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As consumers’ shopping demands shift and market trends evolve, retailers must scale their omnichannel operations to meet these needs. One key strategy is ensuring inventory management remains a top priority. Effective inventory management provides retailers with valuable customer data and helps mitigate supply chain challenges in a global marketplace.

Mark Engebretson, Global Operations Lead at Faherty Brand, shared several takeaways related to this from his 40-year-plus retail career during an Endless Aisle podcast conversation with Marcus LaRobardiere, NewStore’s Vice President of Marketing. Mark and Marcus discussed why inventory management is important for omnichannel success and how approaching retail with a solution-first mindset yields better results than chasing trends.

Read on for more key insights from Marcus and Mark’s discussion, and click here to listen to the full podcast episode.

Inventory Management’s Pivotal Role in Retail Success

Mark emphasized that retailers should prioritize inventory management and omnichannel capabilities. This allows them to meet consumers wherever – and however – they prefer to shop.

“Your inventory is probably your greatest asset outside of your people,” Mark said. “Managing inventories [is] going to be critical. An omni world is also critical, and folks that aren’t in that yet are going to struggle.

“You have to be lean in your purchasing – and smart. You have to be reactive. And you have to enable tools that will move product where you need it to be, as quickly and as efficiently as possible.”

Better inventory management leads to more inventory visibility. This refers to retailers’ ability to track and manage products’ movement through the supply chain – all in real time. Inventory visibility also gives retailers more accurate data on sales, inventory stock levels, and consumer demand for products.

As a result, brands can make more informed decisions about products they want to stock and better forecast demand for certain items. Additionally, they can mitigate potential challenges around buying too much or too little stock from manufacturers.

Avoiding Supply Chain Challenges

Developing a strong supply chain should be of utmost concern to retailers, especially since omnichannel fulfillment helps them reach customers worldwide. According to PricewaterhouseCoopers’ 2023 Digital Trends in Supply Chain Survey, many executives are prioritizing near-term supply chain priorities instead of focusing on actions that can yield long-term value. Additionally, only about 33% of executives claim that increasing resilience remains a top priority as they invest in supply chain technology.

“The supply chain itself, as you think of it from end to end, is doing a lot of expanding and contracting,” Mark said. “The problem is the pieces that make up that supply chain – whether it be inbound, raw materials, factory manufacturing, shipping warehouse operations, allocations, shipping, and third mile – all of those are expanding and contracting at different rates.

“So what you constantly have is stuff banging up against each other. And it’s one of the reasons that people are sitting with a ton of inventory – that expansion and contraction happened at different paces. All of that multiple expansion and contraction [is] going to take a while to finally settle down.”

One way in which retailers can increase visibility into their supply chain is by investing in the right inventory management technology. This will enable them to keep track of serialized inventory, simplify product transfers, and seamlessly receive new items – therefore giving staff more time to spend with customers.

Focusing on Solutions Versus Trends

Mark also noted that brands should focus on chasing solutions rather than trends. Retailers should not assume a one-size-fits-all approach for the technologies they choose to integrate into their systems. Instead, they should prioritize the business’s needs when searching for the best technology vendor.

“I’m not trend driven,” Mark said. “I’m problem-solution driven. In terms of our business, I try to run a race backwards. I always go to the finish line first and then run it backwards and figure out what I need to do to get to the finish line.

“So I’m constantly trying to see what we need next and then how we want to solve it. If it turns out that the new technology that’s out there solves it, great. But particularly right now, we need to be focused on our needs and not distracted by the new shiny toy.”

How Inventory Management Drives Better Omnichannel Strategies

Brands seeking to make a bigger impact within today’s competitive retail marketplace must prioritize developing robust omnichannel strategies. Inventory management plays a critical role in driving omnichannel success, as it enables retailers to evaluate and optimize their current systems and processes.

It also helps retailers bridge the gap between their digital and physical shopping experiences. They can leverage inventory visibility to offer real-time product availability across channels, let customers engage in mixed cart transactions, and allow shoppers to use a variety of fulfillment methods, like buy online pick-up in store (BOPIS).

Ultimately, maintaining real-time views into inventory and related data results in better experiences for retail staff and consumers. If brands invest in the right technology to power their inventory management needs, their chances at omnichannel success will significantly rise.

To learn more about how your business can maximize its inventory management capabilities, speak with one of our experts today.

The post Faherty Brand on Why Inventory Management is Key to Omnichannel Success appeared first on NewStore.

Inventory accuracy is one the biggest challenges for retail brands today.

Many brands are having trouble getting it right because most inventory management systems haven’t evolved for modern retail. But it’s imperative to develop a system to properly manage it. Poor inventory management not only negatively impacts revenue but also your customers’ experience.

This article highlights how to calculate inventory accuracy, the benefits of making inventory accuracy a priority, and steps you can take to improve inventory accuracy so that your retail brand can operate efficiently and meet customer expectations.

Table of Contents:

• What Is Inventory Accuracy?
• Importance of Inventory Accuracy
• How to Calculate Inventory Accuracy
• Additional Benefits of Inventory Accuracy
• How to Improve Inventory Accuracy

What Is Inventory Accuracy?

Inventory accuracy measures the disparity or inconsistency between physical and recorded inventory and is an integral part of inventory management.

Your customers expect your products to be available if you say they are. If you can’t connect your customers to what they want, when they want it, you risk losing their loyalty and repeat business. On the other hand, poor inventory management can result in wasted resources. You don’t want to have more product in stock than is likely to sell through.

To drive customer service and improve your bottom line, you’ll want to achieve inventory accuracy.

Importance of Inventory Accuracy

Inventory accuracy is crucial for ensuring customer satisfaction by enabling timely and error-free order fulfillment, which directly impacts the customer experience. It plays a pivotal role in cost control and operational efficiency, preventing overstock and stockouts, optimizing inventory levels, and streamlining warehouse operations. Additionally, accurate inventory data supports financial accuracy, allows for data-driven decision-making, and helps prevent losses.

Customer satisfaction and order fulfillment

Accurate inventory ensures that customer orders can be fulfilled promptly and accurately, meeting customer expectations and enhancing satisfaction. It also reduces the likelihood of errors in picking, packing, and shipping, contributing to a positive customer experience. Timely order fulfillment contributes to customer loyalty, fostering long-term relationships and positive reviews.

Operational efficiency and costs

With accurate inventory data retail brands can prevent overstocking and stockouts. It also allows brands to optimize warehousing and handling costs by aligning storage needs with actual demand. This streamlined approach improves overall operational efficiency, reducing excess expenditures associated with surplus inventory and inefficient logistics.

Forecasting 

Accurate inventory information provides a foundation for data-driven decision-making, supporting strategic choices related to purchasing, production, and sales strategies.

Loss prevention

Accurate inventory tracking helps identify discrepancies caused by theft, damage, or other forms of shrinkage, aiding in the prevention of losses. Early detection of these issues allows businesses to implement security measures and safeguards, reducing financial losses and maintaining the integrity of the supply chain.

How to Calculate Inventory Accuracy

To calculate inventory accuracy, you need to first get an accurate count of what you have in stock. Next, you can do inventory reconciliation and compare the physical inventory count with the record of inventory on hand.

If your retail brand has many SKUs, a high quantity of items, and inventory in many locations, you’ll likely want to use a sample to calculate inventory accuracy.

Inventory accuracy is shown as a percentage. You’ll divide the number of counted items that are completely accurate by the total number of inventory items counted, and then multiply this number by 100. Inventory is considered correct when both the quantity and location match what’s on record.

A good inventory accuracy rate is 97% or higher, but of course 100% is ideal.

Additional Benefits of Inventory Accuracy 

As we’ve discussed, achieving inventory accuracy is vital for success. Making inventory accuracy a priority will greatly benefit your brand. We highlight these key benefits below.

1. Elevated store experience

The store of the future will be all about the experience. With accurate inventory, you can reduce friction during processes like returns and exchanges, while increasing the store’s overall utility.

Gone are the days of massive stores stocked with goods from wall to wall. How? Well, by making your inventory available to sell across your network of stores, warehouses, and distribution centers. Now, you can have smaller stores with less inventory and more experiential draws, such as in-store workshops, lounge areas, or influencer meet and greets.

At the end of the day, you want to create as many opportunities for positive engagement as possible between your store associates and customers, and your customers and brand. 

