{"id":1675396,"date":"2021-09-17T16:05:31","date_gmt":"2021-09-17T23:05:31","guid":{"rendered":"https:\/\/www.retailpro.com\/News\/blog\/?p=1675396"},"modified":"2021-09-23T17:38:23","modified_gmt":"2021-09-24T00:38:23","slug":"challenges-of-using-store-inventory-for-online-order-fulfillment","status":"publish","type":"post","link":"https:\/\/www.retailpro.com\/News\/blog\/index.php\/2021\/09\/17\/challenges-of-using-store-inventory-for-online-order-fulfillment\/","title":{"rendered":"Challenges of using store inventory for online order fulfillment"},"content":{"rendered":"\n
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Omnichannel retailers aim to satisfy customers no matter how they choose to engage: Online, in-store or a combination of the two.<\/p>\n\n\n\n

It\u2019s never an easy feat, as success depends upon a tightly integrated front and back end in order to provide customers a seamless, successful shopping experience.<\/p>\n\n\n\n

But since reopening after COVID-19 lockdowns, many retailers have had to carefully assess how they were navigating the use of store inventory for their omnichannel order fulfillment strategies.<\/p>\n\n\n\n

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Inventory visibility across channels<\/h3>\n\n\n\n
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Management of inventory is a particularly thorny issue for any retailer with an omnichannel philosophy.<\/p>\n\n\n\n

The retailer must first accommodate multiple sales channels simultaneously: An online shopper must be able to \u201csee\u201d what products are in stock just as easily as one who is physically in the store.<\/p>\n\n\n\n

Then, the retailer turns that multi-channel strategy into an omnichannel one when, for example, it allows a customer to: shop for items on a mobile device; log onto a retailer\u2019s site hours later on a computer and access the same shopping cart; check availability online and place an order for curbside pickup.<\/p>\n\n\n\n

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Discrepancies in physical inventory counts<\/h3>\n\n\n\n
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Many retailers were able to launch \u2013 and maintain \u2013 a buy online, pickup in store<\/a> (BOPIS) strategy.<\/p>\n\n\n\n

However, since stores reopened, inventory counts are becoming muddled as retailers had been using store inventory to fulfill online orders.<\/p>\n\n\n\n

Being able to reconcile what has just been purchased online with in-store inventory \u2013 and meeting the expectations of both types of customers — is a gargantuan task.<\/p>\n\n\n\n

Customers should never see an item in stock online and discover it is sold out once they reach the store.<\/p>\n\n\n\n

Some of the reasons for such discrepancies include:<\/p>\n\n\n\n

Shrinkage: Shoplifting and employee theft account for substantial loss of inventory. Fraud and administrative errors are also to blame.<\/p>\n\n\n\n

Data inconsistency: Online ecommerce, in-store POS systems aren\u2019t tightly integrated or are being manually updated, so floor count may be inaccurate.<\/p>\n\n\n\n

Resource strain: Sales associates are performing fulfillment tasks, so they have less time to help shoppers on the sales floor locate items.<\/p>\n\n\n\n

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Payment timing for BOPIS orders<\/h3>\n\n\n\n
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In addition, payment timing can cause inventory challenges. Items that are part of orders that are paid for online but picked up at a store are likely removed from inventory earlier than those that are paid at the time of pick up.<\/p>\n\n\n\n

Paying before pickup not only expedites that process for ecommerce shoppers, but for those in-store as well. In-store shoppers experience longer wait times when online customers must join the line to pay and pick up their orders.<\/p>\n\n\n\n

Poor fulfillment has a significant negative impact on customer retention. It is difficult to have the entire picture of what inventory is where throughout all channels.<\/p>\n\n\n\n

Having accurate inventory visibility<\/a> \u2013 which provides stock, order monitoring and tracking information — is crucial for a successful retail operation.<\/p>\n\n\n\n

That requires a combination of technologies such as POS software tied to barcode scanners<\/a>, RFID, warehouse execution software, etc.<\/p>\n\n\n\n

The result is a retailer that meets, and sometimes exceeds, customers\u2019 needs.<\/p>\n\n\n\n

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In-store shoppers, in-store fulfillment: Planning for inventory challenges<\/a><\/p>\n<\/div><\/div>\n\n\n\n

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Operational growing pains during COVID-19: Inefficiency stemming from poor data visibility<\/a><\/p>\n<\/div><\/div>\n\n\n\n

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3 Expensive Flaws in Inventory Management<\/a><\/p>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"

Omnichannel retailers aim to satisfy customers whether online or in-store. Since 2020, many retailers carefully assess their inventory & omnichannel order fulfillment strategies. Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":12,"featured_media":1675399,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[212,215,44],"tags":[135,224,197,152,92,227],"class_list":["post-1675396","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-efficiency-speed","category-inventory-management","category-specialty-retail-management-and-operations","tag-bopis","tag-in-store-fulfillment","tag-inventory-management","tag-specialty-retail-management-and-operations","tag-omnichannel","tag-order-fulfillment"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t