Retail Order Management

 

Power your omnichannel retail fulfillment. Tecsys distributed order management technology enables you to create seamless buying experiences, break down operational barriers and fulfill orders across a blend of channels.

Discover why world-class retail fulfillment operations run on Tecsys

 

Empower your organization with Omni™ OMS, an industry-leading, end-to-end retail fulfillment solution for omnichannel commerce.

What you need to know about
order management

 

Challenges

Keeping up with the Ever-Changing Retail Environment

Retail sales have grown almost 4% annually since 2010 and show no sign of slowing down; meanwhile, how people shop retail has changed profoundly. The retail industry is demanding an ever-sophisticated approach to unified commerce. Technology plays an increasingly important role in how retailers attract and convert customers. Due to “the Amazon effect,” you now need the capability to fulfill orders faster than ever to compete. Escalating customer expectations mean shorter shipping windows and less room for error.

Still, the industry continues to evolve. As e-commerce giants delve into the brick-and-mortar fray, and stalwart brick-and-mortar operations branch out to offer alternative customer buying experiences, can one retail channel truly exist without the other in today’s omnichannel world? Many interwoven channels mean high complexity in an unforgiving market; yet the two greatest challenges facing retailers today reflect company culture rather than supply chain obstacles.

Old Habits Die Hard

Retail is changing, and thriving retailers are changing with it. Yet, traditional single-channel retailers are not necessarily wired for change. A typical barrier to integrating a DOM strategy often includes a cultural or altitudinal resistance to change. This challenge is often best overcome with two-way communication about a retailer’s vision. Change management experts can also be a big help. The reality is that omnichannel fulfillment calls for a paradigm shift and for leadership to embrace new methods. It isn’t just the supply chain management side of the business, either. The retailer needs to reimagine their fulfillment operations from top to bottom so that customers experience a seamless and streamlined buying journey. What results are more robust retail capabilities and new channels for revenue.

The First Step is the Hardest

Embarking on this fundamental fulfillment shift is daunting, so tapping into the knowledgebase of a solutions provider can help you build a manageable roadmap. Since omnichannel fulfillment is not an ‘if’, but a ‘when’, defining those first few steps early on can be the difference between thriving and catching up.

Once the decision is made to pursue an omnichannel fulfillment strategy, it is not all-or-nothing. It is best to learn to crawl, then stand, then walk, and only then run. Most retailers are best suited to choose one omnichannel fulfillment strategy that is easiest for your people to embrace. You can find the one that is least disruptive to business as usual; perhaps it is already a well-known and used process. This will be an early win on which to build the team’s momentum. It also helps the organization feel that this is a challenge that has a solution.

Strategies

Why are Retailers Turning to Distributed Order Management Systems?

With the multitude of changes that take place in the retail industry—including the proliferation of multichannel retailing beyond single-channel e-commerce or brick-and-mortar operations—why are leading retailers turning to distributed order management systems to get them through? Well, distributed order management is the core of omnichannel retailing. An order management system enables retailers to accept customer orders from all channels, including any combination of physical store, online, mobile, voice, call center, text message, marketplace, IOT, chat, and social media orders. These orders are centralized by the order management system, which gives retailers a view of inventory from all locations. Customer orders can be checked, interchanged, and mixed and matched from the DOM system.

Click here to read about the quest for ROI and a business case for omnichannel retail

Solutions

What Should You Look for in a Distributed Order Management System?

Your DOM should be designed to grow with you; to offer you a competitive advantage that automates order processing, helps drive fast innovation, and expands revenue channels. Great order fulfillment technology keeps customers happy and supports your omnichannel ecosystem.

Control Tower Visibility

Making smarter fulfillment decisions by intelligently routing stock from the most cost-effective locations relies on connecting global demand to your cross-channel supply. Modern analytics coupled with real-time inventory virtualization with dynamic stock allocation is a game-changer; it is where the right DOM provider can help your retail business thrive.

Flexible Rule Configuration

Flexibility is king. Business rules provide DOMs with direction on how to fulfill incoming orders. These rules can change often and fast. From fraud rules to tax rate calculations to shipping methods, make sure you control how your orders are managed and fulfilled.

Global Platform

Tecsys’ global platform provides retailers with a rich suite of backend functions to support and manage international retail expansion. With 24-7-365 support and partnerships around the world, Tecsys is able to support multinational retailers and brands. Anywhere retailers have a location, store, or presence, Tecsys is ready to help.

