Why Omni-Channel Warehouses Are the Next Big Trend in E-Commerce? Aaj Enterprises September 30, 2019

Warehouse Management

Why Omni-Channel Warehouses Are the Next Big Trend in E-Commerce?

With the evolution of technology and human perspective, buying and selling of goods is no longer limited to conventional channels.

People have started to buy and sell products on platforms, that seemed to be a fantasy in the recent past.

Companies are now spreading out their hands into every social platform they can reach to sell their goods. Facebook, twitter and whatsapp are not just limited to social newsstands and chatter-spots, but are being extensively used to sell merchandise.

When orders come pouring out to a seller’s inbox from all directions, an omni-channel warehouse it what prevents the fulfilment structure from crumbling.

What is an Omni-Channel Warehouse

In simple terms, an omni-channel warehouse is a central repository of goods, which is used to handle and process incoming orders from different channels. Such as brick-’n-mortar stores, online websites, social media shops, customer support channels, store replenishment and everything else.

Rather than having different warehouses for fulfilling orders from different channels. An omni-channel warehouse centralizes the procedure, and delivers a better grasp over multiple fulfilment operations.

Benefits of having an Omni-Channel Warehouse

Omni-channel order fulfillment has its own benefits. Let’s take a look at them:

  • An omni-channel gives a business the capability of same day or next day shipping. Since the inventory is properly collaborated among distributors, or any other store or pickup location near to the customer. Thus drastically reducing shipping times.
  • Allows your customers to research products, compare prices and use different channels to make a purchase.
  • It promotes better collaboration between stores and all other sales channels. Ensuring that orders are processed in a simple manner, at a central hub. Rather than a ton of orders at different processing channels.
  • This setup helps with an improved tracking of the inventory and order fulfilment. Items can be selected simultaneously for any channel requirements, using real-time IT solutions. Additionally, it also helps with handling orders on peak times.
  • Having an omni-channel warehousing system allows you to offer a larger range of products to your customers.
  • Lower operational costs and a better scope for expansion and improvements in the long run. Thus emulating your current revenue and profits.
  • It helps with effectively handling returns alongside existing retail channels. Thus enhancing the customer experience, and reducing the overall hassle associated with it. Returns mark a substantial portion of e-commerce sales charts, so it is a factor worth considering.

However, on the contrary, omni-channel warehousing is not just gold and glitter. It has a few challenges associated with it, which can be overcome using appropriate procedures and knowledge.

For example, an omni-channel warehouse will operate under extreme stress during a holiday or shopping season, because there’s only one central processing system. However, a good WMS(Warehouse Management System) can help overcome this.

Since an omni-channel warehousing system employs the use of multiple shipping partners and suppliers. It can sometimes become clumsy due to unmatched coordination between members. Although, a good consolidation approach can overcome this problem.

Conclusively, omni-channel warehousing is the next step in e-commerce evolution. Many big market players have incorporated it in their work procedures, to stand out in this ever expanding and competitive market.

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