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The distributed order management systems and strategies helping brands stay one step ahead

29 Jul 24

By Christophe Pecoraro

The distributed order management systems and strategies helping brands stay one step ahead

Being equipped with strategies and tools that pave the way for ultimate flexibility is critical for retailers and brands expanding their business online and cross-borders. Consumers are buying through an unprecedented number of channels, and in doing so, have begun stipulating requirements such as swift, precise, and convenient delivery to meet their ever-growing standards.

Embracing the latest technologies, strategies and systems which enhance both the front-end order-to-cash cycle, and the back-end order management and fulfilment operations, is imperative to compete in the industry and earn the loyalty of present and future customers.

Distributed Order Management (DOM) technologies

These systems are increasingly being recognised as a critical component in an agile future, enabling brands to work their fulfilment operations smarter rather than harder. A DOM system offers brands a single, unified real-time view of inventory across multiple distribution and fulfilment points – whether that be the traditional warehouse or the stock room of a physical retail store. Using a combination of information surrounding stock levels, delivery location and customer preferences, it can quickly and efficiently determine the optimal route to fulfil each order.

By embracing the power of DOM technologies, brands can ensure faster deliveries, greater customer satisfaction and ultimately greater loyalty. The intelligence provided by these systems can also enable brands to unlock the possibilities of omnichannel fulfilment, allowing them to expand their fulfilment offerings to in-store pickup or other alternative options that add an additional layer of convenience for their customers.

Robust payments processing and fraud prevention strategies

This means, in part, looking at how to create a robust payment processing and fraud prevention strategy. As online sales grow, fraud and online shoplifting have become an increasing issue that risks eating away at a brands’ profit margins. It would seem that whilst the eCommerce boom has presented a perfect opportunity for brands to expand, it has also opened a new window of opportunity for fraudsters to exploit the system – particularly when it comes to the chargeback process (when a settled transaction is disputed by the customer, bank or card issuer). Increasingly, criminals are making purchases using a stolen credit card, or some consumers make illegitimate claims that the product didn’t arrive. In both cases, if the chargeback case is successful, the result is a refund, which is not only costly to a brand financially but also in the additional administration and processes required.

Whilst 3D Secure (3DS) is mandatory in Europe for many online transactions due to the requirements set forth by the Payment Services Directive 2 (PSD2) and the Strong Customer Authentication (SCA) regulation, it doesn’t prevent the risk of chargebacks. When 3D Secure is used, the liability for fraud typically shifts from the acquirer (merchant) to the card issuer (the customer's bank). This means that while chargebacks can still occur, the responsibility for fraud-related losses is transferred. It’s not because the responsibility is transferred that risks will be eliminated, so it is very important that retailers manage fraud properly.

Brands can do so by selecting a partnership with a third-party expert and working with them to create a winning chargeback strategy that accesses both manual resources and automation tools.

Applications enhancing customer service

For retailers competing online, loyalty and repeat custom depend highly on the service a brand is able to provide should the customer need to engage pre- or post-sale. With customer expectations and preferences constantly evolving, and becoming increasingly complex to manage, the integration of an effective and robustcustomer service application that can support this area should be a key priority.

For retailers competing online, loyalty and repeat custom depend highly on the service a brand is able to provide should the customer need to engage pre- or post-sale. With customer expectations and preferences constantly evolving, and becoming increasingly complex to manage, the integration of an effective and robust

customer service application that can support this area should be a key priority.

When choosing the right solution, brands should look out for tools that automate contact identification, process flows and resolution tracking while facilitating transfers and escalations. These tools can equip agents with real-time order information and empower them to provide efficient and highly personalised customer support – something that will put them ahead in today’s crowded marketplace.

An innovative cross-border strategy

As brands and retailers seek to grow their business, and outrun the competition, the ability to expand into international markets is critical in today’s global economy. This includes putting in place processes to be able to process international and multicurrency payments in addition to navigating country-specific border/tax requirements and potential barriers and communicating these effectively to customers at the checkout page.

On the back-end, a distributed fulfilment operation made up of a multi-node fulfilment network should be a top priority for brands going global. Again, DOM systems and technology can be built in to support this strategy. Combined, the two can enable a brand to cover more ground whilst acting as a great contingency should disruption occur in a specific location.

As eCommerce continues to grow, the brands that adopt the aforementioned systems and solutions will be those that thrive against the competition. Enhancing customer experiences by prioritising their needs and preferences whilst simultaneously preparing for expansion is crucial in the current fast-moving retail climate. Principally, technology and industry expertise will prove a successful combination when providing a competitive edge in today’s crowded marketplace.

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