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Posts tagged “omnichannel

All Hands on Deck for the Omni-Channel Phenomenon

Implementing a successful Omni-channel distribution strategy requires incredible co-ordination between marketing, information technology, shipping, warehousing, transportation, logistics, suppliers, manufacturers, operations and merchandising — in other words, everyone who even thinks about buying, selling or delivering the product is directly involved in developing the strategy.

It requires careful planning, new business processes, dynamic re-configuration and coordination among all stakeholders. Today’s tech-savvy customer may want to order online for pick up in their local store, have it shipped directly to them from a click to buy button or place their order over the phone for same-day delivery.

Everyone involved in the back-end of the process needs to be on the same page when the buyer finally makes their decision to “push the button.”

Delivering an Extraordinary Customer Experience

The goal is to deliver an extraordinary customer experience across every single touch point. It is all too common to see a customer standing in a brick-and-mortar store talking on a cell phone to a friend, while looking up the product on their laptop.

Millennials and Generation Z buyers think nothing of showrooming. They grew up with it. They want what they want in the right size and color available now, and it needs to be less expensive than everything else they looked at. So, what is the big deal?

Oh, and by the way, if you do not have it, they will go to Amazon.com and have it delivered tomorrow – free. If the customer wants it tomorrow and they are across the country, regional warehouses need product on the shelf waiting for delivery to the retailer or the consumer directly.

The Omni-Channel Phenomenon — Channels Are Blurring

What seems like a simple and obvious buying experience to the consumer requires incredible coordination behind the scenes. All the people and systems behind the scenes, are ready to move when the buyer “clicks to buy” or takes the product off the shelf.

Instantaneous, real-time data goes from the point of purchase to all interested parties in the transaction. Delivering this instant gratification requires tremendous investment in integrated systems and coordination between all internal departments and external stakeholders.

Process Mapping With Everyone at the Table is More Important Than Ever

Practical Suggestions

  1. Engage all stake-holders and initiate focus groups to understand both consumer behavior and internal stakeholders — avoid conflicting metrics and channel conflict at all costs.
  2. Play out all the “what if’s” and known possibilities surrounding multiple buying scenarios.
  3. Develop flexible forecasting models based both on past data and future demand.
  4. Create dynamic work flows and process flows for each type of buying behavior to anticipate where the physical product needs to be and when it needs to be there.
  5. Investigate multiple delivery methods – Amazon is experimenting with drones.
  6. Evaluate existing systems and look for ways to streamline multi-directional delivery of data and product.
  7. Evaluate packaging and shipping methods for maximum efficiency, durability and safely.
  8. Consider sharing inventory across multiple stores and regional centers.
  9. Shorten the space and time from receiving to shipping.
  10. Dynamically reconfigure store and warehouse layouts to maximize floor space and minimize travel time.
  11. Review picking and staging methods to support multiple points of delivery.
  12. Constantly review EOQ’s and JIT based on the realities of new buying behaviors.

Summary

Omni-channel distribution is no longer just about distribution. It is about the entire system working together in a seamless fashion to deliver the customer what they want, where they want it, when they want it for less than every other alternative they evaluated.

It is all about who can move transactional data and physical product most efficiently and economically. This requires real time data movement and physical product handling strategies all working together as one seamless system.

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