Guide Omni-Channel Order Management - Mi9 Retail

GuideOmni-ChannelOrder Management

Omni-Channel Order Management Guide 02Omni-ChannelOrder Management GuideThe retail industry is undergoing a phenomenaltransformation. Technological advances andchanges in the traditional shopping journey haveretailers scrambling to keep up with the newesttrends.Today’s consumers are more knowledgeable,connected, empowered and mobile. Theinternet and social networks provide easyaccess to product and price information, as wellas reviews. Capabilities such as being able toshop on mobile devices empower consumersto interact with a brand when and where theywant.The consumer’s shopping journey is nowdynamic. Consumers are constantly evaluatingtheir options and interacting with retailersacross channels. The modern consumerresearches online before making purchases instore, researches products and alternatives ontheir mobile device while shopping in store andeven makes purchases online but visits a brickand-mortar store to collect them. The shoppingjourney is an ongoing cycle because the digitaltouchpoints that consumers interact with arealways on and accessible.Copyright 2017 Mi9 Retail. All rights reserved.

Omni-Channel Order Management Guide 03Omni-Channel RetailingTo respond to consumers’ expectations of a seamless,personalized, and consistent experience with brands,retailers need to take an omni-channel approach. Operationalprocesses should be synchronized between channels, andchannels should be aligned to act as a single face toconsumers. Even though a brand may have several channels,the consumer still views them as one, as a single company.This concept also applies to the consumer. A customer isa single person and should be treated as such even if he/she shops both in the store and online. Customers demandexceptional service and personalized content and offersbecause they expect retailers to know their personal profiles,preferences and their past purchase history.Obstacles to Omni-Channel RetailingSeveral major obstacles to omni-channel retailing that retailers must overcome include:Legacy SystemsMany retailers are still using retail technology and infrastructure that was developed before omni-channelcommerce was mainstream. The systems simply cannot scale with the business nor support channelexpansion, geographic diversification, the creation of a new brand, or the addition of a new business.Disparate SystemsMany of the existing systems that retailers are currently using were initially designed for a single channel.Retrofitting these systems to support omni-channel commerce results in challenges, including added costs formaintenance, poor integration, risk of errors, and reduced productivity.Inconsistent or Incomplete Customer InformationLack of centralized and complete customer information opens the potential for inconsistent views of customerprofile data, negatively impacting customer service.Incomplete Inventory VisibilityLack of real-time inventory visibility and availability reduces control and means that purchase and allocationdecisions are not fully optimized.Huge Data VolumesRetailers must embrace big data analytics technologies to deliver insights from transactional, product andcustomer demographic, behavioral and social data. It is no longer feasible to manually collect and analyze.Manual and Inefficient ProcessesMany manual and pen-and-paper methods are still being used in stores, whether to manage customer ordersor store receiving and transfers.Copyright 2017 Mi9 Retail. All rights reserved.

Omni-Channel Order Management Guide 04Omni-ChannelOrder ManagementThe success of a retail omni-channel strategy is dependent on three main technology pillars: the e-commerce platform,order management system (OMS) and POS.123E-COMMERCEPLATFORMORDERMANAGEMENTSYSTEM (OMS)POSThe e-commerce platform is atthe core of all online channelsand is the customer-facingcomponent of the crosschannel shopping journey. Itallows consumers to engage,research and make purchaseson the web, tablets, mobilephones, and even throughsocial media.Today’s order managementsystems must do more thansimply manage orders toonline-only sales or store-onlysales. Retailers need a centralrepository for inventory andorders and require an OMSthat can leverage fulfillmentcenters throughout theenterprise. Retailers needto use their OMS to moveinventory and deliver it to theconsumer based on his or herpreferred method. In orderfor the e-commerce platformand POS to operate efficiently,only relevant information issynched from the OMS. TheOMS must also equip retailerswith the tools needed toprovide exceptional customerservice and a seamlesscustomer experience across allchannels.The in-store POS systemenables the omni-channelapproach in several ways.Typically, retailers manage theirin-store inventory throughthe POS. POS systems allowassociates to complete theomni-channel buying cycle byprocessing in-store pickupsof products ordered online oreven to place an order that willbe fulfilled from another store.All of the orders processed atthe POS terminal are then fedinto the OMS for a completeview of orders across allchannels.Copyright 2017 Mi9 Retail. All rights reserved.

Omni-Channel Order Management Guide 05Mi9 Retail Omni-ChannelOrder Management SystemThe Mi9 Omni-Channel OMS is an order management systemthat provides a single, global view of all available inventoryto intelligently source order items, regardless of channel.The system ensures that the business can meet current andfuture customer demand while optimizing inventory, logistics,and asset utilization.Omni-Channel OMS key capabilities include:Create ordersTrack ordersAdminister ordersReport and analyze against ordersEndless AisleAn “endless aisle” breaks down channel silos so that orderscan be placed and fulfilled, and returns and exchanges can beprocessed via any retail channel. This extends to the retailer’snetwork of fulfillment locations and third party logistics companies. It also facilitates vendor fulfillment of an order whenthe product is not available in any store, distribution center,or warehouse location.Today’s order management systems must interact with a widerange of enterprise systems, including, but not limited to:Endless aisle shopping, purchasing, and fulfillment includes: Call Center Buy online, ship from any fulfillment location Vendor Systems e-Commerce Point of Sale (POS) Warehouse Management System (WMS) Buy online, pick up in store Reserve online, pick up and pay in store Buy at store, ship from alternate fulfillment location Order at store, ship and pay from alternate fulfillmentlocation Reserve or buy online, transfer from another locationThe Mi9 Omni-Channel OMS is an integrated, full-featuredorder management system providing: Endless Aisle Inventory ATP (Available To Promise) Fulfillment Optimization Transaction-Based E-mail Customer Service and Appeasement Payment and PCI-DCCCopyright 2017 Mi9 Retail. All rights reserved.

