How modern retailers use integrated inventory, smart routing, and in-store workflows to deliver seamless customer experiences — with real strategies from Target, Zara, and scalable tech stacks.
Inventory Visibility Architecture (OMS + POS + WMS)
True omnichannel fulfilment starts with a single source of truth for inventory. Without real-time visibility across stores, warehouses, and point-of-sale systems, you risk overselling, delays, and customer frustration.
The foundation is integrating three core systems:
1. Order Management System (OMS)
An OMS acts as the central brain for all orders — whether they come from your Shopify store, Amazon, a physical register, or a mobile app. It tracks order status, payment, fulfilment method, and customer data.
Popular OMS platforms include:
- NetSuite OMS: Best for enterprise brands with complex operations.
- TradeGecko (now QuickBooks Commerce): Mid-market friendly with strong Shopify integration.
- Lightspeed Retail: Ideal for retailers with multiple brick-and-mortar locations.
2. Point of Sale (POS)
Your POS must sync inventory in real time with your OMS. When a customer buys a jacket in-store, that stock must be deducted from online availability instantly to prevent overselling.
Shopify POS, Square, and Clover all offer cloud-based sync. Ensure your POS updates inventory within seconds of a sale, not hours.
3. Warehouse Management System (WMS)
A WMS manages stock levels, bin locations, picking routes, and shipping logistics in your central warehouse. It should communicate with the OMS to provide accurate “available to promise” inventory for online orders.
Examples: ShipHero, DEAR Systems, and Fishbowl.
How They Work Together
When a customer places an online order, the OMS checks inventory across all locations via API connections to POS and WMS. If the nearest store has stock, it routes the order there for BOPIS or ship-from-store. The OMS then updates inventory everywhere to reflect the sale.
| System | Role in Omnichannel | Key Integration Requirement |
|---|---|---|
| OMS | Central order routing and visibility | Real-time sync with POS and WMS |
| POS | In-store sales & inventory updates | Cloud-based, API-accessible inventory |
| WMS | Warehouse stock accuracy & fulfilment | Automated stock level reporting |
Without this architecture, omnichannel promises like “buy online, pick up in-store” become unreliable. Invest in integration middleware like Zapier, Celigo, or native API connections to ensure data flows seamlessly.
Routing Logic Rules (Distance, Stock Level, Margin)
Once inventory is visible, the next challenge is deciding where to fulfil each order. Smart routing logic automates this decision to minimize cost, maximize speed, and protect margins.
The OMS or fulfilment platform applies rules in this typical order:
1. Proximity (Nearest Location)
For BOPIS or same-day delivery, distance is the top priority. The system calculates the customer’s ZIP code or GPS location and selects the closest store with available stock.
Example: A customer in Chicago orders at 10 AM. The system checks inventory at five nearby stores and routes to the one 2 miles away with 3 units in stock.
2. Stock Level (Avoid Depletion)
Never route to a store with only 1 unit left — that item might be needed for an in-store sale. Set minimum thresholds (e.g., “only use store inventory if ≥3 units available”).
This prevents stockouts on the sales floor and maintains in-store customer experience.
3. Fulfilment Cost & Margin
Shipping from a store may cost more than from a warehouse due to smaller volumes and manual packing. The system should compare:
- Shipping cost from warehouse vs. store
- Labor cost of in-store picking
- Carrier discounts (warehouse may have better rates)
If the margin impact exceeds a threshold (e.g., $2.50 extra cost), default to warehouse fulfilment even if a store is closer.
4. Service Level Agreement (SLA)
Respect customer promises. If a customer selected “same-day delivery,” the system must prioritize speed over cost, even if it means using a store with higher labour expense.
function determineFulfilmentLocation(order) {
const nearbyStores = getStoresWithinRadius(order.zip, 10);
const viableStores = nearbyStores.filter(store =>
store.inventory[order.sku] >= 3 && store.isOpen
);
if (order.deliveryOption === “same-day” && viableStores.length > 0) {
return getClosestStore(viableStores);
} else {
return calculateLowestCostOption(warehouse, viableStores);
}
}
Most OMS platforms allow you to configure these rules via UI or API. Start with proximity and stock level, then add cost and SLA as your operation scales.
Customer Notification Cadence (SMS, Email, Push)
Communication builds trust. Customers expect real-time updates when using BOPIS or same-day delivery. A clear, multi-channel notification cadence reduces support tickets and increases satisfaction.
Key Touchpoints & Channels
- Order Confirmation (Immediate): Email + SMS confirming purchase and expected fulfilment method.
- Ready for Pickup (BOPIS): SMS when item is packed and waiting at store counter. Include pickup window and store address.
- Out for Delivery (Same-Day): SMS with driver name, photo, and live tracking link.