2. Improved event response time

Real-time inventory data allows for an immediate response to dynamic events in your supply chain such as a sudden increase in demand in one location. Having an accurate picture of inventory means you can quickly transfer items to satisfy the demand. Your frontline team can shore up the sale instead of turning away customers.

3. Greater planning ability 

Inventory visibility is also strategic for proper forecasting and planning. It’s imperative you have a keen understanding of what is really happening to your inventory over a specific period of time. This will allow you to carefully calculate the inventory needed to fulfill future orders, while also zooming in on customer buying behaviors, trends, and patterns. 

4. Boosted resource efficiency

With the real-time synchronization of all inventory data, manual tasks like cycle counting and receiving become a fully automated, even ongoing process. Additionally, for your fulfillment associates, it prevents mispicks and reduces the chance of shortages. These efforts all become even more efficient from a mobile device. 

5. Enhanced employee empowerment

Less cumbersome processes mean more time for personalized service. Your associates will be back on the store floor instead of checking the stock room or calling another store for an item check. Being shoulder to shoulder ensures your employees build unique and profitable relationships with every customer.

6. Increased store health

Better inventory visibility = more inventory sell-through = higher GMV. (That’s the North Star metric in retail). One study found 60% of retailers surveyed had inaccurate inventory; however, when corrected their sales jumped 6%. We can believe it––inventory accuracy is the backbone of modern retail.

How to Improve Inventory Accuracy

There’s no denying that achieving inventory accuracy is hard. It takes a well-defined process, training, diligence and the right software. Fortunately, there are steps you can take to improve inventory accuracy. We cover them below.

Omnichannel order management

When a retail IT stack is made up of legacy point solutions––for e-commerce, warehouse management, transportation, etc.––there is no data integrity. The systems don’t communicate and aren’t connected, which quite simply doesn’t allow for a single view of stock.

When you lack real-time inventory data, you’re forced to use safety stock to make your omnichannel solutions work. This means buying and carrying more inventory than you need. But what happens when you overbuy in the wrong place? The product gets marked down and you lose out on the full-price sale. 

An omnichannel order management system connects inventory, customer, and order information in a single, unified platform. It also provides a singular view of enterprise-wide inventory which you can use to determine if a product is available to sell.

If you want to achieve inventory accuracy, your retail brand needs a flexible order management system.

RFID technology 

Another way to tackle inventory management is with radio-frequency identification (RFID) technology. RFID is no longer a sexy option out of your reach; as costs decrease, its adoption is skyrocketing. In 2014, only 34% of North American retailers had implemented RFID. Today, 93% of retailers say they’re either piloting the tech or have fully adopted it into their business.

Why the sudden spike in adoption? The lower barrier of installation is one, but also Accenture found RFID can increase inventory accuracy from 70% to over 95%. If inventory has been an Achilles heel in your quest to omnichannel success, this is a solution worth implementing. It can also help in other business areas, including preventing theft and tracking how product moves about your store. 

Well-labeled items

A general rule of thumb is to avoid handwritten labels on inventory items. This is because they are prone to error and hard to read—thereby resulting in mislabeled goods that are hard to track, negatively impacting inventory accuracy.

The best way to pull off inventory labeling is to use printed labels containing the bar or QR codes of the individual inventory item. Barcodes should integrate with automated systems.

Cycle counting

Cycle counting is an inventory auditing procedure. It uses a sampling technique that allows businesses to count a subset of inventory in a number of areas.

Although brands don’t have to count their entire inventory, it serves a useful purpose by establishing a regular system of checks and balances. Cycle counting, therefore, allows businesses to verify that their physical inventory counts match their inventory records.

Cycle counting helps brands quickly identify problem areas in their inventory. But to improve inventory accuracy, retail brands must ensure they have a comprehensive cycle counting program that’s been integrated into daily operations. 

Inventory storage

Improving inventory accuracy often comes down to having ample space to store inventory items. Brands can lose money due to ineffective storage methods that waste time and increase labor costs. This could also impact customer retention, especially if there’s lost inventory and customer orders aren’t fulfilled on time.

Organizing a warehouse effectively entails categorizing inventory appropriately for easy access. You can also professionally store inventory. Though you’ll incur more overhead costs, professional storage companies have the technology and knowledge necessary for inventory accuracy.

Turning your own stores into fulfillment centers can also help resolve storage issues and improve efficiency.

Approach Inventory Accuracy the Right Way

To satisfy customers, retail brands need to maintain accurate and effective levels of inventory. To achieve this, most will need a trustworthy partner by their side.

As an Omnichannel-as-a-Service platform, NewStore has a track record of successfully handling complex inventory management.

Learn how your brand can take inventory management to the next level.

The post Guide to Inventory Accuracy: How to Calculate and Improve It appeared first on NewStore.

What is Sell-Through Rate and How Do You Calculate It?

Sell-through rate refers to the amount of inventory a brand sells relative to the number of products bought from the manufacturer. To calculate their sell-through rate, retailers should divide the number of products sold by the number of products purchased from the manufacturer. Then, they should multiply that number by one hundred. That percentage is their sell-through rate.

Many retailers calculate sell-through rates on a monthly basis to ensure they stay on track to hit sales goals. This then provides companies with multiple benchmarks to review at the end of the year, which they can use to determine whether sell-through rates fluctuate at certain times.

Retailers seeking a strong sell-through rate should aim for 80% or above. However, according to a study conducted by Coresight Research, non-grocery retailers typically hover around a 60% sell-through rate for full-price products. 

Retailers with favorable sell-through rates can treat those as indication that their sales performance is strong. Those with lower rates may want to review their marketing tactics and inventory management to understand where they can make changes.

The ranges for sell-through rates can fluctuate based on market trends and seasonal products. For instance, if customer demand for a certain type of item is extremely high due to a specific trend, or shoppers clamor to buy particular products during the holiday season, those factors can drive up the brand’s sell-through rate.

Read below to discover the effects of a favorable sell-through rate and several ways retailers can increase their rates.

Why Sell-Through Rate Matters

Sell-through rates help brands balance supply and demand. For example, brands that purchase too many products from manufacturers will have lots of leftover stock. This will then eat into their profit margins and increase storage fees. 

On the flip side, brands that purchase too few products will not meet shoppers’ demands and may end up losing them to a competitor. Retailers that effectively monitor their sell-through rates will stand a much better chance at ensuring their longevity. 

The effects of a strong sell-through rate also include:

• Reducing markdown losses: Retailers typically mark down items that are not selling well. However, they will have fewer products sold via price reductions if they order the right amount of inventory for customers.
• Cutting storage costs: Maintaining stock in brick-and-mortar locations is expensive, and retailers do not want excess inventory collecting space where new products can live. By achieving a favorable sell-through rate, brands can ensure they use their physical retail space efficiently.
• Better inventory management: Inventory management is critical for any retailer with omnichannel shopping options. Examining the sell-through rate helps retailers determine which products are selling well and which aren’t. The findings will help inform stocking needs and may also forecast future trends.
• Developing metrics for success: Retailers can aim to surpass their sales targets by measuring their sell-through rate. To achieve a strong rate, retailers will need to order items in a more strategic manner. They may also swap manufacturers and tweak their inventory to strive for a better rate.

3 Strategic Ways to Improve Sell-Through Rates

Brands can leverage several strategies to boost their sell-through rates while optimizing omnichannel experiences for customers.

Enable Endless Aisle Shopping

Endless aisle technology lets store associates access and sell inventory from a variety of distribution centers and locations. It also offers insight into real-time inventory so they can view the full product catalog across the enterprise.

With endless aisle, store associates can help customers make purchases if their desired items aren’t available in a particular location. For instance, if a shopper wants to buy a shirt not available at their nearest store, an associate can leverage endless aisle technology to check if a nearby distribution center or store location carries the item. If the item is available in another location, the store associate can complete the sale on the spot and ship the item directly to the customer. 

As a result, the retailer will never lose a sale and will always meet the customer’s demand.

Endless aisle also ensures that retailers fulfill orders from all locations carrying their stock. This then frees up additional storage space.

Leverage Store Fulfillment Options

Retailers seeking to move inventory from brick-and-mortar stores can offer customers a variety of store fulfillment options. Store fulfillment allows retailers to complete and ship orders from their physical locations. Customers can then retrieve their orders by choosing from buy online pickup in-store (BOPIS), curbside pickup, or ship-from-store options. Store fulfillment provides more convenience to customers, especially those who need their orders in a quick time frame.

