Omni-channel commerce will continue to be the name of the game in 2023. While inflation, spending uncertainty, and planning challenges are putting pressure on retailers, consumers will continue to expect a seamless and frictionless omni-channel experience – the ability to buy what they want, where and when they want it and to have those same options for returns and exchanges. The grace period is gone; consumers will find what they want elsewhere if a retailer can’t deliver the product(s) and experience they’re looking for.  

This is going to force companies to launch projects, and refocus investment in order to align those dollars with customers’ needs and wants. What that looks like in action:  

• Know exactly what customers are going to be buy when and where 
• Invest in the capabilities to closely monitor and manage inventory
• Invest in the infrastructure needed to connect systems
• Clean up and standardizing data in and across channels
• Create more connected teams
• Streamline operations both internally and across the supply chain
• Create more information-sharing capabilities across supply chain partners 

All of this can be achieved by leveraging the right data across the organization to provide visibility.   

Prioritize Inventory Management

As we neared the end of 2022, the headlines were hard to miss: retailers had too much inventory. While some brands fared better than others with an excess of goods, the past year has taught us it’s critical to be prepared and organized when it comes to inventory.   

Because consumers often leverage multiple channels – for example, shop/buy online, pick up in store and return at a different location – retail and supply partners need to work dynamically to provide sufficient inventory at the right time. That’s where data comes in. It is extremely important that a retailer and supplier maintain accurate, inventory data that can be displayed and automatically updated on the store’s website or mobile app. 

Working with the right retail inventory management tools across the supply chain can provide every partner along the way insight into what to keep, what to move and what to sell. Moving forward, two key elements in effective omni-channel will be accurate item data details and inventory management tools.  

Update Infrastructure to Ensure Connected Systems

Suppliers need to be able to push accurate inventory information to retailers, and those retailers need to be able to receive and display it across channels in the right way. Suppose a retailer has four items in the store, 10 in the distribution center and another 50 in the suppliers’ inventory for drop shipping. In that case, the retailer’s system needs to know how to reflect the correct inventory counts for the right customers in the right channels. 

This is especially important when a retailer sells across multiple channels, like a brick-and-mortar store, e­commerce, or social media. In this situation, inventory data across channels must be as up-to-date and accurate as possible. 

Clean up and Standardize Data 

A seamless exchange of data is the key to enabling the close collaboration required in the post-pandemic era. Retailers need data from suppliers about the items they buy, the orders they place, the inventory they move, and how suppliers perform. Likewise, suppliers need insight into sales and inventory trends and sales forecasts that only the retailer can provide.  

Start by getting your item data in order because it is foundational to everything – and is usually the messiest.   

Connect Teams, Systems and Simplify, Standardize Data to Work Across Channels

The challenge for retailers is accessing a complete view of their inventory at all times. This requires getting rid of the boundaries across channels and partners in order to give the consumer the item they want regardless of where the inventory happens to reside.  

To do that, retailers must continue to manage the same aspects of inventory as they always have, including inventory by location, banner, product, category, season, region and supplier. However, instead of approaching inventory one channel at a time as they have in the past, they must understand and optimize their inventory position, delivery, shipping, logistics, allocation and replenishment across all of their inventory locations and channels at once.  

Despite the complexity happening behind the scenes, retailers must make the experience across channels look seamless and integrated to the consumer; this requires designing and executing a streamlined operations infrastructure across suppliers and partners.  

Assess and Update Information Systems  

Many suppliers manage a separate process for wholesale orders, online orders and marketplace orders. Sometimes, there is yet another system for phone or email orders. Often, orders are tracked using manual methods like spreadsheets. This not only takes up valuable resources, but also causes delays and errors in processing orders.  

To be an effective omni-channel partner, a single system to manage orders from all sales channels is necessary. This not only helps to view all orders, but also to find cost-effective shipping rates, to print labels and book shipments. A single, automated system enables inventory data-sharing with retail and logistics partners, which is a critical piece of the omni-channel puzzle.  

With these actions, we can drive significant momentum towards more streamlined supply chain operations and, ultimately, a frictionless omni-channel future.   

Jim Frome is president, COO, SPS Commerce.