1、The Ultimate Guide to Order ManagementCreate the Connected Experience Your Consumers Expect with Omnichannel Fulfillment2 YOU KNOW YOUR CUSTOMER.NOW MEET THEIR EXPECTATIONS.Globally,retail eCommerce sales are expected to exceed$5.5 trillion in 20221,up from$4.2 trillion the previous year.This growth

2、 isnt slowing anytime soon,with global eCommerce sales predicted to surpass$7 trillion by 2025.The surge in online spending doesnt mean consumers arent incorporating physical stores into their shopping journeys.In fact,64%2 of consumers use a mix of both digital and physical channels(e.g.,“hybrid sh

3、opping”)when making a purchase.For many consumers,the pandemic accelerated the blending of online and ofgline shopping channels into a single shopping journey.For retailers and manufacturers,this omnichannel approach to commerce demonstrates the importance of seamless order management across all ret

4、ail touchpoints.Omnichannel order management is a key ingredient to a successful omnichannel retail strategy.It enables businesses to manage inventory,fulfill orders quickly,and provide a consistent experience no matter where a customers shopping journey begins and ends.Order management and fulfillm

5、ent factor largely into the overall experience a customer has with your brand.In this guide,we provide insight on all types of fulfillment options,the crucial role of omnichannel order management technology,and how to choose the best order management solution for your business.3 The Benefits of Omni

6、channel Order Fulfillment4 STATE OF THE INDUSTRY By 2019,nearly 90%3 of consumers said they preferred a personalized and consistent experience across all shopping channels-and that was before the pandemic forced retailers and consumers to rethink what shopping looked like amidst lockdowns,shutdowns,

7、and safety concerns.In our post-pandemic world,shoppers expect high-quality omnichannel experiences.New consumer behaviors including hybrid shopping approaches are here to stay.In 2020,U.S.click-and-collect saleswhen shoppers buy online and pick their items up at a physical locationincreased by near

8、ly 107%.The pace of growth slowed in 2021,but the trend continued,increasing by another 15%to reach just under$84 billion and accounting for 9.9%of retail sales in the U.S.4In 2021,five traditional retailers drove 42%5 of hybrid sales including Walmart,The Home Depot,Best Buy,Target and Lowes.Not al

9、l of these companies were initially equipped to pivot to an omnichannel order management strategy,but theyve since made significant investments in the technology and processes needed to support it.The rise of mobile commerce(mCommerce)has further upped the ante for online shopping,liberating shopper

10、s from their computers and spurring further innovation from merchants.Over 70%6 of eCommerce sales occur on a mobile device,typically via a mobile app.Merchants are rightfully focused on connecting online and ofgline ofgerings to create a compelling,seamless pre-purchase experience.OMNICHANNEL order

11、 fulfillment HELPS MERCHANTS MEET SHOPPER DEMANDS for high-quality HYBRID shopping experiences5 YOUR CUSTOMERS WANT OPTIONS Consumers want options,particularly when it comes to fulfillment.They also demand speed.According to a 2021 McKinsey report,90%of U.S.shoppers expect free 2-to-3 day shipping7.

12、Ofgering multiple fulfillment options including in-store and curbside pickup,expedited shipping(made financially possible by ship-from-store),and same-day delivery can mitigate the cost of shipping while satisfying consumer needs for immediacy and convenience.The McKinsey report also found that to m

13、eet consumer expectations,merchants need to invest in order management capabilities.This includes order tracking,visibility,changes/cancellations and returns management.This is the best way to efgiciently meet consumer expectations for speed and order accuracy.Getting fulfillment right is not only i

14、mportant for making the initial sale,it inspires recurring sales and brand loyalty.The Harvard Business Review reports that buy online,pick up in store(BOPIS),in particular,helps retailers boost sales while keeping customers happy9.60%OF CONSUMERS PLAN TO CONTINUE USING STORE-BASED PICK OFFERINGS af

15、ter the pandemic is(finally)over.8 6 FAST ACCESS TO PRODUCTS IS IMPORTANT While consumers consistently claim to favor free over fast when it comes to direct shipping options,speed is just as important.We can blame this on the popularity of Amazon Prime,which ofgers free same-or-one-day shipping on m

16、illions of items to members and has set the bar high for all merchants to deliver quickly.11Amazon doubled the number of global Prime subscribers from 2018(100 million)to 2021(200 million).In the U.S.,Amazon has nearly 149 million Prime members,up roughly 50%from 201912.As the dominant player in eCo

17、mmerce,Amazon sets the bar for best practices in online selling,particularly when it comes to fast shipping.But free shipping alone doesnt always translate to a good experience.The key to earning consumer satisfactionand loyaltyis to combine free shipping with fast delivery.Over three-quarters of U.