Instead of routing orders to a warehouse or distribution center, brands can sell the products in their brick-and-mortar stores first. As a result, this clears more space for new inventory. In-store shoppers may then spot that new inventory during a visit and make a purchase – therefore increasing the sell-through rate.

Offer Retail Promotions

Brands can also achieve a better sell-through rate by effectively leveraging retail promotions. Certain types of tactics, like percentage discounts, enable them to move inventory that’s not selling well by advertising a percentage off a certain item or an order threshold. Percentage discounts may also fuel sales from inactive shoppers, motivating them to make impromptu purchases due to the limited-time deal.

Retailers with excess inventory that need to sell more units can use tactics such as tiered promotions, buy one get one (BOGO) deals, and other bundling opportunities. These all encourage shoppers to purchase more products in one transaction and are especially useful for selling complementary products – such as socks and shoes – or items with expiration dates or shorter shelf lives.

How Inventory Visibility Impacts Sell-Through Rates

Retailers must maintain up-to-date supply chain information so they can attain a favorable sell-through rate. Inventory visibility refers to the practice of tracking the movement of inventory throughout the sales cycle in real time.

This gives retailers important data on sales, stock levels, and product demand. The data then enables them to make more informed choices related to inventory management. Some of these decisions may include forecasting demand for certain items and avoiding overselling or underselling inventory.

Additionally, inventory visibility can empower store associates to cross-sell or upsell various products. Store associates can also leverage the visibility to drive purchases of current inventory before the retailer buys additional items from manufacturers.

To improve their sell-through rates, brands can invest in solutions like omnichannel order management systems and RFID technology. 

An omnichannel order management system captures all customer, inventory, and order data in one platform. It also lets retailers engage in more efficient operations by managing all inventory across the enterprise. They can enable item-level order routing based on availability, location, and fulfillment capacity.

Meanwhile, RFID technology allows brands to track inventory from initial shipment to point of purchase via wireless communication. This ensures a high level of inventory accuracy and supply chain visibility, as they can access real-time data on sales and stock levels at any time and from any location.

Why Sell-Through Rate is an Important Metric

Ultimately, setting – and then exceeding – sales goals is key to any retailer’s success. Sell-through rates help brands identify their supply chain’s effectiveness. They also assist brands with standing out in a competitive marketplace. 

A favorable sell-through rate indicates that a brand is accurately purchasing top-selling products from manufacturers. A low sell-through rate demonstrates that brands may need to dig into why their inventory is moving slowly.

The good news is that lower sell-through rates are fixable – if retailers are willing to invest in solutions like inventory visibility and omnichannel order management. These solutions will support faster inventory turnover, which will subsequently enhance retailers’ bottom lines.

Interested in learning how your business can improve its sell-through rate? Speak with one of our experts today.

The post How Retailers Can Maximize Their Sell-Through Rate appeared first on NewStore.

In today’s digital era, many aspects of retail are going contactless – from payments to inventory tracking. One technology that’s powering the ability to visualize inventory across its shipping and purchase life cycles is RFID. Thanks to RFID solutions, retailers can transform the way they approach their inventory management. This allows for more product visibility, streamlined operations, and additional contactless payment options.

RFID technology also provides benefits to consumers and removes friction from the in-store shopping experience. It enables shoppers to quickly scan products and check out via mobile point-of-sale (POS) solutions. Ultimately, the benefits of RFID technology in retail have made it a vital asset to brands. It especially aids retailers that want real-time data to gain better insights on their products and their consumers’ shopping habits.

What is RFID?

RFID stands for radio frequency identification. It’s a form of technology that enables retailers to track items from initial shipment to point of purchase. RFID technology encompasses four major components: RFID tags, receiving antenna, RFID readers, and software.

The RFID system uses wireless communication and electromagnetic coupling to assign a unique identifier to an item. These unique identifiers become RFID tags that brands can link to specific products. RFID technology has started to eclipse the popularity of barcodes, as it offers real-time data updates and the ability to identify items not in direct view. 

Kris Barton, Senior Director of Market Development – RFID at Avery Dennison, recently sat down for an Endless Aisle podcast to discuss the rapid adoption of RFID technology in the retail industry.

“What RFID does is allow you to collect a lot of data in a very precise fashion in a very fast period of time,” said Kris. “When I think about a typical retail environment, the inventory is going to be about 65 to 70% accurate. The ability to collect this data and make better decisions is what really is driving RFID across the board.”

For more insights on the benefits of RFID in retail, listen to the full podcast and read on below.

“When I think about a typical retail environment, the inventory is going to be about 65 to 70% accurate. The ability to collect this data and make better decisions is what really is driving RFID across the board.”

Kris Barton, Senior Director of Market Development – RFID at Avery Dennison

Top 4 Benefits of RFID Technology in Retail

RFID technology offers many benefits to retailers, with the following notably streamlining experiences for store associates as well as shoppers.

1. Achieve High Levels of Inventory Accuracy and Supply Chain Visibility

Inventory management is crucial to both retailers and consumers. It allows brands to view real-time information on sales, stock levels, and consumer demand for specific products. This then lets retailers make more informed choices about which products to stock, reducing out-of-stock situations and minimizing overstocking.

Meanwhile, real-time supply chain visibility allows consumers to browse up-to-date products online or via mobile. They may then choose from a variety of fulfillment options at the point of purchase, such as buy online pick up in-store (BOPIS), same-day delivery, and ship-to-home. RFID solutions also offer a faster returns process, which saves consumers time.

2. Enable Omnichannel Fulfillment

RFID technology’s real-time tracking analytics offer numerous ways to streamline retail operations and fulfillment. The ability to quickly locate products via tags enables store associates to order more inventory as needed. They can also quickly find customer-requested items in the store.

If the customer’s desired items aren’t available in a particular location, associates can check nearby stores’ stock. This omnichannel approach to fulfillment helps staff ensure that customers can receive the items they need.

3. Improve Loss Prevention and Product Management

Another benefit of RFID technology in retail is its ability to support better inventory management across many sectors. For example, RFID tags can monitor certain product temperatures and alert if moisture compromises storage conditions. They can protect luxury goods by including product authentication information as well.

RFID technology also helps manage smaller products, including beauty items. It can monitor the number of items left on shelves to ensure that shelves always remain stocked, displaying all available options to shoppers.

Additionally, RFID systems offer discreet anti-theft solutions. If an individual attempts to leave a store with a stolen product, that product’s RFID tag will transmit a wave to the nearest receiver and alert the staff. This results in greater loss prevention.

4. Enhance the Customer Experience

RFID technology can serve as a shopping companion for customers, especially when used in smart fitting rooms. Retailers that offer RFID-enabled fitting room experiences enable shoppers to walk inside with their items and access personalized information about other available product styles and colors, as well as styling suggestions. This can also be an optimal way for brands to upsell other products and services. 

While consumers enjoy a completely customized shopping experience, brands will also gain important data. This can include data around shopping habits, such as conversion rates for items brought into fitting rooms and information on which products garner the most interest.

Another common use of RFID technology in retail is for line busting in stores. This occurs by supporting seamless and faster checkout experiences. Line busting is when store associates leverage mobile technology to help customers quickly move through lines at brick-and-mortar retail locations.

Mobile point-of-sale (POS) systems or self-service kiosks with RFID technology can scan products and let customers check out from anywhere in the store – without encountering long lines. Shoppers can also use contactless payments to make purchases, which results in a much more convenient experience. Solutions like Tap to Pay on iPhone capture payments via platforms including Apple Pay, physical credit cards, store gift cards, and more. Ultimately, contactless payments help drive more sales, especially during peak shopping periods.

How RFID Technology is Powering Omnichannel Retailing

The many benefits of RFID technology in retail underscore why it’s a staple in the commerce ecosystem. As brands consider strategies to enhance in-store experiences for sales associates and shoppers, investing in RFID-enabled solutions offers a significant return on investment. RFID technology also allows retailers to seamlessly manage their digital and physical offerings, as well as forecast potential best-selling products or shopping trends.

This ability to monitor inventory across its lifecycle and personalize consumers’ shopping experiences – all within one technology’s system – helps brands become true omnichannel retailers. 

Speak with one of our experts today to learn how your business can reap the benefits of RFID technology in retail.

The post Must-Know Benefits of RFID Technology in Retail appeared first on NewStore.

• What is inventory visibility?
• What are the benefits of inventory visibility?
• What are the challenges with inventory visibility?
• How can you improve inventory visibility?

What Is Inventory Visibility?

