The ROI Advantage of Omnichannel Logistics

Omnichannel has morphed into a catchall phrase. For our purposes, we’re talking about both direct and indirect products, handled simultaneously via all supply chain channels, both outbound and reverse, with each channel supported by pre and post sales contact centers.

Cross-Functional Teams

Omnichannel is by nature a collaboration of several business stakeholders. In order to achieve maximum effectiveness, it’s important to set up a cross-functional team to coordinate activities early in your process. This avoids running a collection of independent programs, which could increase costs, increase resources, waste time and mitigate the intended outcome of the omnichannel approach. 

So who would the most effective team include? Marketing, customer service, IT, ecommerce and brick-and-mortar store operations. Oh, and my CFO would probably scold me if I didn’t mention finance — finance teams are often forgotten, but play an integral key role in your success.

Collaboration

At Archway, we have the knowledge and experience to collaborate with all stakeholders. The first thing we establish is which, if any, part of the supply chain needs to be internally run but managed in conjunction with the overall omnichannel approach. 

One example is the Big Box Retailer (BBR) that fulfills products to stores through their Distribution Center (DC). Most BBR DC’s are not set up to fulfill the marketing collateral built to the store profile, ship e-commerce orders and handle call center/e-chat communications. In this model, the BBR would maintain the responsibility of satisfying the clients in-store needs.

Archway would then support all other functions. This includes inbound and outbound marketing collateral fulfillment for in-store display, inbound and outbound distribution for ecommerce orders, Return Logistics (RL), call center and e-chat support. Ideally, the shopper who still desires an in-store experience should walk into the BBR and have the right messaging to promote spending. 

Key Customer Contacts

That same shopper should be able to shop online and have the same messaging and experience at a scaled level. If a problem or question arises, the shopper should be assigned a point person familiar with the product and order. A person with the ability to resolve the issue — whether it’s a return (RL Service) or an explanation of instructions (Product Knowledge).

Omnichannel ROI Values

In this centralized omnichannel approach, the end result is a seamless environment for the shopper. Each touch point has been planned and coordinated for the optimal cost vs. optimal experience. So how do we establish an ROI on an omnichannel stream? What value is placed on customer experience? Is this simply amortizing capital expenditure – new sales/ time? Well, that depends on scalability and experience. 

If an organization wants to tackle the whole program as an in-house project, they will be susceptible to seasonality and staffing issues, warehouse space issues (too much or too little), call center training on a continual basis and RL staff that can disposition and report on returns. 

Depending upon the size and volume of your business, each activity has an ROI associated with it. As one example, let’s assume your company has a brick and mortar location and an ecommerce platform supporting 100 orders a day. If you wholly manage these orders, including costs for employees and fixed overhead, the total annual price could be $450,000.00 higher than with an omnichannel solution. While it’s impossible to state average savings for all companies due to an assortment of variables, implementing an omnichannel supply service is one well worth exploring.