Is Order Consolidation Part of Advanced Order Management?
Today's online and omni-channel retailers win by increasing their Average Order Value (AOV). It's why we set the minimum 'free shipping' threshold just high enough that the typical shopper will have to order multiple items to achieve it. The customer gets more of what they like and want. And as a retailer, you drive up your retail revenue. Great for both parties, right?
If you have successfully tied your online and brick and mortar retailing systems, then you are optimizing your resources by fulfilling orders using ship-from-store methods. This is an excellent way of getting more inventory out of your warehouse and into the field, where it can be sold. However, you want to use ship-from-store intelligently. Today, almost all order management systems have a crucial flaw in their ship-from-store algorithms. They always focus on trying to get the merchandise shipped from the location with the most inventory to fulfill the order. In the real world, many orders end up getting shipped from multiple locations, each with partial inventory to fulfill the entire order. This means retailers are shipping multiple boxes for the multi-item orders they recieve from customers. That means money lost in multiple shipping costs! That's where an advanced order management system uses retail order consolidations, to solve this margin draining problem.
Not only do multi-shipment orders cost you money and erode your retail margins, they can also be a damaging embarassment to your brand. Building a solid brand reputation is a difficult task. Having someone take a jab at your brand based on the troublesome order that arrived in three different boxes, over three different days in three oversized boxes - can be a worry of the past. Retail Order Consolidation solves this problem by bringing in inventory from your different holding locations, and packages the entire order into one shipment. That's exactly what your customer wanted and expected. So give them what they want!
To compete effectively, in this hyper competitive retail market, you need to continually adapt and improve. Inundating shoppers with multiple packages for each online order is not the way to impress them. But how do you keep that fine line between getting a customer's online order to them quickly yet not sending it to them through a multitude of margin eroding shipments?
Again, that's where Retail Order Consolidation comes into play! When it comes to advanced Order Management features, this is one you want for your retail business. Balance the fine line between fast fulfillment and reducing your shipping costs. Learn more in our Retail Order Consolidation Brief.
Omni-channel Retailing: It can be confusing. Helping you sort out what you need, OrderDynamics has created a series of briefs on various aspects of the Omni-channel Retail business. Aptly, we call them the OMS Briefs - standing for Order Management System Briefs. Each two-page analysis gives you the basics on what you need to know, in areas that are either directly a part of Retail Order Management, or touch it in some way.
Download Retail Order Consolidations Brief free.