Complete guide to multichannel order management
Today, retailers need to be wherever their customers prefer to shop, and according to Harvard Business Review, 73% of all customers use multiple channels. In-app, on social sites, via messaging platforms, through marketplaces. The list goes on and the opportunities for multichannel selling are endless for retailers and, consequently, Third-Party logistics providers (3PLs).
However, multichannel selling can be complex and comes with risk. Thankfully, multichannel order management can take away the overwhelm and give you back control.
In this article, we’ll explore how a multichannel order management system integrates into daily operations, the opportunities it creates and why it’s essential for sustainable growth.
- What is multichannel order management?
- Challenges of multichannel order management
- What is a multichannel order management system?
- Why do you need a multichannel order management system?
- Key features of a multichannel order management system
- Take control with multichannel order management software
- Multichannel order management FAQs
What is multichannel order management?
Multichannel order management is an approach used by B2B and B2C retailers large and small, as well as 3PLs (or fulfilment partners) to handle orders and keep track of inventory across various sales channels.
Order processing, fulfilment, shipping and inventory data is brought together, allowing teams to manage every part of the sales process from a single point. That means no more logging into multiple platforms and a unified view of order activity, inventory and business-critical data.
What’s the difference between multichannel and omnichannel?
Much like multichannel, businesses adopting an omnichannel selling strategy sell through several channels, including the brand’s website, Instagram Shopping, multiple apps and marketplaces, and in-store. These channels are integrated and customer interactions are connected.
Here’s how omnichannel works: A customer begins their journey on the retailer’s website, adding an item to their cart. They leave without checking out and later visit the seller’s mobile app, where the item sits in the cart. The customer checks out in the app and confirms collection in-store. All channels are treated as one, making it seamless, consistent and personalised at every touchpoint.
In contrast, with a multichannel strategy, each channel operates independently.
Here’s how multichannel works: A customer visits a physical store to try a pair of shoes they saw on the retailer’s Instagram shop. The shoes are out of stock in their size, but the store can’t search for the shoes in another location. The customer finally purchases them via the seller’s website but isn’t able to use the discount code because it only works in-store.
Both are sound strategies for growth, utilising multiple channels to reach and engage customers. The key difference is area of focus: Omnichannel is designed for a seamless customer experience, while multichannel emphasises product reach.
Challenges of multichannel order management
Limited visibility of inventory across platforms
Managing stock across multiple channels and separate inventory pools is a challenge. Aside from being labour-intensive and time-consuming, getting the stock balance right can be almost impossible.
Disjointed systems put businesses on the back foot with little control, leading to overselling on one channel, stockouts on another and lost custom across the business. Order delays, cancellations and negative reviews can cause long-lasting damage to your reputation.
While fragmented inventory tracking means relying on some guesswork when it comes to forecasting. The risk? Stock sitting in your online warehouse when your High Street store has sold out.
The right stock in the right place at the right time is critical to maximise revenue, keep cash flowing and deliver the best customer experience possible.
Manually managing multiple platforms
Checking in on a couple of sales channels regularly to retrieve orders is a small price to pay for the increased reach. However, as soon as a business scales and platforms increase, not only does it become much more time-consuming, but it adds layers of complexity.
Different processes, workflows and rules across each channel demand orders to be processed separately per platform, putting extra pressure on finances and the workforce. For those retailers and 3PLs relying on manual data management, errors become more likely, processing is less efficient and customer satisfaction takes a dive.
Inconsistent customer experience
The risk to customer service is magnified the more channels a business sells through without a multichannel order management system. From running out of stock to despatching the wrong product, inconsistent shipping costs, varying delivery times, and different returns and refund policies across platforms - they leave customers with a less than positive experience.
Without visibility across all channels, customer support teams can struggle to resolve issues quickly. While a lack of centralised customer data means opportunities for personalisation are missed in an era where we expect our favourite brands to know our preferences. It also puts cross-selling and upselling out of reach for retailers.
Disjointed data and missing insights
Data is the engine room of any business, and multichannel selling puts a wealth of information at your fingertips. Customer data, sales metrics and inventory levels – all highly valuable insights with the power to drive profitability and growth. However, analysis becomes overwhelming and less than reliable when compiling data from disjointed platforms.
Getting a handle on real-time stock levels, monetary value and stock turn is complicated and messy, with information scattered across systems. Siloed data makes insights such as top-selling items, most profitable products and purchasing patterns unreliable.
While the lack of a unified view across key metrics leaves businesses without the whole picture when it comes to sales performance, customer behaviour and changing shopping trends.
What is a multichannel order management system?
A multichannel order management system, also known as OMS, automates and simplifies the order fulfilment process across multiple channels. The software centralises and streamlines every aspect, from order processing and shipping to inventory tracking and performance reporting.
OMS replaces labour-intensive tasks, eliminates stock issues and provides a real-time view of activity across all your sales platforms, helping you deliver on time, every time, across every channel.
Why do you need a multichannel order management system?
