Omnichannel order fulfillment

Omnichannel order fulfillment is a material handling fulfillment strategy and process that treats inventory as fully available to all channels (e-commerce, store replenishment and wholesale) from one location. While the internal fulfillment process may diverge to optimize the operations, the outbound process only diverges at the point of pack out and shipping.^[1][2]

It allows companies to deliver goods to multiple channels using a single facility with a single workforce, delivering from a single inventory. The channel dictates the order size, delivery requirements, packaging, shipment method and rules for handling shortages. Single-channel facilities can have a fixed set of criteria.

Some embodiments of omnichannel order fulfillment eliminate the need for bulk storage, pallets and lift trucks.^[3] Instead, products are sent directly to universal storage and pick modules. The process is designed so that items can be selected simultaneously for any channel requirements. Omnichannel solutions may operate where orders are not grouped into waves, as is common in pick operations. Instead, customer orders or product demand is entered into worker pick lists as soon as they are initiated for processing at the distribution center, which promotes both fulfillment flexibility and processing speed.^[4] In such operations associates doing the picking don't know whether they are picking an online order or a store order.^[1] They pick and replenish simultaneously, work with dynamic stock keeping unit (SKU) locations, and generally touch and move items with minimal fear of introducing errors.

The omnichannel fulfillment method disables repetitive activities for different distribution channels and makes sure products are available for all the channels equally. Furthermore, it improves the ability to respond to the customer in a timely manner, providing them a consistent shopping experience.