8 minute read

Omnichannel Order Management: Benefits, Examples, and Strategies

Discover the benefits of omnichannel order management. Explore real-world examples and overcome the challenges for seamless customer experiences.

omnichannel-order-management

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Catering to customer preferences across various sales channels has become more than just a competitive advantage — it's a necessity. The concept of omnichannel order management lies at the heart of this customer-centric approach.

Throughout this article, I will explore the benefits of omnichannel order management and give you actionable strategies that you can readily adopt to execute a seamless order management solution.

These strategies are designed to empower your retail business with the tools needed to navigate the complexities of multiple channels while delivering a consistent and satisfying shopping experience for your customers.

Get ready to unlock the potential of omnichannel order management, where customer satisfaction and operational efficiency converge seamlessly.

Key takeaways

  • Prioritize omnichannel order management to meet modern customer demands across diverse sales channels.
  • Create consistency in order processing, inventory management, and interactions for a unified customer experience.
  • Embrace omnichannel order management to expand sales avenues, tap into diverse markets, and drive revenue growth through enhanced customer engagement and satisfaction.
  • Leverage data-driven insights from omnichannel order management to refine strategies, anticipate trends, and make smarter business decisions.
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What is omnichannel order management?

Omnichannel order management is part of an omnichannel experience that brings together various sales channels into a unified system, ensuring a seamless shopping experience for customers. It involves consistent processing of orders, effective inventory management, and cohesive customer interactions.

An omnichannel order management system (OMS) is the backbone of this approach, providing a single view of inventory data and customer orders. It facilitates efficient order routing to different fulfillment centers and lets you track customer orders in real time. 

This order management method also creates a unified and satisfying shopping journey by offering consistent product availability, pricing, and order fulfillment options across all channels. This aligns with modern customer expectations for seamless and convenient interactions with businesses.

omnichannel vs multichannel order management

Omnichannel vs. multichannel order management 

The omnichannel order management process differs from multichannel order management in how it integrates customer experiences. While multichannel involves handling each sales channel separately, omnichannel seamlessly weaves together these channels into a harmonious whole.

An omnichannel strategy creates a consistent customer journey when they interact with your business across different customer touchpoints.

For example, if they start browsing on a mobile app and then continue on a desktop website, their cart remains the same. If they choose to pick up an item in-store that they ordered online, the process is seamless and hassle-free.

On the other hand, with a multichannel setup, each channel might have its own inventory, pricing, and policies. A customer who finds a product available online might be disappointed to learn it's out of stock when they visit the physical store. 

This fragmented approach can lead to frustration, erode customer trust, and hinder repeat business.

omnichannel order management components

The key components of omnichannel order management 

Think of omnichannel order management as a toolkit. Each of these tools plays a vital role in creating a seamless and satisfying shopping journey across different channels:

  • Integrated inventory management: An integrated system tracks all your items in real time, whether you're selling online or in a store, and prevents surprise shortages so customers always find what they need.
  • Unified order processing: A uniform approach for handling all orders — whether they come from your website, store, or other places — prevents errors and maintains orderliness.
  • Seamless order fulfillment: A streamlined process can swiftly pack and ship orders using the best routes and methods for timely deliveries and customer satisfaction.
  • Customer communication: Sending updates to customers about their order status, including tracking and delivery times, keeps them happy and informed.
  • Data analytics and insights: Analyzing order history to identify popular items helps to guide your decisions on stock and business improvements.
  • Returns and exchanges management: Having a clear process for customer returns or exchanges make things easy for them and for you.
  • Personalization and customer profiles: Using past purchases to recommend what customers might want next can increase sales and customer satisfaction.
  • Sales channel integration: All your different sales channels work smoothly together — whether online, in-store, or elsewhere — which guarantees accurate order capture.
  • Real-time reporting and dashboards: A real-time dashboard that displays essential business numbers and information helps you make quick, informed decisions.
  • Scalability and adaptability: A flexible omnichannel retail strategy can grow and adapt with your changing business needs and market shifts.

Why use omnichannel order management?

Omnichannel solutions offer many business benefits by creating a seamless shopping journey across various channels. Here a just a few:

  • A better customer experience: Using omnichannel order management improves customer satisfaction by creating a seamless shopping experience across various channels. With accurate order processing and personalized shopping comes customer loyalty.
  • Optimized inventory management: With real-time visibility into inventory levels, this approach prevents stockouts and overstock situations, leading to optimized inventory management.
  • Efficient order fulfillment: Omnichannel order management often leads to quicker order processing and shorter delivery times, enhancing customer satisfaction.
  • Cross-channel coordination: Maintaining order accuracy and consistency across every sales channel means a smooth and reliable shopping experience for your customers.
  • Competitive edge: Offering a superior customer-centric approach through omnichannel strategies can give your business a significant competitive advantage by boosting your ability to attract and retain customers.
  • Data-driven insights: Leveraging data-driven insights from omnichannel order management helps make informed decisions and fine-tune business strategies for better results.
  • Flexibility and adaptability: An omnichannel approach helps your business respond effectively to changing consumer behaviors and market trends.
  • Market expansion: By bringing together your products and orders from different places, omnichannel order management makes it easier for you to sell in new ways and in new places so your business can expand into new markets and reach more people.

5 examples of omnichannel order management in action

Let’s explore some omnichannel order management strategies using the fictional brick-and-mortar and eCommerce business Gadgets Galore as an example.

In each of these examples, Gadgets Galore employs omnichannel order management strategies to create a seamless and convenient shopping experience for customers while efficiently managing inventory and order processing. 

These strategies cater to different customer preferences and behaviors, ultimately enhancing customer satisfaction and driving business growth.

1. Using eCommerce platforms for seamless integration 

Gadgets Galore seamlessly integrates its online and in-store experiences by connecting its eCommerce platform to its physical stores. This integration makes sure that inventory information is accurate across both channels, preventing disappointments due to out-of-stock items. 

This strategy benefits customers who want to buy online and pick up in-store (BOPIS) — also known as “click-and-mortar,” or “click and collect” —  providing convenience and flexibility while also helping Gadgets Galore manage their stock efficiently.

2. Enhancing brick-and-mortar stores with point of sale (POS) integration 

Gadgets Galore improves its brick-and-mortar locations by integrating point-of-sale (POS) systems. This integration streamlines order management, inventory updates, and customer interactions. 

Customers can place orders in-store for items not physically available, creating a seamless shopping experience. This strategy caters to tech-savvy customers who appreciate quick service and accurate information.

3. Leveraging Amazon as a sales channel and fulfillment partner 

Gadgets Galore uses Amazon as a marketplace, sales channel, and fulfillment partner, all in one. By tapping into Amazon's extensive customer base and efficient fulfillment network, the business efficiently manages orders and inventory. 

This approach benefits the business by expanding its reach and increasing sales, while Amazon Prime members enjoy fast and reliable delivery. 

4. Harnessing social media for omnichannel marketing and order fulfillment 

Gadgets Galore uses social commerce: using social media not only for marketing and customer engagement, but also for sales and order fulfillment. Customers can inquire about products, place orders, and get updates through social platforms. 

This omnichannel fulfillment strategy caters to digitally engaged customers who prefer interactive shopping experiences and timely updates on their orders.

5. Streamlining online orders with real-time store inventory visibility 

Gadgets Galore optimizes online order processing by providing real-time visibility into store inventory.

Customers ordering online can see accurate product availability and estimated delivery times. Or, if they buy online for in-store fulfillment, they won’t find the item out of stock.

This approach benefits online shoppers who need to be sure about product availability, and who expect quick delivery.

Common roadblocks to successful omnichannel order management

Continuing with the example of Gadgets Galore, let’s discuss some common roadblocks to omnichannel order management success.

By addressing the following roadblocks with strategic solutions, Gadgets Galore can pave the way for successful omnichannel order management, enhancing customer experiences and overall operational efficiency.

Complexity 

The roadblock: Omnichannel order management involves integrating various technological systems and platforms to create a seamless customer experience across different channels. 

But this integration can lead to problems with data synchronization and communication between those channels.

The solution: An enterprise resource planning (ERP) system serves as a central hub that connects different aspects of the business — from inventory management to order processing. This streamlines workflows, delivers consistent functionality across channels, and reduces data inconsistencies. 

By implementing an ERP system tailored to their needs, Gadgets Galore can master the complexities of omnichannel order management integration and maintain smooth communication between different parts of their operation.

Cost 

The roadblock: Integrating multiple channels, maintaining real-time inventory visibility, and optimizing order fulfillment processes require resources and investment. 

Shipping costs can pose a challenge, affecting overall profitability. Stockouts can result in missed revenue opportunities and customer dissatisfaction.

The solution: To mitigate these cost-related challenges, Gadgets Galore can negotiate shipping rates with carriers to secure more cost-effective shipping options. 

Efficient inventory management strategies, like demand forecasting and just-in-time inventory practices, can minimize stockouts and reduce inventory carrying costs. By optimizing fulfillment centers' operations, the business can maximize efficiency and improve overall profitability. 

This strategic approach helps offset the costs associated with omnichannel order management implementation so that the benefits outweigh the investment.

Coordination 

The roadblock: Coordinating inventory availability, order processing, and delivery logistics across multiple channels pose major challenges for Gadgets Galore.

Without proper coordination, the risk of overselling, stockouts, and delays in order fulfillment increases. Making sure customers receive their orders accurately and on time becomes challenging.

The solution: To address coordination challenges, Gadgets Galore can invest in a robust supply chain management system. This can make it easier for them to track their stock levels in real time and streamline order processing across different fulfillment locations. 

Since Gadgets Galore has multiple fulfillment centers, having an efficient and strategic order fulfillment process is a crucial part of this for meeting demand while avoiding stockouts. It can also promote clear communication between teams throughout the process for an even better-coordinated inventory management system. 

Customer expectations 

The roadblock: Customers today demand seamless experiences, timely product availability, accurate delivery dates, and real-time inventory visibility. Meeting these expectations across multiple channels requires a well-coordinated effort, which can be tough for Gadgets Galore to accomplish.

The solution: To meet and exceed customer expectations, they can leverage predictive analytics to analyze customer demand patterns and anticipate future demand so they can align inventory levels accordingly. 

Offering flexible delivery options like in-store pickup or expedited shipping are other ways to cater to varying customer needs. Advanced inventory tracking systems that give real-time visibility make sure that customers have accurate, up-to-date information about product availability. 

This proactive approach enhances customer loyalty and instills confidence in Gadgets Galore’s ability to meet their needs effectively.

Elevate your omnichannel strategy with Circuit for Teams

Successful businesses today offer their customers consistent, holistic journeys across every sales channel. But it doesn’t end there — that needs to carry over from the point of sale to customer delivery.

That’s where Circuit for Teams comes in! 

This last-mile delivery software can help elevate your omnichannel customer service experience with advanced delivery tracking, dynamic estimated delivery times, real-time status updates, proof of delivery, personalized delivery instructions, and convenient, shareable tracking links. 

Sign up for Circuit for Teams today, and give your customers a convenient, enjoyable end-to-end buying experience that extends from the initial click to the final doorstep.

About the author

Heather Reinblatt
Heather ReinblattContributor

Heather Reinblatt is a managing editor currently living in St. Louis, Missouri. She spends her free time reading, trying new recipes, and cuddling her cat Paisley. You can find Heather on LinkedIn.

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