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Retail Order Management

Adapt Faster with OrderDynamics®, Tecsys’ Distributed Order Management Solution

Flexibility, connectivity and scalability are key to Tecsys’ retail distributed order management (DOM) system. Our online order management technology helps retailers and brands connect digital commerce to physical stores—so you can optimize order fulfillment routes, minimize shipping costs, manage in-store returns, and give shoppers a real-time view of your inventory. Simplify your entire order lifecycle with Tecsys’ native web-based (SaaS) platform. From initial acquisition to final order fulfillment, Tecsys has you covered.

WHAT You need to know

Rely on a System that Creates Connectivity

Retail is a hyper-competitive industry. If you are not continually evolving, changing, and adapting to shoppers’ wants and needs, then your business may be at risk. With Tecsys’ cloud-based solution, you will always have the latest system that offers:

  • On-the-fly business rule changes
  • Omnichannel order orchestration through a comprehensive, flexible processing workflow
  • Order routing that reduces delivery times
  • Real-time inventory visibility that drives sales
  • Order consolidation that improves customer satisfaction
  • Pre-orders that give customers more choices
  • Shipping rate brokering to reduce last-mile costs
  • In-store pick/pack/ship for store fulfillment capabilities such as click-and-collect (BOPIS) and ship-from-store
  • Receipt-free returns that inspire more purchases

Optimize Your End-to-End Retail Order Fulfillment

Tecsys enhances the speed of your supply chain capabilities. With Tecsys, your retail operation can rely on one trusted source for your technology needs. Tecsys’ workflow lets you capture payments, invoice, run tax calculations, split shipments, provide customer notifications, and much more­—removing the complexity of managing special order types, so you can get your omnichannel operation started off on the right foot. If scalability is a concern, Tecsys can help make your growth dreams a reality. Our scalable, flexible multi-tenant DOM is one of the highest capacity systems on the market. It’s why some of the world’s largest retailers trust Tecsys with their order fulfillment.

Unlock Flexible and Intelligent Order Routing Across Your Retail Network

Customers want accurate deliveries in less time. You want to save money on order fulfillment. Tecsys simplifies fulfillment from cradle to grave, orchestrating and consolidating your omnichannel orders through a comprehensive and flexible processing workflow.

Order routing is the core of any order management system. Intelligent order routing is the distinction of advanced DOM technology. Tecsys lets retailers optimize and prioritize routes to minimize shipping costs for online and pickup orders. Yet, even with a highly sophisticated routing engine, you still get full audit trail details to fully understand which business rules trigger different routing choices. All this with no need to write a single line of code.

Join Us at NRF!

Your brand aspirations should not have limits – and neither should your technology solutions.

Tecsys OrderDynamics Is Exhibiting at NRF 2020 Vision
January 12-14, 2020 in New York City
Level 1, Booth 744

SCHEDULE A MEETING

 

White Paper

2019 Buy Online Pickup In-Store: State of the Industry Report – Part 1

BOPIS: State of the Industry takes a deeper look at the top 10 omnichannel retailers in the U.S. Review the results of over 300 secret shopper customer journeys, from the online order—right through to the in-store pickup. See who the top BOPIS players are in North America. Find out what we can learn from these omnichannel players. Who is getting omnichannel right, and who is not?

GET RESEARCH PAPER

 

White Paper

2019 Buy Online Pickup In-Store: State of the Industry Report – Part 2

In the second installment of the BOPIS: State of the Industry research, get a deep dive of the online portion of the BOPIS experience. Examining what different aspects of this part has the largest impact on the overall satisfaction and total buying experience, it provides actionable insights to help you with your buy online pickup in-store strategy.

GET RESEARCH PAPER


Retail Order Management

 

Challenges | Strategies | Solutions | Success Stories

 

Distributed order management (DOM) helps retailers manage and fulfill customer orders through any channel their shopper wants. A DOM is the comprehensive technology used for order processing that is also the central system that houses customer data. This complete data hub offers retailers a complete view of inventory positions, order information, and customer data pulled from all other retail systems.

