Omni-Channel Retailing and Its Requirements in the Supply Chain

Omni-Channel Retailing and Its Requirements in the Supply Chain
Author: Carina Sauter
Publisher: GRIN Verlag
Total Pages: 93
Release: 2015-12-30
Genre: Business & Economics
ISBN: 3668118493

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Bachelor Thesis from the year 2014 in the subject Business economics - Supply, Production, Logistics, grade: 1,1, IE Business School, Madrid, course: Production & Supply Chain Management, language: English, abstract: This thesis is a description of the state of the art of the Omnichannel retail strategy with a focus on the changes necessary in supply chain design. Its purpose is to provide a comprehensive overview on omnichannel retailing that can serve as a first source of information for companies thinking about adapting this strategy. There is no single external source that combines the description of omnichannel retailing with details of how to implement this strategy yet, so this thesis makes it significantly easier for retailers to familiarize with the topic and get impulses for further research. The introduction shows the developments that led to the strategic move, which eases understanding the concept and its purpose. The thesis finds that technological innovations, changing shopping behavior, increasing expectations, and intensifying online competition were the major drivers affecting this shift. It continues to describe the common omnichannel initiatives before it gets into more detail on what supply chain and logistics changes are necessary to support them. First, it shows that the application of RFID technology and IT platforms creates an end-to-end transparent supply chain, which delivers the core capability to pursue this strategy: complete inventory visibility. Second, the solutions to improve fulfillment speed are presented. Both upgrades in order processing inside the warehouse and innovative last mile solutions are discussed in detail. Describing the benefits of omnichannel retailing, the paper shows that it perfectly meets the requirements of today’s retailers. Not only does the strategy improve profitability and productivity, it also helps them meet expectations, learn more about their customers and use this knowledge to sustainably compete in the market. It also finds that there are significant challenges to overcome before reaping these benefits. Large investments and added complexity need to be faced during setup and a non-aligned organization and the inability to engage employees are major problems during execution. As the retail environment evolves at a rapid pace, the paper finally presents strategies for companies that have fully developed omnichannel capabilities. These ensure that retailers can also compete once omnichannel is the new normal.

Omni-Channel Retail and the Supply Chain

Omni-Channel Retail and the Supply Chain
Author: Paul Myerson
Publisher: CRC Press
Total Pages: 173
Release: 2020-11-25
Genre: Business & Economics
ISBN: 1000264440

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Omni-Channel Retail and the Supply Chain 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, 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 come in. Now, they must anticipate various purchases and delivery items, while at the same time minimizing 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.

Operations in an Omnichannel World

Operations in an Omnichannel World
Author: Santiago Gallino
Publisher: Springer Nature
Total Pages: 353
Release: 2019-10-15
Genre: Business & Economics
ISBN: 3030201198

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The world of retailing has changed dramatically in the past decade. Sales originating at online channels have been steadily increasing, and even for sales transacted at brick-and-mortar channels, a much larger fraction of sales is affected by online channels in different touch points during the customer journey. Shopper behavior and expectations have been evolving along with the growth of digital channels, challenging retailers to redesign their fulfillment and execution processes, to better serve their customers. This edited book examines the challenges and opportunities arising from the shift towards omni- channel retail. We examine these issues through the lenses of operations management, emphasizing the supply chain transformations associated with fulfilling an omni-channel demand. The book is divided into three parts. In the first part, “Omni-channel business models”, we present four studies that explore how retailers are adjusting their fundamental business models to the new omni-channel landscape. The second part, “Data-driven decisions in an omni-channel world”, includes five chapters that study the evolving data opportunities enabled by omni-channel retail and present specific examples of data-driven analyses. Finally, in the third part, “Case studies in Omni-channel retailing”, we include four studies that provide a deep dive into how specific industries, companies and markets are navigating the omni-channel world. Ultimately, this book introduces the reader to the fundamentals of operations in an omni-channel context and highlights the different innovative research ideas on the topic using a variety of methodologies.

Supply Chain Management in Multichannel and Omnichannel Retailing

Supply Chain Management in Multichannel and Omnichannel Retailing
Author: Lisa Villing
Publisher: GRIN Verlag
Total Pages: 28
Release: 2017-04-11
Genre: Business & Economics
ISBN: 3668432449

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Seminar paper from the year 2017 in the subject Business economics - Supply, Production, Logistics, grade: 1,0, University of Applied Sciences Fulda, language: English, abstract: The aim of this paper is to give an overview of challenges for logistics and supply chain management which are linked to multichannel and omnichannel retailing. For this purpose, the characteristics and forms of multi- and omnichannel retailing are described and developments and their implications for retailers are pointed out. In combination with best practice approaches in SCM, recommendations for successful omnichannel supply chains, especially for order fulfillment and distribution logistics shall be outlined. Starting with the definitions of multi- and omnichannel retailing in the second chapter, the third chapter will focus on specific challenges and appropriate implications for retailers' supply chain management that are related to multi- and omnichannel distribution. The fourth chapter will finish with a conclusion and an outlook.

