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Omnichannel: Definition, How it Works, Benefits, and Examples


10 May 2024
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One of the terms in marketing strategy that is being widely discussed in the world of e-commerce is omnichannel or omnichannel marketing.

In simple terms, omnichannel is the integration of several platform channels used by a business/company to interact with their consumers.

Current technological developments have created various types of new innovations in the world of marketing which of course must be taken into account.

In an effort to improve a good customer experience, you can try using strategies such as omnichannel as a business owner.

What is omnichannel and how can it be used to support your business. The following is a complete explanation.

Definition of Omnichannel

Quoting Oracle, in simple terms omnichannel is a term used in ecommerce to describe a business strategy that provides a shopping experience through various types of channels including offline/in store, mobile and online stores.

The main goal of omnichannel is to provide consistent customer experience on various existing channels.

An omnichannel strategy can give consumers the opportunity to make purchases online, in offline stores, or a combination of both, such as buying online and picking up at offline stores.

Currently, the use of omnichannel is considered the most effective so many people use this strategy. Various fields that are starting to use omnichannel include healthcare, retail, finance, technology, and others.

In marketing, omnichannel uses a consumer-centric view approach where consumers can interact with brands from various channels, from social media to customer service hotlines.

Some key elements in implementing omnichannel are as follows:

  • consistent, widely recognized brand vision and style;
  • personalized messages based on specific interests;
  • content created by consumer interactions and the buyer's journey.

How Omnichannel Works

When using an omnichannel strategy, of course not everything is suitable and it must still be adjusted to your business needs. Omnichannel is a strategy and not a one-size-fits-all solution. The application and how it works can be done in various ways.

Omnichannel works well if your business has the following conditions:

  • Your business must have a strong understanding of consumer needs and habits. Apart from that, it would be better if your business has good technology to support several channels at once so that the data obtained can be reviewed and used.
  • Businesses also need to prepare adequate resources to manage omnichannel aspects. This means, you also need a solid team that can coordinate and operate each channel you own.
  • Lastly, your business must also be able to develop an omnichannel strategy that is used regularly. Because consumers will continue to change, including changes in needs and habits, your business must also be able to balance these changes. This means you still have to develop new ideas and make the necessary adjustments for a successful omnichannel implementation.

Benefits of Using Omnichannel

Adopting an omnichannel strategy for marketing, supply management, sales and service can provide benefits and advantages for your business.

Quoted by Hubspot, here are some of the advantages of using omnichannel:

1. Reaching a Wider Consumer

By implementing omnichannel in your retail, marketing and service strategies, you can reach more consumers from various locations.

If you use more channels, of course the opportunity to get exposure will also increase, thereby increasing brand awareness.

2. Smooth Customer Experience

Omnichannel provides the opportunity for consumers to interact with your business from various types of channels but still with a consistent experience.

Apart from that, omnichannel is the right choice to improve customer experience because consumers can choose through which channel they will interact and make transactions.

3. Increase consumer satisfaction and loyalty

When you implement omnichannel, it will be easier for consumers to reach your brand. The convenience offered by omnichannel will make your consumers more satisfied and loyal if the service provided is consistent.

4. Handle Problems Faster

Consumers prefer fast service and the right solution for every complaint and problem they raise.

By implementing omnichannel for customer service, problem handling solutions will be faster, according to what consumers want.

Because there is a person in charge for each channel used, consumers will be directly connected to what they need via any channel.

5. Increase Profits

One of the benefits that a business will experience in implementing omnichannel is increased profits. This can happen because the buyer's journey to purchase is easier with the choice of various channels/platforms that can be used for purchases.

Examples of Omnichannel Use

Some examples of implementing omnichannel in marketing are as follows:

1. Google

Google is an example of a company that implements omnichannel which you may have unknowingly benefited from. They implement an omnichannel experience for their customers.

A popular example that you must have used is Google Chrome. When you search, your search history and activity will automatically connect across Google-connected devices.