Omni-Channel Order Management Guide 06Key Capabilities ofOmni-Channel Order ManagementFulfillmentOptimizationInventory ATP(Routing Engine)(Available toPromise)Order Broker Optimize product Rules-based and Acts as order broker Provides centralshipments acrossmultiple locations Split order linequantities acrossmultiple fulfillmentpoints Determine “bestoption” based onbusiness goals:limit costs, assist instock allocation (andreduce correspondingtransfers andmarkdowns), or focuson fastest deliverysource-dependentinventory visibilityensures stockavailability foreach order, takinginto accountfuture receipts,holdbacks for priorcommitments, 4-wallinventory, and saleschannel Provides flexibilityacross all ordersource requests andfulfillment locations Maintainsintegrated control andmanagement of alltransactions Provides datathat can be used bymultiple providers andconsumers (business)OrderManagementSystem (OMS)management and actsas system of recordfor orders and orderstatus Provides a platformfor all related ordertasks, such aspayment processing,changes, returns, etc.Reportingand AdvancedAnalytics Operationalreporting Analysis of successmetrics, for example,did routing decisionsreduce cost, speeddelivery, etc. Actionable andautomated systemadjustmentsto control based onorder source andlocation rules Multi-faceted rulessupport buy onlinepickup in store, buyonline ship from anyfulfillment location,buy online pick up instore, reserve onlinepick up and pay andstore, buy at storeship from alternatefulfillment location,order at storeship and pay fromalternate fulfillmentlocation, and reserveor buy online transferanother locationORDER PROCESSINGPOS In-store Orders Reservations Order Shipments In-Store Pay Reminders/Alerts Associate Follow-upMERCHANT Product Management Pricing Vendor Management POS Processing WMS & WMS LinkOMS ATP Order Broker Fulfillment Optimization Payments E-mail AppeasementCopyright 2017 Mi9 Retail. All rights reserved.

Omni-Channel Order Management Guide 07Benefits of Clicks and Bricks123PROMOTE YOURBRANDDRIVE IN-STORETRAFFICINCREASECONVERSIONS,CROSS-SELL, & UP-SELLE-commerce represents agreat opportunity for retailersto extend their brand todigital spaces with an onlinestorefront. Retailers mustmeet consumers whereverthey are.Consumers use multiplechannels before makinga purchase. Beyond usinge-commerce as a saleschannel, the web can also beleveraged to drive customersto stores.Since omni-channel customersspend more than singlechannel customers, retailerscan leverage clientelingopportunities in-store.Recommended productsand online promotions canincrease the success rate ofcross-selling and up-selling.456IMPROVE VISIBILITYACROSS THE CHAINCREATE A 3600 VIEW OFTHE CUSTOMERPERSONALIZE THECUSTOMEREXPERIENCEReduce online cartabandonment and markdownsand save sales with real-timeinventory. Fulfill online or storeorders from any location,including distribution centersand other retail stores.From an anonymous webvisitor to an identifiedcustomer, track and unifycustomer engagementonline and in-store. Obtain asingle view of the customer’scomplete order history,purchase behavior andpreferences.Enrich CRM data by trackingcustomer activity online andin-store and execute moretargeted and measurablecampaigns.The retail industry will continue to evolve as retailers shift their strategies to court thedigital consumer. Retailers who deploy omni-channel order management technology willevolve the customer experience, deliver faster inventory turns, and create higher profitmargins. In short, they will thrive.Copyright 2017 Mi9 Retail. All rights reserved.

Mi9 Retail is passionate about helping retailers create great experiencesfor their customers – online, in-store, and on any device. We know thatgreat retail experiences happen when optimized inventory managementintersects perfectly with well-executed customer engagement strategiesto deliver higher customer loyalty, better margins, and a more engagedworkforce. Our solutions for merchandise management, digitalcommerce, and store operations are used by leading retailers across theglobe. The company is headquartered in Miami, FL, with operations inNorth America, Europe and Asia. Visit www.mi9retail.com to learn more.Global Headquarters12000 Biscayne Boulevard, Suite 600Miami, FL 33181T. 786.577.3200 www.mi9retail.comNorth America Europe Asia Pacific

The Mi9 Omni-Channel OMS is an order management system that provides a single, global view of all available inventory to intelligently source order items, regardless of channel. The system ensures that the business can meet current and future customer demand while optimizing inventory, logistics,