Tailored Services Offering

A successful DOM strategy goes beyond the technology and deployment. Training, advice and guidance are mission critical to a smooth transition and ongoing operation.

Predictable Go-Live Time Frames

Business doesn’t wait for lengthy implementation; look for an enterprise cloud-based delivery system that ensures retailers get to market faster than their competitors.

Regular Fee Schedule

Predictable software and maintenance fees help retailers create a back-of-house system that fits their budget.

Global Service Accountability

Retailers span international borders as they grow. Look for a system with global reach so you can reliably service your retail order management system needs, wherever and whenever your business requires it.

Retail Solution Expertise

Your customers’ satisfaction relies on an effective order management system that delivers on its promise to equip you for an evolving retail environment. You are best served to work with a solution provider with deep ties—and extensive expertise—in retail.

Dynamic, Real-time Inventory Visibility

A modern DOM gives you a single view of the inventory in your warehouse, stores, popups, 3PLs (third-party logistics providers), and manufacturing centers. Inventory data can be viewed alongside the daily inventory flows from online orders, in-store sales on your POS system, and damaged goods in your warehouse. It offers accurate, real-time inventory data that can help you meet your promised delivery dates. By unifying your view of inventory pools across multiple channels, your DOM helps you to determine the most cost-effective fulfillment decisions based on stock locations and destinations. When customers want what you have, you can easily show them where to find it­­.

The Logistics Bureau* reports that 79% of companies with high performing supply chains achieve higher revenue growth greater than the industry average.

* 7 Reasons Why the Supply Chain Matters to Business Success, by Logistics Bureau

Next-Level Customer Service

The ultimate in customer service includes personalized and consistent shopping experiences, every time. With a robust set of customer service tools at your fingertips, an advanced DOM drives increased customer loyalty and lifetime value. It includes intuitive call center interfaces that gives you a single view of each customer’s purchase history, while an efficient case ticket management system tracks, delegates, and manages inbound communication from customers. This helps you improve customer satisfaction by arming your agents with the data they need to make smarter customer service decisions… without lifting a finger.

American Express reports* that 90% of customers use customer service as a barometer of whether or not they do business with a company

* 31 Customer Service Stats to Know in 2019, by HubSpot

Myriad Order Fulfillment Channels

Order fulfillment is the process of accepting shopper purchases, then sending merchandise to the customer as fast and inexpensively as possible. Maximizing customer satisfaction is a key element of this process. Branding is another consideration, since how a customer receives their merchandise reflects on the retail brand.

There are several omnichannel fulfillment channels for retailers, including:

Ship-from-Store

Ship-from-store reduces costs and delivery times by transforming your stores into localized distribution centers. Shipping products from the retail location closest to the customer increases inventory turnover and encourages retailers to stock more inventory in stores, which increases in-store sales. A DOM can automatically route orders to retailers’ shops for store-based retail fulfillment. Intelligent routing monitors each store’s capacity and inventory levels and sets up stores’ business rules to meet each retailers’ needs. With an easy to use product fulfillment application, store associates efficiently and accurately fulfill all types of omnichannel orders.

Tecsys’ Ship-from-Store fulfillment also provides associate fulfillment workflows, invoice shipping and label printing, and remedial routing actions.

Benefits of ship-from-store fulfillment:

  • Expedites delivery times
  • Cuts shipping costs
  • Reduces markdowns & clearances
  • Eliminates out of stock scenarios
Ship-to-Store

Ship-to-store is a BOPIS (buy online pickup in-store) solution that pleases shoppers and engages store resources. BOPIS lets retailers quickly prepare the right product for an in-store pickup. Whether sourced from the distribution center, 3PL, or another shop’s inventory, a DOM routes orders from the optimal sources to the pickup location.

But wait! The job’s not done. Tecsys’ DOM gives retailers communication flexibility. They can let customers know when their merchandise is ready for pickup, on their favorite communication channel. Whether it’s email, text message, social DM, or voice, we have you covered. Ship-to-store ensures every store has every item that shoppers want. Even pop-up stores can carry your full inventory portfolio—virtually.

