In the wave of new retail business, "omni-channel" and "inventory management" have become two key concepts, which are of great significance for improving customer experience and optimizing supply chain management. This article will analyze in detail the connotation, development history, core features of these two concepts, and the system support required to implement omni-channel inventory, so as to help readers deeply understand the operation mode of the new retail business.
1. Sales channels in the new retail business
In the new retail business, there are many sales channels, and different sales channels will have their own business characteristics, so the corresponding supporting marketing methods, operation methods, and supply chain response methods are different.
The more common sales channels are: store retail, which sells goods in physical stores (including franchised and directly operated chain stores); E-commerce sales channels, selling goods on e-commerce platforms represented by Taobao, Tmall, JD.com, Pinduoduo, etc.; Emerging traffic positions, selling goods on emerging traffic platforms represented by Douyin Live, Xiaohongshu Live, Kuaishou Live, etc.; Distribution channels, sales to agents, distributors and other 2B customers around the country;
The sales channels of new retail are very diverse, no matter which kind of sales channel, the essence is to be consumer-centric, to provide consumers with convenient, excellent, seamless shopping experience, based on this concept and way, there is also a corresponding concept in the retail field: called "omni-channel retail".
2. What is omni-channel retail?
Omni-channel retailing is a retail strategy that aims to provide customers with a seamless shopping experience, no matter which channel they choose to interact with or purchase. This model emphasizes consistency and coherence across channels, ensuring that customers enjoy the same high-quality experience whether they shop in store, on a website, on mobile apps, on social media, or any other touchpoint.
Omni-channel does not mean that brands can sell through all channels, but that brands can select, combine and integrate more channel types, so as to achieve channel advantage integration and channel cost sharing for brands, and create a richer scenario-based consumption experience for consumers.
The evolution of omnichannel
Thierry Burdin, director of product retail at Cegid, a France management software company, believes that omni-channel retail is the evolution from mono-channel to multi-channel, to cross-channel, and finally to omni-channel. A combination of mobile represents.
- Single-channel retail: A model in which brands sell through a single channel, such as a "factory-wholesaler-retailer-customer" model or an online store.
- Multi-channel retail: The brand sells through two or more complete retail channels such as physical store + online store, and completes the entire purchase process of customers in each channel.
- Cross-channel retail: The integration of multiple channels can complete part of the overall channel functions in each channel, such as placing orders in online stores and picking up goods in offline stores.
- Omnichannel retail: Brands integrate as many retail channel types as possible to create an integrated shopping, entertainment and social experience for customers.
Excerpt from "https://www.youxin.cloud/23.html"
Omnichannel is concerned with how multiple channels interact with each other and with each other. A successful omnichannel setup keeps customer and product data in sync across channels. The ultimate goal is to provide maximum convenience to customers so that every interaction with the brand across different channels is a seamless experience. Omnichannel retail is sometimes referred to as "seamless retail" or "unified retail."
Excerpt from "https://36kr.com/p/1549635494872449"
3. What is the difference between multi-channel retail and omni-channel retail?
多渠道零售（Multi-channel Retailing）和全渠道零售（Omni-channel Retailing）虽然听起来相似，但它们在战略目标和执行方式上有显著的不同。
1. 多渠道零售（Multi-channel Retailing）
(1) Core features
- Independent channels: Multichannel retail focuses on reaching customers through different sales channels, such as physical stores, e-commerce sites, social media platforms, etc.
- Decentralized management: Each channel typically operates independently, with different inventory, promotion, and pricing strategies.
- Unique experiences: The shopping experience offered by each channel may be different, and the customer experience may not be consistent across channels.
- Target market: Each channel may target a different customer segment or segment.
- Data isolation: There may be data silos between different channels, making it difficult to share customer information.
(2) Case description
Let's say a clothing brand operates in a multi-channel retail model, it may have the following channels:
- Brick-and-mortar stores: Specialty stores located in shopping malls or high streets.
- E-commerce website: The brand's own online store. Third-party e-commerce platforms: such as Amazon, JD.com, etc.
- Social media: official accounts on Douyin, Xiaohongshu, Weibo, and Bilibili.
