Intelligent Fulfillment Drives Customer Service and Boosts Return on Inventory Investment
Perficient, Inc. (Nasdaq: PRFT) ("Perficient"), the leading global digital consultancy transforming the world’s largest enterprises and biggest brands, today released the results of a study evaluating the utilization and benefits of intelligent order management systems (OMS) and automated supply chains among U.S. companies.
For the September 2020 Forrester Opportunity Snapshot study, Get Supply Chain Right: Intelligent Fulfillment Boosts Customer Service and Return on Inventory Investment, Forrester Consulting surveyed more than 200 inventory management decision makers based in the U.S. about their intelligent order management practices and rate of adoption. Many respondents reported having an intelligent fulfillment system in place for managing supply chains and fulfilling orders. In practice, however, the study found that 88 percent of companies rely on at least one manual or rules-based process, which demonstrates a gap between respondents’ perception of intelligent ordering and their established practices.
"As online sales continue to soar, companies are failing to match the growth in demand by depending on antiquated methods to fulfill orders. This leads to lost time, revenue, and customers," said Sean Breeze, director of management consulting, Perficient. "Fulfillment infrastructures are complex, and they require sophisticated order allocation to fulfillment centers for rapid delivery. Intelligent ordering systems can help companies adequately balance demanding service expectations with inventory holding costs across a large distribution network."
The study also found that firms base their operational strategies and decision-making on metrics that distort incentives, citing a preference to secure the lowest unit cost by buying in bulk, rather than accurate demand forecasting, improved customer service, or return on inventory investment.
Companies that invest in optimization strategies to overcome their inventory management challenges report strong results. Specifically, the study found that the top benefits have the clearest ties to business results:
- 76 percent increase in revenue;
- 66 percent increase in profit margin; and
- 61 percent improvement in customer loyalty.
"Our study found that seven in ten firms say one delayed order is enough to lose a customer. The margin of error is razor thin, and it’s only going to become more challenging," said Pawan Gupta, commerce solutions principal, Perficient. "Successful order management systems are unique in their ability to create brand loyalty and generate new revenue streams. When executed correctly and optimized with intelligent fulfillment, they demonstrate a unified commerce approach for sellers spanning all points along the customer purchase lifecycle."
Additional information about the study will be provided during an upcoming Perficient webinar, How to Drive Better Customer Experience with Intelligent Order Management, where Perficient supply chain experts Breeze and Steve Gatto, commerce portfolio specialist, will be joined by guest speaker and Forrester Analyst, George Lawrie, to discuss the research findings and how intelligent order management can increase revenue and customer loyalty.
With more than 20 years of expertise in OMS, Perficient understands how to leverage the ever-changing benefits of OMS in conjunction with supply chain to provide a powerful commerce experience. For more information about Perficient’s commerce solutions and OMS expertise, subscribe to Perficient’s blog, and follow us on Twitter and LinkedIn.
Perficient is a leading global digital consultancy. We imagine, create, engineer, and run digital transformation solutions that help our clients exceed customers’ expectations, outpace competition, and grow their business. With unparalleled strategy, creative, and technology capabilities, we bring big thinking and innovative ideas, along with a practical approach to help the world’s largest enterprises and biggest brands succeed. Traded on the Nasdaq Global Select Market, Perficient is a member of the Russell 2000 index and the S&P SmallCap 600 index. Perficient is an award-winning Adobe Platinum Partner, Platinum Level IBM business partner, a Microsoft National Service Provider and Gold Certified Partner, an Oracle Platinum Partner, a Gold Salesforce Consulting Partner, and a Sitecore Platinum Partner. For more information, visit www.perficient.com.
Safe Harbor Statement
Some of the statements contained in this news release that are not purely historical statements discuss future expectations or state other forward-looking information related to financial results and business outlook for 2020. Those statements are subject to known and unknown risks, uncertainties, and other factors that could cause the actual results to differ materially from those contemplated by the statements. The forward-looking information is based on management’s current intent, belief, expectations, estimates, and projections regarding our company and our industry. You should be aware that those statements only reflect our predictions. Actual events or results may differ substantially. Important factors that could cause our actual results to be materially different from the forward-looking statements include (but are not limited to) those disclosed under the heading "Risk Factors" in our annual report on Form 10-K for the year ended December 31, 2019, as supplemented by the risk factor contained under the heading "Risk Factors" in our quarterly report on Form 10-Q for the quarterly period ended June 30, 2020.
View source version on businesswire.com: https://www.businesswire.com/news/home/20201006005969/en/
Connor Stieferman, Communications Manager