Guide. Omni-Channel Order Management

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1 Guide Omni-Channel Order Management

2 Omni-Channel Order Management Guide 02 Omni-Channel Order Management Guide The retail industry is undergoing a phenomenal transformation. Technological advances and changes in the traditional shopping journey have retailers scrambling to keep up with the newest trends. Today s complex consumers are more knowledgeable, connected, empowered and mobile. The internet and social networks provide easy access to product and price information, as well as reviews. Capabilities such as being able to shop on mobile devices empower consumers to interact with a brand and consume content when and where they want. The consumer s shopping journey is now dynamic. Consumers are constantly evaluating their options and interacting with retailers across channels. The modern consumer researches online before making purchases in store, researches for products and alternatives on their mobile device while shopping in a store and even makes purchases online but visits a brick-and-mortar store to collect them. The shopping journey is an ongoing cycle because the digital touch points that consumers interact with are always on and accessible.

3 Omni-Channel Retailing Omni-Channel Order Management Guide 03 To respond to consumers expectations of a seamless, personalized and consistent experience with brands, retailers need to take on an omni-channel approach that is customer driven. Operational processes should be synchronized between channels and channels should be aligned to act as one single face to consumers. Even though a company has several channels, the consumer still views them as one, as a single company. This concept also applies to the consumer. A customer is a single person and should be treated as such even if they buy in the store and online. Customers demand exceptional service and personalized content and offers because they expect retailers to know their personal profiles, preferences and their past purchase history. Obstacles to Omni-Channel Retailing Several major obstacles to omni-channel retailing that retailers must overcome, include: Legacy Systems Many retailers existing infrastructure, architecture and applications are dated and the technology simply cannot keep up with a business growth plans such as geographic expansion, the creation of a new brand or the addition of a new business channel. Disparate Systems Many of the existing systems that retailers are currently using were initially designed for a single channel. Operating these systems often results in many challenges, including added costs for maintenance, poor integration, risk of errors and reduced productivity. Inaccurate Customer Information Lack of centralized customer information allows for only a partial view of the customer profile which can lead to poorer customer service. Incomplete Inventory Visibility Lack of real-time visibility into inventory and sales results in a lack of inventory control and in uninformed purchase and allocation decisions. Huge Volumes of Data Retailers are manually compiling business intelligence (transactional, product and customer demographic, behavioral and social data) that is being collected across different channels. Manual and Inefficient Processes Many manual and pen-and-paper methods are still being used in stores, whether to manage customer orders or store receiving and transfers.

4 Omni-Channel Order Management Guide 04 Omni-Channel Order Management The success of a retail omni-channel strategy is dependent on three main technology pillars: e-commerce platform, order management system (OMS) and POS E-COMMERCE PLATFORM The e-commerce platform is at the core of all online channels and is the customer-facing component of the crosschannel shopping journey. It allows consumers to engage, research and make purchases on the web, tablets, mobile phones and through social media. ORDER MANAGEMENT SYSTEM (OMS) Today s order management systems must do more than simply manage orders to online-only sales or store-only sales. Retailers need a central repository for inventory and orders and require an OMS that can leverage fulfillment centers throughout the enterprise. As well, retailers need to use their OMS to move inventory and deliver it to the consumer based on his or her preferred method of delivery. In order for the e-commerce platform and POS to operate efficiently, only relevant information is synched from the OMS. The OMS must also empower retailers with the tools needed to provide exceptional customer service and to provide a seamless customer experience across all channels. POS The in-store POS system enables the omni-channel approach in several ways. Typically, retailers manage their in-store inventory through the POS. As well, POS systems allow associates to complete the omni-channel buying cycle by processing in store pickups of products ordered online or even to place an order that will be fulfilled from another store. All of the orders processed at the POS terminal are then fed into the OMS for a complete view of the customers orders across all channels.