Inventory visibility is the ability to accurately track and manage the movement of goods, in real-time, throughout the supply chain. With excellent inventory visibility, you can access real-time data on stock levels, sales, and customer demand, consolidating this information into a single view that encompasses the whole enterprise. 

By effectively storing and monitoring vast amounts of data, you can make informed decisions about your inventory management, mitigate the risk of overselling and underselling, and accurately forecast demand. When done well, this can create a strong foundation for scalable growth.  

Why Inventory Visibility Is Important

Experience remains the most critical factor in shaping how consumers engage with and perceive brands. ​In fact, research shows that an overwhelming 78% of consumers have made purchasing decisions based solely on their experience, while 82% would recommend a company based entirely on the quality of their interactions. 

Modern retail is in a constant state of flux, driven by rapidly evolving consumer shopping habits. Today’s shoppers interact with your brand across multiple channels and devices, all with the singular goal of making their experience more convenient and hassle-free. Many retail brands are having trouble getting it right because most inventory management systems haven’t evolved for modern retail.

Omnichannel focuses on providing customers with seamless and convenient experiences, and real-time inventory visibility is a crucial component of this approach. By maintaining a unified view of your inventory across all demand sources, you can unlock more opportunities to meet and exceed customer expectations. That means delivering on customers’ desires and differentiating your business from your competitors. In essence, real-time inventory visibility is the key to satisfying customers’ “what, where, and when” needs in their shopping journey. 

More specifically, when your business has accurate inventory data, you can offer flexible fulfillment options, such as buy online pickup in-store (BOPIS), ship-from-store, and same-day delivery, among others. Additionally, you can optimize your product offerings, and tailor your marketing and promotions to specific customer segments, resulting in more personalized and engaging customer experiences. 

What customers want

Customers want easy, intuitive, and transparent shopping experiences. They want your products to be where you say they are. They want white-glove service, even if they’ve only stopped in for a pair of socks. And they want delivery options for when what they’re looking for isn’t on hand.

Where customers want it 

Retail demand is never constant and can fluctuate unexpectedly across different products and sales channels. Each channel requires unique processes, delivery methods, and formats, and customers will choose the channel that offers them the most convenience and flexibility.

However, regardless of the channel they choose, they will expect you to meet their demands and deliver a seamless shopping experience. For instance, a customer may want to make a return in-store on their way home from the office and have their other online order waiting for them when they get home. You must take action to achieve it, but real-time inventory visibility is necessary to make it happen. 

When customers want it

In the wake of the “Amazon Effect,” customers have come to expect quick and efficient delivery as the norm, with same-day or on-demand delivery becoming the industry standard. Meeting these expectations requires complete oversight of your inventory, so you know exactly what you have in each store as well as what is out of stock.

That’s why inventory visibility is essential in today’s omnichannel retail landscape. Without it, retail brands cannot deliver on their customer experience promise. It is a fundamental necessity for not only omnichannel success, but it also offers a host of other benefits.

6 Benefits of Inventory Visibility

1. Store real estate freedom

Inventory visibility enables brands to implement experience-enhancing solutions such as endless aisle. With near-omniscient inventory management, you can say goodbye to unsightly 30-foot shelves and cluttered clothing racks. Instead, you can use that space to create a more inviting and engaging store experience, allowing customers to browse and purchase from your entire catalog. This approach will also free up staff time to focus on helping customers instead of adjusting displays or organizing clothes racks.

2. Frictionless experiences

Achieving true omnichannel excellence means creating enjoyable experiences for customers at every touchpoint, including returns and exchanges. Equipping your staff with the right tools and resources, such as mobile devices like iPhone, makes it easy for them to accept returns and place items back in inventory for reselling. By streamlining the process, you can create a more positive and hassle-free experience for customers and store associates alike.

3. Forecast, plan, pivot

Unlocking omnichannel’s full potential requires inventory visibility.  Accurate and up-to-date inventory data enables you to improve demand forecasting and planning, quickly adapt to fluctuations in customer demand, and ensure products are available whenever and wherever customers want them. With omniscience in action, your staff can always find a way to get customers what they want.

4. Always close a sale

Omnichannel leaves no room for excuses. Help your store associates say ‘yes’ to more customers by giving them access to inventory data across the enterprise and allowing them to sell on the spot. Whether it’s another store, a warehouse, a distribution center, or online, inventory visibility helps your store associates do whatever it takes to please the customer.

5. Sell down to the last unit

When your customers have tight budgets, it can have an impact on your business too. During tough economic times, it becomes crucial to make the most out of inventory and minimize expenses. Accurate inventory visibility gives you insight into precise stock levels for each item, enabling you to maximize the sales of your current inventory before investing in more unnecessary stock.

6. Cross-sell or upsell

Empower your store associates to cross-sell or upsell without making customers feel pressured to spend more money. By making your entire catalog available to all in-store customers, they are more likely to come in and find something they love. This translates into more opportunities to make additional sales without resorting to high-pressure tactics that can turn off customers.

Challenges with Inventory Visibility

Inconsistencies in data and limited inter-system communication result in a confusing picture and unsatisfied customers. Inaccurate information, insufficient forecasting, and difficulties in pinpointing product locations are tell-tale signs that your inventory management needs some love. 

Typically, you can trace the culprit to your technology stack. Outdated ecommerce platforms cannot handle the dynamic, real-time inventory updates from multiple sources, leading to problems such as stockouts, overstocking, and operational inefficiencies. These factors can have a negative impact on your business’s bottom line.

Most of the challenges with inventory visibility are related to:

• Outdated legacy technology
• Siloed information and systems

Outdated legacy technology

Legacy ecommerce platforms may provide a basic overview of your stock availability, but they often struggle to communicate with essential systems that facilitate omnichannel journeys, such as mobile point of sale (mPOS) solutions.

Additionally, legacy systems cannot handle real-time inventory updates in various statuses since they can only process sequential batches and limited file formats. This can result in a fragmented customer experience, where customers may see that an item is available online, but it’s not in stock at the physical store. 

Upgrading to an integrated inventory management system can help ensure that all systems “speak” to each other, providing a consistent experience for customers, regardless of the channel they use to engage with your brand.

Siloed information and systems

Inventory management has become more complex due to the fast-paced nature of modern retail. With customers shopping across multiple channels, a single item can go through potentially hundreds of micro inventory lifecycle events. It’s no longer as simple as just “sold” or not “sold.” Items can be in a customer’s basket, at the checkout stage, on a wish list, saved for later, and more.

Managing inventory data can be complex since it is often spread across different systems, such as order management, warehouse management, and third-party logistics providers (3PL). This data fragmentation creates silos that can make it difficult to keep your ERP and ecommerce platform in sync with your inventory.

To ensure accurate inventory tracking across all sales channels, including brick-and-mortar stores, ecommerce, and marketplaces, you need a more granular level of management and understanding. Legacy systems often cannot handle this level of detail, leading to inventory discrepancies and missed sales opportunities.

How to Improve Inventory Visibility

Real-time inventory visibility is complex. It requires a well-defined process and the right software and approach. Omnichannel orders are especially challenging, and the right technology choices are crucial to reducing human error and ensuring your inventory is always in sync across every channel. 

Omnichannel order management

The key to achieving comprehensive end-to-end inventory visibility hinges on having seamless connections across every stage of the supply chain and all sales channels. To achieve this, you need an omnichannel order management system (OMS) that can capture and integrate data from all sources. 

An omnichannel OMS connects inventory, customer, and order information in a unified platform. This comprehensive view is critical for determining if a product is available to sell and streamlining fulfillment. By orchestrating all orders across the enterprise, the OMS ensures efficient operations for ecommerce and point-of-sale systems.

Without an omnichannel OMS, you have to rely on a safety stock model to enable omnichannel, which is not optimal, especially given the current business climate.

RFID and barcode scanning

Radio-frequency identification​​ (RFID) technology uses radio waves to communicate between a tag and a reader, providing real-time tracking of products. This means that you can quickly and easily locate specific items in your inventory, as well as track their movement throughout your supply chain. Studies have shown that RFID can significantly improve inventory accuracy, increasing it from 70% to over 95%. With this increased confidence, you can make smart decisions about purchasing, fulfillment, and other aspects of your business.

Barcode scanning is another quick and efficient method for capturing product data and inputting it into your system. Once you barcode all inventory, your store associates can easily scan each item to access key product information such as the item’s storage location and stock quantity. Barcode scanning is another powerful tool for improving inventory visibility and enabling fast and accurate inventory management. 

