Recent Articles
What Omnichannel Means Today
This post covers the elements and challenges of creating an omnichannel environment for retailers according to Sucharita Mulpuru-Kodali, VP & Principal Analyst at Forrester Research. Sucharita shared her thoughts in our recent webinar, “Beyond the Buzz What Omnichannel Really Means.” What Omnichannel Means Today Omnichannel has meant many things to many people over the years as the term has morphed based on new technologies hitting the retail scene. With this ever evolving landscape, what does omnichannel mean and what are the specific elements of omnichannel today? When talking about omnichannel, retailers are mainly focusing on fulfillment of an order or a transaction in the store. The common fulfillment processes include: • Buy online, ship to store • Manage in-store inventory visible online • Buy in-store, ship to customer from store (endless aisle) • Buy online, pick up in store • Ship from store • Reserve online, pickup in store Challenges with Omnichannel Fulfillment The short answer is with legacy systems already in place, getting it all work together is costly and cumbersome. Below are some of the most common challenges
The Importance of API Management
Best practices in Application Programming Interface (API) management can often get overlooked, as retailers and brand focus heavily on fulfillment, personalization, and general ecommerce strategies. In fact, the most basic API security measures go unnoticed the most, according to a recent study. “30 percent of APIs are planned out with no input from the IT security team, and 27 percent of APIs proceed through the development stage without the IT security team weighing in.” Furthermore, 87% of respondents run an API management platform, while 63% use a platform developed in-house. However, basic API security practices were utilized by less than half of respondents. An API provides high-level business-based transaction functions to interface with major areas of an order management system (OMS), including order, customer, stock, and inventory. To efficiently manage an omnichannel sales strategy, below is a checklist of systems also necessary within an OMS. Ecommerce platform for product and order information ERP for product, inventory, warehouse management, and financials Payment for authorization, settlement, fraud, and taxCRM for customer data A good API should be secure, and we work to
Embracing the Ecommerce Purchase Funnel
Managing the retail supply chain from the point of purchase to management and delivery, has reached a point where automation is necessary to provide the maximum inventory turnover rate. As retailers begin to recognize where these processes line up, it becomes easier to understand how the business is affected by even small changes in processes and practices, such as the power of purchasing. Adapting to the Ecommerce Purchase Funnel: The ecommerce purchase funnel is of course a recurring trend in consumer and retailer shopping, and as shopping evolves, an increase in sales and innovation is inevitable. "B2C ecommerce sales in the U.S. totaled 531.8 billion U.S. dollars in 2012 and are expected to grow to 554.81 billion U.S. dollars by 2016." -Statista According to Custora, consumers are spreading out their retail purchasing across channels, which forces retailers to grow their online marketing efforts. Some aspects that have increased ecommerce referrals last year include, paid search, affiliate marketing, and email. Another important piece of the purchase funnel to focus in relation to Dynamic Order Management (DOM) includes organizing shipping methods. “Retailers that can't afford
How to Integrate Data for Optimal Order Management
Retailers are constantly looking for new ways to incorporate data to help expand analytics, and much more. A recent IBM Analytics podcast discusses four ways data analytics will transform the retail industry: From "less is more" to "bring it on" From data mandate to data inform From data reporting to data story-telling From "industry-itis" to embracing the blur As retailers begin to embrace new ways to include data into their efforts, inevitable shifts will come along, such as expansive data information. They speak about how retailers are starting to take a more balance approach to data. As one retail executive shared, "Retail is science and art, and the art comes from people." Retail analytics and order management are no stranger to each other. Incorporating the correct data is essential to properly manage all of your business processes. Errors are most common when businesses fail to implement a way to deliver the right information to the right person, at the right time. Optimize performance by leveraging the power of actionable and timely information. Features to Keep in Mind for Optimal OMS Performance: Customized views based
Activate In-Store Pickup for Dynamic Order Management
As orders from multiple sales channels increase, even a thriving business feels the pressures and frustrations associated with customer service, order and inventory management. In-store pickup is also a constant challenge for retailers struggling to meet customer needs, and according to Forrester Research Inc. analyst Brendan Witcher, this trend is not going away any time soon. “More than half, 53%, of the more than 3,000 online U.S. adults surveyed say they expect notification in two hours or less that orders are ready for pickup.” Nailing In-Store Pickup Report Witcher advises staying away from offering all products for pickup, as some can be too difficult to manage quickly. Products available for pickup should also be labelled as such on product descriptions and/or listing pages. Retailers can keep up with their omnichannel initiatives by implementing the critical areas of improvement for in-store pickup. Enhance customer service: Leverage knowledge from store associates. Fast fulfillment: Make pickup orders readily available at the most appropriate location. Manage returns: Give shoppers the freedom to handle returns at a specific location. Attract new customers: Create larger in-store
Defining the Omnichannel Business Case
Omnichannel investment is squarely aimed at increasing the availability of a wider assortment of products and improving the customer experience through better service. By adding mobile enabled devices in stores to look up inventory across the organization, retailers will have the ability to “save the sale” and create an “endless aisle” scenario. On average, out-of-stock merchandise costs retailers 4.1% in lost revenue. Universal access to inventory data also helps with inventory turnover for locations that are carrying excess SKUs. From a competitive standpoint, access to inventory across channels saves sales lost to the competition, and opens up a higher likelihood of future purchases. Customer service is also heavily impacted by omnichannel initiatives. Allowing customers to buy through any channel and return products to any channel has become table stakes. Omnichannel integration is critical for cross-channel loyalty programs and consistent promotions. It is 10 times more expensive to acquire a customer than retain one, so offering differentiated customer service that provides consistency of the full customer experience is critical. When defining the business case, there are some critical questions you need to ask: Do I