The exponential growth in retail options has necessitated changes to the traditional fulfillment model. An omnichannel approach can help your organization retain its advantage in a highly competitive market. Opting for omnichannel fulfillment requires brands to integrate their various sales channels to manage inventory and provide a seamless customer experience.
Key differences between multichannel and omnichannel fulfillment
There are two primary fulfillment options brands use: multichannel and omnichannel. They differ in several ways.
Multichannel fulfillment
A multichannel fulfillment model separates each store interface into individual channels. A brand with an online store, physical store, and mobile app would independently maintain inventory for each channel through its fulfillment source. There is no interaction between channels, which makes it harder to forecast demand and desirable inventory levels and may adversely impact the customer experience.
Omnichannel fulfillment
In an omnichannel fulfillment strategy, brands maintain products at their desired fulfillment locations for all sales channels, whether they offer physical storefronts, online stores, or a mobile app. However, unlike multichannel fulfillment models, order data is synced among channels in one platform, allowing brands to allocate inventory efficiently.
For instance, if a retail store runs low on a product, the omnichannel fulfillment system might recommend replenishment to the appropriate team members. Omnichannel systems help prevent stockouts and inventory surpluses, improving product management. Customers receive the products they buy seamlessly without incurring unnecessary delays. A positive shopping experience may boost their overall brand loyalty.
Logiwa IO’s advanced fulfillment management system (FMS) goes beyond legacy WMS systems to address omnichannel fulfillment needs. With Logiwa IO, retailers can manage their inventory from end-to-end, simplifying the fulfillment process.
Benefits of omnichannel fulfillment for brands
Why is an omnichannel fulfillment system such a game-changer for retailers? Take a look at these advantages.
Increased customer satisfaction
When shopping, customers expect to receive the goods they want quickly. They don’t want to hear excuses about inventory stockouts or incoming shipments. If the product they want isn’t available, they’ll look to your competitors for a solution.
By offering omnichannel fulfillment, you can better meet customer expectations. Customers will have the option to shop online or in-store, so they will be able to have the purchasing experience they prefer. You’ll have a clear view of inventory levels and consumer demand across all channels, making it much easier to know when to replenish popular items. If your customer orders a product online, you can recommend an in-store pickup if there’s a storefront near their home.
Enhanced inventory management
A necessity of omnichannel fulfillment is real-time inventory management across locations. With Logiwa IO there is no need to wait for store associates or warehouse clerks to hand-count product inventory levels. You can always have access to a clear view of inventory levels in every store and fulfillment center you use.
Transparency in your inventory levels helps reduce the risk of stockouts. By having items available whenever customers decide to purchase, you can better serve their needs.
Higher sales and customer retention
Offering products across multiple channels, rather than just your physical storefront and online store, leads to higher sales. Placing goods on online marketplaces like Amazon and eBay, partnering with other retailers, and selling products through a dedicated app can elevate revenues. In fact, the direct-to-consumer market is forecasted to grow to nearly $213 billion in the U.S. by 2025.
You can reach customers wherever they shop by selling goods across multiple channels. That makes attracting new customers who might not otherwise have come across your products easier. And when they find out how simple it is to shop with your brand, they’ll come back the next time they need something you offer.
How omnichannel strategies enable ecommerce growth
Providing customers multiple ways to buy your products opens the door to tremendous brand growth. Here’s how.
Seamless shopping experience
When you offer clients different ways to connect with your brand — whether they shop online or visit your local store — you can tap into new customer segments.
As your audience expands, your existing customers may stick with you because of your brand’s seamless shopping experience. That can boost conversion rates and overall customer loyalty.
Technological integration
Offering an omnichannel fulfillment process is very technologically dependent. Managing inventory levels and forecasting demand across channels will be difficult without the right centralized fulfillment management tools.
Fortunately, Logiwa’s warehouse management software integrates easily with a store’s existing systems. You can connect Logiwa across ecommerce platforms, shipping carriers, accounting and enterprise resource planning (ERP) systems, robotics tools, and electronic data interchange (EDI) partners. Our most popular integrations include Amazon, Shopify, PayPal, FedEx, UPS, and NetSuite.
Through integrations, you can guarantee your brand receives end-to-end network visibility across all systems, which helps simplify operations while enhancing the efficiency of B2B, DTC, and hybrid fulfillment.
Scalability for future growth
An omnichannel fulfillment strategy scales directly with your business. Your brand can grow as quickly as you like without major disruptions, and tools like automation and AI make growth even easier.
Logiwa’s WMS is well-suited to brands positioned for fast growth. The system’s headless architecture makes adding new features and solutions easy, like preferred shipping and design elements that streamline the order process. You can modify your front-facing systems as much as you like without disrupting back-end development tools.
Another area where Logiwa stands out is automation. Our WMS allows you to establish customizable automation rules to optimize logistics. You can auto-print shipping labels, specify shipping box types, and shop for the best carrier rates to keep shipping costs within your budget.
Why brands should adopt omnichannel strategies
If you’re still using a single or multichannel approach to reach customers, you’re passing up sales. As more brands move to omnichannel, clients expect their favorite retailers to offer comparable shopping options. By implementing omnichannel fulfillment now, you can quickly adapt to evolving customer behavior changes and capitalize on expansion opportunities.
Ready to get started? Schedule a call with a Logiwa fulfillment expert. We’ll explain how our advanced fulfillment management system can position your brand for growth!
FAQs about omnichannel fulfillment
What are fulfillment networks?
A fulfillment network is a web of fulfillment centers located in strategic areas to support inventory and shipping needs. Each fulfillment center ships, receives, and stores inventory for customers and stores in specific areas. By leveraging fulfillment networks, your brand can offer fast shipping and inventory replenishment for customers and physical storefronts. Your WMS system will select the closest fulfillment center to do the job.