Reverse logistics

Reverse logistics plays a crucial role in managing the complex process of handling returns, repairs, and recycling of products. By implementing efficient reverse logistics solutions, retail brands can reduce costs, improve customer service, and increase profitability. When combined with RFID technology, the benefits can be amplified.

For instance, brands can use RFID tags to track products throughout their lifecycle, allowing them to understand the products’ condition and determine their availability for resale. By analyzing returns data in this manner, retail brands can gain insights into which products are selling and which ones are not. This increased inventory visibility can help you adjust your inventory levels, accordingly, leading to better decision-making and increased efficiency.

What’s Next?

Whichever way you cut it, retail faces challenges from multiple directions: rising customer expectations, increasing competition, and pressure to reduce overhead costs while optimizing stock.

Real-time inventory is no longer a luxury, but a necessity for retail brands striving to win in today’s dynamic retail market. As consumer demands continue to rise, retail brands who fail to provide this level of visibility risk losing customers to competitors who can. 

Keeping up with these demands requires the right technology choices. Legacy systems often lack the necessary capabilities to handle the complexities of modern retail. Investing in the right inventory management solutions can help you stay ahead of the curve. By embracing innovative technologies like and omnichannel order management systems and RFID, you can gain the end-to-end visibility you need to provide seamless shopping experiences and build a more efficient business.

If you’d like some advice on how to improve inventory visibility, reach out to connect with one of our omnichannel experts through the link below.

Chat with an expert!

The post Inventory Visibility: Why It Matters and How to Improve It appeared first on NewStore.

According to the National Retail Federation (NRF), the amount of retail returns between 2020 and 2021 jumped 178% in the U.S., rising from a staggering $421 billion to a mind-bending $761 billion. For some fashion retailers specifically, returns have hit nearly 40% of all sales. 

To some, that might look like 40% worth of lost revenue. We see it as a chance to make money and boost customer satisfaction. Case in point – 44% of retailers report that customers that return items often have a greater lifetime value (LTV) than those who don’t return as frequently. 

Easy and seamless return processes are fundamental to creating shopping experiences that entice customers to spend with you. The key to turning retail returns into revenue? Omnichannel.

Below we outline what makes returns challenging, how omnichannel returns can drive profit, and how to make them work to delight your customers and bottom line.

The Challenges with Retail Returns

Customers return items for all sorts of reasons – and it’s not always because they want their money back. It could be the wrong size, the wrong fit, or not the correct style. 

Retailers can accept these returns – whatever the reason and regardless of whether its for an online purchase or physical one – in their brick-and-mortar stores. Or customers can send an order to a warehouse or distribution center.

For most retail brands, both scenarios yield several sets of challenges. Often, these challenges arise from difficulty defining who owns returns, understanding why returns happen, and making those returned items available for resale.

1. Slow refunds: This ranks as the top customer support issue after a return is made. A refund might be processed immediately, but all too often, it can take a week or even longer.

2. More markdowns: Retailers aim to sell as much inventory as possible. However, more returns mean more markdowns, which then equals a hit to your margins. 

3. Unusable inventory: Over 25% of returned items are sent to landfills instead of being resold. Typically, this is because there isn’t a system in place to handle them (or it’s inadequate). Not only is this an environmental issue – which is a huge no-no for modern consumers – it’s also an economic threat.

4. Poor order management: Many brands lack an effective omnichannel order management system (OMS) that can track an order’s entire lifecycle, along with a comprehensive view of a customer’s history. Without an OMS to keep track of everything, placing an item back in its lifecycle is tough when shoppers return without a receipt – which is exactly what most customers expect to do.
5. Inefficient inventory management: Many retailers don’t have a streamlined process to place every return into their stock pool. This can drive up inventory levels (depending on a product’s popularity) which can negatively impact your bottom line in the long run.

The overarching problem with returns is connectivity. Many retail brands still struggle with inflexible legacy systems that can’t keep up with modern consumer journeys. Without robust and connected systems, return information becomes cluttered and unusable. 

Not only does every touchpoint affect your customers’ experience, but it also affects your bottom line. Returns are made easy by connecting your return data, real-time and planned inventory, and having visibility over all of it. And omnichannel is the linchpin.

How to Make Omnichannel Retail Returns Work

As powerful as they are, omnichannel returns don’t just pop into existence. To enable these effortless returns and ultimately make returns profitable, focus on the three following systems. 

1. Omnichannel OMS: Connect your systems, data, and customers

Effective return processes demand that you can see the entire order lifecycle – whether it starts online or offline. You must be able to access and connect customer, order, and inventory information across all channels.

An omnichannel order management system is crucial, as it gives you a system that can gather, sort, store, and organize purchase data for every customer. It also lets you see and interpret that data at will. 

Insight is the greatest boon an omnichannel order management system (OMS) can give retailers. It orchestrates all orders across your enterprise while providing relevant information and real-time intelligence, which empowers your teams to deliver superior experiences across all touchpoints.

2. Mobile POS: Ensure your stores are set up to manage returns

First up, your store systems. A mobile point of sale (POS) is essential in modern retail to empower and arm your staff with the means to meet customer expectations. According to a recent NewStore survey of nearly 600 U.S. consumers, 54% of consumers expect store associates to be equipped with a mobile device. Associates must have a way to swiftly verify who bought the item, where they bought it, how they bought it, and where inventory is.

Time to put that omnichannel OMS to work. An OMS integrated with a mobile POS gives associates a single source of truth for customer orders, all in the palm of their hand. This means they can accept returns swiftly and confidently (and sneak in a little upselling and cross-selling, too!)

To make the return process even easier in store, you may also consider creating a dedicated returns area. While checkout lines are fast becoming a thing of the past thanks to mobile POS solutions, a dedicated returns area eradicates any chance of queues forming and gives a slick feel to the returns process that customers appreciate.

3. Inventory management: Come full circle

A store inventory system that enables the buy/return workflow is what underscores the omnichannel returns experience. Most importantly, you must be able to integrate and share data with every solution in your tech stack, creating a holistic inventory view across your company.

Part of making returns profitable rests on how you handle the returned items after you have them back. Do they go back into your store inventory, to a landfill, or get lost in the backroom for eternity? 

This is omnichannel inventory visibility in action. A crucial capability that gives you and your associates real-time visibility across all your locations, including warehouses, 3PLs, stores, and pop-ups. All accessible via phone, without having to call stores.

There are several ways to tackle inventory management in your store to improve your returns workflow:

• RFID Technology: Use radio-frequency identification (RFID) labels on merchandise to take the burden off the customer to have a receipt. With these tags, you can also see the full history of the item, including when it was sold and if it was sold (or if you’re dealing with return fraud). 
• Well-labeled items: Print labels containing the barcode or QR codes of individual inventory items. Barcode or QR code labels mean you can quickly identify returns that require personalized treatment, making it easier for you (and your customers) to track returns online. It can also help provide insight into the journey of your returns once they land back in your inventory pool.
• Cycle counting: An auditing procedure that uses a sampling technique to count a subset of inventory. Doing so allows you to verify that your physical inventory counts match your inventory records. This is critical for returns management as it allows you to understand how efficiently returns are being dropped back into your ATP inventory.

A holistic inventory view across your company lets you capture the return and add it back into your inventory to resell in-store (at a profit). If the returned product is an online exclusive, leverage ship-from-store to place it back in stock and prepare it for purchase. 

Transforming returns into profit takes a mindset shift. Instead of viewing returns as a revenue drain, brands should assess how to transform a return scenario into a selling opportunity.

Omnichannel Retail Returns Delight Customers and Drive Profit

How people shop has changed. As consumers buy more often online, they’re returning items more often, too – 20-30% of items purchased online are returned (compared to 9% bought in-store). How people return has changed, as well. Our research shows that 51% of customers expect to be able to return items purchased online without a receipt in-store.  

Data like this confirms what retailers have long suspected: omnichannel returns are necessary for retailers. At least for those who care about delighting customers and boosting profits. 

What can retailers expect to see from a better returns process?

Going full tilt into omnichannel returns hits that magic spot between delighting customers and loosening their purse strings. Offer your customers a flexible return policy that’s both accommodating and enjoyable, and they will shop with you over and over. In fact, 92% of consumers are more likely to buy again from retailers that offer an outstanding return process.

Buttery smooth return experiences are vital and will be rewarded by your loyal customers. Manage your returns well, and you could drive a 22-46% increase in profit per customer on average over six months – and as much as a 29% increase over three years.  

