Omni-Channel Retail and the Supply Chain: Working Together for a Competitive Advantage

The days of going to the local department store to buy a television, view the options available and make a purchase, now seem "quaint." The emergence of the internet, smart phones, social media and other technologies has opened a world of new options for consumers (and businesses) to review, research, and buy online with an ever-increasing array of delivery options.

The emergence of e-commerce has resulted in what is commonly known today as "omni-channel" marketing, in which customers engage with companies in a variety of ways, including in a physical store, online via websites, and mobile apps. This process puts the supply chain "front and center" as consumers are increasingly demanding and browse, buy and return goods through various channels and not just the traditional "brick and mortar" way. To accomplish this with high levels of service while remaining profitable, requires real-time, visibility of inventory across the supply chain and a single view of the consumer as they continuously move from one channel to another.

While this is a boon to consumers, it has made the already complex global supply chain even more challenging to manage. On top of that, the 2020 Covid19 Pandemic has accelerated this omni-channel retail trend as consumers need even more ways to order and additional options for last mile delivery such as curbside pickup. Covid19 has exposed the lack of flexibility and readiness resulting in shortages of everything from toilet paper and meats to "PPE" (personal protective equipment) and ventilators due to a variety of capacity and inventory allocation issues. It has been a real-life example of the "bullwhip effect" in action where variability at the consumer end of the supply chain results in increased variability as you go upstream towards distributors, manufacturers and suppliers creating shortages, mis-allocation and increase costs.

No longer can a manufacturer, distributor or retailer of consumer products just "fill the pipeline" and wait for orders to come in. Now they must anticipate the various purchase and delivery items, while at the same time minimize costs. To do this is no easy task, requiring a Lean, agile and responsive supply chain.

Until now, there was no existing "playbook" for organizations to navigate their way through this new world. This book describes the impact of omni-channel marketing on the supply chain and logistics functions and is intended to help management meet the needs of not only today's ever changing world but to anticipate what may be required in the future to achieve superior customer service, profitability, and a competitive advantage.