Currently, companies sell their products through multiple platforms, including Amazon, Shopify, eBay, and their own websites. Multi-channel order management software is an excellent way to reach out to customers. However, it creates a significant issue in the background.
Different platforms have varying orders, inventory counts, and shipping rules, so when orders from multiple locations arrive simultaneously, retailers are likely to encounter problems. For example, delays in shipments, or showing items as in stock when actually they are not available.
The main point is relatively easy to understand. There is no single system that is monitoring everything simultaneously. Intelligent order management is what resolves the issue.
The contemporary fulfillment dilemma
Imagine this scenario. A customer purchases your product on Amazon, while another one purchases it from your website. Your stock indicates that there are two units left. But the units are in separate warehouses.
Now, you have to decide which order to process first. Then, you remember that Amazon has different packaging and labeling requirements than your website. Your staff spends a significant amount of time manually entering addresses and selecting carriers.
Errors occur. The wrong delivery speed is selected. A parcel goes to the previous address. Returns from three different channels come to the warehouse, but there is no clear way to restock them.
Customers are seeking quick shipping and accurate notifications. When systems do not communicate with one another, it becomes nearly impossible to satisfy the expectations. What companies need is a single, central brain that processes all orders in a uniform, intelligent manner.
How centralized order management resolves the issue
One major advantage of a central order system is that it consolidates all activities in a single location. When an order is placed, the system checks the real-time inventory across all locations.
The company’s stock is then assessed, and the most suitable warehouse for shipping is determined based on both distance and stock availability. The fastest, cheapest carrier for that route is then automatically chosen. Your team no longer has to enter data manually or compare carriers’ rates.
Every time the labels are printed, the correct information is included. Customers receive tracking numbers that are valid for all channels. The system also manages exceptional cases.
For instance, if a product is out of stock, the system can either send the available items and hold the rest until they are ready, based on your pre-set rules, or send the whole order after a specified period. You can set it up once, and the system will automatically take care of returns. They will be logged, and the product will be restocked. Everything continues to flow without needing constant human supervision.
What is it that you can expect from a software solution for multi-channel order management?
The connection of platforms is designed to ensure a seamless workflow across your stores, marketplaces, and warehouses. The orders are routed automatically depending on the logic that you have configured in advance.
Advantages
Here is a list of the benefits when you bring order processing to one place via a multi-channel order management software;
- Shipping times will be faster because the system will automatically select the nearest warehouse and the fastest carrier, eliminating the need for manual decision-making.
- The cost per shipment will be lower, as the software will compare shipping rates from different carriers and recommend the most cost-effective option that meets the required delivery speed.
- There will be fewer errors in labels and addresses because all information will come from one reliable database instead of being dictated multiple times across different platforms.
- Overall, the customer will feel better treated with tracking updates working the same way, regardless of whether they purchased from your website or a marketplace.
- Returns management will be done much more easily because of the use of automated workflows that log, inspect, and restock items without creating separate tasks for each channel.
All these changes come about because the system eliminates all manual steps. The next question, then, is what is the best way to set this up?
Implementation checklist
The introduction of a unified order system is a well-planned process. To ensure a smooth launch, use the steps given below.
- Conduct a thorough examination of each sales channel and produce a master product catalog that displays the identical SKUs.
- Synchronize all carrier accounts and indicate your shipping preferences regarding rate shopping for domestic versus international shipments.
- Determine the packing methods and box sizes to be used for the items.
- Establish rules for automating the handling of split shipments, backorders, and the highest customer tiers.
- Pair up tracking webhooks so that customers are always notified, regardless of the location their purchase originated from.
- Conduct a small pilot test using actual orders for one or two weeks to test everything.
After the launch, monitor the KPIs listed below.
Identify success through essential metrics
Follow these four metrics every week to determine if there is any improvement. The on-time delivery rate indicates whether packages are delivered on the stated date. The order shipping time indicates how efficiently the warehouse handles incoming orders.
The shipping cost per order indicates whether the practice of rate shopping is actually leading to cost savings. The return rate reflects the number of incorrectly delivered items and damaged goods, thereby decreasing the instances of wrong delivery or damage. Analyze these weekly for changes in operations. Consider monthly trends for larger strategic shifts.
Switching to more intelligent fulfillment
Mastering the chaos of multi-channel orders has become a necessity. Consumers expect fast delivery. Rivals are not going to decrease their pace. The preferred system will be the one that pays for itself by saving time and preventing errors through its operation.
If you are a team that is willing to make the omnichannel fulfillment process more efficient, select a partner who provides centralized order orchestration in combination with integrations, cartonization, and 3PL warehouse solutions. This will make your shipping more efficient, lower the costs, and increase the speed of delivery. The platform that takes care of everything from rate shopping to label printing can be the one to power your next pilot. You can request either a demo or sandbox access to perform live rate and label tests with your actual products, allowing you to experience the difference within your first week.