Where returns happen matters, too. Customers have returned to pre-pandemic shopping behaviors with gusto, and stores are back in vogue. However, they’re no longer just a place to purchase, with 62% of customers more likely to buy from a brand online, if they can return in-store. 

What makes omnichannel returns so powerful?

As mentioned above, omnichannel’s key strength is connectivity. It lets you thread together all aspects of your business – ecommerce, physical stores, and mobile shopping apps – and marry them with everything you know about your customers. Like purchase history, style preferences, birthdays, anniversaries. Almost anything you can collect related to your buyers.

This level of connectivity opens a wealth of possibility when it comes to the return experience. The most powerful of which happens in the nexus of your brand – your physical stores.

Over half of consumers prefer to make a return in-store – a blessing for retailers seeking to generate additional profit. First, it is simply easier to sell to existing customers in-store. You have a 60-70% probability of selling to existing customers but only 5-20% to new ones. Second, driving traffic back to your stores allows you to put your best asset to work – your store associates. 

Associates can leverage return situations to gather more intel on customers and learn more about their needs and what products may be a better fit. This creates a feedback loop where store staff can use what they learn to better serve customers.

On the spot, they can utilize two retail staples: upselling and cross-selling. Using what they learn about customers during the return event, associates can make targeted recommendations about alternative items or additional purchases. After the fact, they can follow-up through an app, SMS, or email to round out the experience. It’s all about ensuring the interaction is never one and done.

Align Your Strategy with Your Customers

Every dollar of profit counts. Once you have the technological capabilities set up, it’s important you don’t simply copy the strategies of other retailers. Your customers are unique, so treat them as such.

With an omnichannel OMS, you have a well of insights at your fingertips. Time to put them to work. Aim to align your retail returns strategy and related policies with your customers’ true behaviors – or risk poor customer loyalty and margin erosion.

Dive into your data, and focus on the following areas:

• CLV (customer lifetime value)
• How customers were acquired
• How they prefer to purchase (online, in-store, mobile app)
• Their loyalty behaviors
• What marketing they respond to 
• How often do they return?
• What are they returning?

Set yourself apart by going deeper in your analysis than your competitors. Get intimate. When you do, you can offer return experiences that truly satisfy your customers. 

You may even stumble upon more effective ways to sell to and retain your customers in the process. For example, suppose you’re seeing a particular customer return items often. It’s likely they enjoy your brand – they keep buying from you – but perhaps they aren’t finding the items they love by browsing online. Instead of continuing to fire out push-marketing communications, you may have more success capturing their attention in-store. 

Best of all, driving returns in-store can even unlock additional revenue, because 75% of shoppers using services like BORIS and BOPIS end up buying more items. And that’s perhaps the biggest benefit of in-store returns; the opportunity for store associates to turn lost purchases into revenue.

Today, shoppers have high expectations, so it’s critical to understand their wants and needs. Brands that invest in getting to know their customers often see an increase in CLV. 

Make Retail Returns About Customer Satisfaction

The bottom line: brands must be able to facilitate returns with the same friction-free experience as transactions. Deploying an end-to-end omnichannel system with a connected mobile POS and OMS can do just this. It will result in a simple buy, fulfill, and return experience for consumers. 

A great return experience is key to customer retention and long-term business growth. A profitable returns process is possible – but only when it’s convenient, hassle-free, and demonstrates empathy to busy customers. While tricky, omnichannel returns are the key to a more enjoyable and profitable retail returns experience.

Ready to catalyze your growth? Speak to one of our omnichannel experts today!

The post How to Turn Retail Returns Into Revenue with Omnichannel appeared first on NewStore.

Your business might have invested in a heavy-duty order management system within the last decade or few years. But in today’s digital-first retail environment, these legacy systems often don’t have the flexibility to perform under pressure.

For ecommerce—and particularly apparel sales—it’s never been more important for brands to take a more innovative approach to order management. Although worldwide retail sales are projected to top $26 billion in 2022, it’s no secret that the pandemic introduced new challenges to retail.

Legacy order management systems (OMS) simply aren’t a fit for the post-pandemic world. Retailers now have to be flexible and agile as well as implement technology that allows them to operate as lean as possible. 

That’s why a flexible order management system is crucial. This post discusses the capabilities of a flexible OMS and how one can take your retail business to the next level.

What Can a Flexible Order Management System Do?

An order management system is an essential piece of retail technology. It allows you to track all inventory and orders in one place, bringing point of sale and ecommerce data into one intuitive dashboard.

But not all OMS’ are the same. Retailers need to invest in a flexible OMS to stay at the forefront of modern retail and deliver an exceptional customer experience.

Below, we highlight the capabilities of a flexible order management system.

Enable Inventory Visibility Like Never Before

Where is your inventory right now? Are you at risk of stock-outs? Flexible order management systems allow you to see all of your inventory in real-time. See what’s in transit as well as what you have in-stock at each store and warehouse location. The system will even help predict when it’s time to reorder, so you keep the right amount of product stocked across locations at all times. 

An unprecedented view into inventory also makes it possible for you to manage returned inventory more efficiently. A flexible OMS gives your team a defined flow to integrate these products back into inventory.

A flexible order management system also allows brands to alter inventory levels and product assortments on a dime depending on where customer demand is. This was crucial during the pandemic when many customers flocked away from cities and into the suburbs or even resort communities. It’s crucial to be prepared for the possibility that a low volume store may quickly become high volume.

Save In-Store Sales

With enhanced inventory visibility also comes the ability for store associates to check on stock levels for items in-store without ever having to leave the customer’s side. Offering this experience, opposed to walking away from the customer to check in the back of the store, can be the difference between losing a customer and saving a sale. 

If an item is out-of-stock, a store associate can look up inventory levels at nearby store locations on their mobile device and offer that item to the customer. With this endless aisle technology, you can ensure the customer is still able to walk out of the store having purchased what they are shopping for.

Get Products to Customers Faster and How They Want

A flexible OMS allows for item-level order routing, which is crucial as customers demand cheaper, faster shipping. In fact, 66% of shoppers expect free shipping on every ecommerce order, which means your brand is likely footing the bill for shipping. Flexible order management allows you to optimize how orders are fulfilled. Ship items from warehouses or stores that are near the customer to reduce transit time and costs. 

You can also offer customers more choices for how they receive their items. For example, customers may want to buy online and pick up in-store (BOPIS) or utilize curbside pickup. Instead of giving shoppers just one option, your OMS can give shoppers the omnichannel fulfillment options they expect. 

Build Deeper Customer Relationships

According to research from Microsoft, 58% of shoppers will stop buying from your brand if they experience poor customer service. Since over 13% of retail purchases happen online, it’s critical for retailers to give shoppers a great experience not only in-store but also online. 

A flexible OMS allows you to deliver top-notch customer service by giving store associates or customer service staff immediate access to pertinent shopper information, such as transaction history across channels. When you can view online orders and in-store sales in the same place, you make the transition between the two channels seamless. This also allows you to easily make order modifications and streamline the return and exchange process. 

Further, having a clear window into your customers’ history allows store associates to more thoroughly and personally cater to their specific needs as well as discover patterns among shoppers. By identifying these trends, you’ll be able to shift your strategy and adapt more quickly to unexpected scenarios. It’s the kind of durability and preparedness that’s necessary, especially after COVID-19. 

Choose a Flexible Order Management System

Omnichannel retail is already here, and in the shadow of the pandemic, it’s the standard shoppers expect. The buyer experience is far from fluid, and that can make for a lot of chaos without the right system in place. 

Switch to omnichannel order management solutions that allow your team to pivot quickly while better managing expenses. With real-time data, your OMS gives you a single source of truth across all channels. 

If you want your brand to compete in the modern world of retail, go with a flexible order management system. Sign up for a free demo of our cloud-based order management.

The post The Power of a Flexible Order Management System appeared first on NewStore.

In today’s digital age, it’s hard to imagine a retail brand succeeding without a progressive omnichannel fulfillment strategy. After all, consumers who don’t limit their shopping to a single channel generate the highest customer lifetime value (CLV). To bring about value though, you need to provide value.

Digital technology has changed customer expectations. Shoppers expect more touchpoints, personalized service, and super-fast delivery. Customers want to purchase products when, where, and how they want. This evolution in customer expectations is one of those crucial do-or-die situations for retailers. Those who adapt to an empowered customer base will thrive, and those who don’t will die out.

