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What is an Omnichannel Warehouse?

Omnichannel describes a type of supply chain where multiple types of orders, or multiple channels, are handled. An omnichannel warehouse generally describes a single warehouse which can take and fulfill orders from retail locations, from e-commerce customers, from other warehouses and any other channels that may apply. Since each channel of orders has unique challenges associated with it, creating an omnichannel warehouse can be a difficult and time-consuming process. However, there are numerous benefits to establishing an omnichannel warehouse that makes the planning worthwhile.

Reduce Delivery Times

When all orders are coming out of a single place, your inventory is usually larger and contains all of the most popular items. This means that delivery time will be relatively consistent between channels. Customers ordering to their home or to the store for pick up can expect a similar delivery date.

Better Collaboration

When your stores and your e-commerce are on the same page, your team can more easily handle customer concerns and ensure that everyone gets the correct information when they need it. This reduces mistakes, redundancy, and helps to ensure the best service to your customers, no matter what channel they order through.

Expanded Shipping Options

An omnichannel warehouse can provide customers with shipping options such as Store Pick-Up which is more difficult to provide when warehouses are separated by channel. The omnichannel option gives you a variety of choices to provide your customers with the best options for them.

Improved Order Accuracy

When items for a single order are spread across multiple warehouses, the accuracy of the order relies on the effective communication between each warehouse. With omnichannel warehouses, you don't have to worry about miscommunication since all orders are fulfilled through one location. Instead, orders are completed faster and with greater accuracy.

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