18、S.online shoppers subscribe to a paid membership program that ofgers free and fast shipping.The top three programs are Amazon Prime,Walmart Plus,and Target Redcard(in that order).SHOPPERS DONT LIKE TO PAY FOR SHIPPING If online shopping has an inherent purchase inhibitor for consumers,its the cost o

19、f shipping.Nearly 70%of consumers expect free shipping for every online purchase and 80%expect it with orders that meet a minimum value threshold10(e.g.,free shipping for orders over$50).With omnichannel order fulfillment,retailers can transform their physical stores into distribution and delivery h

20、ubs that produce efgiciencies while giving shoppers a free pickup point.Benefits of Leveraging Stores as Distribution and Delivery Hubs:Free customer pickup to physical storesFast order delivery to locations that are close to the customer Cheaper shipping costs(closer shipping=cheaper shipping)Incre

21、ased attachment rateBetter inventory management across your entire network FREE+FAST SHIPPING76%of U.S.online shoppers subscribe to a paid membership program that ofgers free and fast shipping.85%of online shoppers will switch vendors when delivery takes too long14100%Prime membership growth from Q1

22、 2018 to Q4 2021 200m paying Prime members as of Q1 20217 THE DEVIL IS IN THE DETAILS If you want to benefit from omnichannel order fulfillment,you need to create a roll out plan that prepares all functions impacted including in-store associates.Lengthy waits for store pickups,in-store versus online

23、 pricing discrepancies,and inaccurate inventory counts equal a poor customer experience.These snags in what should be a seamless process can destroy consumer trust and harm sales.To avoid such flubs,merchants should adopt a methodical approach to order fulfillment.Start with a realistic assessment o

24、f your current capabilities and build plenty of testing and training into the pre-launch process.A comprehensive omnichannel fulfillment strategy should consider:What options will be available to customers Focus only on the services you can execute flawlessly and build more ambitious projects into l

25、ong-term plans.The customer experience Channel your customers by pretending to be one.Shop your store online and ofg to see how the tangle of fulfillment options manifests from the shoppers perspective.This helps identify where the process is seamless and consistent and where your fulfillment and or

26、der management needs work.The technology that fits your strategy Not all omnichannel fulfillment platforms are created equal.A good partner empowers your business to be flexible and scalable.It should be able to grow as your business grows.Look for robust order routing rules that allow your organiza

27、tion to adapt as your needs change.We think the benefits of universal order fulfillment outweigh the risks.Even so,its important to approach any new fulfillment model strategically.Failure to do your research and consider all your options can create bad customer experiences that ultimately turn shop

28、pers away.8 The Importance of Inventory Visibility9 CONSUMERS FEEL THE PAIN OF SILOED INVENTORY Heres a common consumer shopping experience:A retailers website shows they have an artisanal cofgee maker in stock,but when the customer stops by the store to buy it,they discover its sold out.This discon

29、nect is frustrating and can motivate the shopper to go elsewhere(never to return).Why did this happen?Likely because the stores inventory is not aligned(in real time)across all touchpoints.Someone may have bought the last cofgee maker that morning,but that information didnt make it to the website.In

30、 todays age of information and immediacy,it is not good enough to display semi-accurate inventory availability.Real-time inventory visibility and accurate available-to-promise(ATP)information are necessary for seamless omnichannel fulfillment.A SINGLE SOURCE OF THE TRUTH The retailer in the above ex

31、ample likely segments its inventory into difgerent data siloes to satisfy difgerent areas of order capture,and then adds restrictions and safety stocks.That is,the number of products displayed as available for in-store pickup is whatever the end number that remains after inventory has been allocated

32、 to each channel.Segmenting inventory can lead to a series of problems and significant maintenance.Theres a high risk of some channels having excess inventory,which could leave you with additional storage fees or forced to discount products.Additionally,you could also end up with too little inventor

33、y for specific channels,causing a poor customer experience and loss of sales.A more efgective way to balance and manage inventory is by implementing an order management system that provides a centralized view of your inventory across distribution centers,retail stores,and vendor locations in real ti

34、me.This will help you maintain a single source of truth of inventory,minimize overcommit or out-of-stock scenarios,and optimize omnichannel fulfillment.BEST PRACTICES:A robust order management system(OMS)gives retailers and manufacturers a single view of their entire inventory in real time.It allows