Customers can shop on any of these channels, but each channel may have different promotions, prices, and availability. For example, a brick-and-mortar store might have some limited-time discounts, while an e-commerce site might offer free shipping. The customer experience is not consistent across channels, and they may need to log in to different platforms to view information or complete a purchase.
2. 全渠道零售（Omni-channel Retailing）
(1) Core features
- Integrated experience: Omnichannel retail emphasizes consistency and consistency across channels, ensuring that customers enjoy the same experience no matter which channel they shop on.
- Shared data: All channels share the same set of customer and item inventory data for a seamless shopping experience.
- Flexible delivery: Customers can start shopping on any channel and complete their purchase on another channel, such as online order, pick-up in store (BOPIS).
- Personalized service: Provide personalized marketing information and services through integrated data analysis.
- Unified management: All channels are controlled by a unified management system, ensuring a consistent brand image and customer experience.
(2) Case description
Continuing with the apparel brand example, let's say the brand has an omnichannel retail model, then here's how it works:
- Unified customer experience: Whether customers shop in-store, on an e-commerce site, on social media, or over the phone, they can enjoy the same prices, promotions, and customer service.
- Commingled inventory: All channels share the same inventory pool, so customers can see in real-time if an item is available for purchase, no matter where they were purchased.
- Flexible delivery options: Customers can choose to place their order online and pick it up at the nearest physical store, or place an order in a physical store and have it delivered to their home.
- Personalized marketing: Brands collect data on customer behavior across channels to provide personalized recommendations and services, such as customized email marketing and social media advertising.
3. Summary
Multichannel retailing emphasizes reaching the widest possible customer base through different sales channels, each channel may operate independently, and the customer experience may be inconsistent across different channels.
Omnichannel retail, on the other hand, focuses on consistency and consistency across channels, ensuring that customers enjoy the same experience no matter which channel they shop on, making shopping truly seamless.
The omnichannel retail model is more focused on providing a seamless customer experience, while multichannel retail is more focused on reaching a wider customer base through multiple channels. Omnichannel retail requires a higher level of technology and more sophisticated supply chain management capabilities, but it can also lead to higher customer satisfaction and loyalty.
Fourth, what is an inventory
Omni-channel inventory is a retail supply chain management strategy, the core concept of which is to centralize the management of all inventory resources of the enterprise to achieve unified allocation and optimization of inventory. This strategy allows businesses to flexibly deploy products between different sales channels (e.g., online stores, physical stores, mobile apps, etc.) to meet consumer needs across different channels.
Take a clothing retailer, for example, who may have multiple stores across the country and an online store. By implementing an omnichannel inventory strategy, when a customer places an order online to buy a piece of clothing, the system automatically checks the inventory of all channels, selects the nearest warehouse or store for delivery, and even allows the consumer to choose to pick up at the nearest store. This not only improves the efficiency of inventory use, but also improves the shopping experience for customers.
To put it simply, omni-channel inventory is to hope that the inventory needs of multiple sales channels in the actual business can be met through centralized inventory management, unified scheduling and distribution of inventory.
1. The core features of an inventory
(1) Inventory sharing:
All sales channels can share the same inventory, ensuring real-time updates and accuracy of inventory data.
No matter which channel a customer places an order from, they will immediately know if an item is in stock.
(2) Channel sales:
Merchandise can be sold on any channel without restrictions.
For example, a customer can place an order online and choose to pick up their order at the nearest physical store, or buy it directly in a physical store.
(3) Inventory optimization:
By centralizing inventory management, inventory resources can be allocated more efficiently and inventory overhangs and stockouts can be reduced.
Use data analytics to forecast demand and dynamically adjust inventory levels.
(4) Flexible delivery options:
A variety of delivery options are available, such as Online Order In-Store Pickup (BOPIS), Online Order Home Delivery, Return to Store, and more.
Customers can choose the most suitable option according to their needs and preferences.
2. Practical cases
Let's say an apparel brand adopts an omnichannel inventory management model, here's an example of how it works:
- A customer places an order online: A customer browses a piece of clothing online and decides to buy it. Customers can check the stock availability on the website and place an order after confirming that the product is in stock.
- Inventory allocation: Orders are assigned to the nearest physical store or warehouse, where there is inventory to meet customer demand.
