Omnichannel engagement has become the industry standard for both the B2B and B2C retail sectors. As customers move across websites, in-store interactions and mobile apps, their data and applications move with them, to create consistent, on-brand experiences from start to finish. 

A seamless omnichannel buyer journey requires operational excellence. Retailers need the ability to unify inventory data in real time, and ensure that products are available for fulfillment across all sales channels. Otherwise, they risk losing shoppers to stockouts or the inability to check local inventory levels in various locations. 

Sophisticated retailers are adopting new inventory-management techniques to keep pace with innovation. One such option is future available to promise (FATP), which is designed to provide an accurate and timely picture of current inventory levels, as well as future availability of products or services.   

Traditionally, retailers have relied on available-to-promise (ATP) capabilities, which quantify the inventory levels that a business can guarantee to have in stock to fulfill customer orders. In the process, retailers can monitor inventory more efficiently while optimizing warehouse capacity. 

FATP augments ATP capabilities. Retailers can accept an order for future fulfillment because they know the inventory availability date ahead of time. Therefore, if there isn’t enough current inventory, the retailer doesn’t miss out on orders, which can be placed for items against incoming inventory. 

Say, for example, that a fulfillment center in Ohio has 1,000 units of an item on hand on August 15, and an additional 500 in transit and scheduled to arrive in two days. Using FATP capabilities, the retailer can continue to accept orders once the 1,000 units are depleted because it knows in advance that it has 500 units on the way, and that the replenished inventory will be available for fulfillment on August 17.

Unifying Inventory Data

When retailers apply FATP strategies, they can realize untapped revenue associated with continuous product availability, and reduce inventory carrying costs by keeping lower levels of backstock in their location networks. 

With a modern, distributed order management system equipped with FATP capabilities, companies can achieve better control over stock levels and allocations because they can draw on real time data to prevent overselling, backorders, and stockouts. Because unified inventory data provides a holistic view of stock levels across locations, they can minimize overstocking, reduce holding costs, improve cash flow and prevent rush shipments and expedited handling costs.

Distributed order management systems are highly scalable and adaptable. They allow retailers to seamlessly integrate sales channels, expand into new markets, launch promotions and handle increased order volumes without operational disruption.

Consolidated inventory data also provides valuable insights into buying patterns and demand trends across channels. In analyzing this data, retailers can make data-driven decisions for optimizing pricing strategies, planning inventory levels, and tailoring marketing campaigns. Moreover, by centralizing inventory data, retailers ensure that the information provided to customers who are placing orders is accurate and up to date. 

Customers can easily transition between online and offline channels without disruption because they have access to reliable product information and availability data across all points of entry. For example, a customer can reserve an item online and pick it up in-store, or request that an item be shipped directly from a store if that product isn’t available in a warehouse. 

With a consolidated view of their inventory, retailers can route orders to the best location for fulfillment, reducing the chance of delays or cancellations.

Applying the Use Cases

FATP is most useful in scenarios where customers have specific delivery data requirements, or when retailers want to manage customer expectations regarding product availability. For example, the technique is particularly beneficial when retailers are offering pre-order options for upcoming products or releases. Customers place orders in advance, and the retailer provides an estimated delivery date based on expected availability. 

When a product is temporarily out of stock but expected to be replenished quickly, FATP can help manage customer expectations by providing information on the restocking timeframe, so that customers can decide if they want to wait or explore other options.

FATP is well-suited to retail situations where there’s predictability of inventory arriving at a fulfillment location, as well as for fast-moving goods such as seasonal items. For example, during the back-to-school season, items like lunchboxes, notebooks and backpacks sell quickly in stores and online, requiring raid planning and replenishment across channels. 

During busy sales periods such as holidays, sales events or promotional campaigns, FATP helps retailers manage demand surges and set customer expectations for order fulfillment. Providing estimated delivery dates and shipping windows allows customers to make informed shopping decisions, and reduces the risk of overpromising and underdelivering. And in the case of delays or disruptions, retailers can use FATP to proactively communicate with customers, adjust delivery timeframes and provide alternative solutions. 

FATP positions retailers at the forefront of e-commerce excellence, ensuring a seamless and satisfying omnichannel shopping experience for their valued customers. 

Ram Venkataraman is chief executive officer of Kibo Commerce.