Omnichannel Logistics: Strategies for E‑Commerce Success

The surge in e‑commerce has transformed how goods move from producers to consumers. Statista projects that the global last‑mile delivery market will exceed $200 billion by 2027, up from $108.1 billion in 2020. At the same time, research shows that 60 – 70 % of consumers shop both online and in physical stores. These shoppers expect fast shipping, convenient pick‑up options and seamless returns, with 85 % of European consumers considering same‑day or next‑day delivery important. Traditional supply chains built around bulk shipments to stores struggle to keep pace. Omnichannel logistics, a unified approach to inventory, fulfillment and delivery across every channel, has become essential for modern retailers.

Definition: Omnichannel logistics is a strategy that synchronizes inventory, fulfillment and distribution across all sales channels to create a seamless customer experience. It differs from multichannel logistics, where online, store and mobile operations run independently. In an omnichannel system, information, products and funds flow through a single engine, regardless of whether a customer orders via website, social media or in‑store.

E‑commerce boom: Why omnichannel matters

• Changing buyer behaviour: Consumers increasingly browse and buy through multiple touchpoints. McKinsey notes that 60 – 70 % of shoppers research and shop both online and offline while a Wunderman Thompson survey found that 64 % of global consumers want brands to innovate with digital technology to improve their experience.
• Demand for speed and choice: An Ipsos‑Octopia study reported that 85 % of European consumers consider the ability to choose same‑day or next‑day delivery important. Customers also want freedom of choice, ordering via social media, mobile app or store and picking up in store, at lockers or at home.
• Rising returns: Roughly 23 % of online purchases are returned. A McKinsey report cited by FarEye found that 33 % of repeat consumers will abandon a retailer after a difficult return, highlighting the importance of efficient reverse‑logistics processes.

Omnichannel vs multichannel logistics

Multichannel logistics operates separate pipelines for e‑commerce and brick‑and‑mortar, often duplicating inventory and systems. Omnichannel logistics unifies these channels. As Sunil Chopra explains, omnichannel refers to using a variety of channels to interact with customers and fulfil their orders. The goal is to maintain a single “inventory pile” that can serve every channel, improving availability and reducing working capital.

Example: Prologis describes a typical omnichannel scenario: a customer orders a product online, but instead of shipping it from a distant distribution centre, the retailer ships from a nearby store. Inventory updates across all channels, and the customer receives the order quickly. This integration reduces shipping distances and increases customer satisfaction.

Key strategies for building an omnichannel supply chain

1. Unified inventory management

• Real‑time visibility: Connect warehouse management systems (WMS), order management systems (OMS), retail stores and third‑party logistics (3PL) partners to maintain a single view of stock. Unified inventory improves service levels and reduces unit costs by consolidating stock.
• Inventory pooling: Pooling inventory for all channels allows products to be allocated dynamically to online or in‑store orders based on demand. This reduces stock‑outs and excess inventory.

2. Flexible fulfillment options

• Ship‑from‑warehouse or store: Fulfill orders from the closest, most cost‑effective location. Shipping from a local store rather than the central distribution center demonstrates how this reduces delivery times.
• Buy online, pick up in store (BOPIS) and curbside pickup: Offer convenient pick‑up options that leverage physical store networks and reduce last‑mile costs.
• Same‑day/next‑day delivery: Partner with carriers and use micro‑fulfillment centers to enable fast shipping, meeting consumers’ heightened expectations for speed.

3. Partner with an omnichannel 3PL

• Choose the right 3PL: The wrong 3PL can lead to inefficient inventory flow and missed deliveries. Evaluate potential partners on technology capabilities, network coverage, performance metrics and scalability.
• Scale without capital: An experienced 3PL provides nationwide or global networks, advanced technology and transportation solutions, allowing retailers to scale quickly without heavy capital investment.

4. Leverage technology and automation

• Modern OMS/WMS integration: Cloud‑based platforms enable real‑time order routing, inventory updates and demand forecasting. Manual paper‑based processes are error‑prone; automated solutions like RFID tags and barcode scanning improve accuracy.
• Predictive analytics & AI: Machine‑learning algorithms can provide predictive visibility for last‑mile delivery and accurate estimated delivery times. Integration of advanced analytics improves forecasting, route optimisation and customer communication.
• Digitalisation and robotisation: Synchronising inventory across all channels requires digitalisation, automation and sometimes robotisation. Automation can also speed up picking and packing in omnichannel warehouses.

5. Optimise reverse logistics

• Easy returns: With roughly 23 % of online purchases returned, an efficient reverse‑logistics process is critical. Digital tools should allow customers to initiate returns through any channel and provide visibility on refund status.
• Refurbish and resell: Where possible, returns should be refurbished or resold to recover value and reduce waste.

6. Focus on customer experience & transparency

• Consistent experience: Customers expect consistency whether they shop online, via mobile or in store; interactions should remain seamless even if they switch channels. Personalised recommendations and loyalty programmes rely on unified customer data.
• Transparent communication: Provide real‑time updates on order status, shipping and returns. Tech‑savvy users increasingly demand transparency.
• Security & personalisation: Customers want secure transactions, easy access to account information and personalised experiences that acknowledge past purchases.

Benefits of omnichannel logistics

• Faster delivery times: Unified inventory and local fulfillment reduce shipping distances, enabling same‑day or next‑day delivery.
• Lower logistics costs: Shipping from the closest node cuts transportation expenses and minimises last‑mile inefficiencies.
• Improved customer loyalty & experience: A seamless experience across channels, with easy returns, multiple delivery options and transparent communication, increases satisfaction and retention.
• Better inventory utilisation: Pooling inventory across channels reduces safety stock and improves availability.
• Scalability: Working with an omnichannel 3PL and leveraging automation enables retailers to handle seasonal spikes and new channels without major capital expenditure.
• Increased visibility & sustainability: Omnichannel logistics improves transparency, strengthens the relationship between warehouses and delivery points, attracts new customers and even enhances sustainability.

Challenges and solutions in implementing omnichannel logistics

How to implement an omnichannel logistics strategy

Future trends and opportunities

• Continued growth of e‑commerce and last‑mile delivery: The last‑mile market is projected to exceed $200 billion by 2027. Retailers must invest in local fulfilment and micro‑distribution to stay competitive.
• Higher digital adoption: According to Wunderman Thompson, 60 % of global shoppers plan to increase their use of digital shopping channels. Businesses should expand omnichannel reach across social commerce and emerging marketplaces.
• Greater emphasis on sustainability: Omnichannel strategies can reduce carbon emissions by shipping from nearby locations and optimising routes. Implementing omnichannel logistics can improve sustainability and strengthen customer loyalty.
• Personalisation and AI: Machine‑learning algorithms will power more accurate demand forecasts and personalised offers. Predictive visibility tools will become standard for last‑mile delivery.
• Convergence of retail and logistics platforms: Expect deeper integration between e‑commerce platforms, payment systems and logistics providers. This convergence will enable real‑time pricing, inventory allocation and dynamic routing.

Transform your supply chain with OLIMP

Omnichannel logistics is no longer optional. Consumers demand speed, convenience and transparency, and companies that fail to integrate their sales channels risk lost sales and higher costs. By unifying inventory, offering flexible fulfilment, leveraging technology and partnering with the right 3PL, brands can deliver exceptional experiences and grow profitably. OLIMP Warehousing & Logistics specialises in omnichannel warehousing, fulfilment and transportation solutions. Contact our experts today to design a custom strategy that keeps your brand ahead of the competition.