Connecting your online store, retail locations and warehouses: how to scope the project

The systems involved

Start by taking stock of your tools. A project linking the online store, retail locations and warehouses almost always touches more systems than expected at first.

• The ecommerce platform, B2C or B2B.
• The point-of-sale (POS) systems in your stores.
• The ERP, which often handles purchasing, accounting and sometimes inventory.
• Warehouse management software, if you have one.
• An order management system (OMS), if one already exists.
• Shipping tools and carriers.
• Marketplaces you sell on, if any.
• Your product information management (PIM) and customer service tools.

For each, note who uses it, who administers it, the vendor, the available integration methods (API, file exchange, connector) and any contractual constraints. This information often sits with the vendor, so ask for it in writing.

The source of truth for each type of data

For each type of data, a single system should be authoritative. When two systems both act as the master of the same information, discrepancies multiply and nobody knows which one to fix.

Physical stock versus available stock

Separate the quantity on the shelf from the quantity you can promise. Available-to-sell stock excludes units already reserved, being picked, damaged or held as safety stock. That's the number customers should see, and its calculation rule should be written down.

The data flows you need

For each flow, specify its trigger, direction, frequency, approximate volume and the expected behaviour when it fails.

• Available quantities, from warehouses and stores to the online store.
• Orders, from the online store to the location that fulfils them.
• Statuses and tracking numbers, to the customer.
• In-store sales, to central inventory.
• Returns, to inventory and accounting.
• Transfers between locations.

Real time where it matters

Syncing everything in real time is expensive and not always useful. Decide where a delay is acceptable. The quantity of a nearly sold-out or high-demand product is more sensitive than a product description.

Choosing the location that fulfils the order

When several locations can ship, you need a routing rule. Common criteria include distance to the customer, whether one location can fill the complete order, shipping cost and store fulfilment capacity. Also decide whether you accept splitting an order across locations.

Exceptions to plan for

List the situations that fall outside the normal flow. Each one needs a rule and an owner.

• An item that can't be found at picking time.
• An order split between two locations.
• Buy online, pick up in store.
• An online purchase returned in store.
• A product damaged on receipt or at shipping.
• A partial cancellation after picking has started.
• A sync that stops for several hours.
• A pre-order or a product awaiting replenishment.

Scenarios to test

Turn the normal flow and the exceptions into test scenarios. Run them with real or representative data, and involve store and warehouse staff: they'll be the first to see problems.

Limits to clarify

• What each system can actually exchange, by what means and how often. Have each vendor confirm it.
• Licence, API or connector costs the exchanges may involve.
• Store capacity to fulfil orders: space, staff, opening hours.
• How reliable store inventory is. If counts are unreliable, showing store stock online can disappoint customers.
• What will remain manual at launch, and who handles it.
• How the rollout is phased: which locations, channels and flows come first.

Indicators to track

Pick a few indicators, define them precisely and measure them before the project. Targets depend on your business; set them from your own baseline.

• The share of orders shipped complete in the first shipment.
• Discrepancies between book inventory and physical counts.
• Orders rerouted or cancelled because of missing stock.
• Time from order to shipment, by location.
• The number of sync errors and how long they take to fix.
• Return processing time.

Where Shopflow fits

Shopflow's OMS & Inventory page describes stock allocation across several warehouses, stock reservation for B2B, order routing and inventory updates with each order. The POS Integration page describes linking online and in-store sales. Connections with your specific ERP, warehouse software or POS still need to be confirmed case by case: ask whether there is an existing connector or an integration to build.