- Delivered: Final confirmation with delivery photo (if available).
- Follow-Up: 24 hours later, email asking for feedback or offering related products.
Example BOPIS Notification Flow
- Email (T+0 min): “Thanks for your order! Your items are being prepared for pickup at Downtown Store.”
- SMS (T+45 min): “Your order is ready! Pick up at 123 Main St between 10–8. Show this message at the counter. Reply HELP for support.”
- Push (T+2 hr): (If app installed) “Don’t forget your order at Downtown Store!”
- Email (T+24 hr): “How was your pickup experience? Rate us and get 10% off next time.”
Tools like Postscript (SMS), Klaviyo (email), and OneSignal (push) integrate with Shopify and OMS to automate these flows.
Staff SOP for In-Store Picking & Packing
In-store fulfilment only works with clear, documented procedures. Store staff are no longer just sales associates — they’re also warehouse pickers and packers.
A standard operating procedure (SOP) ensures consistency, speed, and accuracy.
Step-by-Step SOP
- Receive Alert: Staff get a notification (tablet, email, or printout) when a BOPIS or ship-from-store order is assigned.
- Verify Stock: Check the system-picked location (e.g., “Aisle 4, Bin 12”) and confirm item availability.
- Pick & Scan: Use a barcode scanner to confirm the correct SKU and size/color. Prevents wrong-item errors.
- Pack: Use branded packing slips and tissue paper for BOPIS. For ship-from-store, use plain boxes with return labels.
- Stage: Place packed orders in a designated “Ready for Pickup” or “To Ship” area.
- Confirm: Mark order as “fulfilled” in the POS or OMS to trigger customer notifications.
Staff Training & Incentives
Train staff on:
- Navigating the OMS interface
- Using barcode scanners
- Handling damaged or out-of-stock items
- Customer pickup verification (ID or order number)
Consider performance bonuses for accuracy and speed. One retailer reduced average pick time from 12 to 6 minutes by gamifying fulfilment tasks.
ROI Calculator Spreadsheet
Before investing in omnichannel fulfilment, model the return on investment. Below is a simplified ROI framework you can build in Google Sheets or Excel.
Key Inputs
- Monthly online orders: 2,000
- Target BOPIS conversion: 30% (600 orders/month)
- Average order value (AOV): $85
- Shipping cost saved per BOPIS order: $6.50
- Labour cost per in-store pick: $3.00
- Technology cost (OMS, SMS, etc.): $1,200/month
Monthly ROI Calculation
| Item | Calculation | Value |
|---|---|---|
| Shipping Cost Saved | 600 orders × $6.50 | $3,900 |
| Labour Cost Incurred | 600 orders × $3.00 | $1,800 |
| Technology Cost | OMS, SMS, integrations | $1,200 |
| Net Monthly Savings | $3,900 – $1,800 – $1,200 | $900 |
But savings aren’t the only benefit. Add:
- Upsell Opportunity: 20% of BOPIS customers buy additional items in-store. 600 × 20% × $30 = $3,600 extra revenue.
- Higher Retention: BOPIS customers have 25% higher LTV. Long-term value increase: ~$15,000/year.
Downloadable templates are available from Shopify and Klaviyo, or use this structure to build your own. Adjust variables based on your data.
Lessons from Target & Zara
Two retail giants have mastered omnichannel fulfilment. Their strategies offer valuable lessons for brands of any size.
Target: Ship-from-Store at Scale
Target fulfils 95% of online orders from its 1,900+ stores. This allows same-day or next-day delivery to 90% of the U.S. population.
Key tactics:
- Dedicated Fulfilment Areas: Each store has a “bullpen” where team members pick online orders.
- Real-Time Inventory: RFID tags and POS sync ensure 99.5% inventory accuracy.
- Drive-Up Service: Contactless pickup with staff bringing orders to the car. 50% of digital sales use Drive-Up.
- Dynamic Routing: Orders are routed to the nearest store with stock, not just the closest.
Result: Digital sales grew 16% YoY, with Drive-Up growing 40%.
Zara: Fast Fashion, Faster Fulfilment
Zara uses its 2,000+ global stores as mini-distribution centers. In major cities, they offer same-day delivery for online orders.
Key tactics:
- Centralized Logistics: Most stores receive twice-weekly shipments from central hubs, ensuring fresh stock.
- BOPIS Integration: Online orders can be returned to any store, increasing convenience.
- Mobile Staff Devices: Associates use handheld scanners to pick and pack orders quickly.
- Local Delivery Partners: In cities like Madrid and NYC, Zara partners with local couriers for 2-hour delivery.
Result: 30% of online orders are fulfilled in under 24 hours, and in-store returns for online orders increased foot traffic by 12%.
