Defining and Executing Omnichannel Fulfillment

60-Second Guide to Omnichannel Retail

‘Omnichannel’ is the latest buzzword in the Fast-Moving Consumer Goods (FMCG) and Retail industry.

Every retailer now wants different channels to deliver its goods, and all of a sudden, selling simply through the traditional brick and mortar shops is not good enough.

But What Is Omnichannel and Why Do Companies Even Need It?

Omnichannel retailing is a fully-integrated approach to business that provides customers with a unified experience across online and offline touchpoints. 

The traditional FMCG distribution model comprised of the products been manufactured from the factory and reaching to the customers after going through clearing and forwarding agents, distributors, and retailers.

However, the rise of e-commerce has raised serious questions on the existing model.

E-commerce companies have radically shortened the delivery cycle, and even though they are currently about 10% of all retail, the growth rate of 24.8% signifies the disruption created in the industry.

To compete with e-commerce players; retailers are increasingly looking to shorten their distribution models and cut down the number of components in their operations.

Retail conglomerates across various categories are continuously stepping up their omnichannel game.

What Does Omnichannel Fulfillment Mean?

Omnichannel order fulfillment is a material handling fulfillment strategy, that treats the inventory as a single unit and uses it to fulfill all channels, (e-commerce, store replenishment, and wholesale) from one location.

The whole process ranging from the customer placing the order to the time when the order gets delivered to him or her comes under omnichannel fulfillment.

Omnichannel Order Fulfillment Comprises Six Basic Processes:

1. Communication: Circulating information about the product/service through online/offline channels
2. Order Processing: Receiving order, confirming the order
3. Warehouse Management: Merchandise availability, inventory control
4. Shipping: Packaging and transporting the products
5. Last-mile Delivery: Taking the product to the end-customer, the return of shipments
6. After-Sales: Customer care, consumer services

Challenges of Omnichannel Fulfillment

1. Inventory visibility
2. Different orders, same inventory
3. Manual processes
4. Forward & reverse logistics
5. Consistency in multi-channel experience
6. Finding the adequate transportation mix

What The Typical Distribution Models of Various Companies Look Like:

By eliminating the middle components of the distribution channel, these companies are shortening the delivery cycle and providing faster gratification to the consumers.

Locus lets you use existing retail infrastructure to build your omnichannel platform by providing the following:

• Optimal fleet mix (one-time as well as daily dynamic plans) for fulfillment operations.
• Consideration of business dynamics including SKU bifurcation, retail outlet work timings, regulatory constraints, etc. for the optimized dispatch plans.
• Management of forwarding and reverse logistics effortlessly.
• Real-time ETA calculations, with delay notifications and adjustments on the go.
• Identification of serviceable area for your stores and the optimal warehouse location.
• Locus analytics and insights help in tracking and comparing the performance of your vehicles, warehouses, and workforce.

To know more about Locus solutions, visit: Omnichannel fulfillment in Retail

Related White Paper

A Guide To Omnichannel Fulfillment
In this white paper, we detail all the complexities of understanding and executing an Omnichannel strategy including strategic key findings. Download Now!

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