The four hottest ‘omnichannel’ acronyms that directly affected retail logistics management . indicating ‘in all ways, everywhere at once’ capacities
Market experts recently observed that businesses will resort to the so-called ‘omnichannel sales’ as strategic to survival, as online capacity enables orders from any shop anywhere while enhancing customer experience and brand loyalty from existing offline shops, in the same token. Admittedly, there are differences in detail as far as popular delivery options are concerned. Let’s explore what the hottest acronyms are used for in the context of omnichannel sales and the different impacts that directly affect retail operators.
BOPIS: Buy Online Pickup In Store
The BOPIS checkout option has become extremely popular lately, considering the 30% dominance of entire online sales, while the term has actually been around for over a decade. BOPIS compels shops to be equipped with sales technology, be it location tracking to inform customers where the nearest shop is located or effective customer service communication via electronic mediums, e.g., SMS and email, to continuously update the customer with the latest development.
The BOPIS sales channels should remain essential in the years to come, not only in meeting customer expectations with swift communications and same-day pickups or deliveries, but also in reducing logistics costs. At any rate, operators need to focus on market geography, logistics management as well as communication technologies with big data as the center piece optimizing business operations as a whole.
BORIS: Buy Online Return In Store
According to Google leaks, the word can be traced back to 2007 where it was supposedly coined, albeit not widely popular until a slightly higher hit, recently. BORIS typically comes up for holiday periods throughout the last quarter of the year. A survey by Order Dynamics found that 70% of online shoppers prefer to return or exchange goods in a physical store, regardless of whether the item was purchased online or in a shop, while 40% – 59% of them also buy other items in addition. Not having the BORIS option, thus, could result in customer turnover to other online shops that offer.
Market experts expect the BORIS option to become standard practice for online retail with brick-and-mortar stores in the close future. This is because the option reassures customers to receive purchase items in a perfect condition while the retailer can instantly check to see if the items can be resold or needs to be returned to the factory.
BOSS: Buy Online Ship to Store
Albeit less popular than the former two, BOSS is getting more and more hits on check outs as online retail volume increases. The option facilitates retailers as inventory can be managed collectively at a central warehouse that ships orders to the customer’s prefered store for continued service, as opposed to maintaining inventory at each and every store. This way, operators only need to draw items from the central warehouse after purchase orders have been received and thus save from freed-up invaluable store space and storage cost. The option also grants insight in identifying high performance stores where demand for a typical product is high as well as products and branches that are not attracting customers.
To enhance this option, retailers should be able to decide which products should be stocked in the central warehouse and retrieved for delivery at the store after purchase orders have been received and which ones are to be inventoried at the store to attract additional purchases when customers come in to pick up their orders.
BODFS: Buy Online Deliver From Store
BODFS became popular over 2018 concurrently with the rise in fulfillment service popularity. A survey by Order Dynamics has found that shifting business strategy to BODFS can result in cost reduction from by-passed distribution centers, a management cost that amounts to approx. $2.5 – 13 million per year in the US. Examples of retailers that have resorted to BODFS include Walmart, Target and Wholefoods, i.e., the investment being in last-mile logistics, e.g., Wholefoods’ logistics via Amazon Prime for shipments from various branches and stores to customers’ home, or the selection of partners who are capable of providing swift and effective supply chain.
As Amazon’s strategy has essentially turned the supply chain industry on its head, retailers, on the other hand, must be capable of making effective plans and selecting technologies that optimizes retail operations. Although all four acronyms equate to a daunting investment in infrastructure, it is a necessary requirement to enhance inventory management, reduce storage cost and ensure that customers always receive their products in a timely, reliable fashion.
Compiled by BLOG.SCGLogistics
Reference and picture credits supplychaindive.com, .marketingoops.com, freepik.com