Retailers use a lot of paper in their operations — from receipts and invoices to labels and shipping documents. Excess packaging materials from inbound shipments are thrown into the trash instead of being reused or recycled. Packing boxes are often discarded instead of being refilled and used again. Printed retail catalogs, newsletters and flyers fill trash bins across the country. 

Order management technology can help retailers lower their carbon footprint. Implementing a centralized order management system (OMS) can help reduce a retailer’s overall carbon footprint via smart order routing to the nearest locations, as well as various omnichannel fulfillment options like buy-online-pickup-in-store (BOPIS), ship-from-store and more. OMS technology can also move store inventory vs. shipping individual e-commerce orders, which can add to transportation costs and fuel usage. 

Last-mile order fulfillment isn’t cheap — particularly for direct-to-consumer (DTC) retailers operating at a smaller scale than big-box stores — averaging 53% of a company’s total cost of shipping. For DTC retailers, omnichannel fulfillment options like curbside pickup and BOPIS provide much-needed relief from the high cost and risk associated with final-mile delivery. Plus, final-mile delivery can be bad for the environment as delivery trucks often idle outside pickup and dropoff locations. 

Let’s look deeper into how order management technology can help retailers improve sustainability:

• Order aggregation across all channels creates process efficiencies and economies of scale in fulfillment facilities. The OMS fulfills orders from the right location at the right cost so that inventory comes from the warehouse closest to the customer. Distributed order management reduces overall carbon emissions by ensuring orders are fulfilled by the closest node, therefore limiting unnecessary transit.
• Higher order accuracy leads to fewer returns and reshipments. If an incorrect item is shipped to a customer, it must be returned and replaced — doubling transportation costs and emissions. 
• Cross-channel visibility allows retailers to make strategic decisions about where to fulfill orders, and allows them to share inventory data with customers. 
• Omnichannel commerce empowers consumers to purchase products with less hassle, often reducing transit “legs” within the supply chain. Retailers can offer a “buy anywhere, fulfill anywhere, return anywhere” business model with streamlined efficiencies.
• Shoppers can choose their favored fulfillment option — e.g. curbside pickup or BOPIS — and may opt for the greenest choice.

Chris Deck is founder and CEO of Deck Commerce.

Read more of SupplyChainBrain's 2022 Supply Chain ESG Guide here.