In recent years, the evolution of consumer behavior, with people increasingly inclined to shop online, has radically changed the retail landscape and driven e-commerce to success. This situation has given rise to the spread of a new, integrated approach designed to fully meet the needs of today’s shoppers. This is how the omnichannel model applied to logistics came about, a model that first took hold in the United States and has, over the past few years, officially gained recognition in Italy as well.
Although the concept of omnichannel was only introduced recently in our country, its impact has been significant, leading many logistics hubs and warehouses to adopt omnichannel strategies and gradually abandon the traditional, and by now outdated, multichannel model.
But what does it really mean to adopt an omnichannel strategy in logistics? Unlike the multichannel model, in which each channel operates independently, the omnichannel approach aims to offer a seamless shopping experience with no discontinuity between online purchases and those made in a physical store. In this article we will take a closer look at omnichannel strategies together with Marco Moratto, software analyst and developer at Stesi, who explained some of the features that make the silwa WMS the ideal solution for businesses looking for the right tool to manage this new approach to logistics.
Omnichannel strategy: definition and implementation
“The omnichannel strategy,” says Marco, “is the approach adopted by companies to offer an integrated, consistent and complete experience to their customers across all available communication and sales channels.” This strategy is not limited to traditional means such as e-mail, phone calls and direct interactions in physical stores, but extends to the use of innovative tools such as chatbots, mobile apps, websites and social media.
“The cornerstone of this strategy is putting the customer at the center,” notes Marco, who should be free to move fluidly between the different channels without perceiving any interruption or inconsistency in the shopping experience. “For example, a customer might start the purchasing process online, continue in a physical store and complete it through a mobile app, while experiencing full consistency throughout.”
But what does all this mean from a logistics standpoint? For the logistics world, the goal now becomes making the inflow and outflow of goods more flexible at the various points along the supply chain, thereby ensuring smooth and efficient management.
In short, the omnichannel strategy is essential in today’s digital market, where customers demand speed and want to feel at the center of the purchasing process, regardless of the channel used. To meet these needs, companies must rethink their operating model and adopt a cross-channel approach that effectively integrates the different communication and sales channels. Only through this kind of integration is it possible to meet customer needs wherever they are, delivering a high quality service that is aligned with their preferences and requirements.
Multichannel or omnichannel: yesterday’s strategy vs tomorrow’s strategy
The omnichannel strategy represents the evolution of the multichannel strategy, but what exactly are the differences between the two?
“Multichannel strategies,” explains Marco, “focus on separate flows that are not integrated with one another. A multichannel company uses different communication and sales channels, such as physical stores, social networks, call centers and chatbots, but information is not shared between the various channels. This approach leads to a lack of integration and interaction, resulting in a fragmented experience for customers.”
By contrast, the omnichannel strategy adopts a unified and integrated approach. In this model, logistics and communication barriers are broken down so that all channels work together synergistically and in an integrated way. The goal is to eliminate the need for users to repeat their information or manage orders differently across different channels. “This not only improves the customer experience but also reduces operating costs, for example through the possibility of picking up and returning orders at various points along the delivery chain.”
From this point of view, the omnichannel strategy can be seen as an extension of the multichannel strategy, but with a broader, more integrated vision, in which every initiative moves in the same direction right from the initial stages.
Introducing the right WMS
Given the current market landscape, it becomes essential to examine the most suitable solutions for warehouses that have chosen to implement an omnichannel strategy. It is clear that equipping the business with the right warehouse management system (WMS) has become more crucial than ever.
The WMS software, the true brain of the warehouse, must be able to support and implement the omnichannel strategy by monitoring data and ensuring accurate control and process optimization.
Integrating a WMS designed not only to optimize warehouse operations but also to make operators’ work easier brings numerous benefits, including:
- Effective inventory management, coordinating material flows efficiently;
- Space optimization, identifying and maximizing the use of the available space for goods storage;
- Improved efficiency, clearly assigning tasks to operators and reducing travel distances in order to minimize movement, improve safety and cut down operating times.
The increased flexibility in the sector has, moreover, led to the emergence of new logistics flows tied to online sales that WMS platforms must now be able to handle. These include:
- Ship from warehouse, where the carrier delivers the goods directly from the logistics center to the buyer’s home or place of business.
- Buy online, pick up in store, where the consumer completes the purchase through digital sales channels but goes to the store for delivery.
- Ship from store, where the store acts as a warehouse and ships orders directly to customers.
- Buy online, return in store, where customers can return items to stores, which can in turn generate new sales opportunities.
silwa for an outstanding customer experience
The silwa WMS suite stands out as the ideal solution for effectively managing the intricate connections created by an omnichannel strategy.
As we have seen, at the heart of an omnichannel strategy must be logistics’ ability to manage and connect all the channels through which customers can access and reach the company. These touchpoints, it should be noted, are not necessarily owned by the company itself. “Just think of all the services and digital platforms that exist today for online sales, the various marketplaces such as Amazon and eBay, to name just two of the best known,” Marco points out.
Thanks to its flexible configuration, silwa can distinguish, route and prioritize orders and returns based on the channel used and other variables such as location and specific settings. Depending on the business’s needs, for example, it is possible to give priority to orders coming from the most popular marketplace or to highlight those from premium services, such as Amazon Prime, which require particular care in fulfilling orders within the expected timeframes.
Thanks to a dedicated traceability module, the suite also provides detailed tracking of every step of the order, from receipt of the document through to final delivery to the carrier, giving customers full visibility into the status of their shipment.
The Kasanova case
Kasanova Spa, a well known retailer in the housewares sector, is a longstanding Stesi customer, whose first encounter with the silwa WMS dates back to 2012. Since then, Kasanova’s WMS has naturally undergone significant developments and improvements designed to turn it into software capable of meeting all of the company’s specific needs and requirements.
Today, in addition to its own e-commerce, Kasanova has a presence on several marketplaces, and thanks to silwa it is able to receive, process and prioritize all the orders generated on Italy’s leading e-commerce sites, taking into account the settings provided to the system, which can be modified daily to adapt to the needs of the moment.
Once processed, orders are handed over to the leading Italian carriers, which share tracking information with silwa, ensuring that the latest updates are always available.
Kasanova has also already implemented and put into operation the possibility of returning products purchased online at a physical store. Customers can start the return process on the website and choose to return products to a store of their choice, thereby completing the entire return process and securing significant savings.
Want to find out how silwa could optimize your warehouse operations? Contact us to learn more.
