The multichannel model is so far the most common distribution model used in retail. However, its limitations can be costly. One channel may blossom while the others stagger, preventing sales and frustrating consumers. The multichannel model is seller-centered, whereas the omnichannel one is customer-centered. Its successful implementation with companies such as Walmart and Canadian Tire have been studied by logistics researchers. McKinsey & Company’s conclusions show that placing the consumer at the heart of one’s supply chain operations makes the most significant difference.
Whether in store, on a company’s website, on social media, or a huge ecommerce platform, three key components remain to successfully sell across channels:
- Transparent inventory visibility
- Quick access
- Great consumer experience
All three must be present to maximize revenue.
Increasing Inventory Visibility
One thing superstores have in common is inventory visibility. On a superstore’s website, once you click on an item, you can see the product description and the quantity available at any nearby store. You are also informed of your delivery options should you chose to buy the item online. In-store and online options complement each other. This omnichannel has been implemented by chain stores such as Walmart and Canadian Tire. Wherever consumers shop, they know where the product is available, where it can be delivered, and how fast they can receive it.
Guarantying Quick Accessibility
Quantities in stores are limited, and it often discourages buyers from completing a purchase. However, when the consumer can buy online directly from the store and receive the goods at home, it creates a seamless experience across channels. A woman may buy a pair of boots online but decides to have them shipped at the store and try them there before making a final decision. Cross-channel shopping is more common than using a single channel, especially with mobile apps. When the goods obtained via any channel the fastest way possible, more sales can be generated, and the consumer is more likely to buy again.
Creating a Consistent Consumer Experience
Everyone who has ever set foot in a store with catchy music, great lighting, plenty of mirrors, and comfortable fitting-rooms can say that all these combined can greatly influence a buyer’s decision. The same applies to a user-friendly app, or a visually appealing website with CSR agents answering questions in a live chat conversation. All these elements can either simplify or complicate the consumer’s experience, make it enjoyable or unpleasant. Remember, the omnichannel model seeks to provide a seamless experience across channels. The consumer could start a purchase in once channel, complete it with another, or return goods using a different method. Customer service efforts should aim to simplify all types of transactions, regardless of the first channel used.
Taking your Business to the Next Level with a 3PL Provider
The omnichannel distribution model can help a business grow and expand across channels. However, in order for this model to be successfully implemented, a strong digital inventory management infrastructure must be in place; hence the need to work with a trusted 3PL provider such as Mantoria. Logistics service providers are the professionals with the best cutting-edge inventory management technology for businesses in various industries.
Our team at Mantoria specializes in handling end-to-end logistics and fulfillment to handle all aspects of transport from origin overseas, customs clearance to get goods into Canada, and fulfillment including last mile delivery. We also provide value added services customized to meet our clients’ needs. No need to work through various parties to manage your logistics and fulfillment.
Contact us today to find out what Mantoria can do for your business. Follow our blog, our LinkedIn, and our Twitter page for the latest updates.
