ship notice for each store so each store knows what merchandise to expect.
When the merchandise arrives at the store, managers can generate a voucher from the advance ship notice to receive the items ordered on the PO into inventory.
Recovery ahead
Inventory management pre-COVID required effort and attention to detail.
During COVID, the supply chain was thrust into chaos, as manufacturers slowed production due to workers’ illness at their facilities, and orders fluctuated from exceeding capacity to trickling in.
Post-COVID, in the weeks and months ahead, the economy will begin to recover, and inventory management will face challenges as demand increases and stock levels race to meet it. When vendors are transparent and help retailers plan based on accurate delivery forecasts, retailers will be able to pursue sales opportunities in digital channels, resulting in improved top-line revenue and contributing to a global economic recovery.
How quickly goods get from a warehouse to a customer depends on what’s called the “last mile” of the supply chain.
The efficiency of that final leg ultimately determines the customer’s satisfaction with the buying journey.
The Last-Mile challenge
Retailers face the challenge of managing their supply chains to keep delivery times short while keeping costs low.
Customers overwhelmingly opt for fast, free delivery when placing orders, which has led to a growing need for a broad distribution network, including warehouses.
Logically, such distribution centers should be in close proximity to the customers they serve.
CBRE Research analyzed the 15 largest U.S. metro areas and found that distances range from six miles in the San Francisco Bay Area to nine miles in the “Inland Empire,” a region east of Los Angeles County.
Not surprisingly, highly urbanized and dense population centers tend to be closer to last-mile facilities, while more suburban locations were farther away.
Proximity is important because customers expect fast delivery.
As Amazon continues to push the limits of logistics by offering same-day delivery, other retailers are expected to provide two-day delivery — at the latest. That final step in the delivery process is the most expensive and complex.
Gather and analyze logistics data
Companies collect so much data that it’s easy to suffer from information overload.
Gathering data is only the first step in understanding what is happening.
The real valuable information only comes to light after the analysis.
Put all of the “last leg” data in one centralized visual analytics tool, crunch the numbers to better understand the ins and outs of the last mile delivery process, and make regular adjustments as needed.
Offer Real-Time Delivery Tracking
Static tracking numbers are so last decade.
Invest in building or sourcing an app for your customers that tracks driver locations live and provides accurate ETAs, like the Uber of last-mile deliveries.
In addition, text messaging customers with updates on the delivery process creates a transparent process that supports a frictionless buying experience.
Many challenges associated with last mile delivery are outside of the retailer’s control, for example:
The number of orders picked and packed daily
The frequency that orders are picked up by the carrier
The proximity of the warehouse to the customers
The number of deliveries made daily
Many retail businesses partner with external fleets and use multiple carriers.
But there are ways to improve the “last mile,” and retailers can take more control of their business’s last mile logistics to identify inefficiencies quickly and improve their customers’ experience in a delivery-first world.
