Modern shops have more than one way to sell or distribute their products because of the rising acceptance of omnichannel shopping. The recent pandemic has tremendously increased the pace of internet shopping in the last couple of years. Customers now have a wide range of purchasing options all the time, both in physical stores and online. Just with a finger touch, they’re purchasing groceries, clothing, prescriptions, furnishings, and almost everything that could sell in a shop. Psychologically speaking, because the customer couldn’t satisfy their craving for seeing the product physical while ordering it online, they feel a lack of patience and a great desire to receive the product as soonest as possible for immediate gratification. Therefore, retailers and eCommerce companies must deliver consumer orders the same day or the next day. Here comes the omnichannel logistics into the picture.
Businesses can customise how their products are purchased and delivered to match the needs of the modern consumer thanks to omnichannel logistics. Customers want to be able to shop for the things they desire both in-person and online, to pay with a swipe of their finger, and to have their order delivered the very next day. Businesses are scrambling to strengthen their supply chains to guarantee cost-effective on-time delivery due to the expectation of quick consumer pleasure, which is why omnichannel logistics plays a crucial role.
Key-Takeaways
- What is Omnichannel logistics?
- Top 6 hardest omnichannel logistics challenges
- Importance of warehouse automation
- Types of warehouse automation
- Top 9 technology trends in warehouse automation
- Conclusion
What do we mean by Omnichannel Logistics?
The word omnichannel was first introduced in 2010 when marketers coined the term to allure customers in buying products through various available channels. In 2013, the word became more popular and when the pandemic hit in 2020, omnichannel shopping became a necessity rather than just a convenience. Similarly, Omnichannel logistics as a phenomenon unifies inventory, distribution, and logistics across all forms of customer interaction, such as in-person, social media, and online shopping portals. All supply chain participants like manufacturers, distributors, retailers, and wholesalers start collaborating to achieve a single goal, making a sale by delivering a wonderful customer experience to achieve seamless omnichannel logistics. The goal is to keep clients moving around the brand ecosystem, with each channel collaborating to foster increased engagement and sales.
Having said that, implementing omnichannel logistics has its share of difficulties, just like any other new phenomenon in logistics. Let’s discuss them with some insights.
The Hardest Omnichannel Logistics Problems
1. Order Fulfilment – The Old School Style
When a brand promises same-day or next-day delivery to consumers, the commitment becomes an indelible mark. Shipping delays brought on by an unreliable order fulfilment services procedure may discourage consumers from doing business with that brand in the future.
If the delivery will take longer than a week, 38% of online customers will cazncel their order. When compared to these figures, 16% of customers will cancel their order if delivery takes 6-7 days, 15% if delivery will take 4-5 days, and just 8% if delivery will take 3 days or less, according to a report. Using the new technology to predict upcoming service or shipping delays is an excellent method to ensure a smooth order fulfilment process.
AWL associates continue to operate complacently, relying on antiquated delivery fulfilment techniques that are prone to manual route planning, delays, and rising overhead expenses. So, when creating omnichannel logistics operations and meet changing client demands, AWL is the leading fulfillment center which takes care of all the behaviours that create issues.
2. Where is the Inventory and In-transit visibility?
Many businesses still rely on manual inventory management techniques. Modern customers' desire for quick gratification drives the demand for omnichannel logistical operations. Consequently, errors, inaccurate inventory availability information, a lack of real-time progress updates, and a delay in order processing happen. These issues undermine the goal of providing clients with immediate gratification and offer significant obstacles to quick or same-day deliveries. So, it is essential to automate the fundamentals of inventory management.
Today, both large corporations and start-ups ask for real-time freight visibility solutions because of limited insight into merchandise in transit. Leading omnichannel logistics solutions companies like AWL India provide visibility into orders and stock-keeping units in addition to shipments. Additionally, AWL India’s systems include collaboration and optimization features that make it easier for trading partners to communicate and share data. To establish leading solutions and provide predictive capabilities have begun to integrate machine learning capabilities and make use of a wider range of data sources, such as traffic, weather, and social networking.
3. It’s A Global Market, And Global Buyers
Markets are established across the globe. What your Hawaiian customer orders online must be shipped to him no matter where in the world. Supply chains are thus spanning geographical boundaries. However, the issue is that these supply chains have been operating in isolation, resulting in several shipment delays. There is no communication between, for example, a Hawaiian delivery tracking platform and a Singapore warehouse management system. The challenge is to build a strong omnichannel logistics ecosystem with such fragmented operations.