35、 you to break away from relying on safety stocks that communicate inventory in batches or daily processes.The latter approach forces you to fulfill orders from high volume warehouses rather than local stores.Advanced inventory management,by comparison,frees up all available inventory to enable true

36、omnichannel sales and order management.10 WHY IS REAL-TIME INVENTORY VISIBILITY ESSENTIAL?Real-time inventory tracking is the foundation of your omnichannel consumer experience.But maintaining a single view of inventory can only be successful if the inventory is constantly updated.Advanced order man

37、agement APIs enable retailers to send inventory positions to the OMS in real-time as availability shifts throughout the day.The system feeds SKU and location inventory levels to your eCommerce site to provide the most accurate fulfilment options for each customer based on available inventory and the

38、 shoppers location.Unfortunately,too many retailers dont realize the benefits of real-time inventory visibility.Instead,retailers often rely on warehouses or 3PLs to fulfill online orders because they cant accessor dont trusttheir own inventory reporting.Real-time inventory visibility and available

39、to promise(ATP)inventory provides more accurate reporting over legacy systems where business reconciliation is typically only performed daily.It allows you to identify,manage and correct issues much faster.When every item is accessible to view,you can sell more items because you know what you can pr

40、omise to customers,regardless of where theyre making the purchase.79%of shoppers want to know about back-orders and delays before they purchase an item.Local product visibility is important to consumers.In a 2021 post-holiday shopping survey,79%of respondents said they want to know about back-orders

41、 and delays before they purchased an item15.By allowing consumers to see inventory availability in real-time,retailers can drive more foot trafgic into stores,make more sales,increase inventory turns,and reduce markdowns.Shoppers frequently go online to see if what they want is available in their lo

42、cal store before they head out to purchase it.According to Google,74%of in-store shoppers16 searched online to get critical information like availability of a given item,store hours,and wait times before going to the store.74%of in-store shoppers search online for inventory information before going

43、to the store.And despite the relentlessness of the pandemic(or maybe because of it),consumers still prefer to shop in person.According to a recent survey by Raydiant,nearly half17 of consumers prefer to shop in a physical store versus online.The main reason?They enjoy the experience.This shopper des

44、ire to immediately see where a product is available can prove challenging for retailers who lack a single view of inventory.48%of consumers prefer to shop in a physical store versus online because they enjoy the experience.The solution?An order management platform with powerful APIs can provide accu

45、rate,real-time inventory availability to shoppers.Any demand placed on an item is immediately checked against the master inventory list to determine its availability.With a singular,real-time,ATP inventory system,your inventory is made accessible to any customer shopping through any channel at any t

46、ime.11 Order Fulfillment Options:A Primer 12 In this order fulfillment primer,well dive into each category and outline how to set priorities when creating your omnichannel order fulfillment strategy.Traditional distribution centers Distribution centers and warehouses serve customers living outside t

47、he delivery boundaries of physical stores.They also act as repositories for“long tail”inventory when stores dont have available shelf space.Flexible order routing rules allow merchants to route online orders to distribution centers during high-trafgic shopping times such as Black Friday,when picking

48、 inventory from retail shelves may not be feasible.Endless aisle in stores Retailers who empower their associates to fulfill orders from other stores help them“save the sale”when assisting individual customers looking for out-of-stock items.By shifting inventory to where its needed,retailers optimiz

49、e their existing merchandise and can better predict when its time to restock.Ship-from-store for online orders In a ship-from-store scenario,retailers route eCommerce orders from store locations based on their specific routing logic.For example,a retailer may prioritize stores with excess inventory

50、or stores closest to the customer to minimize delivery time.The benefits of this approach can be significant.In this order fulfillment primer,well dive into some of the more popular fulfillment approaches and outline how to set priorities when creating your omnichannel order fulfillment strategy.Ano

51、ther bonus:Store-to-customer delivery time is often quicker compared with distribution center-to-customer.This enables retailers to compete with Amazon and other quick-shipping competitors.Using ship-from-store,electronics retailer Best Buy cut its average delivery time by two days,according to Forr

52、ester.12 13 Drop ship from vendors or manufacturers Drop shipping allows merchants to sell items online that they dont stock in stores or distribution centers.Drop shipped items are sent directly to customers from vendor or manufacturer partners.It allows you to ofger a broader selection of items th

53、an you can stock in house with the added benefit of outsourcing fulfillment tasks to the drop shipping company or manufacturer.Soft allocationSoft allocation in cart allows customers to reserve an item in their online shopping cart for a period of time set by the retailer.This prevents disappointing

