Mobile trade and social media trade channels are also used by customers as an alternative to traditional retail channels recently. Omnichannel model that enables management of all sales channels together, entered into companies’ strategic plans as new sales channels spread in the market.
In the omnichannel model, without geographic boundaries, the customer likes the product in any sales channel, orders through any sales channel and gets the product delivered anywhere within any timeslot and return it through any sales channel.
Omnichannel model requires an efficient and proactive supply chain infrastructure and technology for the companies to apply omnichannel model effectively and seamlessly.
There are 4 main needs and challenges of the supply chain that omnichannel model requires;
With the omnichannel model, the customer receives the right product that he/she ordered from any sales channel anywhere. In order to do that seamlessly, fast and responsive system should be in place in all processes such as procurement, warehousing, order fulfillment and packing. After the order fulfillment process, shipment and delivery processes should be optimized in order to establish the balance between cost and customer service. This can be done through route optimization and new generation delivery planning technologies.
In the omnichannel model, many sales points and delivery options are offered to the customer in sync. Therefore, stock and all processes should be shared and be in cooperation throughout all channels. At this point, especially correct figures, trace-ability and transparency of stock is crucial. One of the KPIs of this model is stock trace-ability not only in the warehouse but also within processes from procurement to delivery to the customer. Omnichannel can be applied successfully with feasible, flexible, real-time and integrated logistics technologies.
The most challenging and critical process in the omnichannel is inventory sharing throughout all sales channels. Therefore, feasible infrastructure should be implemented for the inventory to be viewed, offered and demanded by all sales channels. Required priorities, allocations and reservations should be included in the system through this cooperative infrastructure. This process can be managed efficiently through accurate stock management, distribution and delivery solutions.
Innovation in Transportation
Omnichannel model requires a perfect distribution and transportation system should be implemented between suppliers, plants, warehouses, transit centers, sales points and customers. Therefore, the process requires an effective and comprehensive transportation and distribution management system
LA WMS, through its global experience and continuous R&D activities, is offering an extensive global supply chain management solution for the omnichannel model.
LA Software splits up omnichannel supply chain management into 5 main processes and designed feasible solutions.
In the process, suppliers’ stock, orders and operations can be traced effectively and provide them to deliver the purchase orders to the accurate location seamlessly through “Supplier Portal”
This is one of the most critical processes of the model. LA RouteArt ensures the accuracy, trace-ability, availability of the stock through “Supply Chain Planning”, “Inventory Sharing” and “Continuous Replenishment” Besides, processes such as inventory optimization, buffer stock management and stock replenishment management can be managed easily.
In this process, LA WMS enables management of warehousing, order fulfillment, picking, packing and reverse logistics processes through “Warehouse Management” and “E-Logistics Management”
Through “Distribution Planning and Route Optimization” solutions, the distribution costs are minimized and customer service is enhanced.
This process has critical value to complete the omnichannel model and crate competitive advantage. LA RouteArt offers optional delivery options and time slots to the customer through “New Generation Home Delivery Planning” Thus, the customer is offered a good shopping experience not only at the sales points but also during delivery.
LA Software designed the omnichannel logistics solution as all other solutions with global partnerships. LA Software’s omnichannel logistics solution is developed with most recent technologies as web based with the ability to integrate to all other ERP and automation systems.