The Hidden Risk of Delivering Your Business Everywhere (And How to Overcome It)

It’s an omnichannel world.

To meet your customers where they are today, you need to consider a wide range of touchpoints to deliver your brand experience. They include not only your brand’s website, but also:

  • Digital marketplaces: such as Amazon.com, Walmart.com and category marketplaces like ebags.com.
  • Digital channels: daily deal sites, flash sales, subscription boxes and social media.
  • Non-digital channels: catalog sales, direct response TV, mail, kiosks and more.
  • Retail storefront: brick-and-mortar locations, because they still lead online sales (for now).

Whether your focus is B2C, B2B or both, you share a common challenge: how to efficiently and cost effectively deliver your brand experience to such a rapidly expanding and diverse array of sales channels.

It’s a risky world.

It may seem counter intuitive on the surface, but a unifying idea like omnichannel sales can actually lead to massive fulfillment fragmentation—leading to inefficiency and needless costs—if the strategy is built piecemeal instead of holistically.

It may be tempting to explore individual fulfillment solutions for individual sales channels. But omnichannel fulfillment is a long-term strategy that is ill-fitted for short term thinking, such as pursuing immediate cost savings for a particular sales channel. The perceived benefit may actually increase your total fulfillment costs across your entire sales enterprise.

For example, Company X may be intrigued by the immediate cost savings offered by technology-driven Fulfillment Company Y. It seems like the perfect solution for Company X to enter a new digital marketplace at the lowest fulfillment cost possible. No need to staff up or acquire new in-house expertise: it’s a turnkey solution at a low cost. What could be better?

Not so fast: now Company X needs to provide an entirely separate inventory to the new fulfillment provider—while having poor inventory visibility and control. And now, Company X needs to interface with yet another new IT system, which drives inventory holding and IT costs up. The supply chain just became a lot more complicated.

Where are the savings? Where’s the efficiency? Suddenly, the initial discount on fulfillment services doesn’t seem like such a bargain anymore.

Overcome the complexity. Choose the power of one.

The more your marketplace becomes fragmented, the more you need a simple, unified approach to taking Your Business Everywhere: not a different inventory for each sales channel, but one. Not multiple technology platforms, but one. Not a lot of rigid fulfillment processes that you can’t change to meet your needs—but a single, flexible one that empowers your customers to engage with your brand wherever and whenever they want.

Let’s take a closer look at the advantages, when you choose the power of one:

One centralized inventory:

  • Decrease holding costs
  • Lower the cost of delivery
  • Improve demand planning
  • Enhance your control of the brand experience

One technology platform:

  • Improve inventory visibility
  • Increase fulfillment efficiency
  • Minimize investment in IT technology, resources and staff
  • Decrease troubleshooting/problem solving time

One, flexible fulfillment operation:

  • Aggregate processes to achieve economies of scale
  • Set your own rules—instead of following someone else’s
  • Tailor fulfillment operations to your customer’s brand expectations
  • Deliver the identical brand experience across all sales channels

Expand with confidence.

The opportunities are endless in the omnichannel world, when you build your strategy around one centralized inventory, one technology platform and one flexible fulfillment operation. TAGG Logistics has the facilities, infrastructure, technology and expertise to help you overcome the inherent risks of fulfillment fragmentation and create a consistent brand experience—no matter where and when your customers engage with your brand. TAGG is the power of one.

So you can stay focused on product innovation—and deliver your brand experience to more customers. Count on us to help you deliver it all day, every day. To learn more, call 866-991-8244 or contact us online. So together, we can deliver Your Business Everywhere™.

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