With operations in over sixteen hundred cities worldwide, AWL India understands the importance of delivering the consignments to businesses on time so that they can further deliver their products to the end-users. From the moment the order is placed by the consumer until the order is received, the risk of order cancellations runs parallel. Cancellation of the product affects the brand tremendously, not just to its business but to its reputation as well. Therefore, swiftness in logistics is very much required.
4. Choosing the right 3PLs
It's crucial to choose and assign the appropriate parcels, based on dimension, destination, and capacity, to the appropriate partner to guarantee timely delivery of orders. Utilizing a 3PL's capabilities is essential while carrying out fulfilment tasks. These talents include knowing the crucial KPIs that guarantee quicker completion, knowing how to route via a certain area or region, being mindful of compliance, adhering to SLAs, and more. Often, companies must consider rates and avoid investigating new 3PL providers, which may not be the most effective strategy for advancing Omni channel logistics operations.
AWL India’s Omni-channel logistics platforms are enabling multinational corporations to coordinate dispersed supply chain and logistics activities, resulting in greater profits and quicker gratification.
5. Who’s coming to take it back?
Reverse logistics is a little-discussed element of logistics. But because it directly affects consumer loyalty, it is vital in terms of omnichannel logistics. The fact that a consumer was initially dissatisfied with the item is a crucial factor in product returns. A negative return experience will only exacerbate the situation. If an order cannot be returned properly and without incurring additional fees, customers have been known to switch brands. Therefore, a fundamental component of an omnichannel logistics framework is the deployment of digital solutions that streamline and optimise reverse logistics activities.
In 2021, the global market for reverse logistics had a value of US$ 563.2 billion. Looking ahead, IMARC Group projects that the market will grow at a CAGR of 5.80% between 2022 and 2027, reaching US$ 812.6 billion. AWL India believes that the success of the omnichannel approach is dependent on the adoption of a solid reverse logistics system.
6. Bygone Warehouses!
Even today, most businesses and supply chain management companies stick to their orthodox way of managing a warehouse. However, many have understood the importance of automating warehouses using the latest technology. There are two types of automation:
- Digital Automation– Relies on software and electronics
- Physical Automation – Relies on automation equipment
A typical warehouse has annual labour expenditures of more than $3.7 million, according to a 2018 analysis from the U.S. Bureau of Labour Statistics. After 5 years, the numbers have increased. Here are the main benefits of having an automated warehouse.
- Minimum human error
- Less labour requirement
- Improved material handling
- Improved workplace safety
- Better inventory control
- Flawless customer service
And, following are the technology trends used in warehouse automation:
- Warehouse Management System (WMS) – Software created specifically to aid in daily warehouse operations.
- Automated Guided Vehicles (AGV) – AGVs are self-guiding cars with an operator on board that can traverse the entire warehouse.
- Autonomous Mobile Robots (AMR) – AMRs are meant to move independently without an operator on board.
- Collaborative Robots – Also known as Cobots, are robots designed to work in synchronization with human labour.
- Automated Storage & Retrieval Systems – Specially designed systems that store and retrieve cargo in specific locations and follow established routes to get materials automatically.
- Pick-to-light and Put-to-lights systems – They use light devices that help workers to pull order items from storage.
- Predictive Maintenance – It’s used to monitor the equipment to detect possible defects before an actual failure.
- Wearables – Wearable equipment like smart glasses, GPS-tracking bracelets and finger-trigger gloves are used to provide information to guide users on speeding up operations.
- Voice Picking – This is a method for using verbal commands to help labours in fulfilling orders. It’s integrated with WMS.
Conclusion
When a business has both a brick-and-mortar store and an e-commerce distribution centre, good omnichannel supply chain management and logistics are intended to give customers a seamless and satisfying shopping experience. The key to getting good outcomes and avoiding the issues mentioned above is partnering with the right 3PL supplier like AWL India and utilising the precision, speed, and convenience that technology provides, and AWL India has incorporated it into its supply chain management processes and warehouses. The company uses WMS – SWIM, an Omni-channel logistics platform that helps businesses to coordinate dispersed supply chain and logistics activities, resulting in greater profits and quicker gratification. Although implementing an omnichannel logistics and supply chain system may seem difficult, AWL India makes the process run smoothly by planning it around your customers' journeys.
Depreet Singh
Warehouse Manager