The retail landscape has evolved dramatically over the past decade.
Retailers are no longer just brick-and-mortar stores or online-only entities.
The new wave of retail is omnichannel—seamlessly integrating physical stores with digital shopping.
This post will delve into inventory management's critical role in enabling omnichannel success.
Omnichannel customers expect to browse, shop, and purchase products across multiple channels, in-store, online, or via mobile devices.
Because of this, Inventory management has become a cornerstone of omnichannel retail.
Retailers must know exactly what stock they have, where it is, and how quickly it can reach the customer.
Maintaining a consistent and reliable shopping experience without this vital information is incredibly challenging.
Unified commerce combines all sales channels into one integrated system. This unified approach makes inventory management a lot more straightforward.
As data from Forrester's 2022 survey revealed, significant proportions of consumers in France (41%), the US (37%), and the UK (29%) would reconsider visiting a store if its in-store inventory isn't available online.
With real-time visibility into inventory levels across all channels, brands can avoid common pain points such as
A sophisticated OMS can be your secret weapon in managing inventory efficiently.
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IMS Capabilities in OMS |
Impact on Omnichannel Retail |
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Inventory Visibility |
Expose available-to-sell inventory across all channels to sell more products and prevent "out of stock" messaging. |
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Inventory Allocation |
Allocate inventory where needed, assigning specific percentages to each channel and setting safety stock. |
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Inventory Accuracy |
Ensures the display of accurate inventory data on all sales platforms, enhancing the customer shopping experience and reducing the likelihood of order cancellations or modifications. |
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Integration with Multiple Platforms |
An OMS serves as the primary reference for inventory status, sales updates, and order processing. It provides a unified view of inventory data across all channels and systems, front end to back end. This includes seamless integration with ERPs, selling channels, and Warehouse Management Systems (WMS), ensuring data consistency and reliability across the entire retail operation. |
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Automated Inventory Updates |
Reduces manual intervention, resulting in fewer errors, improved inventory management, and time efficiency. |
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Reporting and Analytics |
Provides insights into inventory performance, sales trends, and customer behavior, enabling more strategic decision-making. |
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Order Fulfillment Flexibility |
Offers various fulfillment options (BOPIS, Curbside, etc.) to meet diverse customer preferences, increasing customer satisfaction and loyalty. |
Here's a closer look at how an OMS can help.
An OMS provides a clear map of inventory visibility, be it online or in physical stores. This tool helps:
An OMS allows brands to manage their inventory more effectively by:
Maintaining an accurate inventory count is crucial for smooth business operations.
An Order Management System (OMS) does more than streamline inventory—it is pivotal in enhancing the customer experience. When 92% of consumers abandon brand after just one negative experience, creating a seamless customer experience is paramount.
Let's investigate how an effective OMS can contribute to outstanding customer service in omnichannel retail.
When customers shop in-store or online, they expect the products they want to be readily available. An OMS facilitates this by continuously tracking inventory and sales, setting reorder points, and updating information about incoming stock.
This real-time tracking ensures popular items are rarely, if ever, unavailable, thereby minimizing customer frustration and enhancing the overall shopping experience.
Backorder functionality allows customers to place orders even when products are not immediately available. Instead of seeing a discouraging 'out of stock' message, they receive information about when the item will be back in stock and the option to proceed with the purchase.
On the other hand, preorders allow retailers to build excitement and drive sales ahead of a new product launch. By enabling customers to reserve their products in advance, retailers can gauge initial customer response and adjust production or supply chain strategies accordingly.
Today's consumers shop in a multi-channel environment. They might start browsing products on a mobile app, switch to a desktop website to make the purchase, and finally pick up the product from a physical store. In such a scenario, real-time inventory synchronization across channels, facilitated by an OMS, is crucial.
When the inventory is in sync, it prevents situations like selling a product online that's out of stock in the physical store, thereby ensuring a seamless and consistent shopping experience.
With the growing trend of instant gratification, customers expect their orders to be fulfilled and delivered as quickly as possible. An OMS plays a vital role here by intelligently routing orders based on the inventory spread across different channels.
You can provide faster delivery times and boost customer satisfaction by offering customers options like Buy Online, Pick Up in Store (BOPIS), or curbside pickup.
To take it a step further, an OMS can provide an estimated delivery date on the storefront to better set expectations.
Nothing disappoints a customer more than placing an order and then learning it can't be fulfilled due to inventory discrepancies.
An effective OMS maintains accurate inventory data across all sales channels, which helps set realistic customer expectations right from the ordering stage. This transparency goes a long way in building trust and fostering long-term customer relationships.
Deck Commerce was built to be the driving force behind a retailer's omnichannel success.
Deck Commerce OMS combines robust functionality, flexibility, and scalability to help retailers meet evolving customer expectations and achieve omnichannel success.
If you’re interested in expanding your OMS capabilities to further increase your inventory visibility or supporting omnichannel fulfillment, we can help you get there. Schedule a demo today to see how we can help launch your omnichannel initiatives in as little as four weeks.