This synchronization between devices will certainly facilitate the experience of consumers who use Google Chrome as a search engine.

2. Amazon

Amazon is the king of the omnichannel experience in the retail sector. Not only does it have a connected website and application, Amazon also provides support to consumers by giving them the choice of what method they will use when purchasing.

Amazon also has a series of storefronts called Amazon Go, where users can tell the app that they are in an offline store and simply pick up the item they are looking for without having to pay in-store.

That is a complete explanation about omnichannel that you need to know before implementing it.

The application of technology such as omnichannel will really help the development of the business ecosystem and strengthen supply chain management.

How to use omnichannel effectively for supply chain management? Find out by joining the Supply Chain Management program from prasmul-eli now!

Understand the use of technology for supply chains and other interesting materials. Register now!

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What is Inventory: Types, Examples, Goals, Challenges, and How to Manage
12 June 2024

Inventory is a form of asset that shows that a company has products to produce and sell. Inventory management is not arbitrary, because it will affect the number of sales.

Inventory also has various shapes and types, depending on the industry the company operates in. Therefore, get to know what inventory is and how to manage it in this article!

What is Inventory?

Inventory is the material or raw materials for making a product. Sometimes, according to Investopedia, inventory can also be the main product sold. Inventory must be recorded neatly and in detail in the company's books.

The correct inventory management process will help companies save operational and production costs. Below, we explain the goals, benefits, challenges, and how to manage company inventory.

Goals of Managing Inventory

Not only to ensure the company has materials for production, here are some of the purposes of managing inventory, summarized from Easyecom:

  1. Ensure that the quantity of goods is sufficient for production and sale.
  2. Avoid miscalculations.
  3. Maximize production duration.
  4. Optimize budgets and business plans.
  5. Ensure the accuracy of goods purchased by consumers.

Benefits of Managing Inventory

Once you know the purpose, you must also understand the benefits of managing inventory properly:

More efficient

During the process of managing inventory, you will definitely learn about prices and available stock of goods. By knowing this, you can calculate the stock available at several locations. That way, the company only needs to order goods once and spread the stock to several locations. This will help companies save on shipping and operational costs.

Improving the quality of cash flow

By cutting operational costs, the company's cash flow will certainly get better. Especially when sales continue to repeat and increase income and profits.

Consumers become satisfied and loyal

By having stock in several locations or warehouses, you can speed up the process of sending products to consumers. Of course, while maintaining the quality of the product or goods ordered. Customers will become more loyal.

Automate tasks in the warehouse

Inventory management can be done with the help of applications. This will automate many management processes. That way, workers can focus on other things and production runs more effectively.

Improve worker performance

With the automation process, workers have a more focused work scope. They will have more time to complete major obligations. In addition, productivity and production effectiveness will increase.

Challenges of Managing Inventory

Quoting NetSuite, here are some of the challenges in managing inventory:

  1. Ensure inventory figures are accurate.
  2. Without the help of automation, manual processes will take a long time.
  3. Changing consumer needs mean that inventory must be updated.
  4. Maximize the warehouse so that inventory is neatly organized and products continue to run.

Types and Examples of Inventory

Raw/raw materials

As the name suggests, the items in this type of inventory are the main materials for making a product. For example:

  • flour and eggs for making bread
  • coffee beans and coffee filters to make coffee
  • rice, eggs, oil, onions, meat for stalls or restaurants

Items still in production

Usually there is a special inventory to ensure goods have not finished production. Later, the goods production process will continue to become new products. For example:

  • Cake dough that is stored overnight to rise.
  • Casings, engines and other components to make cellphones.

Finished goods/products ready to sell

This type of inventory consists of finished and ready-to-sell goods. So there is no need for a production process or to have gone through it. Example:

  • tissue inventory
  • milk inventory
  • new HP inventory
  • new motorbike inventory

Component

This type of inventory is also goods sold by the company. For example:

  • Engines, bodies, seats, wheels, rims, exhausts, chains and lights for motorbike production.

