15 January 2024 Not long ago, the traditional sales model was tied to a single channel, meaning it was customary for companies to conduct their business unilaterally, opting for either physical stores or online sales, and this decision was exclusive. Over the years, this scenario has completely changed. With the growth of e-commerce and the spread of online sales and experiences, consumer behavior has changed, and companies have found themselves under pressure to diversify their sales channels. Since then, new combinations have been created at the time of ordering, such as: – Buy online and pick up in a physical store. – Buy it in the physical store and receive it at home. – Try the product in the physical store and complete the purchase via website or app. – Purchase through e-commerce and make an exchange in the physical store if needed. The possibilities are numerous, and this ease of buying, receiving, or exchanging products through different contact channels has a name: omnichannel. This strategy consists of integrating different sales channels to provide experiences without hindering the barriers to consumers, unifying the channels, promoting better relationships, and helping businesses with visibility, market value, and competitiveness. It is indeed the dream strategy for companies that want to increase the number of orders, loyal customers, and profitability, right? But for this strategy to work efficiently and not compromise the future of your company, omnichannel logistics requires a lot of attention so that all the gears work together, avoiding bottlenecks and promoting consumer safety. In this article, we share 8 steps to achieve omnichannel logistics success, improve strategies, and ensure competitiveness in the future of business. Shall we? The challenges of omnichannel logistics The future is omnichannel, but controlling this logistics, through its various sales channels, is a significant challenge and requires an excellent strategy to ensure good performance. It is important to remember that the central premise of an omni business must be the unification of the customer experience, meaning the buyer must have the same standard of service in any channel they contact, and ensuring this is not an easy task. Once you enter the multichannel universe, it is normal for companies to receive a series of orders in a single distribution center, coming from all channels, such as physical stores, e-commerce, marketplaces, and/or applications, and this is where the magic must happen. Faced with massive demand and a complex network, it is necessary to orchestrate the orders, in other words, organization is the key to action. In omnichannel logistics, it is crucial to respect priorities, move products with quality and agility, align processes to meet the large volume of orders processed daily, optimize task execution times, save resources and labor, as well as promote delivery from the product to the customer as quickly as possible and with maximum accuracy. For all this to happen, the first step is to maintain harmony between storage, distribution, delivery, commercial, and service processes, through excellent omnichannel logistics, good management, and, essentially, investments in technologies that accelerate workflow and prevent communication errors from occurring between all channels and the distribution center. How to improve omnichannel logistics for your company So far, we have seen the importance of diversifying your company’s sales channels to increase market visibility, achieve profitability, and increase the number of orders and loyal customers. Additionally, you, as a manager, understand that to achieve these goals, it is necessary to develop an action plan aimed at implementing omnichannel logistics, which includes processes and requirements very different from traditional logistics. Below, we share 8 valuable tips that help organize workflow when it comes to managing a multichannel business. Take a look: 1- Have a consistent strategy Before even starting to implement changes to improve omnichannel logistics, ensure that your company has a strategy consistent with the goals and resources available. Define and evaluate the sales channels and combinations of each of them. Ask some questions, for example: “Can I have a virtual store, in-store pickup, deliveries, and exchanges?”, “How do each of these channels relate?”, “What are the requirements for each of these channels?”, “Where are the biggest challenges?” These questions help monitor what is currently happening in omnichannel logistics and what can be improved in the short and long term. Map all sales channels, the intersection between them, stock units, transport routes, and delivery times. You need to have a macro view of your business and your chain to define the right strategies to offer a unified and agile service to your customers. 2- Regularly check stock Knowing the quantity of products available in stock, even for traditional companies working with a single sales channel, has always been crucial; after all, without stock, there is no sale. Now, if applied to omnichannel logistics, keeping inventory information regularly aligned is more crucial for the company’s vitality and success. Once your store shows an item as available in stock in some sales channel, but, in reality, such a product is not present in the inventory, this can create a major logistical problem. More than losing a potential sale, it is necessary to send notifications to the customer canceling the purchase, generating a negative experience with the consumer, compromising the brand’s image, and putting its credibility at risk. Therefore, if an item is out of stock, it is necessary to communicate it, possibly in real-time, through all sales channels. You might think, but how can you update different channels simultaneously? Manually, this is an almost impossible task, which is why it is important to have technologies that contribute to the efficiency of omnichannel logistics. The WMS (Warehouse Management System) and OMS (Order Management System) management systems are capable of: Update stock status in real-time. Monitor stock across different sales channels and update simultaneously based on item availability in inventory. Inform customers about the availability and/or lack of a product in stock. Determine shipping and delivery dates by cross-referencing distribution center data and contacting the customer. Provide visibility and inventory accuracy based on sales demand. Increase brand credibility and consumer trust. In this sense, to unify warehouse data, have full control over items and their movements, and ensure that all platforms are updated, investing in these technologies makes a huge difference. 