Omnichannel automation for distribution

Businesses are turning to omnichannel automation in order distribution to meet the changing demands of customers who shop both in-store and online.

What is omnichannel automation?

Omnichannel automation integrates and coordinates an organization’s physical and digital channels to provide a seamless, consistent customer experience. To achieve this, companies use automated systems that streamline interactions across several channels, such as email, websites, and stores.

This can also be applied to shipping through omnichannel fulfillment, an omnichannel strategy that involves a centralized approach to managing inventory and processing orders from multiple sources.

If implemented correctly, omnichannel automation in logistics should enable the same inventory, order, and return processes regardless of the chosen channel. As a result, businesses can satisfy their customers’ needs as quickly and efficiently as possible.

Integrating all distribution and communication channels within a company through automation — where processes and tasks are performed automatically — helps retail locations and logistics facilities boost their cost-effectiveness. This is done through better coordination between all parties, which prevents stockouts and ensures timely, accurate order shipments.

What is an omnichannel automation system in the supply chain?

These are some ways to steer distribution toward omnichannel automation:

• Warehouse management system (WMS). Benefiting from real-time inventory visibility in all channels ensures accurate stock levels and minimizes stockouts as well as overstock. Therefore, it’s extremely advantageous to employ software such as Easy WMS.
• Distributed order management (DOM) system. Automatically deciding which warehouses, points of sale, or 3PL providers are suitable for shipping allows retailers to manage them efficiently from any channel and optimize their fulfillment. Software solutions like Easy DOM enable large organizations following an omnichannel strategy to centralize their supply chain management while handling a high volume of daily shipments.
• Automated storage and retrieval systems (AS/RSs). Picking robots, AMRs, stacker cranes, accumulation conveyors, and other robotic intralogistics solutions streamline replenishment and order fulfillment operations, increasing productivity and customer satisfaction.
• Click-and-collect solutions. These provide users with omnichannel experiences, such as buy online, pick up in store (BOPIS).
• Ship from store. Retailers can use their physical stores as distribution centers to offer faster and more cost-effective delivery options.

How to build omnichannel automation

When implementing omnichannel automation for distribution, first, you’ll need to collect and analyze current process data by tracking inventory. This is best done using specialized logistics software. Also, consider these aspects:

• Inventory control. Manual stocktaking may work for small, early-stage companies. But before embarking on omnichannel automation, you should digitalize this process.
• Operational efficiency. To achieve scalable growth, you should start by analyzing your daily warehouse operations for inefficiencies and bottlenecks. If your storage solutions need updating or tasks require automation, be sure to consult an intralogistics expert.
• Software integration. WMS and DOM systems from top providers are ERP-compatible, making it easier to coordinate all business areas.
• Location of warehouses and stores. A system like Easy DOM determines the optimal nodes for processing shipments in advance, thus automating such decisions.
• Scalable technology. It’s advantageous to choose configurations that make it easy to add or remove shipping.
• Future business requirements. Beyond current needs, omnichannel automation for distribution should anticipate future scenarios, e.g., seasonal demand peaks and business expansion.

Advantages of omnichannel automation in distribution

Applying omnichannel automation to distribution brings retail companies multiple benefits:

• Enhanced customer experience. Offering seamless options like BOPIS or same-day delivery increases user satisfaction. Likewise, real-time inventory visibility minimizes errors.
• Reduced operational costs. More effective inventory management lowers costs associated with shrinkage and overstock.
• Faster order fulfillment. Automating order processing shortens delivery times and cuts costs.
• Data for analysis. Omnichannel automation in distribution and warehouse management collects extensive data. When analyzed, they can benefit various departments.

Omnichannel automation and marketing

Omnichannel automation is also a widely applied concept in marketing. In this field, it focuses on integrating all communication and purchasing channels to provide a unified, consistent brand experience across stores, apps, and websites.

To effectively serve both physical and online channels, logistics processes must be integrated into the automation strategy. This approach facilitates personalized communication strategies, such as emailing customers who recently received an order or notifying brand users when new products arrive at a specific location.

Automate your warehouse for omnichannel with Interlake Mecalux

If you’re looking for detailed order allocation configurations and a global view of stock across your warehouses, stores, and nodes, Interlake Mecalux can help you automate your omnichannel distribution.

Our distributed order management system, Easy DOM, enables segmentation of shipments by client type. Additionally, users can create specific prioritization rules, making this solution ideal for any organization with multiple warehouses, stores, or 3PL providers.

Easy DOM also integrates with ERP, WMS, and third-party software for full company coordination. Feel free to contact us for more information on this and other logistics and storage solutions — without obligation.