54、 customers when they go to checkout,only to realize the item in their cart is sold out.13 Recurring orders with subscriptionsWhen your subscription management solution is integrated and used efgectively with an order management system,you can automatically create orders on a recurring basis.This all

55、ows you to gain a predictable revenue stream and dependable inventory forecasting.Pre-orderingPre-ordering allows customers to order a product that is not yet available or is backordered.This can help you drive exclusivity and hype for core or new products while ofgering transparency around the avai

56、lability of products.14 Ship to a pick-up pointShip to a pick-up point allows shoppers to complete their purchase online and specify a pick-up point based on whats most convenient to them.The pick-up point could be a parcel locker,store location,a partner retailer,or post ofgice.Ship to pick-up poin

57、t is a good option for customers who cant accept packages at home or are concerned about porch piracy (when thieves steal packages from doorsteps and mailboxes)18.Buy online,pick up in-store(BOPIS):BOPIS is another click-and-collect fulfillment choice.As with ship-to-store,BOPIS enables shoppers to

58、make purchases online.The difgerence is that orders are fulfilled from store inventory for freeand often same-daypickup.According to a 2022 digital shopping report19,a quarter of eCommerce shoppers in the U.S.picked up their last order in store at the curb.14 BEST PRACTICES:When launching in-store p

59、ickup,you need to ensure that each store associate is properly trained on both the software and the process behind the program.Using Kibos Order Management System,Boscovs rolled out its BOPIS program and spent many hours training in-store associations to maximize program adoption.The program include

60、d a wave picking method to minimize the impact on labor.After fully rolling out,Boscovs BOPIS program resulted in a 40%attachment rate,meaning that every$100 of BOPIS spend has resulted in an additional$40 of in-store spend.Reserve and collect:Reserve and collect enables shoppers to select and hold

61、items at store locations and pay for them on pickup.This method combines the benefits of in-store pickup with additional flexibility for shoppers.They can inspect and try items before committing to buy,plus they can use cash which remains the preferred payment method for 17%of U.S.consumers.20 Heath

62、row Airports online shopping hub is taking advantage of the reserve and collect approach by giving passengers the opportunity to reserve products in their airport retail hub.Travellers make the purchase online and swing by to collect the items once theyre through security.They have the option to pay

63、 online or at the airports collection desk.21 15 SETTING PRIORITIES WITH OMNICHANNEL FULFILLMENT When setting priorities for your omnichannel fulfillment strategy,you should consider:THE CURRENT LANDSCAPE Embark on cross-touchpoint fulfillment initiatives with a firm understanding of how your custom

64、ers use existing options.Determine where your customers pain points are by reviewing shopping cart abandonment patterns and customer service complaints.Then address those known deficiencies.TECHNOLOGY As more consumers expect to shop anywhere,anytime,its critical to find an order management system t

65、hat is customer-centric rather than supply chain centric.Omnichannel fulfillment is best accomplished with an order management system that integrates easily with other retail technology systems(such as eCommerce,point-of-sale,and ERP).When researching technology vendors,look for a partner that ofger

66、s flexible order routing functionality,fast time to market,a robust partner ecosystem,and the latest fulfillment features.TIMING When onboarding a new OMS,consider both the big picture and the product-level implementation.Avoiding rollouts during peak sales periods is an established best practice,bu

67、t youll also need to plan for increased consumer demand during peak shopping periods.For example,will certain fulfillment options like reserving items for later pickup be suspended when theres high demand or can exclusions be applied at the item level?15 Make sure you factor in speed-to-market and s

68、elect a vendor that can implement the order management system quickly.Adding options like BOPIS and same-day delivery in six-to-eight weeks versus six-to-eight-months can make quite a difgerence in the ROI and total cost of ownership of your new platform.CUSTOMER LOYALTY When it comes to order fulfi

69、llment,prioritize how difgerent options integrate with existing loyalty programs.Make sure your members have access to something extrafaster service,discounted shipping,priority in store pickup lines,etc.REPUTATION IMPACT Since some fulfillment options must be implemented in full view of customers,s

70、ome merchants start their“fulfill anywhere”journey by testing easy-to-implement services like ship-from-store.This lets you work out interoperability glitches behind the scenes without impacting customer satisfaction.Now that you have a thorough understanding of all the order fulfillment options ava

71、ilable,its time to start setting priorities for your omnichannel fulfillment strategy.Here are some key stats to keep you motivated.16 THE IMPORTANCE OF FULFILLMENT ON CONSUMER EXPERIENCE 90%of online shoppers in the U.S.expect fast(2-to-3 day)and free shipping2215%of online shoppers will abandon th