On this page you’ll discover more about retail order management, including the challenges retailers face, why leading organizations are ensuring they implement an advanced retail order management system, and key capabilities that a modern DOM should have. You’ll also find information about how the right DOM can enhance your order fulfillment cycle as well as relevant case studies.

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

 

The Pillars of Retail Order Management
(and how they boost your business)

1.

Inventory Visibility

2.

Order Orchestration

3.

Order Consolidation

4.

Order Routing

5.

Returns Management

6.

Analytics & Advanced Functions

1.

Inventory Visibility

Dynamic inventory visibility is the first step in each shopper’s buying journey. The ability to aggregate inventory data based on SKUs, models, colors, sizes, feature sets, or any other detail is an important feature for retailers to implement. The right DOM system can give them a single view of inventory that is found in the warehouse, stores, popup stores, 3PLs (third-party logistics providers), and in manufacturing centers. This inventory data can be viewed alongside the daily flows of inventory from online orders, to in-store sales on the POS, and damaged goods in the warehouse.

Customers need confidence. Retailers need to let them know that their trip to your store will give them the items they crave. The right inventory management solution can show retailers real-time online views of their inventory levels right down the single store shelf. Customers can see inventory across any digital channel. When customers want what a retailer has, they can show them where to find it—feeding the desire for instant gratification. Tecsys’ click-and-collect solutions make it happen.

Benefits

  • Shows customers inventory details
  • Avoids stockouts and lost orders
  • Reduces markdown losses and clearance sales

2.

Order Orchestration

Order orchestration is the coordination of a customer order across retail systems, from purchase through to fulfillment. Order management engines break the order down into sub-components and uses information from different sub-systems to select the optimal course of actions, based on the business’ rules and priorities. When a multi-item online order arrives, for example, the order management engine finds the ideal location from which to ship the entire order. If none exists, it considers the individual ordered items. This saves on delivery costs and improves the customer experience.

Benefits

  • Eliminates excessive shipments per order
  • Optimizes shipping costs
  • Improves the customer experience

3.

Order Consolidation

Make the most of your low inventory counts in stores. Order consolidation eliminates the multiple shipments for a single order, which plagues most ship-from-store systems today, on multi-item purchases. Instead, use your inexpensive inter-store transfers to bring the merchandise to fulfill an order into one location. Dramatically improve customer satisfaction, reduce shipping costs, minimize your environmental impact, and protect your brand reputation giving your customers the full order they expected, in one box.

Click here to learn more about Order consolidation.

Benefits:

  • Reduces overall delivery costs
  • Takes advantage of in-store inventory
  • Minimizes environmental impact

4.

Order Routing

Order routing is core to the order management infrastructure. Retail order routing refers to the efficient allocation and fulfillment of customer orders based on a set of predefined business rules. When an order is received, the order management system finds the optimal inventory location from which to fulfill it. Optimal inventory locations are located based on business rules set by the retailer. For example, if all inventory is designated as safety stock for a store, an online order will not be dispatched to that location. Instead, the system will use the retailer’s business rules and priorities to find the ideal location from which to ship merchandise.

Order routing becomes increasingly important as a retailer scales their business. A typical 20-location retailer can have as many as 900,000 routing permutations per day. Retailers cannot operate an efficient omnichannel strategy at this level without a robust order routing engine. Your order routing solution should let retailers configure order routing rules by territory, by channel, by customer, or even by SKU. Retailers just need to tell the DOM the conditions, how to react, and the priority importance—then let the system do all of the hard work.

Prioritized condition settings give retailers rule flexibility beyond preset conditions, and intelligent actions like ‘Deplete inventory from highest stock locations’, so your shipping operation is perfectly on-point, every single time.

Consideration should be given to the degree of configurability that best serves the dynamic nature of your retail operation. Key considerations for order routing technology include:

  • Business rule flexibility
  • Business rule prioritization
  • Technology scalability
  • Routing decision auditing

Benefits:

  • Identifies cost-saving fulfillment routing opportunities
  • Dynamically assesses multiple inventory sources
  • Avoids safety stock depletion and stockouts

5.