- Customers choose their pickup method: Customers can choose to order online for in-store pickup (BOPIS) or have it delivered directly to their home.
- Inventory updates: When a customer picks up an item or an item is shipped, inventory data is updated in real-time to ensure that other customers can see the latest availability.
5. What systems are needed for "omni-channel one inventory"?
In order to achieve an inventory, enterprises often need a powerful information system to support functions such as inventory management, order processing, logistics and distribution. These systems include, but are not limited to:
- Order Management System (OMS): Complete the sharing and allocation of inventory according to the inventory scheduling strategy, and centralize the processing of multi-channel orders, realize the accurate allocation of inventory, the assignment of fulfillment warehouses and logistics, etc.
- Warehouse Management System (WMS): WMS needs to complete the relevant interface docking with OMS to ensure that the inventory on the warehouse side and the inventory on the OMS side can be agreed, and it can also respond to inventory changes in a timely manner.
- The point-of-sale system (POS) :P OS system can not only handle the business of store retail, but also undertake the store fulfillment business assigned by the upstream OMS system. That is, it can be retailed in stores, picked up, or shipped in stores.
At present, the mainstream practice on the market is to put the "inventory center" in the OMS system, OMS and the downstream WMS through, but also with the store's POS system, not only to obtain the order data of multiple sales channels, but also to obtain the inventory data of all stores through the interface and document processing logic, the relevant business process and product architecture can be referenced, Shangpai OMS, Bojun OMS, Yum omni-channel middle platform and other systems.
Let's say a retail business adopts an omnichannel inventory management model:
- Customer orders online: A customer browses a piece of clothing on the website and decides to buy it. OMS automatically checks the inventory system to see if there is enough stock of the item. If there is, the inventory is locked and the order confirmation is sent to the customer; If not, it may indicate that it is out of stock or offer a pre-order option.
- Inventory allocation: OMS selects the nearest physical store or warehouse for inventory allocation according to the customer's location and inventory location, and pushes the order to the past.
- Picking and packing: WMS/POS instructs the staff of the warehouse/store to pick and pack according to the instructions sent by the OMS, and also needs to call the corresponding logistics provider to pick up the parcel according to the logistics method specified by the OMS.
- Logistics and distribution: The logistics provider plans the optimal delivery route according to the delivery address and time schedule selected by the customer (the distribution details of logistics are often handled by the third-party logistics provider itself).
- Inventory updates: When items are picked, the inventory center updates the inventory data in real time to ensure that other customers can see the latest inventory status.
- Customer pick-up or delivery: Customers can choose to order online for in-store pickup (BOPIS) or have it delivered directly to their home.
- Data analysis and optimization: DAS and BI systems collect order data, inventory data, logistics data, etc., and analyze them to provide decision-making support for enterprises, such as adjusting inventory levels and optimizing logistics routes.
Through the efficient collaboration of these systems, enterprises can achieve efficient management of omni-channel inventory, improve customer satisfaction, and reduce inventory costs and improve supply chain efficiency.
6. References
The terms "omni-channel" and "one-stock" can be heard very frequently in the new retail business, but the definitions and interpretations of these concepts on the market are also different, so some newcomers will be very confused when they first learn this part of the business knowledge, and feel as if the definition is very high, and how to actually output the solution is not high......
On the one hand, I am also confused by these terms and concepts, so I hope to use some slightly authoritative or convincing cases to answer these doubts, on the other hand, it is difficult to write articles about concepts and noun definitions, and it is more time-consuming and laborious to choose words and sentences, so I will directly "stand on the shoulders of giants", I hope you will understand more.
The following are some of the sources cited in this article, and interested friends can read the original article to study it in detail, and there will be a more profound experience.
https://36kr.com/p/1549635494872449
https://www.youxin.cloud/23.html
https://sleekflow.io/zh-cn/blog/omnichannel-marketing
https://www.shopex.cn/news/archives/16674.html
https://merchants.ubereats.com/us/zh/resources/articles/what-is-bopis-buy-online-pickup-in-store/
This article was published by Everyone is a Product Manager Author【PM Vitamin】, WeChat public account: 【PM Vitamin】, original/authorized Published in Everyone is a product manager, without permission, it is forbidden to reprint.
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