Omnichannel Supply Chain Management Challenges
As effective as omnichannel logistics is at allowing companies to synchronize inventory flow across sales channels, supply chain management presents some challenges:
- Lack of inventory visibility: When product is blowing out the doors (as it often does during the holidays), it’s difficult to track inventory spread across multiple distribution centers and retail locations. If your site promises next-day delivery, it needs an efficient order-fulfillment system and accurate inventory visibility. The right metrics need to be employed to track efficiency and cost effectiveness as product flows through the distribution network.
- Lack of inventory transit visibility: When a shipment leaves a distribution center, the shipper often can’t track its progress from the center to the customer until it ends up at the post office or on the customer’s doorstep. Supply chain visibility is critical. From improving data and communication exchange to using machine learning to improve predictive capabilities, good omnichannel logistics help predict accurate delivery times.
- Disconnected supply chain processes: Like a real chain, every link in the supply chain needs to be connected for the whole string to be strong. When different warehouses and distribution centers operate on different systems, communication breaks down and weakens the chain.
- Inefficient order processing: When promising next-day delivery, it’s critical to deliver on time, which means the order fulfillment process needs to be reliable and efficient. Source: (https://proagrica.com/news/what-can-automated-order-processing-do-for-your-business/)
- The wrong shipping solution: Multiple shipping options deliver products to customers, but they’re not the same. Instead of relying on just one shipping solution, it’s important to use the right one for the right customer.
- Inefficient return logistics: If a business can’t provide easy returns, it is likely to lose future orders. In an omnichannel landscape, customers should be able to return orders bought online to brick-and-mortar stores.
- Manual inventory management processes: Manual paper-based processes tend to be more mistake-prone than automated processes. Instead of risking human error, focusing on automated inventory management solutions—such as RFID tags, barcode scanning and other advanced systems—is required.
- The wrong 3PL: Partnering with the right third-party logistics provider is especially valuable when it comes to inventory optimization and omnichannel fulfillment, so it’s easy to see how using the wrong third party can lead to devastating results. A competent 3PL understands which metrics to use and how to measure them to drive continuous improvement. It can also be an essential part of a successful and smooth-flowing supply chain.
Solutions to Improve the Customer Experience
Good omnichannel supply chain management and logistics are designed to provide consumers with a seamless and positive shopping experience in situations where a company runs both a brick-and-mortar store and an e-commerce distribution center. Partnering with the right 3PL provider and taking advantage of what technology allows in terms of accuracy, speed and convenience plays heavily into obtaining good results and avoiding the challenges listed above.
What is Procurement and Logistics Management?
Learn about procurement and logistics management, how they fit in your supply chain, and why it’s important they work well together.
The Process and Challenges of Reverse Logistics
Effective logistics strategies must factor reverse logistics into account. Learn more about how you can integrate this process into your supply chain.
The Role of Transportation in Supply Chain Management
What’s the role of transportation in supply chain management? Learn about transportation management in your supply chain with this guide from Prologis.