Omnichannel retail fulfillment and WMS: Understanding the impact on warehouse operations

The trend makes sense. A recent study found that 70% of customers are spending more on brands with omnichannel strategies. However, the effectiveness of this strategy depends on how smooth a brand’s fulfillment warehouse operations are.

A Warehouse Management System (WMS) like Logiwa can help fulfillment teams meet the requirements of omnichannel retail strategies with automated inventory management, order processing, and built-in customer service operations. Let’s dig deeper into the impact of omnichannel retail on warehouses and the role of WMS in streamlining operations.

The evolution of fulfillment warehouse operations in the omnichannel era

Traditional fulfillment strategies relied on one or two channels, focusing on either in-store sales or online orders.

This strategy meant that warehouse managers had to juggle multiple channels to maintain stocks according to the demand. Moreover, they had to fulfill each channel’s unique order processing requirements, resulting in complicated warehouse workflows. Not to mention the complexities of coordinating logistics for different fulfillment methods like home delivery and in-store pickups.

Omnichannel retail fulfillment integrates all channels—online, in-store, and mobile—into one cohesive strategy centered around elevating customer experiences. With this approach, warehouse managers can simultaneously handle inventory and orders from multiple sources.

Key challenges faced by fulfillment warehouses in omnichannel retail

While omnichannel retail represents a significant improvement for warehouse workflows, it comes with its own set of challenges too.

Order processing and fulfillment complexities

With omnichannel fulfillment, warehouse managers have to handle orders from multiple sources. This can lead to difficulties in coordinating workflows, as every channel has different requirements for order packing, picking, and delivery.

Many warehouse managers also struggle with meeting customer expectations for rapid order processing. A sophisticated warehouse management system (WMS) is invaluable for fulfilling all these demands efficiently.

Inventory management across various channels and locations

Omnichannel retail fulfillment requires warehouse managers to maintain accurate stock levels across all retail stores, distribution centers, and online platforms. One mistake can result in stockouts, overstocking, unfulfilled orders, and high inventory costs.

Ensuring timely and accurate deliveries and returns

Customers expect prompt and accurate deliveries from brands. They also demand a quick return process regardless of how and where they purchased the product. 

With omnichannel retail fulfillment, many warehouse managers struggle to optimize delivery routes and schedules from various locations without disrupting their supply chain. This leads to order and return delays and, in many cases, inaccurate fulfillment, causing customer distrust and dissatisfaction.

The role of warehouse management systems in addressing omnichannel challenges

A WMS helps address these challenges in omnichannel fulfillment, offering sophisticated inventory management, logistics, and order processing functionalities. These are just a few of the benefits warehouse managers can expect from a WMS:

• Real-time inventory visibility. A WMS supports real-time inventory management in omnichannel fulfillment. It allows businesses to monitor stock levels, get real-time updates on inventory status, and share the latest inventory information with all stakeholders.
• Automated order processing and fulfillment. An efficient WMS automates order picking, packing, and shipping to boost operations and reduce human error. The platform also supports dynamic slotting strategies to keep high-demand items closer to shipping areas to expedite fulfillment times.
• Accurate and efficient warehouse operations. With features like barcode scanning a WMS offers accurate, precise, and quick inventory tracking within the warehouse.

Logiwa IO’s approach to omnichannel fulfillment

Logiwa IO fulfillment management system (FMS)  offers all the robust inventory management features that empower warehouse managers to handle operations efficiently. These include:

Real-time inventory tracking

Logiwa IO’s WMS allows businesses to continuously monitor their inventory levels across all available channels and locations, giving warehouse managers instant inventory updates and reducing the risks of stockouts and overstocks. 

Integration with multiple sales channels

Logiwa IO provides integration with multiple sales channels to create a comprehensive inventory management network. It’s compatible with ecommerce platforms, robotics tools, shipping carriers, accounting and enterprise resource planning (ERP) systems, electronic data interchange (EDI) partners, and more. 

The most popular integrations include Amazon, Shopify, PayPal, FedEx, UPS, and NetSuite. These integrations ensure end-to-end visibility across all systems, allowing businesses to manage their warehouse operations from a single dashboard. 

Automation of order processing

Logiwa IO implements AI-driven algorithms to automate workflows and order processing, including picking, packing, and shipping. With real-time data, warehouse managers can efficiently route orders to the nearest fulfillment centers, speeding up omnichannel retail fulfillment and ensuring accurate deliveries.

Benefits of implementing a robust WMS in omnichannel retail

A robust WMS offers a variety of benefits in omnichannel retail.

• Improved operational efficiency. A WMS automates key warehouse operations, including order picking, packing, and shipping, as well as inventory management and visibility. This reduces the need for manual labor, meaning swift order fulfillment and fewer chances for error.
• Enhanced customer satisfaction. Operational efficiency and accuracy are connected with customer satisfaction. When a business delivers the right orders at the right time, it will ultimately boost customers’ trust in the brand.
• Scalability. Businesses need solutions that adapt to their evolving needs. A robust WMS supports scalability by allowing warehouse managers to make changes whenever and wherever they want.
• Cost savings. WMS’s automated features eliminate the need for hiring extensive labor for order processing and inventory management. They also reduce order inaccuracies and inventory overstocking for significant savings.

5 best practices for selecting and implementing a WMS for omnichannel operations

Improving warehouse operations with WMS requires more than picking a system and rolling it out. Warehouse management systems for omnichannel retail can simplify inventory operations for businesses, but there a few key steps that warehouse managers should take before jumping in:

1. Assess business needs and challenges. These could include inventory inaccuracies, slow order processing times, or complicated sales channels. Include all key stakeholders in this process to define your pain points and objectives.
2. Compare key features in the WMS. Search for a WMS that fulfills those needs. A quality omnichannel retail fulfillment WMS offers real-time inventory tracking, multi-channel integration, automation capabilities, scalability, and a user-friendly interface to streamline warehouse operations.
3. Develop an implementation plan. After choosing the WMS, assemble a team of stakeholders to create a comprehensive implementation plan. Include timelines, resource allocations, and milestones.
4. Test the system. Before going live with your WMS implementation, conduct thorough platform testing. Assess its functionality in order processing, inventory visibility, and order fulfillment. This will allow you to detect issues before implementing the WMS across the organization.
5. Train your staff. Ensure your staff is well-equipped with the knowledge and skills required to use the WMS. To that end, develop training programs tailored to different roles within the warehouse.

Boost your omnichannel retail fulfillment operations with the right WMS

Omnichannel retail fulfillment allows warehouse managers to meet modern consumer demands. It supports convenient shopping experiences and quick deliveries, allowing businesses to reduce supply chain costs and elevate consumer experiences. However, this strategy comes with challenges, which a robust WMS can solve.

Logiwa IO offers real-time inventory visibility, multi-channel integration, and automated order processing. These features minimize order fulfillment complexities, enhance operational efficiencies, and improve customer satisfaction with timely deliveries. 

Schedule a call with one of our fulfillment experts to discuss how Logiwa IO can make omnichannel retailing easier for your operations.
 

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