To provide real value to shoppers, fashion retailers need to lean into the changes and offer omnichannel fulfillment solutions. It’s a win-win – retailers fulfill orders in a way that’s convenient for the shopper as well as efficient and profitable for their brand.

What is Omnichannel Fulfillment?

Omnichannel fulfillment means facilitating orders according to the customer’s wishes. They can go to the store and shop. Buy online and pick up in-store (BOPIS) or curbside, and more. The supply chain becomes completely transparent. There are no business siloes, and data about customers, merchandise, and even issues are used to improve fulfillment practices. 

Omnichannel Fulfillment Gives Customers Choice

When a shopper is looking for something to buy, they often start the process on their computer or mobile device. Even in the discovery phase, they’re considering how to get the product in their hands. In fact, 66% say multiple fulfillment options influence their decision to convert. 

For shoppers, omnichannel fulfillment gives them freedom of choice. They can go to the store and shop the aisle the “old school” way. Buy online and pick up in-store. Have it shipped to their home or business, or perhaps pay a premium and have it shipped same-day.

Fashion retailers need to unify their channels into one brand experience that seamlessly manages products and offers consumers options at the point-of-purchase.

Below is a complete look at the omnichannel fulfillment options customers expect.

Buy Online Pickup In-Store (BOPIS) 

In-store staff receive a notice that an order has been placed for a pickup. They retrieve it, set it aside in the pickup area, and notify the system it’s ready. On the customer’s end, once the order has been fulfilled they receive an email or text with pick-up details. This fulfillment method became popular a few holiday seasons ago but became more of a necessity during the pandemic. BOPIS also helps brick-and-mortar stores benefit from extra foot traffic and reduced shipping costs. 

Curbside Pickup

Curbside took off in retail in 2020 and looks to be a fulfillment choice that will continue to be a favorite — 81% of consumers say they’re interested in trying it. The customer buys online, receives a notification that the merchandise is ready, and shows up at the designated pick-up spot. They typically call or send a text when they’ve arrived so an associate can deliver the order right to them.

Some retailers make a locker system part of their curbside service, where the customer scans a QR code and takes their purchase from an assigned locker. This allows for pickups after hours, which can add to customer convenience. 

Ship-to-Store

Similar to BOPIS, the merchandise is ordered online and shipped from a warehouse to the store. The OMS and/or inventory management system notifies the store that their next shipment will include products X and Y that need to be ready for pickup by the customer. The customer is then notified that the order is ready, at which point the order is treated like any other BOPIS transaction. 

Buy Online Return In-Store (BORIS)

Research from Invesp found 62% of shoppers are more likely to buy online if they can return an item in-store. BORIS has become a pillar of growth for retailers. Reducing customer defection rates by as little as 5% can result in 25% increased profitability. 

BORIS makes customers return to the store time-and-time again, which is probably why we see 80% of brands supply in-store refunds for online products. If you’re a fashion retailer and you haven’t adopted BORIS, now is the time. It’s an important part of customer service – which is omnichannel’s most simple definition. Also, like with BOPIS, it boosts foot traffic and reduces shipping costs.

Ship-from-Store

Consumers don’t generally make the choice to ship-from-store, but it enables them to get their purchases faster. The customer buys a product online and wants it shipped to their home. The order management system sees the product is available at both a distribution center 50 miles away and a store five miles from the customer. Depending on inventory projections, it might direct the fulfillment order to the store. There, an employee picks and packs the order, readying it for delivery. This also opens up the possibility of same-day and 1-hour delivery options.

Endless Aisle

Endless aisle provides 360-degree visibility into real-time inventory. With full visibility, retailers can fulfill orders for out-of-stock or unavailable items for in-store customers by ordering items from other store locations or distribution centers. With endless aisle, you won’t have to tell a customer “no.”

Order and Inventory Management Lead the Way

At the core of omnichannel fulfillment is an effective order management system (OMS). It orchestrates order routing, directing the fastest, most cost-efficient path to move merchandise from a store, factory, or distribution center to the customer’s fulfillment preference. Ideally, it also paints a picture of an order’s lifecycle with a real-time status update that is visible on any device. 

An omnichannel OMS also makes it easier to manage inventory. Rather than a giant central distribution center transporting products to stores in a region, stock is held in smaller warehouses and stores and shipped to homes nearby or picked up. This approach allows retail brands to nimbly adjust to sudden changes in demand, quickly shifting inventory between warehouses and stores to reduce out-of-stock problems and sell at full price.

For a seamless omnichannel fulfillment strategy, you’ll want to implement these components.

• Multiple Payment Options: Offering as many payment options as possible is the way to go for fickle customers. You give customers the freedom to buy how they want to. Remember, your customer holds the power, and they can shop elsewhere if your brand doesn’t align with their purchasing values.
• Efficient Pick, Pack & Ship: In-store employees in an omnichannel operation must know that they’re serving not only customers in-store but those online as well. Like warehouse staff, they need to know how to quickly fill a BOPIS or ship-from-store order. Making sure these tasks are prioritized as much as helping the in-store shopper will go a long way toward boosting customer satisfaction scores.
• Easy Pickup: 69% of consumers expect store associates to be able to provide curbside pickup, but they don’t like to wait. Having trained staff with easy-to-use solutions for pickups, plus clear signage directing customers to the pickup location, is the ideal. If that’s not feasible, this is where the convenience of pickup lockers can help.

Omnichannel Fulfillment in Action

Home Depot and Lowe’s have changed the fulfillment game in home improvement by unifying digital and physical. Customers have the ability to quickly find where a particular item is in a large store by checking the website, which also lets them know how many are in stock. They can pick up in-store as well as use pick-up lockers, curbside delivery, and home shipments — whichever is most convenient.

Thanks to advances in cloud technology, fast-growing retail brands have also been able to offer a range of fulfillment options. With NewStore, 15% of all Marine Layer ecommerce orders are shipped from a store to the customer instead of from a warehouse. This allows items to be shipped with a local touch and to reach customers more quickly. Additionally, 5% of the brand’s weekly store sales are now from endless aisle orders, which allows store associates to save the sale of items that are not available in-store.

Challenges and Opportunities

Expanding your fulfillment channels requires your organization to stretch and go beyond its boundaries. You need to push the envelope to get products to consumers quickly and economically. Doing so will increase customer loyalty and lifetime value.

NewStore is a modular platform that supports many brands with our store fulfillment solution. Reach out to learn how we can support your omnichannel fulfillment needs. 

The post How Omnichannel Fulfillment Removes Friction appeared first on NewStore.

Despite being a tremendously popular buzzword, not many people seem to ‘get’ omnichannel. 

True, it’s daunting. Many claim to have achieved it, but few truly understand it. 

Endless aisle, accurate inventory, and quick and easy stock takes are the less flashy side of omnichannel. However, they offer a whole lot more than the digital mirrors and interactive displays. 

Why? Because omnichannel is about delivering the best, most convenient customer experiences.  And a universal view of your inventory helps your experience weapon, your store associates, create phenomenal engagement. All to be able to close the sale, anywhere.

What, Where, When: Meeting Customer Expectations 

Having an accurate view of inventory is a no-brainer for omnichannel success. Lack of data integrity and poor inter-system communication makes for a muddled picture and dissatisfied customers. Nightmarish stock-takes alone are reason enough to pursue better options. We all remember the late nights and early mornings manually counting hangers…right? 

Most importantly, a universal view of your inventory unlocks more ways for you to meet customer expectations. That means delivering on their desires and differentiating your business. 

What Customers Want

Customers expect easy, intuitive, and transparent experiences. They want your products to be there when you say they are. They want white-glove service, even if they’ve only stopped in for a pair of socks. And they want options for when you can’t hand over the exact item they’re after.

Where Customers Want It

Omnichannel is complex. There’s no sugar-coating it. Demand fluctuations occur in both your products and your channels. Processes, delivery methods, and formats change for each channel, too. And to top it all off, your customers will choose what channel they prefer. 

Customers may prefer one over another, but they expect you to meet their demands on every channel. Endless aisle and store pickup (aka BOPIS or click-and-collect) bring you up to meet the bare minimum. How you differentiate yourself makes you more desirable. If a customer wants to make a return in-store on their way home from the office and also have their other order waiting for them when they get home, you have to make it happen.

When Customers Want It

Immediately. Or as close as you can manage. High-speed deliveries are table stakes, and same-day or on-demand delivery is the industry standard. Without complete oversight of what stock you have in what stores and where, you’ll leave customers angrily tapping their foot at home as they wait for their package. 