Efficient inventory management
A unified, real-time view of stock levels across all your sales platforms and distribution centres makes lightwork of inventory tracking, allocation and forecasting. By tightening up your inventory control, you prevent errors, increase warehouse efficiency and ensure the right products are available when and where needed. In short, it puts you back in control.
Accurate order fulfilment
Delays and mistakes can be common when you’re balancing orders across multiple systems. An OMS simplifies order management by consolidating orders from every channel and replacing manual management with automation. Fulfilment is faster, errors are fewer and flexible options allow you to fulfil and ship orders in the quickest, most cost-effective way.
Real-time, data-driven decision making
A single source of information and 360-degree performance insights help retailers and 3PLs optimise operations across the entire business.
Real-time insight and automated KPI reporting allow teams to spot bestselling products by platform, customer buying patterns by channel, workflow bottlenecks, supply chain performance and more.
An OMS helps businesses optimise their products, pricing, staffing and supplier strategies so every part of the process runs more efficiently and cost-effectively.
Enhanced customer experience
Exceptional customer service is paramount to success in the ever-competitive world of retail, and an OMS holds the key to a consistently positive experience across all channels.
From data-led personalisation for a smoother purchasing experience to speedy processing, on-time delivery and always accurate orders made possible with automation.
Integration and synchronisation make sure customers can rely on up-to-date stock counts, real-time shipping status and seamless returns or exchanges - and if something isn’t right, customer services can access all they need to resolve issues quickly.
Key features of a multichannel order management system
Centralised order management
Orders and sales data from multiple channels are brought together into a single dashboard. From order processing and fulfilment to real-time sales, stock and returns data, everything in one place removes the need for juggling platforms and makes sure nothing is missed.
Real-time order tracking
Products can be tracked throughout the entire order management lifecycle, allowing teams to spot issues early and manage customer expectations. While customers can see where their order is every step of the way.
Multi-location inventory management
Real-time syncing across all locations and channels makes light work of keeping on top of your inventory. Live stock updates all in one place provide complete oversight to avoid overselling, minimise stockouts and allow more accurate demand planning and forecasting.
Optimised fulfilment
Intelligent shipping rules route orders to warehouses or fulfilment centres based on bespoke criteria such as proximity to customer or stock levels. With the option to integrate carriers and shipping partners, the entire process is seamless, speeding up delivery times, saving on shipping costs and creating a customer experience that exceeds expectations.
Automated workflows
Automating workflows removes routine tasks and labour-intensive processes to free up time in your team. An OMS allows you to automate just a few or most steps within your order management and allows for different rules across your platforms.
Centralised data
Data is pulled from every platform to give you a single source of truth. Automated reporting and analytics tools provide key performance metrics and business-critical insight so you can make more informed decisions based on the most up-to-date data.
Take control with multichannel order management software
Choosing your multichannel order management software can be a minefield. However, being armed with the information outlined here should make it easier to understand which OMS includes the right features for your business.
Take Access Mintsoft multichannel order management software, for example. It’s built for 3PLs and e-commerce brands, whether you’re ready to scale or starting to struggle manually managing multiple channels.
Wherever you are in your journey, Mintsoft OMS streamlines your order, warehouse and inventory management processes to save you time and money, reduce errors and improve customer experience.
From centralising all your sales channels and order activity to automating picking, packing, shipping and tracking, the cloud-based software simplifies the most complex workflows across multiple platforms.
Intelligent tools remove the need for manual multi-warehouse management, put you in complete control of inventory across all channels and integrate business-wide systems, allowing data-rich reporting and at-a-glance KPI tracking across your operations.
CTA: Ready to save time and money, reduce errors and improve customer experience in your business? Book a demo today.
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Multichannel order management FAQs
Who uses a multichannel order management system?
- Retailers selling through multiple channels
- Third-Party logistics providers supplying fulfilment services to multichannel or omnichannel customers
- Manufacturers with multiple sales platforms
Why is multichannel order management important?
The more ways you sell, the more complex order management becomes. Disjointed sales channels drain costly time and resources. Manual management of fragmented platforms with multiple processes often leads to errors, stock issues and fulfilment delays, putting the brand’s reputation at stake. An OMS is crucial to remain competitive and grow sustainably.
What makes a good multichannel order management system?
- A good OMS connects all your channels seamlessly and integrates suppliers such as couriers without the need for third-party management software.
- Centralised order processing from retrieval to fulfilment is crucial.
- Real-time inventory tracking and management across all stock locations is a must.
- With several channels comes multiple, time-consuming and complex workflows, making automation essential.
- Finally, smart decisions depend on the right data at the right time, putting real-time, cross-channel reporting and insight at the top of the priority list for any OMS.
How does a multichannel order management system work?
An OMS manages the entire lifecycle of hundreds and thousands of orders from multiple sales channels. It works by connecting all your sales channels and automating order processing from accepting the order to picking and packing, shipping and tracking. It links multiple warehouses to streamline operations and centralises inventory data and stock management.