6 Critical Omni-Channel Logistics Challenges Faced by Your Supply Chain
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Omni-Channel Logistics Challenges Facing Your Supply Chain

  • General News
  • 20th December 2018


In a world where “Customer Experience” is the most powerful term that drives most of the businesses and determines their level of success, Supply Chain Managers cannot afford to overlook all challenges that might create limitations to an otherwise successful trade. While there are numerous aspects to validate the growth and success of supply chain management, a seamless consumer shopping experience is perhaps the most critical one.

Whether it’s a student seeking homework help from e-learning portals or a middle-aged adult visiting a retail store to buy medicines, seamless service and product delivery should always be the primary concern for every advanced business around the world.

This is where the very concept of Omni-Channel logistics comes in. It helps business organizations across the globe to evaluate and identify how their products and services are delivered to modern consumers.

There are a few statistics which have made the entire idea of devising Omni-Channel logistics all the more crucial. For instance, according to a report from Oracle, 86% of consumers are likely to pay more for a better brand experience, and only 1% feels that the vendors are able to meet their expectations.

Moreover, according to the Gartner Application Strategies and Solutions Summit 2018, it has been found that more than 40% of all data analytics projects will be related to at least one aspect of customer experience by the year 2020. If we are to pay heed to the stats mentioned above, implementing Omni-channel logistics as a strategy to enable proper delivery of consumer-centric products both online and in store is imperative. It will be effective to determine the brand consistency and consumer experience, irrespective of the channels of sale.

Unless the Supply Chain Managers are aware of the potential challenges that they might face while incorporating the strategy, odds of brand dilution and reduced sales will always continue to haunt and affect the company’s progress. Hold on, the challenges are not over yet!


6 Alarming Omni-Channel Logistics Challenges of 2018

   1.  Multiple Supply Chain Units and Processes

This challenge is mostly faced by large companies which have multiple warehouses and supply chain processes in order to cater to a huge clientele. Challenges tend to appear when the units and the processes lack synchronization and don’t work together.

Solution:  Entrepreneurs and Supply Chain Managers can consider narrowing down the entire process and merge all private warehouses into one single unit for better acceleration of growth, ensuring an uninterrupted supply of goods and services.

   2.  Overly Implemented Manual Labor

The role of manual process in every organization has always been the conventional method to ensure growth of sales. However, overlooking the importance of embracing automation might have a negative impact on the Omni-channel logistics. Relying entirely on the paper-based mechanism to evaluate and capture inventory data might affect the pace and growth of the business.

Solution: Progressive organizations must choose to rope in additional tools and resources for inventory automation. This is essential to enable faster and efficient barcode data collection, ABC analysis, lot tracking and traceability, and the likes.

   3.  Limitations affecting the speed of product delivery

On-time delivery of products is the key to ensure customer satisfaction. Any limitation in this matter might not go down well with the consumer. When we purchase an online product, we expect it to get delivered at the earliest. Consistent delay in the timely delivery of a product will eventually result in a poor sales graph.

Solution: Supply Chain Managers can consider introducing drones for faster delivery of products. In addition, retail stores can also be used as pick-up locations for goods that are purchased online. This can reduce the risk of any potential delay, as the buyers can pick up the purchased product directly from the store.

   4.  Inconsistency in order fulfillment

If you promise to deliver a certain product within a couple of days, then it is essential for you to live up to your customer’s expectation. Order fulfillment is one major concern when it comes to ensuring a fully-functional Omni-channel logistics strategy.

Solution: In order to resolve such issues and eliminate the challenges, you might choose to implement advanced warehousing technology that can help you to evaluate all order summaries closely, and determine if there’s a possibility of future delays in shipping.

   5.  Lack of an organized and strong team

It is said that the key to successful Omni-channel logistics is the presence of a strong team that comprises of IT service providers, the Operations Manager and a Strategic Consultant. Lack of these core members in a team might give rise to complications and challenges in terms of catering to a large number of customers.

Solution – If you find that your supply chain management process lacks an organized team, rope in the best of Operations Managers, T service providers and Strategic Consultants at the earliest. While the Operations Manager can supervise the entire functionality, a strategic consultant can evaluate all metrics and serve in the best interest of your company. The IT provider can manage the customer’s IT infrastructure in a rather constructive way, reaping more gains for your business.

   6.  Incapability to read the consumers’ minds

Whether it’s a front-end sale or managing the entire process on the basis of back-end support and monitoring, you got to read your customers’ minds in order to provide the service that they are looking for. In case the Supply Chain Managers fail to deduce the same as a result of poor communication and market analysis, it is bound to affect your business in a negative way.

Solution – Since Omni-channel logistics is entirely about determining a smooth and favorable customer experience, businesses should harness their potential in the field of e-commerce. Large business organizations should engage in comparing and analyzing all the latest market trends, while keeping Supply Chain Managers on the loop, to carefully strategize moves based on consumer behaviorism, preferences and territorial aspects.

Now that you are aware of the odds and challenges that can affect the supply chain in an adverse way, it’s time to develop an effective strategy regarding the same. Take note of things that are discussed here and come up with advanced inventory management skills to enjoy improved conversions and client retention.


Author Bio – Marceline Joseph is an online math solver, programmer and an academic writer associated with Tophomeworkhelper.com. Besides being associated with the education and teaching industry, Marceline is a passionate stamp collector and chess player.



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