72、eir order if they cant pick it up at a store242030%average return rate for omnichannel purchases in the U.S.2370%of online shoppers have used BOPIS multiple times.2516 17 The Power of Order Routing Logic to Increase Sales and Inventory Visibility18 When it comes to establishing this unification of o

73、nline and ofgline channels,there are many questions to address around the issue of routing logic.How do I synchronize my online listings with ofgline inventory?How do I determine how online orders are routed?How can I extend my product life cycle and reduce in store price cuts by selling inventory o

74、nline?This section will answer many common questions by outlining common strategies for order routing logic configuration,so you get the most from your online and ofgline sales channels.19 INTELLIGENT ORDER ROUTING For many retailers,several factors play into the order routing strategy.With an intel

75、ligent order routing engine,retailers can support complex fulfillment rules and prioritize by inventory turn,vendor partners,store locations,and more.One retailer might give priority to its warehousewhich is well suited for picking,packing,and shipping ordersfollowed by nearby stores.Alternatively,a

76、nother retailer might prioritize order fulfillment to its flagship store and use other stores as backup fulfillment sources.Routing logic also lets retailers“turn ofg”or“turn on”various fulfillment options.For example,in the case of a natural disaster,you can prevent afgected stores from being used

77、as fulfillment centers until the crisis has passed.Some of the most common order routing criteria includes:INVENTORY LIFE TO DATA(LTD)Improves inventory turns and reduces markdowns by assigning orders to the locations with the slowest moving inventory.CONTROL SPLIT SHIPMENTS Prioritizes scenarios th

78、at maintain single shipment or allows split shipments at line or quantity levels to minimize shipping costs.COST-BASE OPTIMIZATION Maximizes margins by considering multiple cost factors such as carrier costs,location-specific labor costs,and location overhead.ASSIGNMENT THROTTLING&THRESHOLDS Sets li

79、mits for orders,line items,or revenue volume by location to manage fulfillment capacity or regulate revenue distribution.ITEM SPECIFIC ASSIGNMENT Assigns orders that require special handling like assembly,personalization,or freight delivery to a specific fulfillment group or fulfiller location.GEOGR

80、APHIC PROXIMITY Reduces shipping costs and customer delivery times by shipping from the location closest to the delivery address.When leveraging an order management system with an intelligent order routing engine,such as Kibos Order Management System,you gain several key benefits for both your busin

81、ess and customers.The optimized order routing enhances customer satisfaction by providing convenient fulfillment options and frictionless delivery experiences.The gained fulfillment efgiciencies ensure youre using inventory across your entire network ultimately resulting in increased inventory turn,

82、reduced markdowns,and optimized carrying costs that maximize profit margins.20 MANUAL ORDER ROUTING WITHOUT INVENTORY FEEDS Retailers dont need an inventory feed to route online orders to brick-and-mortar fulfillment locations.Its true that feeds automate the process and make it(much)easier to accom

83、plish,but you also have the option of manual order routing this is particularly common among retailers that use their ERP to manage many of the functions that an order management system is designed to handle.However,if you route online orders without a real-time inventory feed,youll need to put some

84、 backend procedures in place so stores can address and fulfill orders placed on the website.Heres one scenario:Manual orders are placed into a centralized order exchange where members from all stores can log in and review orders that are awaiting fulfillment.A store associate can then do a manual ch

85、eck of the in-store inventory and“claim”the order for fulfillment if they have an item in stock.In this scenario,the centralized order exchange doesnt immediately impact the stores inventory management data,but the result is the samean online order is fulfilled using in-store inventory.Manual order

86、routing is much slower and error-prone than automated order routing with real-time inventory feeds.Retailers who invest in automating the process will ultimately fulfill orders quickly while adding transparency to product availability for consumers.Modern Order Management Systems Provide Intelligent

87、 Order Routing Client ERP and Inventory SystemsRetail StoresVendorsVendor InventoryDistributionInventory System of Records21 Building a Business Case for Omnichannel Fulfillment22 Many retailers begin their omnichannel investment in order fulfillment because it aligns with what consumers want while

88、also promising to increase sales and ROI.Retailers lose over 70%of sales to shopping cart abandonment this amounts to nearly half(48%)of shoppers getting as far as the shopping cart before they exit the(virtual)building26.One of the main reasons consumers abandon their online carts is shipping speci

