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Home » Digital Transformation Rockstar Blog » 4 benefits of Omnichannel Order Management system

4 benefits of Omnichannel Order Management system

4 benefits of Omnichannel Order Management system

Syah Ismail2018-06-08T16:43:09+08:00
Syah Ismail Blog, NetSuite 0 Comments

One of the key areas of investment for many retailers is in order management system. In fact, these systems are really becoming the centre of the Omnichannel universe, providing a long-term platform for supply chain orchestration, increasing speed and flexibility, and minimising supply chain costs – all of that contributing to improved productivity. For retailers who are yet to invest in this key area, here are four benefits of doing so.

1. Increased customer satisfaction

Using the closest possible fulfilment centers will get packages to customers faster. And by ensuring e-commerce and in-store channels can be utilised for fulfillment, retailers have an easier time solving customers’ problems.

InitiativeSolution
Get packages to customers fasterUse fulfillment locations with closest proximity
Optimise labour forceUtilise in-store labour instead of warehouse labour to fulfill orders
Provide shoppers more options without decreasing utilisationKeep inventory in retail stores while allowing all channels to sell
Reduce labour burdenLess man-hours needed per order
Reduce shipping costsShip less packages over a shorter distance automatically

2. Decreased labour costs

Reducing the amount of time and labour devoted to making sure the business is optimising inventory movement will mean significant savings. Staff members previously devoted to order planning can spend time on more value-added tasks to generate additional revenue instead of routing orders. In addition, in-store staff can handle a greater portion of order fulfillment, reducing the load on warehouse employees and optimising your labour force.

3. Decreased shipping costs

By optimising fulfillment by closest location, items included in an order/available inventory and more, retailers can reduce shipping costs. The order management system will always find the cheapest way to get an order to a customer while still meeting their expectations.

4. Increased sales and margins

Offering shoppers additional delivery options will increase conversions. In-store pick-up, for example, is vital for someone who needs a product right away. Also, safety stock can be dramatically reduced – if not eliminated – with an order management system. Ensuring any order can be fulfilled regardless of channel means safety stock – which can become quite expensive – is no longer necessary. Retailers can keep inventory in retail stores while allowing all channels to sell.

Omnichannel retailing will continue to evolve at a rapid pace for many years. Therefore, retailers must certainly place an imperative on operational agility, and not be continually constrained by the inflexibility of existing systems to move at the pace of the Omnichannel environment. Omnichannel order management systems can solve a series of short-, mid- and long-term challenges by providing value from day one through enabling and automating Omnichannel ordering and fulfillment combination, defining the rules that will manage the business, and improving inventory management across channels. It will provide capabilities in the mid-term as retailers refine their networks and business rules, and provide a platform for maximum agility over the long term.

These are exciting times in retail with a lot at stake. Let us show you how an Omnichannel Order Management system from NetSuite can change the Omnichannel game in your favour. PointStar is the trusted 2 Star partner and a leading NetSuite solution provider in Singapore and South East Asia with many successful implementations ranging from traditional Financial Management deployments to the most complex Platform Development and Integration projects.

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