Dec. 02, 2024

The retailer’s guide to omnichannel order management

Yariv Chaba

VP of Business Development & International Sales for the Priority Retail LOB
The retailer’s guide to omnichannel order management

Omnichannel order management: Pain points and solutions

In today's retail landscape, customer expectations are higher than ever. The demand for a seamless shopping experience, from browsing to delivery, has pushed many retailers to rethink their order management processes. But while omnichannel order management offers a path to fulfilling these expectations, many retailers continue to grapple with a range of pain points that prevent them from maximizing customer satisfaction and operational efficiency.

Here, we’ll dive into the six most common pain points retailers face with order management and explore how an effective omnichannel order management system (OMS) can address these issues to improve customer experience, streamline operations, and ultimately drive growth.

1. Inventory availability and order visibility across channels

One of the biggest challenges for retailers today is achieving accurate, real-time visibility of inventory and orders across all sales channels. Without a unified view, retailers often struggle to keep track of stock levels, resulting in issues like stockouts, overstocking, and inaccurate order fulfillment.

Solution: Centralized inventory management
An omnichannel inventory and order management provides centralized handling of inventory levels and a complete, real-time stock visibility across all locations, including stores and warehouses. This allows retailers to monitor inventory levels more effectively and make data-driven decisions to manage and optimize stock across channels. With this capability, stockouts and overstocking become much easier to avoid, resulting in a smoother shopping experience for customers and increased inventory efficiency for retailers.

2. Ineffective customer communication and order tracking

Today’s customers expect to be kept informed about their orders, from the moment they place them until delivery. Retailers who lack the tools to provide real-time updates often receive customer complaints about lack of communication or unclear timelines, which can damage the brand’s reputation. This also creates issues for customer service, who don’t have enough visibility to see where the customer’s order is because they lack a proof of delivery tool.

Solution: Enhanced order tracking and communication tools
An omnichannel OMS gives retailers the ability to provide real-time updates and tracking information to customers at every stage of the process. By offering visibility over the journey of their purchase, retailers can improve customer satisfaction, reduce inquiries, and build a sense of trust and transparency.

3. Meeting customer expectations for fulfillment flexibility

Today’s shoppers want options for how and where they receive their purchases, whether that’s home delivery, in-store pickup, or curbside options. They also want to be able to stagger the fulfillment based on inventory availability. But offering these options can add significant complexity to a retailer’s operations, and without an integrated solution, it’s easy to create a disjointed customer experience.

Solution: Flexible fulfillment options
An effective omnichannel OMS allows retailers to offer a variety of fulfillment options seamlessly. Whether it’s enabling customers to choose home delivery, in-store pickup, distributed orders, or Back2Back orders, an omnichannel system provides a unified process that makes it easy to manage these options without disrupting operations. As a result, retailers can offer a more tailored, convenient experience that meets the evolving needs of today’s consumers.

4. Inefficient order processing and fulfillment delays

When orders are managed separately across different systems, delays and inefficiencies are inevitable. Retailers with disparate processes often encounter bottlenecks and errors that impact fulfillment times and customer satisfaction. In a world where fast, accurate fulfillment has become the standard, these delays can result in lost sales and damaged customer loyalty.

Solution: Streamlined, end-to-end order management
An omnichannel OMS eliminates the silos between order management systems, creating a single platform for managing orders, returns, and customer service. With an integrated, end-to-end solution, retailers gain visibility and control over the entire process, reducing the chances of bottlenecks and ensuring that orders are processed quickly and accurately.

5. Challenges in detecting and preventing fraud

Fraud prevention is another crucial aspect of order management that becomes more complex as channels multiply. Detecting unusual purchase patterns, duplicated records, or suspicious activities across multiple platforms can be difficult without the right tools, exposing retailers to unnecessary risk.

Solution: Proactive fraud detection and prevention
With advanced analytics and machine learning capabilities, an omnichannel OMS can help retailers detect unusual purchase patterns or duplicated records, flagging potentially fraudulent transactions before they become costly issues. This proactive approach minimizes risk, protects margins, and maintains the integrity of the customer experience.

6. Difficulty in adapting to change

The retail landscape is constantly changing, and staying agile is key. Many retailers find themselves constrained by legacy systems that can’t keep pace with new demands, whether that’s the rise of a new sales channel, changing customer behaviors, or the need for more advanced reporting.

Solution: Scalable, cloud-based technology
Omnichannel OMS platforms like Priority’s are cloud-based and highly scalable, allowing retailers to adapt to changing market conditions and consumer demands. This means retailers can implement new channels, adjust inventory levels, or expand fulfillment options quickly and efficiently, maintaining agility in a competitive market.

Why Priority’s omnichannel OMS?

With Priority’s centralized ERP, RMS, and POS platform, retailers benefit from a true omnichannel solution designed to support growth, in-store and online. Our solution empowers brands like Ace Hardware, Aldo, and Columbia franchises with tools that make it easy to provide a unified, seamless experience across every customer interaction.

In summary

An omnichannel order management system like Priority’s not only addresses the pain points of inventory visibility, fulfillment flexibility, and customer satisfaction but also enables retailers to operate more efficiently, reduce risks, and maintain agility. In today’s competitive landscape, an integrated OMS is no longer a luxury; it’s a necessity.

Ready to simplify your order management and give your customers the seamless experience they expect? Contact us today to learn how Priority’s solutions can be tailored to meet your needs.

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The Author

Yariv Chaba

VP of Business Development & International Sales for the Priority Retail LOB

Yariv joined Priority in 2021 as the VP of Business Development & International Sales for the Priority Retail Line of Business. With over two decades in the retail applications sector and experience in consulting for leading retailers, he now leads the digital retail initiatives and business development, focusing on penetrating to new markets.