OrderDynamics Unveils Global Research Uncovering the Key Role a Retail Order Management System Plays in Driving Omni-Channel Commerce Initiatives and Cross-Channel Growth

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Global research from Independent Consulting Firm shows 78 percent of retailers believe a retail order management system would provide a strategic Omni-Channel advantage, yet only 49 percent have invested in order management technology.

OrderDynamics® Corporation

OrderDynamics® Corporation

It's clear retailers recognize a retail order management system as a strategic solution for enabling next generation fulfillment tactics and gaining an advantage over direct competitors and nimble web-only retailers.

OrderDynamics®, the leading provider of global order management and Omni-Channel solutions, today released the results of a new global retail study that identifies the role order management technology plays in accelerating cross-channel growth by supporting consumer oriented features such as buy online, pickup in-store, and fulfilling web orders from retail stores.

In a commissioned study conducted by Forrester Consulting on behalf of OrderDynamics, an eCommera company, Forrester Consulting surveyed 337 decision makers across North America, Europe and Asia with knowledge of their firms’ multi-channel fulfillment strategy. The research revealed that cross-channel fulfillment programs are the top Omni-Channel priorities among retailers. Despite the focus on fulfillment tactics, the newly released study, “The Retail Order Management Imperative,” found while only 49 percent of retailers currently use an order management system, many of these solutions are ill equipped to support complex cross-channel fulfillment offerings. Moreover, the study found that traditional order management systems typically cannot support the multiple facets of evolving Omni-Channel commerce initiatives. The study identifies several key findings including:

Cross-Channel Fulfillment Programs Trump Other Omni-Channel Initiatives:
The study discovered that optimization of cross-channel fulfillment processes such as pickup in-store, ship-to-store and ship-from-store are being prioritized over other Omni-Channel tactics like single view of the customer and cross-channel loyalty programs. In-store pickup options provide retailers with greater in-store traffic and new opportunities for more cross-selling.

  • 26 percent of retailers in the United States and 47 percent of retailers in Europe already have ship-from-store capabilities, while 10 percent and 18 percent respectively soon plan to enable this offering.
  • 23 percent of retailers already have a buy-online, pickup-in-store program in place. Likewise, 20 percent have a reserve-only pickup-in-store program. According to the study results, these store pickup numbers are set to almost triple in the next 12 months.
  • 63 percent of retailers surveyed indicated that gaining a competitive advantage over online pure-play retailers by leveraging their stores assets (inventory, shipping cost efficiencies and reduced delivery times) was a primary driver for investing in Omni-Channel initiatives.
  • Retailers already (or expect to) fulfill an average of 35 percent of online orders from their retail stores.

Order Management Technology Underpins Omni-Channel Initiatives:
The study also identifies the growing need for modern retail order management systems that can support complex fulfillment programs in addition to standard order automation features. The study states, “Some retailers have invested in traditional order management systems that are largely centered on order automation, many do not possess the technology to enable next generation fulfillment... As a result, an increasing number [of retailers] are investing in retail order management systems to provide not only a consolidated cross-channel view of inventory and order data, but also to support the orchestration of complex cross-channel sales and fulfillment scenarios.”

  • 85 percent of retailers stated a retail order management system would play an important role in the execution of their Omni-Channel strategy.
  • 75 percent of the retailers surveyed believe an order management system will reduce inventory costs and improve fulfillment efficiencies.
  • 63 percent of retailers are considering SaaS-based order management systems to support their rapidly evolving Omni-Channel initiatives.

Omni-Channel Initiatives have the attention of the C-Suite:
The study reveals the importance C-level executives are placing on Omni-Channel commerce strategies. The study states, “… at many of the retailers we surveyed the CEO, CIO, COO and CMO are all taking an active role in defining their firm’s Omni-Channel strategy and prioritizing explicit programs that will serve to connect the cross channel purchase journey their customers now expect.” The successful implementation and execution of Omni-Channel commerce requires the input and ongoing collaboration between many departments and shouldn’t fall onto the sole responsibility of one individual.

  • 39 percent of retailers have created a dedicated executive or c-level role to lead and coordinate Omni-Channel initiatives.
  • 34 percent of retailers have their CEO leading Omni-Channel initiatives.
  • 9 percent of retailers have already re-aligned their online and offline departments to become an Omni-Channel organization with a single P&L.

As part of the research in this study, Forrester Consulting completed in-depth surveys and interviews with retail executives to understand the full spectrum of challenges and considerations being put into order management and Omni-Channel initiatives. “The vast majority of our 2,000 stores are enabled for distribution. At the end of the day that is the big advantage we have – we can have the product same-day/within minutes – pure plays cannot match that. With ship-from-store and store distribution centers we can get the product to customers much faster,” said a Director & General Manager at a Major US Retail chain.

“Omni-Channel fulfillment represents a strategic advantage for many retailers by leveraging inventory across multiple locations, and streamlining fulfillment processes. These initiatives ultimately lead to reduced operational costs, and more importantly, an enhanced customer shopping experience. It's clear retailers recognize a retail order management system as a strategic solution for enabling next generation fulfillment tactics and gaining an advantage over direct competitors and nimble web-only retailers,” said Michael Turcsanyi, President at OrderDynamics.

Learn more:

  • To download the free global study, “The Retail Order Management Imperative”, click here.
  • Register for the live webinar, “How A Retail Order Management System is The Key to Unlocking Your Omni-Channel Strategy”, on November 26 at 2pm EST with special guest Peter Sheldon, Principal Analyst, Forrester Research, Inc. Click here to register.

Research Methodology:
OrderDynamics commissioned Forrester Consulting to conduct a study into 337 decision makers representing retailers across North America, Europe and Asia to undercover the challenges retailers face when deploying Omni-Channel commerce strategies, top Omni-Channel initiatives and the benefits seen by implementing a retail order management system.


About OrderDynamics
OrderDynamics Corporation, an eCommera company, is a leading Omni-Channel commerce solutions provider with its ecommerce platform and retail order management system. National and global retailers leverage OrderDynamics commerce solutions to unify digital touch points with retail stores. Our clients drive enhanced customer service and accelerated cross-channel growth through next generation Omni-Channel fulfillment and automated operational efficiencies. OrderDynamics proudly powers digital and retail commerce operations of leading retailers such as Henry’s Camera, Bouclair Home, Laura Canada, JYSK, American Diabetes Association, Pilot, Kitchen Stuff Plus, Town Shoes/The Shoe Company, Eclipse Stores, and more.

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Michael Turcsanyi
OrderDynamics Corporation
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