Retail

20/7/2020

Why does my business need to adopt an omnichannel approach to retail?

The vast majority of retailers operate a multichannel approach, where they sell their products across more than one channel. However, the move to omnichannel has not been adopted by a high percentage of retailers just yet. 


Multichannel vs Omnichannel

Although both multichannel and omnichannel involve selling across multiple physical and digital channels, the key difference is how the customer experience is joined up across those channels and how the back end of businesses synchronises.


Implementing an Omnichannel Strategy

‘Deloitte reports that 78% of businesses with high-performing supply chains have more revenue growth than their industry counterparts.’

Providing an omnichannel experience requires a technology investment, the right infrastructure and tech stack, and the vision necessary to integrate and execute. If you’ve built a headless commerce architecture, you may need a robust content management system to operate efficiently. Mercarto Enterprise Technology provides this expertise for a range of clients, implementing technology that allows for true omnichannel capabilities, integrating right across the business and even replacing some legacy systems.


'Overstocks and out-of-stocks can cost retailers $1.1 trillion globally.'

Carrying excess inventory in your business ties up huge amounts of capital and reduces your cash flow. At the opposite end of the spectrum, if you don’t have an item in stock your potential customers will probably have no problem in going to your competitors.

Today’s consumers demand much more and are likely to have multiple touch points with a retailer whilst expecting a seamless journey across all channels including, in store, through social, online, and on their mobile. Although many retailers have elements of omnichannel within their business very few have fully embraced or implemented it throughout their business. 

One of the major barriers to the adoption of omnichannel commerce is the culture of certain businesses. For a business to be successful in any kind of digital transformation, it needs to be driven from the board downwards. It requires almost every member of staff to embrace it and to adapt in their role. The truth is that without a real-time inventory management system, you can’t be an omnichannel retailer and you won’t be maximising the opportunities or working efficiently. This, in turn, can reduce your profits and even your long term success. 

Automation is the real key to growing your business in today’s ever-changing landscape. It allows you to scale easily, improve efficiencies and maintain profit margins. And in the case of inventory, an integrated software solution is vital. One of the most vital tools offered by Mercarto Enterprise technologies is the ability to sync inventory across multiple channels. Your stock count is displayed as a total on every platform and when a purchase is made, the stock count is reduced across all platforms as well. You will also be able to track stock in real-time across all locations - from stores to warehouses.


The Importance of Supply Chain Tools

The more channels you use, the more important it is to have a watertight system that puts every piece in its right place. You have to account for customer returns and optimise the safety of stock so you are not operating at a loss. Your inventory management software should sync orders between physical locations, your website, and your other third-party marketplaces. 

“The average retailer only has 63% inventory accuracy”

A fundamental issue with the supply chain can be a culprit for basically any issue that you may encounter during order fulfilment process from delayed delivery to customers ordering stocked out items. 

Bloomberg Businessweek reports that 73% of companies are aware of the importance of supply chain tools when it comes to meeting their company goals, but many still fall short.

Traditional supply chain tools cannot keep up to pace with the digital modern commercial landscape and they certainly can’t keep you competitive. Growing companies will need to be proactive in their search to find the right solution for their brand.

Mercarto Enterprise Technologies have created a solution that works for brands, retailers, wholesalers or even buying groups looking to utilise the full omnichannel capabilities. 

If you are wanting to know more get in touch to discuss; Harry@mercarto.com


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