By Edwin Stonestreet - Managing Director at FeatureMind
The global retail industry accounts for 15 percent of global GDP and is a leading job-creator, with projections expecting the UAE retail market, for e-commerce in particular, to reach a value of $17.2 billion by 2027. With this, comes a responsibility to contribute to a sustainability-conscious future. For the UAE, one of the measures of this includes assisting in working towards the country's sustainable development goals, such as the UAE Net Zero by 2050.
Today, consumers across the GCC prioritize sustainability when choosing brands and products and are willing to pay a premium for more environmentally friendly goods, according to research from Bain & Company. In this context of growing market opportunities and evolving consumer preferences, it becomes even more pertinent to align business operations with sustainability goals while ensuring seamless functionality and customer satisfaction.
On a brand level, there are tactics that can be implemented that not only help to meet the bottom line but also support sustainable objectives whilst fostering strategic growth. In today's fast-paced business environment, effective Order Management Systems (OMS) are the crucial tool for ensuring seamless operations and customer satisfaction. However, recent statistics reveal that a significant number of businesses are not maximizing the potential of their OMS, leading to challenges such as order inaccuracies, inventory issues, and dissatisfied customers. FeatureMind is here to shed light on these findings and offer practical solutions for businesses looking to enhance their OMS capabilities.
Benefits to businesses deploying and strengthening their OMS:
- Automation of logistics operations
- Enhancing inventory management
- Minimize employee error and save time
- Enhance customer journeys
- Empower consumers through transparency and the right to choose
Let’s discuss in detail how this works. 62 percent of retailers identify human error as the root cause of inventory or fulfillment issues. To address this challenge, businesses should embrace automation within their OMS. Automating repetitive tasks not only reduces the likelihood of errors but also frees up valuable time for employees to focus on more strategic aspects of the business.
Shocking as it may seem, 55 percent of retailers still rely on manual processes within their logistics operations. This outdated approach not only slows down the order fulfillment process but also drastically increases the risk of errors and confusion. Moving to digital solutions will help eliminate manual bottlenecks and improve overall efficiency within day-to-day operations, while also reducing the environmental footprint associated with unnecessary resource consumption.
Enhancing the customer experience is paramount in today's e-commerce landscape, where expectations are higher than ever before. Businesses can elevate their service standards by harnessing the advanced tracking and communication capabilities inherent in their OMS. By furnishing customers with precise and up-to-date information regarding their orders, including real-time tracking of shipment progress and accurate estimated delivery dates, businesses not only meet but exceed customer expectations, fostering trust and loyalty in the process.
Today's consumers crave transparency and control over their purchasing journey, with over 30 percent of consumers switching channels between online and in-store shops, or using a mixture of both, finds PwC. By integrating customer-facing features into their OMS, businesses can empower consumers to track orders, modify shipments, and manage returns seamlessly. These features also help consumers select more sustainable methods of purchasing and delivery, such as selecting energy-efficient or low-waste delivery services. Providing consumers with greater visibility and control not only enhances their overall experience but also fosters brand loyalty and repeat business due to eco-conscious practices.
Brands that recognize the true potential of OMS as a powerful tool for enhancing inventory management put themselves at a significant advantage, with almost half the brands admitting that they see room for improvement of their inventory processes. Integrating sustainability considerations into OMS functionalities offers businesses a competitive edge, with improved inventory management enabling cost reduction and operational efficiency enhancements. In addition, better inventory management practices and enhanced visibility across channels can help mitigate the devastating cost of managing returns, estimated at about 30 percent for online sales by Gartner, which often wipes out the profit margin on a sale, if not costing the company money. By reducing returns and maximizing the value of their stock, businesses not only mitigate financial impacts but also significantly enhance the customer experience. Leveraging the data available, companies can proactively work to minimize returns and efficiently manage them when they do occur, further optimizing their operations and bolstering customer satisfaction.
In today's rapidly evolving business landscape, effective Order Management Systems (OMS) are not merely tools for streamlining operations but pivotal drivers of success and customer satisfaction. Despite their potential to revolutionize business processes, it's disheartening to note that many enterprises are falling short of fully harnessing the capabilities of their OMS. However, amidst these obstacles lies a remarkable opportunity for growth and transformation. By confronting these challenges head-on and embracing the recommended solutions, businesses can unlock the true potential of their OMS.
