Running an eCommerce business can be a balancing act. Handling your website, your point-of-sales, and fulfillment can be difficult. Narrowing things down to one point is essential to keep things organized. Omnichannel order management is one strategic system that can do just that. And outsourcing it to a 3PL can help you save time and money, so you can focus on the important aspects of your business.
We sat down with VP of Client Relations, Tony Runyan, to understand omnichannel order management. How it can be the best move for your business, and how the right 3PL can take it to the next level.
What is omnichannel order management?
Omnichannel order management is an offshoot of order management. Think of it as combining all arms of your order management into one. “It’s the process of using a single system that enables you to access and manage orders and inventory across a variety of sales channels, like your website and point-of-sale, for an entire enterprise,” Runyan says. “Omnichannel order management provides an ‘one-stop-shop’ for all order management,” Runyan continues.
Benefits of outsourcing your omnichannel order management
From an operational standpoint, outsourcing your omnichannel order management system is beneficial. Similar to what is mentioned before, your operations team has time to focus on other aspects of the business. “We essentially become their team,” Runyan says. “The business’ operational team will visit our warehouse and meet with the RSF operational team members to talk through standard operating procedures (SOPs),” Runyan continues.
As mentioned before, 3PLs have resources that can benefit a business. “Because we share resources across a large pool of clients, it is easier for us to staff appropriately and volatility to smooth out the curve that is associated with labor demand and absorb associated costs,” Runyan says.
However, it doesn’t just end with labor costs. Outsourcing your omnichannel order management to the right 3PL can allow for many systems like warehouse management “integrate seamlessly with a variety of sales channels — automating several processes that are otherwise manual,” Runyan says. It helps reduce costs and improve oversight of inventory.
A 3PL can simplify your omnichannel order management
How can a 3PL simplify your omnichannel order management? By outsourcing your order management, it “allows a business to focus on investing time and money on their expertise — creating, marketing, and selling great products,” Runyan says. The extra benefit is the perks you will receive from working with a warehouse. “You can leverage [a 3PL’s] warehouse network, labor, shipping discounts, and fulfillment expertise,” Runyan says. By doing this, it gives you time to focus on your business and handle additional operations that come your way.
Benefits of outsourcing your omnichannel order management
From an operational standpoint, outsourcing your omnichannel order management system is beneficial. Similar to what is mentioned before, your operations team has time to focus on other aspects of the business. “We essentially become their team,” Runyan says. “The business’ operational team will visit our warehouse and meet with the RSF operational team members to talk through standard operating procedures (SOPs),” Runyan continues.
As mentioned before, 3PLs have resources that can benefit a business. “Because we share resources across a large pool of clients, it is easier for us to staff appropriately and violently to smooth out the curve that is associated with labor demand and absorb associated costs,” Runyan says.
However, it doesn’t just end with labor costs. Outsourcing your omnichannel order management to the right 3PL can allow for many systems like warehouse management “integrate seamlessly with a variety of sales channels — automating several processes that are otherwise manual,” Runyan says.
When should you consider outsourcing your omnichannel order management?
Figuring out when to outsource your order management can be tricky. The answer to this question can be different from business to business. However, there are things to consider when thinking about the question. Think about all aspects of self-fulfilling your products. “Consider the costs associated with self-fulfilling like warehouse space and labor, the ability to fulfill orders accurately and on time, the ability to handle peak-season spikes in demand, and inventory management,” Runyan says. It can be difficult to manage all of these aspects of self-fulfillment while running your online business. So, the answer to the question is really answered with another: “is self-fulfillment going to hinder your business’ growth?” If the answer is yes, it’s time to start looking into working with a 3PL to handle omnichannel order management.
How to start the outsourcing process
If you have decided that outsourcing is a must, it’s important to know how to get started. “Having your needs documented in detail is the first step,” Runyan says. By doing this, you can bring your list to potential 3PL partners to discuss if they can truly provide the service you need.
The key is being able to accurately describe all of your requirements to a potential partner.
— Tony Runyan, VP of Client Relations
Have your list handy as you interview 3PLs. It’s important to know what a 3PL can and can’t do. “Many 3rd party retailers have very specific requirements (labeling, EDI capabilities, custom boxes), and some 3PLs may not be equipped to provide all the services you require,” Runyan says. In addition, ask about extra services and special expertise the 3PL offers. For example, Red Stag Fulfillment is the industry leader in big, bulky, heavy, or high-value items and can provide substantial operational benefits for business with products in those categories.
Once you found the perfect 3PL, it’s time to get into the nitty-gritty. “You can dive deeper into the costs associated with the services and consider any guarantees they offer,” Runyan says. For Red Stag, we offer important guarantees to ensure that your products are handled with care and make it to your customers safely.
How can Red Stag help?
How can Red Stag help simplify your omnichannel management? First and foremost, the technology we use can support seamless integration with more than four dozen eCommerce sales platforms and plugins. So when you get a sale, you are able to view it and track your orders through our custom dashboard.
We take a broader approach to order management by helping our clients manage their inventory, fill their orders, and satisfy their customers. And with our guarantees, we can ensure our services are as accurate as possible, increasing your customer satisfaction in the long run.
If you are thinking about outsourcing your omnichannel order management, find the right partner to help you simplify your operations. Already have your list of needs for the perfect 3PL? Why not contact us today to see if we’re the best partner for your eCommerce business? Talk to one of our experts today!
