Madrid, Aug 29, 2023 – We are back with the concept of omnichannel. The word that is on the lips of everyone who has anything to do with customer service. Omnichannel management strategies are indispensable for delivering an end-to-end shopping experience across multiple channels, e.g., physical stores, online stores, mobile apps, websites, call centers, etc. Omnichannel logistics also includes product inventory and transportation. In short, it synchronizes all movements and encompasses all the pieces that make up the shopping experience.
We are all consumers and have adopted omnichannel behaviors naturally, endorses the data provided by international commerce statistical institutions: more than 50% of consumers have visited both physical and digital channels when shopping. And this applies to all sectors of the economy, including logistics on which we are going to focus today.
Keys to omnichannel logistics management
For the logistics department, omnichannel strategies add an extra layer of complexity, as it must be customer-oriented and coordinate with other departments such as Sales and Marketing. To implement omnichannel logistics management, the following aspects need to be considered:
1. System digitalization
It is essential to have a centralized logistics management system to receive and maintain real-time data on inventory, orders, and shipments. This is known as logistics 4.0.
To do this, it is necessary to carefully analyze the market or rely on experts in the field to choose the best solution that connects and keeps all the data updated with the company’s systems. It can be an ERP with logistics modules, a more specific solution such as an inventory manager or WMS, or a TMS to optimize transportation management.
2. Order fulfillment
The growing prominence of e-commerce has marked a before and an after in the way orders are fulfilled, especially in the wake of the COVID pandemic and the spike in online orders caused by lockdowns. It is a matter of adapting picking and packaging strategies to focus on fulfilling orders regardless of the distribution channel.
For example, boxes have become the packaging of choice for drop shipments and orders of multiple different items in small quantities. Another crucial element to consider is distribution centers or logistics hubs, where orders are fulfilled closer to customers, even when reverse logistics must be managed.
3.Flexible shipments
If an omnichannel strategy is implemented in both sales and order distribution, customers must be offered different shipping options. Among the most common are the following:
- Home delivery: This is undoubtedly the most popular option of all, both among customers, who gain in convenience, and among transportation service companies. However, it is the most expensive in terms of fuel and delivery attempts. It can include standard and express shipments.
- In-store pickup: Known as Click & Collect, this is a more economical option whereby the product arrives at the physical store of the customer’s choice and is picked up by the customer. This reduces delivery costs to end customers and provides a more satisfying shopping experience.
- Convenience points or smart lockers: Similar to physical store pickup, with the difference being that it is third parties outside the store who collect the product and hold it for a period of time until customers pick it up.
4. Suitable transportation and logistics options
Whereas in the past, one or two transportation companies were used to make deliveries, when implementing an omnichannel strategy, more logistics operators are needed to cover all sales channels.
This requires consideration of the various direct delivery methods. Products may be shipped from the distribution center or a store close to the customers. There is also an option called dropshipping, whereby products are shipped directly from an external supplier.
5. Monitoring
The geolocation of shipments, and the monitoring of their status are two essential elements when it comes to ensuring that deliveries arrive on time. Particularly when there is an omnichannel strategy and orders are shipped through several channels.
This is because omnichannel approaches revolve around customers, who demand transparency and to know the status of their shipment 24 hours a day. In addition, monitoring provides more agility when it comes to solving possible incidents during shipment.
How to implement an omnichannel logistics strategy
The first step is to analyze market demand and interpret consumer information, in order to implement a strategy that meets the needs of increasingly demanding customers. Then the following steps must be taken:
1. Integrate targetaudience systems
Target audience information should be as accurate as possible, so it is advisable to consolidate data from ERP and CRM systems in the same database in order to manage customer data faster and more productively and to optimize certain processes.
2. Embed carriers’ systems
One of the main customer requirements is that delivery processes be fast and transparent. Therefore, it is essential to have a good delivery traceability system that allows continuous control and reporting on the status of the product, where it is, etc.
3. Customer communication
It is necessary to consider all customer communication channels (which are not few) to better understand customers’ needs, offer them the products they want to find and increase brand awareness.
The rise of the digital world has allowed companies to maintain closer communication with their customers, especially thanks to social media. In addition, the means of direct communication have also changed and, although conventional means such as email and phone calls are still used, new ones have appeared such as WhatsApp, which, thanks to its immediacy and simplicity, has become the favorite means for users to exchange information.
4. Real-time information
Consumers are increasingly demanding personalization that can meet their specific needs, so integrating real-time information from all available sales channels is one of the key factors in providing customers with exactly what they need, while building trust in the business.
In short, implementing a successful omnichannel logistics strategy requires investment in technology, skilled human resources, innovative processes and strategies, and a customer-centric mindset.
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