3- Improve delivery management Entering the omnichannel universe is not a guarantee of success; after all, there are many companies competing in this sector, with major players dominating the market thanks to their agility and excellence in service delivery. For this reason, it is necessary to establish strategies that accelerate results, and one effective way to do this is to meet consumer expectations. According to the CEO of SGPweb and Correios affiliate, Emerson Scholze, in an article published by Paraná Shop, delivery speed and shipping costs influence purchase decisions. He states that “customers have started buying more online, but they do not want to wait weeks for their goods. Products with free or fast delivery have higher sales turnover in companies.” Therefore, delivering products on time represents a significant challenge for omnichannel logistics. In a scenario where multiple sales channels and simultaneous orders are present, delivery management must be efficient from start to finish. Once again, technology is necessary: with WMS and OMS systems, it is possible to automate delivery management, as the software can organize orders based on their address, prioritize deliveries, organize vehicles, optimize routes, and provide order tracking notifications to customers, avoiding any human error and lack of communication in the process. 4- Optimize exchange and return processes The omnichannel scenario allows the company to acquire new customers through various sales channels, but it brings with it a challenging aspect: managing exchange and return requests. If working with reverse logistics for a single channel is already a complex task, imagine doing it for several! To avoid creating a climate of disorganization, it is important to have a well-designed strategy to ensure efficiency, maintain customer relationships, and save financial resources in the process. First of all, it is important to establish a transparent policy for exchanges and returns and also design workflows for returning the product to the warehouse or physical store. Consider that the customer can buy online and return it in-store, buy in-store and have the returned item shipped to a warehouse unit, among other possibilities. In omnichannel, anything is possible, and your company must be prepared. To successfully execute reverse logistics, some actions are recommended: Map and optimize routes Have all routes mapped so they are optimized in case of exchanges and returns. For example, when a truck makes a delivery to a nearby address, it can also handle the exchange and return, without the customer paying extra and interfering with the shopping experience, and the company saves money in the process. Simplify exchanges Offer vouchers or refunds to customers, avoiding the need to spend financial and manual resources for exchanging a product. This action, in addition to optimizing process times, ensures greater customer satisfaction, avoiding bureaucratic procedures. Guide the exchange and return step by step Guide customers step by step on possible exchanges and returns. This allows the consumer to have quick answers about their order, minimizing negative experiences and increasing the speed of the process. 5- Encourage returns at physical points Another way to minimize losses when making an exchange or return and, in parallel, maintain the relationship with the customer, is to guide and encourage the process in physical stores. This is because the movement between stocks is free, so once received, the merchandise can be restocked to be sold in the physical store. Additionally, promoting customer contact with the physical space can increase conversion rates, as they are exposed to different products and may purchase other items from the brand. But beware: for all this to happen successfully, it is necessary that all your management systems and sales platforms are integrated. The salesperson who receives the customer must be aware of the exchange and the entire flow that precedes it, to offer a qualified service. For this, the OMS system is the best indication. The software unifies order management in one place, ensuring complete visibility and, consequently, the same standard of service across all channels. 6- Offer payment support Especially when it comes to online sales channels, it is common for payment issues to arise. The customer may have difficulty making a purchase, the card may be declined, or the payment may be blocked for various reasons. Therefore, it is important to be ready to offer support when payment issues occur. Ensure that your customer service is easily accessible through all sales channels and that staff are capable of assisting customers with their payment issues quickly and effectively. This not only improves the customer experience but can also help prevent sales from being blocked due to technical or administrative issues. 7- Invest in technology As mentioned earlier, the efficiency of omnichannel logistics largely depends on the smart use of technology. Investing in inventory management systems, order management systems, and other software solutions can help streamline processes, improve visibility, and reduce human errors. Additionally, automation can help optimize execution times and reduce operational costs, allowing the company to handle a higher volume of orders without necessarily hiring additional staff. Also consider adopting emerging technologies such as artificial intelligence and the Internet of Things, which can offer additional benefits in terms of efficiency and competitiveness. 8- Monitor and adapt Finally, it is important to constantly monitor the performance of your omnichannel logistics and make changes and improvements based on customer feedback, market changes, and new technologies available. Being flexible and adaptable is essential to remain competitive in a rapidly evolving business environment, so make sure to always stay one step ahead and be ready to make the necessary changes to ensure the long-term success of your business. With these 8 steps, your company will be better positioned to face the challenges of omnichannel logistics and capitalize on the opportunities offered by this new retail paradigm. Remember, the future is omnichannel, and the companies that manage to master this new reality will be the ones that succeed in the long term. 8 Steps to a Successful Omnichannel Logistics Strategy Deagor WMS per ecommerce può aiutarti!