Omni Channel Fulfillment
On the strategic and tactical fronts, traditional methods and tools fail to lend analytical insight into the network structure of an omni-channel retailer. The scale is huge: large number of orders, large number of SKUs, different channel expectations on response time and service level, multiple transportation options, multiple inventory deployment options, shared and reserved inventory, multiple supplier locations, supplier capacity, supplier lead-time constraints. On the operational front, a simple rule-based approach may provide a feasible order-to-inventory assignment, but it will definitely fail to consider the full set of revenue, cost, service and product availability dimensions needed for an optimal fulfillment decision.
To compete with the massive online retailers, traditional retailers must be able to fulfill demand when and where it exists. This means that traditional walk-in store sales must be supplemented with hybrid systems to fulfill demand immediately. In addition to serving shoppers in the store, retailers must support online ordering with either pick-up at the store or with shipment from a distribution center or, in some cases, from a store.
This “Omni-channel” fulfillment network poses challenges for traditional retail systems and processes. To implement it successfully, you must first assess the ability of your current network to support the various methods of order taking and order fulfillment.
In order to minimize your cost-to-serve your customers, you must also analyze your inventory deployment across the multiple echelons of your fulfillment network to ensure the right goods are in the right places at the right time, plan your replenishment to ensure you have the inventory for sale, and then optimize your fulfillment and allocation strategies to minimize costs and maximize service.
SOLVOYO Omni-Channel Fulfillment Services