What does a Distributed Order Management system really mean for your business?
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:
- Buy Online Pickup In-Store (BOPIS)
- Reserve Online Pickup In-Store (ROPIS)
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 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)
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.
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.
“This implementation will enable us to stay at the forefront of omnichannel retail for years to come.”
– Richard Sejean, Director of Ecommerce
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.
“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
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.