Operational and maintenance/repair tools

This inventory is usually stored in the same warehouse as the production site. All tools that must be used or used by workers to carry out production, for example:

  • various production machines
  • gloves
  • face mask
  • hard hats
  • cleaning tool

Packaging materials

As the name suggests, there is a special inventory for product packaging materials. For example:

  • bubble wrap
  • plastic wrapping
  • wrapping paper
  • packing box

Inventory for refill items

This inventory is usually needed in restaurants or hospitals, because it must be ready to be refilled when it runs out. For example:

  • tissue
  • dish soap
  • toothpick
  • hand sanitizer
  • disposable mask and gloves

Extra inventory

This type of inventory is kept for goods that are difficult to find on the market or whose prices fluctuate. So per

Businesses will buy 2-3 products at once. For example:

  • motorbike engine components
  • chemicals
  • special machinery

Transit inventory

The goods included in this inventory will not last long in the warehouse. Because these items are only staying overnight or are being stored temporarily to be moved again. Example:

  • The workshop will order machine components directly from the factory, then these components will be entrusted to the factory's branch or shop so they can be picked up later.

Reserve inventory

The difference with extra inventory is that for this type of inventory the items stored are often sought after or run out quickly. So companies will buy them in larger quantities to continue to meet consumer needs when there is a shortage. For example:

  • cat litter
  • motorbike outer tire
  • new rims
  • motorbike glass
  • motorbike seat
  • packaging raw materials

Leftover/unsold inventory

As the name suggests, this inventory stores leftover and unsold items. Usually also items that are out of season. For example:

  • seasonal clothing or special collaborations
  • seasonal food or drink
  • bath and beauty products that don't sell out

How to Manage Inventory

Monitoring the availability of goods

First, of course, you have to monitor the number of goods and stock in inventory. Make sure the quantity is sufficient for production. Make a dose per week or per month.

Using online or cloud-based inventory

Today inventory can be managed and monitored with the touch of a finger. You can work with an online inventory service provider and access it via computer or cellphone.

Calculation for replenishment inventory

If you work in the service industry, of course calculating refill inventory will be very helpful. Make weekly or even daily calculations to maintain stock.

Create a batch system

To support the refill or restock process, create batches where you will make purchases within a certain time period. You can also divide what items are purchased in each batch.

Use a barcode system

The barcode system will make it easier for you to calculate stock and availability of goods.

The ability to manage inventory can be developed by learning directly from experts.
You can take our short training program to learn about inventory management by clicking here now!

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Digging Deeper About Consignment in the Retail Business
05 June 2024

The question of what consignment is is becoming more common as the business becomes more popular. Consignment has become a business model that is considered effective in various industrial sectors.

Basically, consignment is a selling concept where one party entrusts the goods he is selling to another party.

In order to expand market share, the consignment concept is being implemented by several business owners. This concept requires in-depth research to determine people's potential needs for the product.

What is the consignment concept like? For those of you who want to know more, read this article until the end!

Definition of Consignment

Consignment is a collaboration between two parties, both the owner of the goods and also the party who wants to help sell it. This consignment concept is when the consignor (consignor) entrusts goods to the entrusted person (consignee) and promotes them through any channel.

The purpose of this consignment concept is actually to expand the market for the products or goods being sold, but profits can still be obtained in large amounts.

Usually the consignment concept will be used for business people who have large-scale production and want to expand the market to various groups. Meanwhile, consignees also vary from shops or individuals.

So, how does the consignee make a profit from this business? There are two ways, namely; profit sharing system or increasing the selling price of the goods that have been entrusted.

How Consignment Works

After understanding the concept of what consignment is, then how does it work? Usually before taking an item to try to sell it as a whole, the consignee will do research.

The research carried out aims to find out the right sales and promotion locations. In this consignment concept, knowing the market and the people who potentially need the product or goods you want to sell is very important.

