For Big Box retailers and e-commerce businesses fulfilling orders quickly and cost effectively is a key differentiating factor that can capture new business and retain loyal customers. Delivering customer orders on-time and in good condition leaves customers with positive feelings, increasing the probability that they will shop with you again. Do not leave your customers with negative feelings or perceptions about your business. A prime example of an omni-channel order fulfillment disaster is Best Buy. During the 2014 holiday season the electronics retail giant turned off many customers when short notice cancellations were received. Although top company executives attempted to remedy the situation, the damage had been done. Grievances were aired for all to see on the World Wide Web. Utilizing the proper inventory management technology could have provided Best Buy distribution centers with improved visibility, preventing the issue before it began. The most common omni-channel order fulfillment areas needing improvement include: 1. Developed and tested sales channels. Do not make your customers suffer through your retail channel growing pains. Before releasing new sales channels put them through a vigorous testing program to ensure their effectiveness of that channel, the supporting automated data collection network and supply chain management software. Fix and bugs or deficiencies before making it available to customers. 2. Supply chain visibility. Many homegrown, legacy or paper-based inventory management solutions do not offer your business an accurate insight into how your business operates, what inventory is on-hand, in transit or being returned. When multiple interactive sales channels are being used having an accurate inventory count is imperative. Implementing a functionally robust WMS can help to increase visibility into more accurate and usable datat. 3. Sales Pattern Utilization. With improved visibility will come better insight into sales patterns and inventory flow through rates. Use these sales patterns to implement a JIT inventory replenishment model. This can help to reduce inventory holding costs for your business while reducing out of stock scenarios. 4. Transportation Vendor Capabilities. Evaluate your transportation vendors regularly to ensure you are receiving the best rates and service. Damaged, late or expensive deliveries will reflect poorly on your operation as well as the transportation vendor. Monitor complaints and other transportation analytics to weed out vendors negatively impacting your business. 5. Reverse Logistics. Ease of use when returning items ordered through sales channels is just as critical as the original fulfillment. Simplifying this process for customers will help to reduce hassle, improving the customer service experience. To learn more about how to avoid order fulfillment disasters contact Datex logistics experts today at www.datexcorp.com or marketing@datexcorp.com.

1. HOW TO AVOID
ORDER FULFILLMENT
DISASTERS
PART 2:
TOP 5
OMNI-CHANNEL
AREAS TO IMPROVE

2. Why Is Order Fulfillment Important?
• For many Big Box retailers and e-commerce businesses omni-
channel order fulfillment is a key differentiating factor that captures
new business and retains loyal customers.
• Customers are more likely to remember and share negative
experiences about your business’ service than they are positive.
• Effectively managing order fulfillment is one way for your supply
chain operation to leave retail customers with positive feelings.

3. What Are You Trying to Avoid?
• Major retailer Best Buy was forced to cancel a large amount of customer
orders during the 2014 holiday season due to ineffective inventory
management and poor omni-channel retail order fulfillment.
• Customers were livid when they received the short notice cancellations
from Best Buy and took to the web to air their grievances. Although
company executives attempted to remedy the situation afterwards,
customers had already decided to abandon shopping with the top
electronics retailer.
• Losing loyal customers is the worst nightmare for any business.
Implementing the proper technology to increase supply chain visibility can
help to reduce the likelihood of order fulfillment disasters like this.
Don’t let this be you.
http://www.enterrasolutions.com/2012/01/order-fulfillment-potential-source-of-embarrassment.html

4. Develop Your Omni-channel Retail Sales
Channels
• As omni-channel retail becomes more prevalent, consumers are being
affected more and more by the growing pains of their favorite Big Box
retailers.
• Many retailers are making the mistake of rolling out new omni-channel
sales channels before they have been through a vigorous testing program.
This leaves consumers to suffer from any existing bugs or deficiencies.

5. Develop Your Omni-channel Retail Sales
Channels
• Before your retail operation opens a new omni-channel sales channel it is
important to test the efficiency and effectiveness of that channel, the
supporting automated data collection network and supply chain
management software.
• Can your suppliers provide real-time inventory counts?
• Can they deliver on-time and accurately?
• Can they handle an increase in orders from this new channel?
• Do the research and fully develop each sales channel network before
making it available to consumers. This new found reliability will help to
increase customer satisfaction and loyalty.

6. Increase Supply Chain Visibility
• Many homegrown, legacy or paper-based inventory management
systems do not offer businesses accurate insight into how the supply
chain operates and what inventory is currently on-hand, in transit or
being returned.
• When performing order fulfillment through multiple interactive sales
channels, it is critical to have accurate inventory counts at all times. This
was an issue in the Best Buy case.
• Implementing warehouse management software that can provide
visibility into inventory at any stage in the fulfillment and storage process
can help to improve procurement efforts, reduce out of stock scenarios
and optimize reverse logistics.

7. Analyze Retail Sales Patterns Often
• Increasing supply chain visibility will also give your team better insight
into omni-channel retail sales patterns that affect inventory levels and
flow through rates throughout your facility.
• Detailed information on cyclical retail sales patterns from your warehouse
management system will help your procurement staff to ensure that the
proper level of inventory is on-hand. Maintaining a just-in-time (JIT)
inventory replenishment model will help to reduce inventory holding
costs, savings that can be passed on to your customers.
• Utilizing data on sales patterns also helps to prevent out of stock
situations like those experienced by Best Buy.

8. Evaluate Transportation Vendors &
Capabilities
• Constantly evaluating transportation vendor compliance plays an
important role in avoiding order fulfillment disasters. As the last mile
delivery provider for your supply chain network, your transportation
partners have a direct impact on the satisfaction level of your customers.
• Deliveries that are late or damaged not only reflect poorly on the
transportation company, but also on your supply chain operation as well.
Closely monitor recorded complaints about late or damaged deliveries to
see trends in poor service.

9. Evaluate Transportation Vendors &
Capabilities
• If transportation partners are not performing to your expectations or are
not capable of meeting your needs it is important to consider using other
vendors. Perform evaluations often to help ensure your customer receive
the best service possible.
http://www.supplychainbrain.com/content/single-article-page/article/customers-unforgiving-when-deliveries-late-incorrect-
especially-during-holidays-study-says/
Less Likely to Shop Unaffected
*69% of surveyed participants reported they are less likely to shop with a retailerin
the future if deliveries are late by more than 2 days.

10. Improve Reverse Logistics
• The ease of item return is also a critical component in the order
fulfillment experience. Customers now expect both fast and accurate
omni-channel retail fulfillment and easy, budget-conscious returns.
• With a fully integrated warehouse management software system, your
warehouse or distribution center can utilize reverse logistics
functionality to track shipments back to your facility and unpack and put
away those items efficiently. This will help to reduce the hassle for
consumers and optimize the returns process.
• Real-time inventory visibility can also provide your customers will
access to returns processing information if need. This will help to
provide a positive order fulfillment experience for your customers rather
than the disasters seen by many.

11. Conclusion
• Order fulfillment cycle time and accuracy plays a significant role in the
complex omni-channel retail buying decision.
• Properly analyzing and identifying retail customer expectations can help
your supply chain business to select the proper inventory management
technology needed to develop sales channels, improve supply chain
visibility, manage inventory levels, select the best transportation vendors
and process returns.
• All of these factors affect the buyer experience. When executed properly it
can create deeper feelings of customer loyalty, increasing future sales
potential.

12. Contact Us
800.933.2839
Online demonstration
marketing@datexcorp.com
Web chat
Datex Corporation
@Datexcorp