89、fically,high shipping costs and/or too few shipping options.In a recent report by barcode scanning company Scandit,integrating eCommerce and store systems was the single most important technology priority for retailers in 202227.The second highest priority was improving accuracy of in-store inventor

90、y availability.Over the next few years,U.S.retailers plan to spend$4 billion updating and improving their eCommerce infrastructure.The critical ingredient for activating more fulfillment options is a robust order management system.Best of breed OMS platforms will route orders the most efgicient way

91、possible factoring in location,cost,and customer preference.Omnichannel Investment Proof Point-Retailer:Laura Canada,the popular Canadian womens fashion retailer,has more than 150 stores across the country and a large eCommerce presence.The retailer wanted an omnichannel operation that was efgicient

92、 and ofgered a smooth customer experience both online and ofg.Laura Canada selected Kibos order management system to leverage both distribution centers and in-store shipping.This new process quickly enabled Laura Canada to increase sales by 25%,and led to a 400%increase in online sales in the 3 year

93、s after changes were implemented at the company.Image Source:ScanditMCKINSEY REPORTS THAT ABOUT 75%OF APPAREL,HARD GOODS,AND SPECIALITY RETAILERS will invest in technology to facilitate faster delivery INCLUDING ONE-TO-DAY FULFILLMENT TIMES28 What is your single most important priority in terms of t

94、echnology investment?Integrating e-commerce and store systemsImproving accuracy of in-store visibilityNew shopping app developmentPersonalization of omnichannel servicesDigital marketing servicesExpanding payment optionsOther35%27%15%9%6%6%3%23 Four Considerations When Researching Order Management S

95、ystems24 01.HAVE A COMPREHENSIVE UNDERSTANDING OF YOUR BUSINESS Understand your needs and how they align with the requirements for a new OMS by looking at the whole business.Reach out to key stakeholders in every department to ensure you understand each teams immediate and projected needs.You likely

96、 wont be able to address everything at once,but successful OMS implementations traditionally involve multiple departments.Once youre clear about what your company needs to succeed,begin looking for and vetting companies that align with your specific use cases.Create a personalized request for propos

97、al(RFP)so you can make an apples-to-apples comparison of shortlisted vendors.02.UNDERSTAND THE TRUE COST OF OWNERSHIP The true total cost of ownership can be challenging to calculate,but its crucial to understand your total investment because it will illuminate your path forward.Its important to cal

98、culate the cost of your initial output(e.g.,investment in stafging,new technology,and new infrastructure)as well as the total cost over time.Some costs to keep in mind are:Platform/subscription pricing Implementation cost Hosting and managed services cost Commerce strategy cost Look for OMS vendors

99、that are upfront about services and expenses,including support,upgrades,and training.03.DETERMINE IF THE SOLUTION CAN GROW WITH YOUR BUSINESSCOVID-19 forced retailers to quickly scale their online business,but without a scalable order management system,many were unable to see accurate inventory leve

100、ls or meet customer expectations.By choosing an order management system that can scale and adapt with your business needs,you can easily manage operations during low and high demand periods and customize fulfillment rules.Also consider how the order management system will integrate with your existin

101、g system and impact daily business users.If you have a composable architecture,can the order management system support it?Is the systems interface intuitive enough for seasonal store employees to use it without a significant amount of training?By taking these things into consideration,you ensure you

102、 choose an order management system thats flexible to meet both business and technical needs,and it can scale as your company grows.04.CONSIDER THE DEPTH OF THE PARTNER ECOSYSTEMGreat platforms typically have extensive third-party communities associated with them.They care about their partner relatio

103、nships and how their partnerships enhance your business.Providers with future proofing in mind will invest heavily in integration points,testing,and documentation to enable partners.Best-of-breed platform providers will also take responsibility for the quality of their partner integrations.Upgrade p

104、ath and cost Support and maintenance Initial and ongoing training 25 Some questions to ask an OMS vendor during the vetting process include:What qualifications do they use to approve partners?What access will you have to third-party vendors?How does the platform manage third-party vendor relationshi

105、ps?Is the platforms third-party community certified and endorsed?Your omnichannel future is only as bright as the capabilities and scalability of your order management solution.In todays competitive retail space,software wont solve every problem immediately,but it should be able to scale as your bus

106、iness grows and your customers needs change.26 In-House vs Saas OMS Platforms27 Pros to SaaS solutions:Quick to launch and implement (e.g.,8 weeks versus 8 months)Less expensive than in-house solutionsMuch easier to integrate with other retail technologiesUpdates and API monitoring are managed by th

107、e vendor Easy to integrate ofgline and online touchpoints for a true omnichannel experienceIN-HOUSE ORDER MANAGEMENT platforms are typically used by larger retailers who have the internal resources,IT stafg,and budget to develop and maintain their own order management system.They give merchants more

108、 control over order orchestration and workflows.SAAS ORDER MANAGEMENT platforms are a popular choice for retailers who want to quickly launch an omnichannel strategy without a large upfront investment.SaaS order management platforms are also a good choice for retailers who want to outsource order ma

109、nagement to a third-party provider.Pros to in-house solutions:Can be customized to the specific needs of the companyMore control over order orchestration and workflowsInternal IT stafg can handle maintenance and updatesCons to in-house solutions:Big(and often small)changes require big investments in

110、 time and technologyCan be complex and time-consuming to manageUpdates can take longer to roll outAdding and maintaining integrations is difgicult and sometimes impossibleCons to SaaS solutions:Some tools require a high level of IT skill to customizeLess control over order orchestration and workflow

111、sVendors manage updatesIf youre introducing omnichannel fulfillment to your retail ecosystem,you have two main platform approaches to choose from:in-house and SaaS.28 Why Composable Commerce is a Game Changer for Order Management29 Composable commerce uses packaged business capabilities(PBCs)from di

112、fgerent vendors to create a custom eCommerce system thats not tied to one platform or vendor.PBCs are composable software components that provide a turn-key way to add functionality to your OMS.Composable order management is an approach that provides the best of both worlds the stability and feature

113、s of a proven backend system with the flexibility of a modern frontend framework.With PBCs,you can create an order management framework that flexibly accommodates changes in order volume or product mix without requiring a complete overhaul of your core order management platform.Its an approach thats

114、 incredibly focused on the customer experience,making it easy to add or remove features as needed to improve customer satisfaction.4 ORDER MANAGEMENT PROBLEMS THAT PBCS SOLVE:Problem:You need a real-time view of inventory across your global retail channels.SOLUTION:An inventory management PBC that t

115、racks real-time inventory availability in one central location can solve this problem.The PBC can ofger features like multi-channel inventory control,inventory mapping,and real-time inventory tracking to give you the visibility you need to make informed decisions about product stocking levels.Proble

116、m:Your customers want more fulfillment choices than you currently ofger(e.g.,BOPIS,curbside pickup,same day delivery,etc.).SOLUTION:An order management PBC that ofgers features like distributed order routing and order splitting can help you ofger more fulfillment choices to your customers.By splitti

117、ng orders and routing them to the nearest fulfillment location,you can ofger BOPIS,curbside pickup,and same-day delivery.Problem:You want to ofger flexible,anytime fulfillment but your current system cant keep up.SOLUTION:As with problem#2,an order management PBC that ofgers distributed order routin

118、g can help.Features like order splitting and intelligent order routing can ensure that orders are fulfilled from the nearest location.This will minimize shipping costs and get orders to customers faster.Problem:You need to manage customer service issues across multiple channels but have trouble trac

119、king individual cases.SOLUTION:A customer and order servicing PBC that ofgers customer care features like centralized customer order profiles,access to inventory so you can make real-time adjustments,and case management can help you keep track of customer service issues across all channels.This will

120、 allow you to quickly resolve cases and improve customer satisfaction.123430 SummaryOmnichannel fulfillment is possible for all retailers.You just need the right order management system in place.At Kibo,were biased.We know that cloud-based,API-first order management provides the most flexible,dynami

121、c,and scalable experience for retailers.Our order management system gives retailers a single source of truth for inventory with the ability to track and update product information in real-time.This is the only way to provide a consistent experience for customers whether theyre shopping in-store,onli

122、ne,or through a mobile app.Learn More About Kibos Order Management Solution or request a free demo today.31 31 Order Fulfillment GlossaryA quick intro into the most common order fulfillment terms and ofgeringsALLOCATE In inventory management,the process of assigning a product as“sold”so that it cann

123、ot be applied to another order and does not count toward on-hand inventory.ANYWHERE RETURNS The omnichannel strategy that allows the consumer to return a product in the way that works best for them:at any store(even if they didnt purchase it there)or shipped back to the warehouse,even if bought in s

124、tore.APPLICATION PROGRAM INTERFACE(API)A set of routines,protocols,and tools for building software applications.APIs allow difgerent software programs to interact and exchange information with each other.DISTRIBUTION CENTER(DC)A large,specialized facility with the sole purpose of storing inventory f

