Retailers talk the omnichannel talk, but can they walk it? Not according to a new omnichannel fulfillment report by Retail Dive and Deposco. Findings reveal that 87% of retailers know it’s important to make products available in whatever channel customers choose. Yet, only 25% are satisfied with how that effort is going.
It’s not that people just stopped shopping in stores
Brick-and-mortar shops are still the number-one source of sales for 60% of the respondents.
It’s not for a lack of available technology
- Better customer reach (59%),
- Higher volumes of sales handled easier (27%)
- Improved customer satisfaction (29%)
Brands know the benefits of omnichannel software, but something else stands in their way.
It’s the skeleton crew
58% of retailers that want to invest in omnichannel software can’t because they lack time/resources (35%) or in-house expertise to support it (23%).
This is the #1 reason retailers believe the omnichannel software investment and progress are ‘out of reach’ right now. Deposco has challenged this – and won!
Think about the competitive edge these firms have!
Companies like these that invest in omnichannel software are eons ahead of those that don’t. Failure to innovate is a self-fulfilling prophecy, and we’ve seen plenty of businesses go down swinging for it.
Efforts are made to “just get by” with one’s ERP. Some retailers feel that manual processes work “well enough” for omnichannel. Or changing their siloed supply chain processes is too big an undertaking.
This “white-knuckle” approach creates higher inventory across multiple channels, which continues to cannibalize growth in the form of:
- Inaccurate Available-to-Promise (ATP) inventory
- Higher shipping costs
- Inflated labor costs
- Increased error rates
- Poor customer experience
- Profit erosion
Oftentimes, these retailers wind up needing a change anyway when they realize their systems can’t keep up.
Hesitation is puzzling
Investing in omnichannel software automation creates the time and resources many retailers need. So a delay makes no sense.
“Part of omnichannel fulfillment is finding efficient, effective ways to operate in this changing environment. The right technology enables you to be more flexible, offer better customer service, and do more with less to improve profitability”.
– Will Lovatt, general manager and vice president, Deposco Europe
How Psycho Bunny solved the puzzle
Luxury clothing brand Psycho Bunny synced its online and in-store shopping experience with Deposco Bright Store, an easy-to-implement, highly adaptable omnichannel inventory fulfillment solution. The result was the ability to turn its physical stores into highly efficient warehouses to fulfill online orders. The omnichannel software brings agility and impressive results rapidly, without a strain on IT personnel.
Keenly focused on omnichannel as a critical pillar of its business strategy, Psycho Bunny sought to improve inventory management across its 60+ stores. Teams didn’t know reliably what was in stock (or where it was), sold, ordered, or quantities. Lack of visibility meant that Psycho Bunny frequently struggled with stockouts and lost sales prior to investing in positive change.
Psycho Bunny implemented Deposco’s cloud-based Bright Store omnichannel fulfillment software to get all of their inventory in a single platform for warehouse management with real-time visibility into its inventory across all channels.
Now they confidently fulfill orders as they come in, which reduces their average order processing time by 3 days and creates rapid value. Thanks to Deposco, Psycho Bunny has incorporated 60% of their stores into their available-to-sell fulfillment network – increasing inventory available to sell online by 20%.
Employees can track numbers accurately, mitigating stockouts and increasing sales. The retailer has significantly reduced delivery times by fulfilling orders directly from stores without new inventory complications, high shipping costs, or delays.
“A large percentage of Psycho Bunny’s inventory is now available to online sales channels via a scalable system that is on track to support more than 100 physical stores by the end of the year,” says Justin Stone, SVP of Business Development and Customer Success at Deposco.
Psycho Bunny efficiently manages its inventory and drives sell-through by leveraging stores as fulfillment centers. As the business accelerates growth and consumer preferences change, Psycho Bunny pivots quickly and efficiently.
Omnichannel software speeds value for retail brands
Get our omnichannel retail report
- How does your omnichannel fulfillment progress compare to other retailers?
- How are you measuring the success of your omnichannel strategy?
- Do you understand the art of the possible with omnichannel fulfillment solutions?
Check out our omnichannel fulfillment report to learn about the state of omnichannel fulfillment, benchmark your performance, and discover where your future with omnichannel is headed. Want even more on how to build your agile retail supply chain? Grab our Growth Guide below: