About Kanmo Group
Established in 2005, Kanmo Group has become a major retail force in Indonesia. Kanmo has been recognized as an omnichannel leader as it operates across various channels including retail stores, travel retail, and online platforms. Initially focusing on the baby and childcare segment and a licensee to renowned brands including Mothercare and Early Learning Centre (ELC), the successful group has since expanded to fashion, accessories, footwear, and toys. They manage over 250 stores across 16 cities and feature distinguished brands such as Justice, Kate Spade, Adidas, and more.
Why Do Businesses Need an OMS (Order Management System)?
Businesses often find it challenging to manage, track and fulfill orders across several sales channels, across different locations. It becomes particularly important during business expansion as it is required to streamline order management complexities, multi-location shipping, and tracking, while also handling order reversals and returns.
Benefits of Implementing OMS
- Centralized Order Processing: OMS provides an efficient centralized hub for order processing, managing, and tracking across multiple sales channels ( offline, online, mobile, etc.)
- Inventory Management: With an OMS in place, businesses can accurately track inventory levels, across locations in real-time. This prevents overselling and stockouts while accurately managing the inventory.
- Order Tracking and Visibility: The platform ensures order tracking transparency. Both customers and staff can track orders every step of the way, nurturing trust and customer satisfaction.
- Streamlined Order Fulfillment: An OMS streamlines workflow operations by automating tasks such as order routing, picking, packaging, and shipping. Thus, reducing errors and saving time.
- Scalability: An OMS can scale alongside growing businesses. The platform is capable of handling increasing order volumes and complexities effortlessly.
- Customer Experience Enhancements: The OMS minimizes order errors, ensuring accurate deliveries and enabling multiple fulfillment options ( like buy online, pick-up in-store (BOPIS), or ship from store, etc.), and improving customer satisfaction.
- Analytics and Reporting: OMS-generated reports offer valuable insights. With data analytics and reporting, businesses can identify market trends, forecast demands and optimize inventories accordingly.
- Compliance and Security: An OMS is compliant with standard regulations such as GDPR and PCI-DSS for securely handling customer data and payment information.
- Cost Reduction: With an OMS, businesses can improve order and inventory management accuracy and efficiency. This leads to reduced costs and improved productivity.
Kanmo’s OMS Implementation Process- An Overview
Challenges Of Multichannel Retail- Kanmo’s Operational Hurdles
- Orders Flowing in from Multiple Locations- The business received orders from various channels (physical stores, online platforms such as Whatsapp commerce, travel retail etc.). High-order volumes, combined with inventory management and order fulfillment, required a large-scale, complex management system.
- Geographical Challenges- Based in Indonesia, Kanmo Group has warehouses and fulfillment centers spread across the islands. Ensuring timely and cost-effective product deliveries was a significant challenge. The company needed a management system capable of handling complex routing and fulfillment strategies.
- High-volume Order Processing- The company’s existing system frequently struggled to handle high-volume of orders, especially during peak seasons. It often led to slow processing times, fulfillment delays, and errors. Moreover, a large order volume required a robust inventory management system that could keep track of stock levels and prevent stockouts.
- Siloed Information- The supply chain system is composed of multiple teams such as business operations, customer support, warehouse operations, etc. that work independently. This siloed approach led to communication gaps between teams leading to inefficient order fulfillment and management.
Upgrading Kanmo OMS: A Collaborative Effort with Codilar
Kanmo partnered with Codilar to migrate their existing Order Management Systems to fulfillmenttools (FFT) without impacting their existing systems.This significant upgrade was aimed to streamline Kanmo’s retail operations and enhance its order fulfillment capabilities.
The upgrade employed advanced capabilities of FFT (built on MACH architecture) and its advanced order routing system, known as the Distributed Order Management Systems (DOMS).
fulfillmenttools and MACH Architecture
fulfillmenttools is built on MACH architecture, where MACH stands for Microservices, API-first, Cloud-native, and Headless. This modern approach allows for greater flexibility and scalability.
- FFT’s microservice architecture allows for effortless development and deployment of various individual components. It provides modularity that offers scalability and flexibility enabling Kanmo to adapt to changing market trends and operational challenges with ease.
- With the API-first approach, FFTs ensure seamless integration with other platforms and systems. This was a crucial feature for Kanmo as it allowed data exchange and communication across various channels and components.
- The cloud-native feature provides enhanced scalability, performance, and reliability, ensuring that the platform can capably handle large transactions and manage peak sales periods. This ensures efficiency and speed.
- The headless architecture of FFT plays a vital role in delivering consistent and personalized experiences across various channels and platforms. Thus, ensuring that Kanmo’s omnichannel strategy remains coherent and efficient.
Unique Order Routing with Distributed Order Management System(DOMS)
FFT’s order routing, known as Distributed Order Management Systems (DOMS) is one of the best systems in the market. Unlike traditional OMS solutions, FFT’s DOMS follows a distributed approach. This ensures intelligent routing of Kanmo’s network of warehouses and fulfillment centers.
- With DOMs, Kanmo can now utilize sophisticated algorithms that take into consideration factors such as inventory levels, location, delivery speed, and more, to optimize order routing.
- The system processes data in real-time, enabling Kanmo to intelligently route orders to fulfillment locations. This capability prompts Kanmo to make informed decisions while ensuring accurate order deliveries, enhancing overall satisfaction.
- Additionally, designed for growth and scalability, DOMs give Kanmo the power to scale irrespective of increased order volume, taking over new locations, and more.
Codilar’s Role in the Migration:
Codilar played a pivotal role in the migration of Kanmo’s Order Management system to FFT. Here are the two major aspects we covered.
- Adobe Commerce Integration: Codilar successfully integrated Kanmo’s existing Adobe Commerce platform with the new FFT system. This ensured seamless transition and allowed efficient data flow and order processing.
- Overall System Integration: Codilar also facilitated overall system integration including all touchpoints of Kanmo’s ecosystem with FFT. Our comprehensive approach worked towards synchronization between FFT and all sales channels such as RETAIL STORES, TRAVEL RETAIL, ONLINE PLATFORMS (Marketplace, Whatsapp Commerce), and more.
The current implementation paves the way for future optimization where the existing OMS was replaced by FFT without altering core functionalities. In a planned version 2 (V2), we intend to move the order routing decision logic entirely to FFT. This will allow Kanmo to benefit from FFT’s robust routing capabilities.
In conclusion, Codilar’s collaborative efforts with Kanmo transcended in Kanmo’s successful transition to the future-proof architecture of FFT. This innovative partnership has positioned Kanmo as a leader in Indonesia’s dynamic retail arena.