Once the consignor is sure, he will contact the consignee to deliver the goods and make a business agreement. Make sure you keep your business agreements in writing so that you don't miss anything in the agreement.

Benefits for Consignees

So what advantages does it provide for those of you who want to start a business with this consignment concept? There are several advantages that will benefit you as a beginner businessman, namely:

Power Capital

Consignees only have capital to promote and sell goods or products. In a consignment system, the consignee acts as a field seller where what is needed is the sales strategy itself. As a consignee, the capital required is also not large because it does not require a lot of production costs.

Minimal Losses

By doing business with a consignment concept, you don't need to think about fantastic losses. As a consignee you only need to pay the consignor when you have sold the goods. Quite interesting, right?

Collaboration with Various Parties

As a consignee, you are free to determine who will be the consignor. In this case you benefit from the connection side.

The more you get to know potential consignors, the wider your connections in business will be. This will increase effectiveness in sales without spending a fantastic amount of capital.

Disadvantages for Consignees

Even though it has its own advantages, the consignment concept also has disadvantages. For those of you who want to try becoming a consignee, first understand the disadvantages below:

No Sales, No Profit

In the consignment concept, what you need to know is that you will not get income if the product or goods are not sold.

Because you only take or entrust the goods, profits will be taken from profit sharing or you will increase the price of the product or goods. Therefore, in the consignment business concept you need to be diligent in promoting and understanding the market.

Not as Much Profits as Consignors

This definitely happens, especially in a profit sharing system. The consignor will definitely take a higher percentage of profits on the grounds that they incur production costs for making the product.

So, as a consignee, you are the one who just sells the product, it is very fair that the percentage given is lower than what the consignor gets.

Risk of Losing Consignor

As a consignee, you need to know that you could lose the consignor even though you have sold the product. The consignor has the right to determine which consignee he thinks is most suitable to sell the products or goods they make.

If it is felt that it is not suitable for the consignee, the product or goods will be withdrawn and they will look for a consignee that is more suitable for their purposes.

You also need to know that business performance is very dynamic and of course there are advantages and disadvantages to it. For those of you who want to start a business without fantastic capital, you can try the consignment concept.

However, you also need to think about interesting promotions and how to sell goods or products from the consignor you want. So are you interested in trying a business with a consignment concept?

Before starting, you need more knowledge regarding consignment concepts, especially about large-scale supply chain systems. Taking the Supply Chain Management training program from prasmul-eli could be the solution!

This program is carried out using a hybrid system for two days with a focus on equipping everyone to understand supply chain management. Not only that, you are also invited to understand current business in the market.

The program will be delivered by experts in the field of supply chain.

Immediately register yourself at prasmul-eli to gain interesting knowledge about supply chain management. If you are interested in registering or consulting first, click this link!

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Project Manager: Duties and Skills Required
30 May 2024

The project manager is a figure who has a crucial role in the success of a project.

This profession has an important role in determining the success of a project, directing the team, and ensuring everything goes according to plan.

A successful project is not just about meeting deadlines, but also about delivering high-quality results and satisfying stakeholder needs.

With so much responsibility, what is the true definition of a project manager? What tasks do they perform? So, what skills should they have?

What is a Project Manager?

According to the Project Management Institute, project managers are organized people,

Goal-oriented, using innovation, creativity, and collaboration to lead projects that make a big difference.

In carrying out their duties, they need to ensure the team has the tools and resources needed to complete the project.

Usually, project managers will use various project management skills such as:

  • Can lead a team well and be flexible when projects experience changes.
  • Can organize projects well and manage time so that goals are achieved on time.
  • Able to find innovative solutions when facing problems in projects.
  • Can communicate clearly and effectively with team members, clients, and management.
  • Able to motivate a team, manage group dynamics, and create a productive and supportive work environment.