Benefits of ship-to-store fulfillment:

  • Uses retailers’ internal delivery network
  • Reduces stagnant warehouse inventory
  • Flexible order fulfillment for non-conventional products
  • Prevents oversold store inventory

Learn why BOPIS and ship-to-store are not the same thing

Ship-from-Distribution Center (Ship from DC)

Ship-from-DC is the most common fulfillment strategy. When retailers use Ship-from-DC, online or digital orders are routed to their warehouse for fulfillment. It is the default shipping method for retailers without order management optimization capabilities. The Ship-from-DC model, when used alone, fails to utilize the cost saving opportunities of other shipment models. Applying ship-from-DC as the only rule is not a sound practice. Instead, it should be one of multiple options the order management solution considers for order fulfillment.

Buy Online Pickup In-Store (BOPIS)

Buy online pickup in-store (BOPIS or click-and-collect) is omnichannel retail’s most powerful fulfillment channel. BOPIS gives retailers the option to use existing store inventory to deliver online orders. Click-and-collect increases cross-channel sales, basket sizes, foot traffic, and customer loyalty—including using merchandise from small pop-up stores. BOPIS gives shoppers the flexibility to buy online and choose a store pickup location of their choice. Customers get to physically see, touch, feel and sense the merchandise before taking it. Should the size be incorrect, they can change it right there at the store.

BOPIS can help retailers:

  • Save on shipping costs
  • Reduce return rates
  • Increase sales (58.8% of shoppers buy more goods while in-store)
  • Improve customer satisfaction
  • Strengthen loyalty and drive repeat purchasing
  • Expand basket sizes
  • Drive upsell opportunities

Learn about the six click-and-collect (BOPIS) services that customers demand.

Reserve Online Pickup In-Store (ROPIS)

ROPIS is very closely associated with BOPIS. However, with ROPIS, the customer does not purchase the goods online or through digital channels. Instead, they reserve the item for purchase in-store. Some argue this is not as effective as immediately locking in purchases. Although true, certain categories are more conducive to a ROPIS sale.

Retailers that use ROPIS often sell:

  • Highly specialized or technical products
  • Large ticket item goods
  • Merchandise which is difficult to return (such as furniture)

Success Stories

Browns Shoes

With over 65 retail stores, Browns Shoes is North America’s leading independent footwear chain. Despite having a state-of-the-art 75,000 square foot distribution center (DC), Browns wanted a way to leverage its full enterprise-wide inventory of footwear for order fulfillment. They needed accuracy, and the ability to efficiently leverage merchandise from any location—fast.

Not only did Browns Shoes need accurate inventory visibility, they needed the ability to access their full breadth of inventory. Part of this solution also had to ensure an extremely high level of customer satisfaction allowing for orders to be fulfilled in a single box.

After implementing Tecsys’ DOM, Browns Shoes now offers a robust order-to-fulfillment process. In fact, customer orders can now take as little as 15 minutes from order receipt to confirmation with tracking. Today, Browns Shoes offers express shipping with 99.5% accuracy, with even tighter lead-times than originally offered.

Read Success Story

This implementation will enable us to stay at the forefront of omnichannel retail for years to come.– Richard Sejean, Director of Ecommerce

Henry's

This 100-year-old Canadian retailer wanted to maintain a best-of-breed e-commerce/omnichannel experience for its customer base. However, it was having difficulty managing multiple brands and sites through a single platform, providing its customers with convenient omnichannel fulfillment options, and leveraging retail store inventory.

In 2010, it selected Tecsys’ solutions to re-launch its flagship website. Since re-platforming, Henry’s has innovated its e-commerce infrastructure to provide a best-in-class omnichannel shopping experience, while unifying pricing, promotions, and messaging. This has enabled its customers to shop in-store at 33 retail stores or online at Henry’s three B2C websites and an easy-to-use mobile commerce site (Henrys.com).

Website visitors can buy online by seeing real-time store inventory listings and return merchandise anywhere, with a single view of their customer profile. In addition, the Reserve Online, Pickup In-Store feature, which enables customers to leverage both online research and in-store staff expertise, has helped the company utilize in-store inventory more efficiently, and boost store traffic.

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With Tecsys we are offering a true omnichannel experience that provides our customers with a variety of convenient ways to shop, and helps streamline our fulfillment and business operations.– Ian Landy, President and CEO

Learn how to make your supply chain work for you

 

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Supply Chain Brief