5 Omni-Channel Order Management Guide 05 Raymark Unified Commerce Raymark s centralized and real-time architecture provides retailers with instant access to information throughout the retail enterprise. All Raymark solutions are seamlessly integrated using the Raymark Solution Framework, which includes a single retail database for all applications along with web services and integration tools to enable retailers to incorporate existing omni-channel enterprise applications. Raymark s e-commerce connector enables retailers to connect their e-commerce platform to their back-office enterprise system (using Microsoft SQL Server Integration Services) and deploy omni-channel order orchestration. Raymark s flexible point of business architecture enables retailers to unify business processes across the web and brick-and-mortar locations. Scheduled orchestrations manage the business logic and data interchange between the systems. Data integration between POS, back-office enterprise systems and e-commerce platform includes: Product Hierarchy Products Prices Inventory Customers Orders Purchase History Discounts Returns Wish Lists Shipping and Order Tracking Taxes Unified Commerce Solution Architecture Store Data entered into the back-office enterprise systems, such as price changes, promotions, inventory, etc. is available at the store level. Data collected at the store such as transaction or customer information is fed in real-time to the enterprise systems. Reports on transactional, product or customer profile data can be generated and viewed directly from the store system. Reporting and Analytics All data collected at the store level is fed to the back-office enterprise systems. Data is extracted from the enterprise system to create and view reports and analytical dashboards on transactional, product or customer profile data. Store Back-Office Enterprise Systems Reporting and Analytics All reports generated in the reporting and analytics solutions are actionable. Actionable reporting includes automated alerts, scheduling and delivery of reports and processes and integration with the back-office enterprise systems. Back-Office Enterprise Systems Customer information and transactions from the back-office enterprise systems are fed into the e-commerce platform. E-Commerce Customer information and transactions from the e-commerce platform are fed into the back-office enterprise systems. E-Commerce Connector E-Commerce

6 Unified Commerce Capabilities Omni-Channel Order Management Guide 06 Raymark s unified commerce capabilities can be divided into four main functionality groups: Customer Service Store Fulfillment Enterprise Inventory Order Orchestration Features ensure customer profile information is properly integrated for a single view of the customer s profile and orders. Features allow associates to fulfill online orders from the store inventory. Features enable an enterprise view of inventory and determine how orders will be fulfilled. Features enable processes and algorithms associated with orders, fulfillment centers and inventory allocation. Customer Service Store Fulfillment Customer service notes for orders Advanced order search (by status, customer, vendor, order #, and more) Order creation (by phone, etc.) Order shipping and tracking Order dashboard Omni-channel order/ purchase history Integration of customer profiles, wish lists, and more with Clienteling Pick, pack, manifest, and ship Reservation of product Layaways Pre-orders Order online and pickup from store Order online and fulfill from store Enterprise Inventory Order Orchestration Vendor PO generation Drop ship from vendor Fulfill from store or warehouse Replenishment and allocations across stores and e-commerce Receive vendor ASN Order online and fulfill from distribution center Order online and fulfill directly from vendor Returns management Web and in-store order management Partial shipments Integrated taxes with Avalara AvaTax Customer and associate notifications by (shipping status, etc.) Order aging, discrepancy, and exception reports Order fulfillment rules (based on inventory levels, preferred location, etc.) Sales audit updates

7 Omni-Channel Order Management Guide 07 Benefits of Clicks and Bricks BRAND RECOGNITION E-commerce represents a great opportunity for retailers to extend their brand to digital spaces with an online storefront. Retailers must meet consumers wherever they are. DRIVE IN-STORE TRAFFIC Consumers use multiple channels before making a purchase. Beyond e-commerce as a sales channel, the web can be leveraged to drive customers to stores. INCREASE CONVERSIONS, CROSS-SELL, & UP-SELL Since omni-channel customers spend more than single channel customers, retailers can leverage clienteling opportunities in store. As well, recommended products and promotions online can increase the success rate of cross-selling and up-selling INVENTORY VISIBLITY ACROSS THE CHAIN Reduce online cart abandonment, store markdowns and save sales with real-time inventory. Fulfill online or store orders from any location, including distribution centers and other retail stores. SINGLE VIEW OF THE CUSTOMER From an anonymous web visitor to an identified customer, track and unify customer engagement online and in-store. Have a single view of the customer s complete order history, purchase behavior and preferences. PERSONALIZED CUSTOMER EXPERIENCE Enrich CRM data by tracking customer activity online and in-store and execute more targeted and measurable campaigns. The retail industry will continue to transform, as retailers shift their strategies to court the digital consumer. Retailers who leverage order management technology to evolve the customer experience, deliver faster inventory turn and create higher margins through inventory control have the opportunity to thrive.

8 For 25 years, Raymark has been empowering retail with leading-edge enterprise software solutions that help the world s most prestigious international retailers optimize stock turns, build customer loyalty, and increase sales. Raymark develops and markets the ultimate suite of flexible and interconnected applications deployed in a centralized environment and offers professional turnkey solutions including implementation, training and customer support. Raymark 5460 Côte de Liesse Montréal, Québec Canada H4P 1A5 T: F: E: W:

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