In this point of view, we explore the key considerations of omnichannel fulfillment prioritization and offer guidance on how to achieve the most optimal outcomes from inventory management, customer, and trading partner expectation perspectives.
To satisfy today’s always-connected, instant-gratifying, highly-demanding customer, products must be available any time, anywhere. The benefits to retailers and consumer brands are clear: no lost sales and improved customer loyalty.
But what is the downside? Inventory is traditionally highly distributed: it is in private label stores, e-commerce distribution centers, third party drop ship locations, big box retail stores, and other locations. More inventories mean more investment and thus the greater potential for shrink, markdowns, and margin erosion. Retailers and consumer brands must therefore carefully prioritize omnichannel order fulfillment to maximize their inventory productivity and profitability.