125、or quick redistribution to nearby stores or homes.Distribution centers are also commonly referred to as warehouses.COMPOSABLE COMMERCE Composable commerce refers to the ability to easily piece together difgerent commerce capabilities to create a unique customer experience and future-proof their comm

126、erce functionality.Gartner introduced the concept of composable commerce in a 2020 report which emphasized the importance of adopting modular architecture that enabled commerce systems to be more flexible,scalable,and plug-and-playable.ENDLESS AISLE An omnichannel strategy that prevents sales loss b

127、y giving instore consumers access to your full catalog from a kiosk or mobile application.If you are out of stock of an item,or do not carry a particular product,consumers can still purchase the item they need from your store without having to go to a competitor.FULFILLMENT OPTIONS/MODELS Consumer o

128、rder shipping options that include instore pickup,ship-from-store,ship-to-store,third-party vendor dropship and ship directly from a warehouse or distribution center.The ability to flexibly ofger all of these fulfillment options is the heart of omnichannel retailing.IN-STORE PICKUP(AKA BUY ONLINE,PI

129、CKUP IN STORE)The omnichannel fulfillment option that allows shoppers to purchase a product online,but pick it up from a local store,sometimes within an hour or two of the purchase.In-store pickup saves shipping costs,drives trafgic into stores and allows retailers and branded manufacturers to ofger

130、 an expanded product mix.INVENTORY TURNOVER The measure of the number of times inventory is sold and replaced over a certain time period.Omnichannel retailing strategies such as in-store pickup and ship-from-store can help increase inventory turnover.MICROSERVICES Encapsulated application components

131、 that operate independently of each other and thus they can be scaled independently.Microservices enable businesses to speed up the software development process which optimizes application performance.OMNICHANNEL RETAILING The concept of creating a seamless shopping experience through all available

132、shopping channels,such as mobile,online,in-store,catalogs,direct mail and more.Omnichannel retail strategies can be made easier and more efgective with an order management system.ORDER MANAGEMENT SYSTEM(OMS)The most important tool in your omnichannel retailing strategy.Enterprise-level order managem

133、ent systems handle complex order entry and fulfillment models,allowing for advanced order routing capabilities and all critical omnichannel fulfillment options,such as in-store pickup,ship-from-store and ship-to-store.ORDER ROUTING Advanced rules that determine which of your fulfillment locations ar

134、e best suited to ship a customer order.Order routing fulfillment options can include dealer proximity to the consumer,velocity of product,store ranking,load balancing of orders or cost-based.PACKAGED BUSINESS CAPABILITIES Complete,out-of-the-box solutions focused on a specific business service(or ca

135、pability).PBCs are built from microservices working together to achieve a specific function that services the end user(e.g.,the customer).RESERVE AND COLLECT An order management ofgering that allows shoppers to select and hold items at store locations,and then pay for them on pickup.This method comb

136、ines the benefits of in-store pickup with the additional flexibility of allowing shoppers to check out the item before purchasing.SAFETY STOCK A reserved amount of stock maintained to avoid the risk of running out of inventory,due to uncertainties in supply and demand.SHIP-FROM-STORE Pick,pack,and s

137、hip eCommerce orders in stores.Increase sales without inventory costs and provide a better shopping experience by fulfilling online orders with inventory already on the shelves of local retailers Ship-To-Store Ship any order directly to a specific store from other stores and warehouses.Provide an en

138、dless aisle to in-store customers by ofgering fulfillment from another nearby location.STORE-TO-STORE When items are not available in the store,this omnichannel fulfillment ofgering allows store associates to look up inventory at a difgerent store location,then“save the sale”by shipping that item to

139、 the store or the shoppers home(usually for free).VENDOR DROP SHIP A system where a retailer sells goods but does not keep them in stock.Instead,they transfer the customer order to a vendor who ships the good directly to the customer.32 32 Referenceshttps:/ 2021 Unified Commerce Reporthttps:/ https:

140、/ https:/ https:/ https:/ https:/hbr.org/2021/05/how-buy-online-pick-up-in-store-gives-retailers-an-edge https:/ https:/ https:/ https:/ https:/ https:/ https:/ is the catalyst for modern commerce transformation.As the only composable yet unified commerce platform,Kibo enables retailers and brands t

141、o customize their commerce stack to satisfy business needs.Kibo combines AI-driven personalization from industry leaders Monetate and Certona,with analyst-leading composable commerce and enterprise-grade order management.Global clients like Reebok,Ofgice Depot,and Lufthansa Group rely on our API-first architecture that empowers organizations to grow their commerce capabilities at the speed of digital