how to ensure vendor conformance to meet omni channel retail needs
DESCRIPTION
In an omni channel retail environment there are many moving parts working in unison. Each retail channel is a separate entity, but works in parallel and is integrated with all of the others. This gives consumers a more streamlined shopping and buying experience, typically increasing brand loyalty. Because there are so many moving parts to consider it is important to ensure that uniformity exists across all channels and with every representative that handles the inventory. Having strict vendor compliance standards will ensure that this uniformity exists. Instances where lack of uniformity becomes an issue includes: UPC and PID codes for color runs, selling pack sizes, product UPC/ PID for size ranges, consignment strategies and GS1/ product grouping standard. When a strong and consistent strategy is determined early on in the building of an omni channel network, the relationship between vendor and retailer will be a more beneficial one. A consistent sales representative is one way to solve issues regarding UPC/ PIC inconsistencies. If a single rep is used a more focused and direct retailing strategy will be seen. Communication between departments and constant updating of information will also benefit all retail channels. This typically is in relation to product groupings using GS1 barcoding. Determining a consignment strategy early on and keeping this consistent across all channels is also an important aspect in effectively managing the omni channel experience because it is typical to utilize only one consignment strategy at any given time. Consistent item coding across colors, size runs and selling packs will give vendors the ability to fulfill orders from both .COM and brick and mortar stores with higher accuracy which will keep customers happy and coming back. To learn more about this topic or about Datex contact me today at [email protected], 800.933.2839 ext. 243 or visit our website www.datexcorp.com.TRANSCRIPT
How to Ensure Vendor Conformance to Meet Omni Channel Retail Needs
By Angela Cox
Omni Channel Retail Distribution Channels
.COM – Order fulfillment location that fills orders from multiple sources Orders can be received from:
• Website
• Mobile site
• In store out-of-stock orders
Brick and Mortar Store – Physical retail locations where customers may make purchases
Ways to Meet Omni Channel Retail Challenges
Whether orders are generated from mobile devices, brick and mortar stores or from other means, it is critical that the products supplied by vendors meet the needs of omni channel retailers. Here are some common ways to meet these challenges: • Publish same UPC/PID/Color for all channels • Vendors should not provide unique PID per color • Vendors should provide same common selling packs across all
channels • Vendors should not merge separate sizes/ranges in packs for each
channel • Same sales rep for brick and mortar and online sales • Keep retailer up to date on GS1 • Common consignment strategy for all channels
Develop a Strategy Early to Optimize Your Vendor Relationship
Leverage Your Inventory
Engage Vendors to Meet Omni Channel Challenges
Consistency in Sales Reps Across Channels
1 Sales Representatives
• SR should be same for both channels
• Ensures UPCs and Product IDs are consistent
across channels
• Provides a more direct and focused product
strategy
Vendor-Retailer Communication is Critical
2 Communication
• Communicate new/ updated product information to
necessary outlets
• Example: GS1 ID – parent groupings for UPC/ PID codes –
items cannot be found without these groupings
• Update these frequently for ease of use for both .COM
and in-store reps
Consistent Consignment Management Strategy
3 Consignment Management
• Keep consignment strategy consistent across all
channels for given UPC or Product ID
• Pay as sold
• Pay upon receipt of shipment
• Determine this strategy for each product before
acquisition
Consistent Item Codes
4 Product ID/ UPC/ Color Codes
• These item codes must be consistent for both
.COM and in-store
• Allows for easier inventory searching if item is
out of stock in initial channel
• If these item codes were inconsistent between
channels sale opportunities will be lost
Product ID is Critical
5 PID/ Product Color Combinations
• Keep all colors of the same style under the same
Product ID
• Example: Shirt style U1358 – shirt is black – customer
wants shirt in blue style U1355
• it would be more difficult to search for if Product ID
varies
Consistent Size Run Packaging
6 Size Run Packaging
• Package size runs should be the same across both
channels
• Example: In Store Men’s polo size S-L – style number
P59875, .COM size S – style P59875
• If searching for size small in store due to .COM out of
stock inventory visibility is lacking due to multiple
sizes with same style #. The store associate will not
be able to locate size small.
Ensure Common Selling Packs
7 Common Selling Packs
• .COM and stores should have comparable selling
packs for all items
• Ensures order fulfillment will be accurate regardless
of retail channel
• Example: 3 pack of tank tops out of stock in-store
needs to be fulfilled by the .COM where the tank tops
are packaged in a 4 pack. The order will be incorrect if
fulfilled with this alternative and value will be lost by
retailer.
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@Datexcorp
Datex Corporation