The key to a great multi-channel offering for consumers is sophisticated order management. Traditional retailing relied on the retailer being able to ensure that the right stock got to the right place at the right time. Retailers have invested amassive amounts in trying to make sure they get that right.
The problems in the multi-channel, e-commerce driven world is that it is impossible to predict sales accurately. Sales are affected by weather, trends, product innovation, lifestyle and social reccomendations, all of which are extremely volatile factors. Increasing volatility in demand is making it impossible to predict sales, and hence no matter how good your stock control systems are you cannot be certain that you will get stock allocation right.
Consequenlty if you cannot get the stock to the right location, move the order to where the stock exists.
As increasing portion of our sales are becoming order based, it is worth turning the stock paradigm on its head.
Consequently you need sophisticated order management systems that can route the order to where the stock is, allowing services like click & collect, and even store picking and despatch.
This principal can open up vast new vistas for sales growth. Retailers can start selling non-stocked items, and can route the orders to suppliers for direct delivery or delivery to store.
There is then no limit to how far a retailer goes in their growth strategies.
Sophisticated order management systems are the key......
Monday, April 16, 2012
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