Omni-channel Retailing. Impacts and challenges on the supply chain

Omni-channel Retailing. Impacts and challenges on the supply chain
Author: Cindy Schröder
Publisher: GRIN Verlag
Total Pages: 32
Release: 2019-01-21
Genre: Business & Economics
ISBN: 3668868956

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Seminar paper from the year 2017 in the subject Business economics - Operations Research, grade: 1,0, European School of Business Reutlingen, language: English, abstract: The aim of this case study is to identify impacts and challenges of an omni-channel business model on the retail supply chain. Based on this, recommendations and possible solutions will be presented which the retail should adapt along its supply chain in order to respond to the identified challenges.

Exploring Omnichannel Retailing

Exploring Omnichannel Retailing
Author: Wojciech Piotrowicz
Publisher: Springer
Total Pages: 292
Release: 2018-12-05
Genre: Business & Economics
ISBN: 3319982737

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This book compiles the current state of knowledge on omnichannel retailing, a new concept in which all sales and interaction channels are considered together, and which aims to deliver a seamless customer experience regardless of the channel. It highlights case studies and examples related to each of the many barriers to an omnichannel approach, demonstrating not just success stories, but also failures. While omnichannel has already been recognized as an emerging retail trend, the articles in this book fill an important gap in research on the topic. Providing readers with essential insights on the omnichannel strategy and its implementation, the book will also stimulate academic discussion on this emerging trend.

Supply Chain Challenges for Retailers in an Omni-channel Environment

Supply Chain Challenges for Retailers in an Omni-channel Environment
Author: Xiaomeng Guo
Publisher:
Total Pages: 172
Release: 2016
Genre: Electronic dissertations
ISBN:

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To capitalize on the e-commerce growth, many retailers are making the necessary investments that will allow them to sell their merchandise online. Traditionally, the online channel has been viewed as a separate way to sell products. Nowadays, many firms have realized the need to provide consumers with a seamless shopping experience, which leads to the "omni-channel" retailing. Recent surveys and studies show that consistent products and consistent pricing have been considered as the top 2 most critical attributes of "omni-channel" retailing by consumers. Although a number of theories suggest efficiency and strategic differences between channels, there is virtually no work on combining these into an "omni-channel" studies. In the first chapter, we undertake to close this gap with a theoretical study that focuses on comparing the omni-channel retailing and the traditional multi-channel retailing from the perspective of consistent product and pricing.To do this, we consider a market where there is a single manufacturer who is capable of producing up to two products versions. The manufacturer sells his products through his own online channel and a retailer's traditional brick-and-mortar store; both channels face uncertainty market size and compete against an outside retail market. Under an omni-channel setting, the manufacturer's online channel and the retailer's brick-and-mortar store are required to offer the same product at the same retail price; while under a traditional dual-channel setting, the products and retail prices across the two channels are allowed to be different. We characterize situations when an omni-channel strategy could benefit the manufacturer and the retailer. We first study the centralized supply chain where the manufacturer and the retailer are managed by an integrated firm, and then examine the decentralized supply chain where the manufacturer owns the online channel and an independent retailer owns the brick-and-mortar retail store.We find that in a centralized supply chain, the integrated firm is always worse off under the omni-channel setting since the channel consistency requirement constraints the integrated firm's product offering and pricing decisions. However, in a decentralized supply chain, the omni-channel strategy could benefit both the manufacturer and the retailer in the situations where the competition between the manufacturer's online channel and the retailer's brick-and-mortar is intense and neither channel has clear advantage over the other. This is because through synchronizing product and pricing across channels, both the manufacturer and the retailer are able to reduce competition between the two channels.Besides studying firms' strategies about managing multiple channels, this dissertation also examines firms' product-line expansion strategies and the effects of consumers' fairness behavior on firms' quality and pricing strategies.In the second chapter, we study manufacturers' product line expansion strategies in a supply chain. To expand sales, many manufacturers try to develop and sell product lines. Frequently, however, the distribution of a product line to consumers creates tensions between a manufacturer and a retailer as the retailer may choose to stock only some product versions from a product line created by the manufacturer. To mitigate this tension, previous literature has shown that if a manufacturer (he) wants to sell his product line through a retailer (she) who faces deterministic demand, then he needs to customize the product line design according to her requirements. Also, the design requirements may change across retailers. In contrast, in this chapter we show that if demand is stochastic, then a manufacturer can mitigate the same tension merely by re-allocating inventory risk in the supply chain. Surprisingly, this strategy can be so powerful that it is possible to find cases where the equilibrium product line includes more product versions when the manufacturer sells through a retailer than when he sells directly to consumers.The model in this chapter is a bilateral supply chain with a manufacturer capable of producing multiple product designs and a retailer who faces stochastic consumer demand. The manufacturer sells his output through the retailer using one of the following variations on the classical wholesale contract: push (PH), pull (PL), or instantaneous fulfillment (IF). With PH and PL (IF), wholesale prices and quantities are decided before (after) demand is revealed. Retail prices are always set after demand is revealed. With PH (PL) the retailer (manufacturer) carries retail inventory.Taking the manufacturer's point of view, we characterize the equilibrium product line length and equilibrium contracting strategy. Our answers are determined by three important drivers: demand variability, product substitutability, and the retailer's outside option. Low outside option and low (high) substitutability imply that the manufacturer maximizes his expected profit by offering the retailer longer (shorter) product line using the IF contract. As outside option increases, the equilibrium contract will be either PH or PL. High demand variability and low substitutability imply that the manufacturer should be expected to sell a longer product line with a PH contract. Low demand variability and high substitutability imply that the manufacturer should be expected to sell a shorter product line with a PL contract.In the third chapter, we study the effects of consumers' fairness concerns on firms' quality and pricing decisions. Empirical evidence and behavioral research suggest that consumers may perceive a firm's price as unfair when its profit margin is too high relative to consumers' surplus. Consumers with inequity aversion experience some psychological disutility when buying products at unfair prices.In this chapter, we develop an analytical framework to investigate the effects of consumers' inequity aversion on a firm's optimal pricing and quality decisions. We highlight several findings. First, because of consumers' uncertainty about the firm's cost, the firm's optimal quality may be non-monotone with respect to the degree of consumers' inequity aversion. Second, stronger inequity aversion makes an inefficient firm worse off, but may benefit an efficient firm. Third, stronger inequity aversion by the consumer can actually lower the consumer's monetary payoff (economic surplus) because the firm may reduce its quality to a greater extent than it reduces its price. Lastly, as the expected cost-efficiency in the market decreases, both the expected quality and the social surplus may increase rather than decrease.

