The boom in e-commerce booming is placing great pressure on various sections in the supply chain. Infrastructure like warehouses, highway and ocean carriers take time to increase in capacity, and labor acquisition and retention remain a challenge. Combined with interruptions in routes caused by weather conditions and geopolitical conflicts, these pressures indicate the possibility of delivery delays.  

The Emergence of Omnichannel Retail

With a 30% spike in e-commerce shipping volumes since 2022, this significant rise in omnichannel supply chains is transforming the landscape of logistics.  

Even as we observe the thriving presence of online stores, traditional brick-and-mortar establishments maintain their significance. Engaging customers is a greater challenge today – not only are they armed with an unprecedented amount of information and options, they also demand a personalized, seamless experience that brings them the greatest convenience. To ensure a unified customer experience and maximize reach and engagement, brands would be wise to embrace the omnichannel retail approach, maintaining both online and physical presences. It is important to integrate both supply chains for physical and online stores, so that sales and fulfillment channels are integrated overall. 

Why Omnichannel Supply Chains Are Necessary

An omnichannel supply chain is a comprehensive system that harmonizes all aspects of a company's logistics and distribution network, ensuring a seamless and consistent customer experience in the manufacturing and delivery of products and services. It represents a paradigm shift in prioritizing customer experience, seamlessly integrating various sales channels like physical stores, online platforms and mobile apps.  

In today's e-commerce landscape, traditional linear supply chains are no longer sufficient; companies must now implement robust digital supply chains that offer transparency, traceability and visibility throughout the entire supply chain. This entails enhanced inter-connectivity among supply chain members, driven by advanced technologies like artificial intelligence (AI) and machine learning (ML), which enable consistent and personalized shopping experiences through synchronized inventory, customer data and pricing across all touch points. 

Building an omnichannel supply chain requires a cohesive integration of various solutions capable of automating processes and managing complexities across the value chain. This includes a spectrum ranging from global trade management, enterprise resource planning (ERP) and warehouse management systems (WMS), to order management (OMS), customer relationship management (CRM) and point-of-sale (POS) systems.  

To support omnichannel fulfillment, it is imperative for order data to sync between the warehouse, logistics service providers and the core business, ideally in real time. For instance, once a customer places an online order for pick-up at a nearby store, a notification can be sent to the store to reserve the items purchased. When stocks run low at that store, a notification can be triggered to inform the warehouse and transportation teams to send more stock by a certain date.  

Embracing an omnichannel strategy that seamlessly intertwines both the physical and digital channels offers a multitude of benefits for both the manufacturing and retail sectors, with one of the most prominent being the ability to monitor inventory levels in real-time. This capability allows businesses to fine-tune their stock quantities, steering clear of the pitfalls of excess inventory that could result in storage constraints and product expiration, while also preventing shortages that might impede profit maximization.  

Omnichannel Supply Chains Ease E-Commerce Supply Chain Pressure

An omnichannel supply chain informs logistics service providers on how many shipments are required, when they are required, and much more. It can offer flexible fulfilment options to customers, such as buy-online-pickup-in-store. Orders can also be fulfilled faster and more easily when logistics companies pick up from a retailer’s local store, saving delivery time and money. Moreover, it enables businesses to optimize inventory management by dynamically reallocating stock levels based on demand fluctuations observed across different channels. This adaptability not only reduces the risk of stockouts but also enhances overall operational resilience in the face of unforeseen disruptions or changes in market conditions. 

The emergence of omnichannel supply chains can alleviate the strain on supply chains by facilitating quicker deliveries and optimal manufacturing levels. At the end of the day, customer satisfaction is not only raised, but costs for logistics companies, retailers and customers are also brought down. 

Siddharth Priyesh is vice president of CrimsonLogic.