What are the best global logistics strategies for omnichannel retail?

1 Align inventory with demand

One of the key challenges of omnichannel retail is to balance inventory levels across different channels and locations, and to match them with customer demand. Having too much inventory can lead to higher storage and handling costs, lower margins, and obsolescence risks. Having too little inventory can result in stockouts, lost sales, and unhappy customers. To align inventory with demand, you need to have accurate and real-time data on your sales, orders, and inventory across all channels and regions. You also need to use advanced analytics and forecasting tools to predict demand patterns and trends, and adjust your inventory accordingly. Moreover, you need to implement inventory management systems that enable you to track, monitor, and control your inventory across your supply chain, and to optimize your replenishment and allocation decisions.

2 Leverage distribution networks

Another challenge of omnichannel retail is to deliver products to customers in the fastest, cheapest, and most convenient way possible. This requires having a flexible and efficient distribution network that can handle various types of orders, such as single or multi-item orders, standard or express delivery, home or store delivery, and so on. To leverage your distribution network, you need to have a network design that considers your customer segments, demand patterns, service levels, and cost factors. You also need to have a network optimization strategy that evaluates your network performance, identifies bottlenecks and opportunities, and implements improvements and changes. Furthermore, you need to have a network integration strategy that connects your distribution centers, warehouses, stores, and transportation providers, and enables you to coordinate and synchronize your order fulfillment and delivery processes.

3 Implement fulfillment solutions

A third challenge of omnichannel retail is to fulfill orders from customers in the most effective and efficient way possible. This requires having a variety of fulfillment solutions that can meet different customer needs and preferences, such as buy online pick up in store (BOPIS), buy online return in store (BORIS), ship from store, ship to store, and so on. To implement these fulfillment solutions, you need to have a fulfillment strategy that defines your fulfillment options, policies, and procedures. You also need to have a fulfillment system that supports your fulfillment operations, such as order management, inventory allocation, picking and packing, shipping and tracking, and returns and exchanges. Additionally, you need to have a fulfillment culture that fosters collaboration and communication among your fulfillment teams, such as store associates, warehouse workers, and delivery drivers.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?