Omni-Channel Retail and the Supply Chain

Omni-Channel Retail and the Supply Chain
Author: Paul Myerson
Publisher: CRC Press
Total Pages: 283
Release: 2020-11-25
Genre: Business & Economics
ISBN: 1000264424

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Omni-Channel Retail and the Supply Chain 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, 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 come in. Now, they must anticipate various purchases and delivery items, while at the same time minimizing 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.

Shopping Experience and Omnichannel Strategy

Shopping Experience and Omnichannel Strategy
Author: Chelsea Czerwinski
Publisher:
Total Pages:
Release: 2016
Genre:
ISBN:

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As technology continues to advance, consumers are increasingly demanding to communicate and transact with corporations in more efficient and convenient ways during their shopping. This has led the companies in various industries to develop and offer sophisticated distribution strategies. The omnichannel supply chain structure is one example where corporations strive to offer a seamless shopping experience to customers across multiple retail channels. Since its introduction, the omnichannel supply chain structure has continued to evolve and enhance the consumer shopping experience by improving the consistency and convenience across retail channels. This has been possible primarily due to the advances in technology and demands from the customers. However, implementing the omnichannel structure requires a large investment and high workforce flexibility in order to operate effectively. In some cases, the costs might not be justified; therefore, it is important for the companies to understand whether an omnichannel retail strategy would be a profitable investment for their specific business. This research aims to provide insights for the companies to assist in their omnichannel retail strategy implementation. Research questions posed in this project are focused on consumers shopping behavior characteristics in relation to the omnichannel distribution strategy. In what specific retail sector are the customers demanding the capabilities of the omnichannel structure? Would the size of a corporation make an impact on the consumers expectations of omnichannel capabilities? What kind of path does the average customer take when transacting with a corporation and what omnichannel service and capabilities are deemed most important by the shoppers? This exploratory research attempts to explain and answer these questions from the results obtained from a consumer shopping behavior survey that was created and distributed to students at Penn State Behrend for the purpose of this research.The survey results have shown that consumers rely on multiple retail channels throughout their purchase making decision process; however most of the consumers tend to make their final purchase in-store or online. In particular, an overwhelming majority of the consumers who participated in this research claimed that they prefer to make their transactions in-store, but due to limited financial abilities these consumers are willing to use other channels if they can save money. The survey results have also revealed that consumers are more demanding of the omnichannel services from corporations, especially those that operate national retail chains. These services include being able to transact across multiple channels and having the flexibility in making returns and in order fulfillment. All of these expectations require data to be transparent across the various retail channels and necessitate reconfigurations in the supply chain structure. Given the large investments needed to both implement and operate an omnichannel structure, this research has focused on trying to gain a deeper understanding of consumers needs, expectations, preferences, shopping paths, next steps after finding a product of interest, and the consumers price sensitivity. The results and discussions shed light on the importance of the omnichannel retail strategy for corporations to meet customer needs in some industries.

Supply Chain Management

Supply Chain Management
Author: Sunil Chopra
Publisher:
Total Pages: 519
Release: 2010
Genre: Business logistics
ISBN: 9780136094517

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'Supply Chain Management' illustrates the key drivers of good supply chain management in order to help students understand what creates a competitive advantage. It also provides strong coverage of analytic skills so that students can gauge the effectiveness of the techniques described.