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Retailers prioritize cross-channel fulfillment


Richmond Hill, Ontario – Cross-channel fulfillment programs are the top omni-channel priorities among retailers, a newly released study of 337 global retail decision-makers, “The Retail Order Management Imperative,” conducted by Forrester Consulting on behalf of OrderDynamics, revealed.

While only 49% of retailers currently use an order management system, many of these solutions are ill-equipped to support complex cross-channel fulfillment offerings.

Moreover, the study found that traditional order management systems typically cannot support the multiple facets of evolving omni-channel commerce initiatives. The study identifies several key findings including:

  • 26% of retailers in the United States and 47% of retailers in Europe already have ship-from-store capabilities, while 10% and 18% respectively soon plan to enable this offering.

  • 23% of retailers already have a buy-online, pickup-in-store program in place. Likewise, 20% have a reserve-only pickup-in-store program. According to the study results, these store pickup numbers are set to almost triple in the next 12 months.

  • 63% of retailers surveyed indicated that gaining a competitive advantage over online pure-play retailers by leveraging their stores assets (inventory, shipping cost efficiencies and reduced delivery times) was a primary driver for investing in omni-channel initiatives.

  • Retailers already (or expect to) fulfill an average of 35% of online orders from their retail stores.

  • 85% of retailers stated a retail order management system would play an important role in the execution of their omni-channel strategy.

  • 75% of the retailers surveyed believe an order management system will reduce inventory costs and improve fulfillment efficiencies.

  • 63% of retailers are considering SaaS-based order management systems to support their rapidly evolving omni-channel initiatives.

  • 39% of retailers have created a dedicated executive or c-level role to lead and coordinate omni-channel initiatives.

  • 34% of retailers have their CEO leading omni-channel initiatives.

  • 9% of retailers have already re-aligned their online and offline departments to become an omni-channel organization with a single P&L.

“Omni-channel fulfillment represents a strategic advantage for many retailers by leveraging inventory across multiple locations, and streamlining fulfillment processes,” said Michael Turcsanyi, president at OrderDynamics. “These initiatives ultimately lead to reduced operational costs, and more importantly, an enhanced customer shopping experience. It’s clear retailers recognize a retail order management system as a strategic solution for enabling next generation fulfillment tactics and gaining an advantage over direct competitors and nimble web-only retailers.”

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