Omnichannel x multichannel: With the acceleration of digital trends, including the integration of the franchise as the main sales channel and distribution center, multichannel has become omnichannel. In other words, a greater strengthening of the franchise system.

According to Cristian Chaussard, director of Flexa – Digital Technologies and Services Platform – the franchising model, where the franchisor sells its know-how to other entrepreneurs, is more than consolidated in Brazil. But did you know that many franchises still resist expanding their business beyond the physical store?

Despite the encouraging numbers of e-commerce and the evolution of Brazilian consumption habits – today we are almost 60 million e-consumers (E-bit, 2018). Many networks still prefer to keep their businesses offline only. The main reason is that the insertion of a new sales channel is usually perceived as a threat. This means that there are already many franchise networks on the web. For some, they still separate online from offline, binding franchisees with contractual requirements only to offline.

This ends up generating unnecessary conflicts between franchisors and franchisees. Will the company's e-commerce compete with each unit? Can't a physical store mention an online store? What happens is that many managers do not see the opportunity. When the idea of creating an e-commerce is not to exclude franchises, but to involve the entire business chain.

Unity is the strength of omnichannel

Unity really is strength and in this case, it can not only help you earn more. But also to reduce costs, organize suppliers and guarantee the quality of service at all units!

When it comes to conflict management between franchisors and franchisees and supplier management, there are two possible solutions for franchises – both using marketplace technology:

1. Decentralized E-commerce: creation of a franchise virtual store that uses each unit as a “distribution center” for purchases made on the internet.

2. Online Supply Center: creation of a portal for registering suppliers – companies responsible for the inputs that the franchise needs to operate – with the aim of guaranteeing quality standards in all units.

Decentralized e-commerce

In fact, a franchise's business model requires different e-commerce than conventional e-commerce. A franchisor usually distributes its physical stores in various parts of the country, with different owners. As well, each with its independent stock and unique processes, which vary for each entrepreneur.

In this context, it is impossible to ignore the strength of franchisees. Therefore, including them in the e-commerce sales process is not an option, but the only way out! One of the solutions for e-commerce for franchises is decentralized e-commerce.

Involving franchisees in the sales process

In this marketplace model, the franchisor invests in e-commerce for direct sales to the end consumer. And it offers each unit in the network a “set up” virtual store, which will be hosted on the same brand portal.

In this case, the franchisor does not have physical stock, it only provides the technology and forwards orders made through the online platform to the physical store. And it uses variables to choose the best store to fulfill a given order. Whether due to geographic proximity, draw or queue (when orders follow an order and franchisees have to wait their turn).

When the stock is managed only by the units, with total independence, the franchisor becomes leaner. In addition to tying up less capital, it standardizes the display of the brand's products and has information available about its entire network. Integrating stocks and receiving replenishment alerts. The franchisee gains administrative independence and greater control over his region.

It is important that the entire franchisee network is ready for decentralized e-commerce. In other words, choose to start with those that have the structure and experience to provide the service. As well as those who are more interested – you can define participation levels as you prefer.

Ominichannel: Online supply center

The growth in the number of franchise units brings yet another challenge for managers: maintaining quality standards in all stores. No matter how far they are from each other.

To ensure this standardization, there must be strict control over the chosen suppliers. That is, the franchisor must be able to intermediate purchases made by all franchisees. In addition to controlling what is being purchased, having access to purchasing data and information about product quality. To solve these problems, the franchisor can create a marketplace platform for registering suppliers: the online Supply Center.

Finally, the integration of physical and online is already a reality. Franchise networks need to balance the value chain and centralize their efforts on serving the final consumer (CPF). In this way, the network omnichannel will be strengthened and created value (R$) for the brand.