Commentary
How strategic warehouse multichannel fulfillment can boost customer experience
Don White, vice president of enterprise solutions at Snapfulfil North America, explains that while multichannel presents new challenges for warehouses used to traditional brick-and-mortar operations, fulfillment teams can overcome these hurdles and thrive by adopting the right technology.
November 13, 2018
By Don White, vice president of enterprise solutions at Snapfulfil North America
There's no doubt consumer buying habits are evolving. PwC's annual consumer habits survey found brick-and-mortar accounted for 44 percent of shopping sessions in 2018, as compared to 42 percent in 2013; in that same period, mobile shopping more than doubled, from 7 percent in 2013 to 17 percent in 2018.
In response, retailers are adopting new channels to meet customers where they're shopping. But how does this change in strategy affect fulfillment?
Multichannel fulfillment offers a great opportunity to re-evaluate warehouse processes. An advanced warehouse management system can help you manage fulfillment rules and efficiencies to meet these changing consumer demands.
For warehouses embarking on the shift to multichannel, it's important to keep the following points in mind:
Demand is rising
Consumers' expectations are increasing on all fronts. Driven by perks that have become standards — for instance, Amazon Prime's free two-day shipping — your customers have little patience for slow delivery, and even less for mistakes. According to PwC's 2018 Global Consumer Insights Survey, 40 percent of consumers are willing to pay extra for same-day delivery; 25 percent said they would pay extra to choose a one to two hour delivery window.
Because direct-to-consumer shipping involves picking single items rather than pallets, the chance for error is greater — and a disorganized fulfillment center will slow down pickers. A robust warehouse management system can help you maintain product location and order information, ensuring you have access to the right data during pick, pack and ship.
By reducing miscommunication at your packing stations, you'll move products out of the warehouse quicker and reduce the chance of error. And since fewer mistakes means fewer returns — you'll alleviate pressure on your reverse logistics function, freeing your team to focus on more profitable processes.
Visibility is key
The warehouse's role in multichannel fulfillment isn't restricted to pick, pack and ship. Your warehouse team is also responsible for powering a better shopping experience in store and online. According to a recent Gartner L2 study, nearly 58 percent of consumers say it is important for inventory status to be visible online while shopping. Deeper visibility into product availability is no longer a bonus — it's a necessity.
Your systems must work together to keep up with demands and deliver accurate information through every channel — this means your website, mobile app and in-store offerings need to have visibility into your warehouse stock anytime, anywhere. By adopting technology that integrates your warehouse data with eCommerce and point-of-sale systems, you can provide accurate information to update inventory and create a seamless customer experience, no matter the channel.
Opportunities, not roadblocks
Companies will succeed in multichannel fulfillment by recognizing the warehouse's role in digital transformation and investing in streamlined operations.
Though multichannel presents a host of new challenges for warehouses used to traditional brick-and-mortar operations, fulfillment teams can overcome these hurdles and thrive by adopting the right technology that organizes changing rules and powers a superior customer experience. As new retail channels launch each day, it's clear that multichannel fulfillment is here to stay.
