When discussing supply chains, the words “multi-channel” and “omni-channel” are often used interchangeably. But these are actually two distinct structures, each with its own inherent challenges. Let’s sort out the main differences first.
Multi-channel supply chains provide customers with many purchasing options. Buyers may purchase items by stepping into an actual brick-and-mortar store, or place orders over the phone or online. Yet these multiple supply chain channels tend to remain separate from one another. Each has its own department, with its own warehouse and transportation solutions. For the customer, this disconnect can prove problematic. Something ordered online, for example, may only be able to be shipped to the customer’s home, or a phone order may only be able to go directly to the store for pickup. Put simply, channels are usually very siloed in this type of supply chain.
Omni-channel supply chains also serve customers across different channels. The difference is that they are fully integrated in order to provide a seamless customer experience. This means that someone shopping from an omni-channel business can choose their means of ordering a product while also controlling shipping and delivery. Omni-channel supply chains consider every channel and platform a customer may use throughout the buying journey, and aim to bring about consistency and reliability.
While the multi-channel experience is about providing more options, the omni-channel experience is about integrating all channels in order to give the customer freedom to purchase what they want, where they want, when they want.
Benefits of the Omni-Channel Supply Chain
Investing in omni-channel supply chain solutions offers several benefits, including:
1. Enhanced Customer Satisfaction
Whether B2B or B2C, today’s buyers expect quality experiences wherever they are, whenever they need them. A single-channel approach isn’t going to meet most consumers’ needs, and even multi-channel solutions lag behind when considering the digitized integration offered by omni-channel solutions. Omni-channel sales experiences and service offerings can greatly improve customers’ perceptions of your business.
2. Higher Brand Consistency
Omni-channel solutions set out to provide a cohesive, consistent brand experience. In regard to marketing, this means delivering a single, robust digital product discovery experience. Omni-channel supply chain optimization moves away from siloed inventory and provides customers with the convenience they demand, allowing them to order something online in the wee hours of the night, for instance, and pick it up in-store the next day.
3. Ability to Appeal to a Range of Audiences
We hear often about distinctions between millennials and Baby Boomers, both of which are very powerful purchasing groups. When it comes to logistics, different audiences will have different needs, expectations, and priorities. With omni-channel purchasing options in place that allow you to meet the preferences of many different audiences, your business can develop profitably and sustainably.
4. Increased Customer Loyalty
Providing customers with access to unified, hassle-free omni-channel solutions can enhance customer loyalty, keeping your brand top-of-mind. The easier it is for a buyer to do business with you, and the quicker they can resolve any issues — when dealing with returns or delays, for instance — the more likely it is that customers will want to come back and purchase from you again.
5. Inventory Optimization
The rise of online and mobile retail demands fresh approaches to both sales and product delivery. By integrating the many departments selling to customers, businesses are better positioned to:
- Get the product in the right place at the right time
- Save on warehouse and transportation costs
- Identify product-related trends and consumer habits
6. Ability to Reach New Audiences
The omni-channel approach can provide great opportunities for growth. You may have loyal customers in-store, but it’s important to be able to attract new customers regularly by expanding purchasing options.
Today’s customers will engage with a brand across multiple channels and touchpoints. To ensure continued growth, work to reduce purchasing hurdles using the omni-channel approach and provide a consistent, unified experience for customers at every stage of the buying journey.
Image credit: mrmohock/Shutterstock.com