Project Manager Duties

The project manager is the person responsible for ensuring the project runs smoothly. They coordinate teams, organize resources, and keep projects on track.

To do this, they need specific skills that include leadership, organization, communication, and problem solving.

According to ProofHub, there are several main tasks that must be carried out by a project manager, such as:

1. Establish goals and roles

As a project manager, you are responsible for determining what the project wants to achieve.

Additionally, you need to ensure that each team member knows their respective roles.

For example, who is responsible for design, who handles development, and who will communicate with clients.

2. Maintain team cohesion

You have to keep the team together and working well together.

This can be done by holding regular meetings, communicating with each other, and making sure everyone knows what to do.

3. Delegate tasks

As a project manager, you can't do everything yourself. You must be able to delegate tasks to team members that match their skills.

4. Provide feedback to employees

Providing feedback is an important part of a project manager's job. Feedback can help team members know what they are doing well and which areas need improvement.

5. Plan from start to finish

As a project manager, you plan projects efficiently to achieve the best results with available resources.

For example, by dividing the project into small tasks and setting a clear schedule.

6. Direct the team

This profession is also responsible for keeping the team focused and motivated. Share tasks clearly so everyone knows what to do.

7. Manage time well

Time management is one of the main skills you need as a project manager. You must be able to manage deadlines and prioritize tasks so that projects are completed on time.

If you encounter obstacles, you must immediately find a solution so that the project is not delayed.

8. Monitor the process and overcome obstacles

You should always monitor project progress and identify bottlenecks. If there are obstacles, immediately look for solutions so that the project is not delayed.

9. Hold regular meetings

As a project manager, you need to hold regular team meetings to ensure everyone stays aligned on the project goals. It's best if the meeting doesn't need to be too long, but still effective.

10. Build a shared vision

Every project must have a clear vision. As a project manager, you need to ensure that the team is on the same page.

11. Manage documentation and reports

Documentation and reports are an important part of project management. You must ensure that all project-related documents are well maintained.

This document is important for analyzing project performance and creating reports to clients or stakeholders.

12. Develop a plan b

As a project manager, you must also always be ready with an alternative plan if unexpected problems occur.

13. Coordinate with Clients

Communication with clients is an important part of your job. So, you need to be able to explain project progress, receive feedback from clients, and resolve any issues that arise.

Skills Required to Become a Project Manager

If you want to become a project manager, you need to understand how important this role is in ensuring the success of a project.

Additionally, you will also be responsible for coordinating and overseeing every aspect of the project, from start to finish.

To carry out this task well, you must have a combination of soft skills and hard skills. So, here are some of the skills needed by project managers, quoted from Atlassian:

1. Communication

Communication ability is one of the most important skills for a project manager.

You must be able to communicate verbally and in writing to convey project goals, provide updates, and provide feedback to all stakeholders.

2. Adaptability

Of course, a project does not always go according to plan. As a project manager, you must be ready to face unexpected changes and challenges.

Adaptability is the ability to respond quickly to change and adjust strategies or plans if necessary.

By having these capabilities, you can keep projects on track even when faced with disruptions or obstacles.

3. Problem solving 

This profession also requires mastering good problem solving skills. You must be able to think critically to understand problems that arise, find appropriate solutions, and implement them effectively.

4. Leadership 

As a team leader, you must also have good leadership skills.

You must be able to inspire and motivate team members, provide guidance, and create a collaborative environment.

5. Organizational skills 

The next skill that this profession must master is good organizational skills. This means you must be able to set schedules, assign resources, and monitor project progress regularly.

A project manager is a figure who leads a team to ensure the project runs smoothly and is completed on time.

They are responsible for coordinating the team, setting clear goals, and ensuring the project is completed on time with the expected quality.

Apart from that, project managers must also have the ability to solve problems, communicate effectively, and adapt to change.

The project manager is a liaison between various parties related to the project, including the internal team, clients and other stakeholders.

Want to learn more about this profession? Take The Real Project Management class now!