Challenges and Strategies for Omni-channel and Multi-channel Logistics

Blog June 23 2015

Challenges and Strategies for Omni-channel and Multi-channel Logistics
Our best strategies for how to fulfill orders using omni-channel and multi-channel logistics

Omni-channel logistics (also called multi-channel logistics) is increasingly important for consumer packaged goods (CPG) companies. Consumers increasingly expect quick and integrated delivery between physical and online sales. In fact, a study by Amazon showed that offering the option of same-day delivery caused their “abandoned carts” to drop by 20%, even though most consumer didn’t use the same-day delivery option.

Adapting to this new form of logistics can cause many order fulfillment problems. What challenges might you face and what questions should you ask as you adapt to multi-channel and omni-channel logistics?

What is omni-channel or multi-channel logistics?
Let’s make sure we start with a common definition. Omni-channel logistics or multi-channel logistics simply means that all channels of sale, including digital and physical, are connected. In the future, these channels of sale will continue to integrate to an even greater extent.

Order fulfillment challenges
Multi-channel and omni-channel logistics represent a multitude of order fulfillment challenges for unprepared companies. Most of these problems stem from lack of integration between your different channels. For example, if digital and physical inventories are not run on the same system, you might find yourself out of stock or overstocked in a particular product. Transportation services need to be coordinated so that you do not create redundant transportation paths.

Questions for success in omni-channel and multi-channel logistics

1. How do you increase your inventory productivity? Do you know exactly what product you have and where you have it? Is your inventory coordinated between your digital and physical channels?
2. Have you built a flexible supply chain? Do you have an integrated supply chain between your brick and mortar and ecommerce channels? Do you have a distribution network that is set up for your changing order fulfillment? We recommend warehouses such as Amware Multi-Channel Logistics with warehouses in Atlanta, Dallas, Phoenix, and New Jersey to help coordinate your supply chains.
3. Are you prepared for the future? Is your supply chain agile enough that you can easily adapt to future changes in distribution?

Our warehousing and order fulfillment services are designed to make it easy for you to adapt to multi-channel and omni-channel logistics. For more information about Palisades Logistics, or to request a rate quote, please contact us at 973-331-8220 or via this website using our Contact Form.

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