Great customer experiences with Omnichannel Logistics

Omni-channel logistics has become a key focus area in supply chain management today, especially with the spurring growth of ecommerce. With customers becoming more sophisticated with the innumerous options available, retailers are gearing up to redefine their operations so as to  help them build a supply chain that will reflect the customer experience in the existing processes.

The reason behind this major move is the behaviour and preferences of the millennial customers. The customer journey typically moves across channels, starting and ending at different points based on individual preferences. A surge in the internet sales is fuelled by the growth of customer expectations and the purchasing power.  By 2030, APAC’s urbanization rate will increase by 30% and the similar growth is observed in the developing markets.

Great customer experiences start with great interactions at every opportunity. It is essential to understand the customer behaviour, his preferences regarding ordering a product, delivery options and payment options. Today’s customer is exceptional personalized experiences beyond the store, fulfilling customer journeys and fulfilling customer promises.

The need to create an agile, innovative supply chain has arised to deliver brand-promise ‘real-time.’ This helps in fulfilling the customer promises, collaborative customer journeys and visibility in the operations.

Building an agile supply chain framework:

The omni-channel trends are following the same path in the developed and developing countries, more often. However, consumer expectations are growing more than the pace at which the digital technologies are growing. Logistics providers today have to enable omnichannel logistics and here are the four pointers that help them support the concept and build a flexible supply chain:

1. IT back-end integration
2. Integration of payment options   
3. Automation of processes   
4. Flexible delivery options.

The omni-channel requirements are intensely cross-functional efforts, they are the product of a clear and focused strategy based on key insights about customers, they require a custom-designed supply-chain network, they build—or acquire—new supply-chain capabilities.

Critically, the companies that are doing omni-channel logistics well don’t pick and choose from these characteristics—they have all five. The reason all five are critical starts with an understanding of how omnichannel became such an urgent priority for all the logistics companies.

The online sales are growing 15 percent a year, against just 1.5 percent for overall retail sales. Last year, online sales accounted for 7.3 percent of total retail sales. Customers tend to order more when they buy online—up to four times as much as when they buy from a single-channel retailer. And when customers collect online orders in stores, they often make additional purchases while they are there.

This transformation in retailing is happening all the faster because new entrants are piling in and disrupting the market, dismaying incumbents and delighting customers.