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Omni-Channel Retail and the Supply Chain
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491_9780367641979
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Omni-Channel Retail and the Supply ChainThe 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, smartphones, 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 or online via websites and mobile apps. This process puts the supply chain front and center, as consumers are increasingly demanding and browsing, buying, and returning goods through various channels, 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 consumers 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 a lack of flexibility and readiness, resulting in shortages of everything from toilet paper and meats to personal protective equipment (PPE) and ventilators. It has been a real-life example of the bullwhip effect, where variability at the consumer end of the supply chain results in increased variability as one goes upstream towards distributors, manufacturers, and suppliers. This results in shortages, misallocations, and increased costs.No longer can a manufacturer, distributor, or retailer of consumer products just fill the pipeline and wait for orders to
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