3 Ways to Optimize Your Supply Chain for Omnichannel Retail
As e-commerce remains strong, a new trend has emerged: a growing appreciation for in-store shopping. That’s what’s led to the rise of omnichannel retail.
Morning Consult’s 2024 2024 Consumer Shopping Trends Report reveals that 59 percent of U.S. in-store shoppers enjoy the experience — up 10 percentage points from 2023. Data from Ryder’s 2024 e-commerce consumer study echoes this, with 61 percent of consumers enjoying the in-store experience, a 21 percent increase from 2023.
With consumers eager for physical shopping experiences, businesses need a seamless omnichannel approach, starting with a well-coordinated supply chain. Here’s how to set your business up for success.
Plan for the expected and the unexpected
Tracking sales, inventory, and customer data across multiple sales channels can help businesses make better decisions and improve the customer experience, but predicting everything accurately at that scale is as difficult as it is unlikely. Planning in advance for how to strategically react to various outcomes is easier and more important when it comes to omnichannel retail.
Develop multiple options at each stage, such as backup carriers, alternative inventory locations, and diverse technology solutions (order management, warehouse management, and transportation systems). This preparation allows businesses to pivot when obstacles or opportunities arise, ensuring minimal disruption to the customer experience.
Increase shared visibility
Customers expect and value convenience, consistency, and real-time visibility at every touchpoint throughout their shopping journeys. The apparently interchangeable use of e-commerce and brick-and-mortar has rightfully prompted brands to integrate technology that streamlines omnichannel retail processes.
Having a robust warehouse management system in place allows brands to implement continuous, real-time inventory management and maintain better visibility and control over stock levels. More complex systems enable everyone involved in moving goods through supply chains to see the full scope in real time, work together to prevent costly delays, and make adjustments promptly to prevent overstocking or stockouts.
For small businesses in particular, gaining access to such an ecosystem through a partner can be a game-changer, as these enterprise-level technologies and services are far more costly to implement independently.
Giving shippers, carriers, and service providers real-time end-to-end visibility and enabling immediate collaboration arms retailers and brands with the ability to make decisions and take actions on exceptions at any point in the supply chain journey.
Decisions and processes that once took months, weeks, and days to complete can now take minutes, resulting in operational efficiencies, cost savings, and improved customer satisfaction.
Rev up returns processes
Convenient, flexible returns are top of mind for today’s consumers, and one of the biggest appeals of omnichannel retail. My company has been surveying U.S. shoppers annually for 10 years, and 2024 marks the first year the majority reported a preference to return online purchases in-store (55 percent) rather than via mail. This underscores the importance of having a comprehensive omnichannel returns strategy.
As both return rates and expectations for quick, hassle-free turnarounds continue to grow, it’s critical to facilitate a proficient process for refunding, replacing, or exchanging a customer’s order in a timely manner. To deliver on brand promises and ensure the best experience possible, companies and their fulfillment teams must continue to elevate operations and options for consumers.
While this may come at a cost, you can ensure returns and handling fees are being managed wisely with dedicated tools and technology partners. For example, Loop Returns shares behavioral data insights that give brands and their logistics partners the information required to adjust reverse logistics practices efficiently.
Enhancing the post-purchase experience by offering flexible, convenient returns options is key to saving sales, retaining customers, driving more business, and increasing profitability.
Maintaining a thriving omnichannel presence requires the support of a robust, agile supply chain. Leveraging strategic relationships and technology to plan ahead, enable end-to-end visibility, and optimize returns helps unify the customer experience across channels, which can lead to improved customer satisfaction, loyalty, and sales.
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This article was written by Steve Sensing from Inc. and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.