Returns Management

Return rates can be as high as 20% – 40% for fashion, footwear, and other retail lines. How your business is set up to process returns can mean the difference between cementing a lifelong customer relationship or creating a complaint ripple effect that negatively impacts your brand perception. A returns management system can help by identifying the originating order, reversing the transaction, processing the payment (often via the payment gateways), and reallocating the returned goods as inventory.

Most merchandise is returned in resellable condition. For these items, the system can update the global inventory instantly, so the items are available for immediate resale—reducing the likelihood of discounting by making more of your goods available to resell in less time.

Benefits:

  • Maintains clean chain of custody
  • Repopulates merchandise into global inventories for resale
  • Streamlines potentially expensive process

6.

Analytics & Advanced Functions

Customer data and analytics can empower you to continually improve your business, whether it’s through putting staff and resources to better use, improving inventory locations, optimizing business rules, or gaining insights into growing order patterns. Comprehensive analytics, a dynamic order simulator, and intelligent AI are vital components of a modern distributed order management solution.

Benefits:

  • Transforms complex data into meaningful insights
  • Provides visibility into inventory and order patterns
  • Leverages customer data over tribal knowledge

Power BI

Microsoft Power BI (Business Intelligence) for standard or custom reporting/dashboards can create visualization of order management metrics, such as: order to shipment ratios, order shipping times, in-store pickup growth, returns frequency by location, etc. Microsoft’s Power BI can help you can transform complex data into business insights to improve both your business and your bottom line.

Dynamic Order Simulator

You shouldn’t be left trying to guess which routing rules are best for your chain. Instead, you can use your own customer data to test and implement various order routing and business rules until you find the right fit for your operation. Your distributed order management technology should optimize order routing and shipping levels, giving you detailed insights into your business, so you can strategically optimize your total supply chain.

Machine Learning Future

Unlike today’s near magical claims of artificial intelligence (AI), contemporary DOMs today deploy machine learning with proven simulator technology to optimize at both strategic and tactical levels. This is done in a highly trackable, audited, and understandable environment—so you have total inventory visibility, with the intelligence of applied distributed order management.

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.

Your solution provider should be equipped to grow with you; to serve as your trusted advisor and remain committed to developing the best order management technology available to help your retail operation. It is about making your business mission its success.

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.


Solutions

What does a Distributed Order Management system really mean for your business?

 

1.

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


2.

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


3.

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:

  1. Ship-from-Store
  2. Ship-to-Store
  3. Ship-from-DC
  4. Buy Online Pickup In-Store (BOPIS)
  5. Reserve Online Pickup In-Store (ROPIS)

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

Click here to 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

Click here to 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

How Leading Organizations Improve Their Customer Experience Both In-Store and Online

Our advanced out-of-the-box distributed order management technology is the heart of a growing number of converged commerce systems. We are proud of the success stories of many iconic brands using our solution, and the achievements they have realized as part of their omnichannel goals.

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.

Watch Video

“With OrderDynamics 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

 

 

Looking Forward

Omnichannel retail is gaining momentum quickly. It is about providing customers with a smooth buying journey; one where they can research products on their smartphone, order online, and pickup in store. It’s an array of channels working seamlessly together. This means that your omnichannel order management strategy must integrate the entire retail technology stack. It has to create a unified commerce experience that powers a continual flow buying journey. No stumbles. No irritations. One experience, from one cohesive retailer.

Ultimately, retailers need to map out a strategy that futureproofs them for a fast-evolving unified commerce (converged commerce) ecosystem. They need to ask, ‘What is core to retail?’ and more importantly, ‘What is core to the future of retail?’ Once you figure out your strategic choice points, look for the technology that makes it happen.

A best-in-class DOM can start the ball rolling by adding channels for your shoppers; meanwhile, it can give your customers a real-time view of inventory, optimize order fulfillment routes, minimize shipping costs and manage in-store returns. Solid integration connects your retail systems, simplifying order fulfillment. As you navigate the challenges—and opportunities—the future may bring, stay focused on creating that seamless retail buying journey.

 

 

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