The Omnichannel warehouse is different from a traditional warehouse in handling incoming orders from online, retail, and all other channels. This type of warehouse is different from the traditional warehouse in terms of order acceptance management. Traditionally, retail dedicates certain regional warehouses to a group of stores and uses one warehouse for their e-commerce website.
Today, companies realize that to meet the short delivery times offered by big players like Amazon, they will need to increase their effectiveness. Instead of running one warehouse per channel, companies right now see the advantage of operating warehouses for Omnichannel or the Omnichannel warehouse systems that can interact with each other smoothly.
Let's take a closer look at the Omnichannel warehouse, why they are needed, and how they affect warehouse management and operations. Check the full information below:
The Problem: One E-Commerce Warehouses Cannot Handle All Orders
One of the reasons why warehouses continue operating as traditional, single-channel warehouses is due to the lack of warehouse management technology. In the omnichannel warehouse system, orders come in from all channels such as including replenishment for existing stores, e-commerce orders, in-store orders, and even the occasional customer service-assisted orders. Your company will lost opportunites if your company still handling all e-commerce orders in a single warehouse that is impractical.
Simplifying the process of returning goods is an integral part of developing an omnichannel warehouse, with up to 30% of all reports Business2Community, e-commerce purchases returned, warehouse managers must include return capabilities in existing warehouses. This will reduce logistics costs, but in a standard warehouse, this also implies a 30% increase in workload without an appropriate increase in income. Therefore, the Omnichannel warehouse is the only solution.
Solution: Turning All Warehouses into Omnichannel Warehouse System Is a Key
Compete with e-commerce like Amazon has been difficult because Amazon has a sophisticated and dedicated system that speeds up the ordering process, delivery, pick up and withdraws packages. Although retail shopping centers are still in development that can only being able to receive goods at the selected location. It makes Amazon the top choice for millions of customers worldwide.
Amazon's ability lies in its dedication to develop technologies and processes that expand shipping options while moving products faster. According to Datex, operating a warehouse for the Omnichannel warehouse system requires at a minimum of an integrated warehouse management system, order management system, package optimization system, and variable shipping rate shopping tools, such as a special transportation management system.
Warehouse managers must start the process by converting all existing warehouse and distribution center systems into the Omnichannel warehouse. Furthermore, storefronts can be used as an additional means of fulfilling orders and utilizing shelf products to reduce the distance between customers and order fulfillment centers.
Benefits of Using Omnichannel Warehouse
The company has several warehouses that still operate, and even storefronts can be used as mini warehouses for fulfilling more orders. Additional advantages of using the Omnichannel warehouse include:
1. Reduced shipping time,
allowing competition with Amazon and Walmart, which offers free shipping options for two days, the next day or even the same day on certain purchases.
2. Better collaboration between stores, e-commerce, and order fulfillment.
3. Expanded shipping options,
such as clicking and collecting shipping options, as explained by Olivia Riant of Generix Group.
4. Larger product range,
that can offering customers more choices and requiring greater attention to detail in warehouse management.
5. Increase sequence accuracy through integration
means that increasing the percentage of perfect orders and increasing their value.
Those are the definition and advantages of the omnichannel warehouse. Furthermore, with the development of advanced technology, effectivity is needed. Using the omnichannel warehouse system is one of the effective ways a company can do.