Omnichannel inventory optimization lets you see all of your products everywhere in your organization. It also makes it easier to fulfill orders no matter where or how they’re needed.

The Benefits of Stock Visibility

Better stores, more enabled staff, happier customers. Endless aisle, accurate stock levels, and quick and easy stock takes, help you genuinely know your inventory. That means your employees can spend more time engaging with customers and closing sales. 

Let’s put that in context.

In-store Real-estate Freedom

Endless aisle and near-omniscient inventory management let you wave bye-bye to ugly 30-foot shelves and cluttered clothing racks. Instead, use the space to enhance the store experience and let your customers browse your endless aisle. Your staff waste less time adjusting displays or organizing clothes racks and more time helping customers.

Frictionless Experiences

The store of the future will be about experiences above all. Interactive displays are great, but true omnichannel excellence shows when your returns and exchange processes are actually enjoyable experiences. Remove friction wherever you meet it, letting your staff handle everything from iPhones. Accept returns, place them back in inventory, then sell again.

Forecast, Plan, Pivot

Omniscience in action. Use omnichannel to its full potential and drastically improve forecasting and planning, and pivot to meet spikes in demand across your organization to keep customers buying. Your staff can always find a way to get customers the items they want.

Always Close a Sale

There are no excuses with omnichannel. Help your associates say ‘yes’ to more customers by letting them sell items from anywhere in the enterprise. Another store, a warehouse, a distribution center, online. 

Cross-sell

Let your store associates cross-sell without them feeling like they’re strong-arming customers into spending more money. Making your entire inventory available for all in-store customers means they’re more likely to pop their heads in, primed to spend. Which means more chances to make additional sales.

Understand Customers Better

Understand customers better, let your associates see more about them in the palm of their hand, and deliver more personalized experiences to win their hearts. And keep them coming back for more.

What Next?

Let your aspirational customer experience determine what path you take. As you pursue your omnichannel strategy, design everything around the ideal customer interaction.

Bring back the joy of shopping, extend your brand experience and enable it to be a platform for everything—content, offers, community interactions, and more. Strive to be the first and last thought your customers have when they want the products you offer.

Let’s talk retail. We love to discuss how our services can support your brand and take their stores to the next level.

The post Why Precision Stock Will Empower Your Staff to Sell More appeared first on NewStore.

This is part two of a three-part series on the 2021 Omnichannel Leadership Report. This year’s research is a critical assessment of nearly 200 luxury, premium, and lifestyle brands’ omnichannel competence. The specific focus is on the seamlessness of each function and if brands are using this time to accelerate their digital transformations. In this edition, we review the availability of 14 core omnichannel capabilities across three critical retail categories. 

1. Contactless Engagement: Opportunities to engage with and service customers securely without physical contact.
2. Omnichannel Convenience: Solutions that make engaging and transacting across channels simple and easy.
3. Customer Experience: Reimagined capabilities for a mobile omnichannel shopper that boost the overall shopper-brand relationship.

If you missed it, make sure to read the first article on Contactless Engagement. 

Omnichannel Convenience

Convenience has been king in retail for many years. Shoppers are fickle and strapped for time. But time isn’t the only thing of the essence now. Mid-pandemic, health is, too. From fulfillment to communication, customers are relying on their favorite brands to not only remove friction from the shopping experience but also to make it safe.

Here are the key capabilities we looked at for Omnichannel Convenience.

Reservations

Not everyone who shops online is ready to hit the buy button. This is especially true when it comes to high-priced items or items that need to be tried on for fit or size. To solve this, some retail brands have added reservation technology to their ecommerce experience. We don’t mean reserving a time to shop in this case; instead, this kind of retail reservation is when a brand holds store inventory for the person to try and buy in-person.

Reservations combine the convenience of online shopping with the efficiency and personalization of physical stores. Even so, only 7% of brands provide the option to reserve online and pay in-store, down from 22% in 2019. The reason is likely because some brands turned off store-related features during the height of the pandemic. Doors were closed and crowds needed to be carefully controlled to allow for social distancing. 

There are a few key benefits of having a reservations feature, though; first, it boosts online conversion. Shoppers are looking for flexibility right now and this is an option that gives them just that. Second, it also helps with shopper confidence. Being able to see an item in real life or try it on is often the difference between a sale that sticks and a return. This type of confidence can go a long way when it comes to raising lifetime customer value. The bottom line is that customers want simplicity. Let them start their shopping journey online and finish it at a store. A sale is a sale.  

Inventory Visibility

In a state of retail report by Forrester in 2019, 56% of the retailers surveyed identified inventory accuracy as a problem. Specifically, they said the lack of inventory visibility is impacting their overall omnichannel efforts. Inventory is the backbone of omnichannel success. You need to have the items you say you have, in the locations where you say you have them. Otherwise, you risk having a frustrated customer. Or worse, losing them.

The pandemic has made it clear how important it is to have a system in place that can react to dynamic events. Demand sources can change at the drop of a hat. COVID drove many people out of major metropolitan areas to smaller towns. This called for many stores to change both their product assortment and volume. The right items needed to be available in the right places so people could buy them. 

We found that 44% of brands expose inventory levels for the customer’s local store on their ecommerce sites. This is up from 32% in 2019 and 36% in 2018. What this ultimately is doing is preventing shopper uncertainty and making purposeful trips to your store worthwhile. 

A recent academic study found 60% of retailers surveyed had inaccurate inventory. When corrected, their sales jumped 6%. The key learning here is that with precise inventory, you can not only drive more sales but also more full-price sell-through. In addition, you can enable revenue-driving services like BOPIS and curbside pickup. Do what it takes to get every customer what they want, when and where they want it. 

Store Pickup & Returns 

At the start of the pandemic, digital revenue grew to record numbers. According to the Salesforce Q2 Shopping Index, the number was up 71% compared to the previous year. This signals that digital shoppers are the most intentional they’ve ever been and there are no signs of slowing down. 

One online feature driving digital revenues is buy online pickup in-store (BOPIS). In the same Index, it was reported that sites advertising BOPIS saw a 127% year-over-year growth in online spending. Shoppers love the convenience and instant gratification of it. They can avoid shipping fees and pick up their order the same day if not within hours. They can also avoid long store checkout lines. With health and safety now a concern, this ensures the shopper can be in and out of the store in a matter of minutes. 

Despite the clear benefits, only 40% of brands researched offer BOPIS. While up from 25% in 2019, it is clear most brands don’t have the foundation to properly deploy store pickup. That is, their online storefront isn’t integrated on the back-end with their physical locations. This is critical to offer modern fulfillment including store pickup and even store returns. 

The report revealed 55% of brands allow shoppers to return their online orders in-store. Returns are historically a huge headache for brands, but they don’t have to be. Better yet, you don’t want them to be. A whopping 73 percent of shoppers won’t make a repeat purchase if they’ve encountered a subpar returns experience. It is critical to facilitate returns with the same friction-free experience as transactions.

Remote Selling

In-store interactions have dramatically changed in the face of COVID-19. They’re now fewer and far between. This has been the advantage of physical retail for years now, so it is forcing brands to get creative with how they activate and nurture their communities. One way to bring the in-store experience to digital is by enabling store associates to connect with shoppers in different formats.

45% of brands have a way for associates to contact customers outside of the store, up 80% from 2019 and 246% from 2018. Think email and text messages. It’s not just a means for associates to send marketing messages, though; when equipped with the right information, it is a remote selling opportunity. The associate can reach out based on what they know the shopper has bought and loved. 

Forrester predicts that overall consumers will get more emails, texts, and push notifications in 2021 than ever before. The most important thing to consider is the messaging and making sure it is responsive. With this kind of approach to clienteling, the customer becomes the point of sale. This is the ideal experience for shoppers looking for both service and omnichannel convenience. 

Next Up: Customer Experience

Make sure you download this year’s Omnichannel Leadership Report for further analysis of the state of Omnichannel Convenience. Specifically, check to see where brands rank across our five-point scale: Avoiding, Struggling, Surviving, Evolving, or Thriving. Are they failing to provide what their customers want? Or are they serving customers with excellence? Omnichannel and convenience have long been considered brand differentiators. Moving forward, both must be at the heart of every single customer experience. 

And with that, next up we look at Customer Experience. The third and final section of the report assesses how brands are capturing customer hearts with reimagined capabilities, big and small. 

The post Omnichannel Leadership Report: Omnichannel Convenience appeared first on NewStore.