Building The Omni-Channel Roadmap: 3 Critical Steps
By Jonathan Colehower, Senior Vice President & CMO, Manhattan Associates
October’s mandated EMV roll-out raises critical questions about how far to go with POS upgrades. The easiest approach is a one-and-done patch migration – but focusing only on POS could be a huge mistake.
Data consistently shows that it’s the back-end integration that makes for omni-channel success. The front-end changes need the support of a true commerce-ready enterprise, and that includes inventory, transportation logistics, warehouse management and mobile selling tools.
The goal is to sell anything, anywhere, on any platform, with advanced personalization. Customers expect it, and retailers know that the roadmap is key. The starting point can be anywhere – because where you begin is less important than having an end-to-end vision:
- The ability to transact with any payment method
- The ability to use any fulfillment method
- Efficient, mobile-based inventory management
- Mobile store fulfillment capabilities
The roadmap begins with the end-goal in mind: a single cloud-based view of inventory across the network, a single view of the customer across all selling channels and the transactional capability to bring those things together in purpose-built manner for both call center and store associates.
- Inventory
Complexity and variability are natural enemies of predictability. Before committing to a POS-centric update, consider how to meet and model variable customer demand across channels. A commerce-ready approach dissolves the organizational boundaries of physical or digital inventory; where the inventory resides becomes almost irrelevant. Customers expect access to inventory wherever it lives, and sales associates need to be able to sell products that aren’t always in stock.
Store planning and fulfillment aren’t always in sync. A commerce-ready framework addresses this with virtual inventory reservations that bridge that gap when it arises.
- Transportation Management
Transportation network designs fall out of alignment without anyone noticing. Most of this is due to a quiet series of small changes over time. Acquisitions and mergers prompt sweeping shifts, of course, including rationalization of fulfillment centers, and how to best serve the new customer mix. But even these big changes can leave pockets of inefficiency.
Here’s where cloud technology offers large and immediate value – especially with fast deployments and adaptability. Having a singular view across all operational systems gives retailers outstanding ability to combine data for new insights. Waze is a great example of this insight; the combination of real-time data means that the traffic, speed traps and potholes are as much a part of the ‘experience’ as the turn-by-turn navigation. Now extend the optimized ‘route’ beyond loading bay schedules, truck loads, and variable destinations and enrich that with data on work stoppages, road conditions and driver availability.
- Distribution Center
If the “last mile” is still one of critical links to customer satisfaction, distribution centers need to lead rather than follow. A commerce-ready enterprise turns DCs into information reservoirs – with the kind of immediate, accurate and transparent information that’s essential to real-time response and across-the-board effective action. Customers have been trained to expect this from online retailers; everyone else has a shrinking window in which to catch up.
Far from the end of the road
The good news is that customers still like to shop. Expectations for service, customization and a satisfying experience will continue to shift – and favor agility. Mandates like EMV migration are catalysts for rethinking what can be done. A roadmap ensures that the investment pays off.
Jonathan Colehower is Manhattan’s senior vice president and chief marketing officer. Mr. Colehower joined Manhattan Associates from McKinsey & Company in 2009 and has responsibility for formulating and executing the Company's global marketing strategy. Mr. Colehower has over 15 years of supply chain experience in management consulting and applications software. At McKinsey & Company, Mr. Colehower managed strategic consulting engagements primarily in the areas of supply chain planning and process manufacturing. Prior to McKinsey, Mr. Colehower was president and chief executive officer at Optiant in Boston, MA and vice president, Worldwide Applications Marketing at Oracle. Mr. Colehower began his career at Accenture. He received his MBA from Vanderbilt University and bachelor's degree from the University of Richmond.