Omnichannel Fulfillment Trends to Look for in 2023
If we look back at trade articles discussing the key trends in omnichannel fulfillment just a few years ago, the list looks eerily similar to what the same article would show today. Businesses have been grappling with how to best serve their customers in the fast-paced migration from traditional shopping to an ever-growing expectation of instant consumer gratification. Older generations are becoming more comfortable ordering online, and millennials—born with smartphones in their hands—are pushing the boundaries of where purchases can be made.
The field of logistics has been scrambling to keep up with changes in how people consume. While the framework may not have changed, it is repeatedly refined as the path toward order fulfillment becomes more and more complex. The emphasis of efficient omnichannel fulfillment has always been an important business strategy for many warehouse operations. Looking back at the last couple of years, operations could see a significant blur in software responsibilities as technologies like WMS, WES, WCS, and LMS throughout their fulfillment operations. Another significant trend a few years ago that continues to be relevant today is the change of order profiles as companies anticipated smaller, but more frequent, orders. Due to mobile devices and in-app purchases becoming the standard growing methods of purchasing, the speed of order fulfillment has not slowed down. As technology and buying behavior evolves, so do the omnichannel trends companies should be aware of.
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The field of logistics has been scrambling to keep up with changes in how people consume. While the framework may not have changed, it is repeatedly refined as the path toward order fulfillment becomes more and more complex.
What is Omnichannel Fulfillment?
Omnichannel fulfillment is an order fulfillment strategy wherein orders are fulfilled through a number of distribution channels (ecommerce, retail, wholesale) from a number of locations, all depending on what is most efficient and cost-effective. These diverse channels provide more than one opportunity to provide customer satisfaction.
The emphasis of efficient omnichannel fulfillment has always been an important business strategy for many warehouse operations. Looking back at the last couple of years, operations could see a significant blur in software responsibilities as technologies like WMS, WES, WCS, and LMS throughout their fulfillment operations. Another significant trend a few years ago that continues to be relevant today is the change of order profiles as companies anticipated smaller, but more frequent, orders. Due to mobile devices and in-app purchases becoming the standard growing methods of purchasing, the speed of order fulfillment has not slowed down. As technology and buying behavior evolves, so do the omnichannel trends companies should be aware of.Top Omnichannel Trends
An operation’s seamless omnichannel fulfillment has become more important than ever before as consumer expectations rise to new heights. Companies with brick-and-mortar operations looking to complement a possible digital marketplace (or vice versa) need an omnichannel strategy that will maintain and strengthen their supply chain efficiency.Automation is a non-negotiable to stay competitive
To ensure an effective fulfillment center for your company, it is essential to know the automation technologies needed in a successful omnichannel system. This is important to ensure your company provides customers with the most seamless shopping experience. In addition, customers care a lot about an efficient omnichannel strategy since companies with one can retain 89% of customers. The rise in automation efforts was a growing element in the warehousing industry just a few years ago, but has now seen a significant increase post-pandemic due to higher order volumes and labor shortages. As customers continue to order at unbelievable rates, it is no surprise warehouses are recognizing the importance of robotic technology. It is predicted that “commercial robot revenue in warehouses will have a compounded annual growth rate of over 23 percent from 2021 to 2030 and exceed $51 billion by 2030”.Higher order fulfillment standards for all retailers
Since 2020, omnichannel fulfillment has continued to accelerate in a way we have never seen before. As brick-and-mortar stores shut down, and in-person activities were limited, there was a clear emphasis that a company’s survival meant having more than one channel to reach its customers. There was a rise in online orders, seamless transactions, curbside services, and home delivery options. Companies needed to adapt to how customers wanted them to fulfill their orders. After this experience, the guarantee of a seamless purchase and high-speed order fulfillment is expected, and in some cases, demanded for a company’s ultimate success.
Customers expect seamless returns and purchases
Again, the pandemic significantly altered the customers’ experience in a time when all they wanted was to get in a fast, convenient, and contactless way. Trends are shifting, but it appears consumers behaviors and preferences are going to require all means of retailing. Now, warehouses must be sure that their fulfillment strategies can provide the experience customers are asking for. In addition, it means that warehouses and stores must account for the different shopping behaviors that are now considered standard practices. For example, the buy online and pick up in-store (BOPIS) strategy provides customers the ability to buy online and pick up their order at their convenience. This also means providing a curbside pickup option since many customers would rather not deal with shipping costs and long delivery timelines. Another necessary option is the buy online and return in-store (BORIS) strategy as customers also want to be able to buy online with the promise of a seamless return process if they are not satisfied. It is clear that if your company wants to provide an omnichannel shopping experience, it also has to provide an omni-channel returns and pick up experience. Returns can play havoc in a distribution center, and consumers are returning more than ever before. This means being able to accept ecommerce items returned to a store as quickly as the item was purchased. Many retailers are partnering with shippers like UPS and 3PL companies to help ease this heavy burden. Whether you leverage partners or do it in house, you need a solid plan.Wearable technology continues to improve efficiency
Warehouse automation is occurring more and more every year. However, companies are not just investing in automated storage and retrieval and conveyor systems anymore. Wearable technology continues to grow at a fast pace, allowing workers to focus on speedier transactions with fewer mistakes. Companies are looking into wearable glasses to compliment ring scanners and other RF devices. Wearable glasses can help a picker find an item via heads up display (HUD) making their productivity grow. In fact, there have been predictions that 70% of warehouse facilities will adopt some form of wearables by this year.Creating A Successful Omnichannel Strategy
Technology is one of the world’s double-edged swords, both creating problems that didn’t exist in the past and then solving those and other problems. We see this in effect in omnichannel order fulfillment, an industry that has undergone radical change since the advent of internet shopping and mobile ordering. It is clear that integrating the right technologies can be the key to meet your omnichannel order fulfillment goals. New issues—changes in order profile and customer expectations—are counteracted by increased efficiencies created by using wearable technology and more comprehensive software. These challenges and advantages will both continue to shape omni-channel fulfillment for years to come.
