Thanks to visit codestin.com
Credit goes to www.scribd.com

Scribd
Upload
99 views11 pages

Channel Coordination - Multi To Retail: Omnichannel

The document discusses channel coordination and the move towards omnichannel retail. It explains that omnichannel retail involves customers accessing information, executing purchases, and receiving deliveries through multiple interconnected channels. This requires seamless integration across channels, which can be challenging for retailers. The document outlines some of the key changes required for areas like forecasting, inventory, fulfillment, pricing, and store operations as retailers transition to omnichannel models. It also discusses strategic and tactical challenges in assortment planning across channels.

Uploaded by

Ethan Hunt
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
99 views11 pages

Channel Coordination - Multi To Retail: Omnichannel

The document discusses channel coordination and the move towards omnichannel retail. It explains that omnichannel retail involves customers accessing information, executing purchases, and receiving deliveries through multiple interconnected channels. This requires seamless integration across channels, which can be challenging for retailers. The document outlines some of the key changes required for areas like forecasting, inventory, fulfillment, pricing, and store operations as retailers transition to omnichannel models. It also discusses strategic and tactical challenges in assortment planning across channels.

Uploaded by

Ethan Hunt
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 11

Session 7

Channel coordination – Multi to OmniChannel Retail

11/23/2020 RV | IIM Lucknow | 2020-21 1


Introduction

11/23/2020 RV | IIM Lucknow | 2020-21 2


OmniChannel

• Information – from multiple sources – web search, social media, app-based,


traditional media, brick and mortar stores
• Execution – again multiple sources, and maybe through devices like smart speakers
• Delivery – humans (FTE, contractors, gig-economy workers, maybe drones?) from a
store/warehouse, customer pickup from store/warehouse/lockers,
• Imagine customers using different combinations of the above
• ‘Seamless integration’ is easier said than done
• Single Channel, Multi-Channel, Cross-Channel, OmniChannel

11/23/2020 RV | IIM Lucknow | 2020-21 3


Information- Fulfillment Matrix

Source: Bell, Gallino, Moreno, How to win in an Omnichannel world, MIT


Sloan Management Review, 2014

11/23/2020 RV | IIM Lucknow | 2020-21 4


What changes?

• Forecasting – more data sources, channel level forecasts


• Inventory – multiple warehouses, DCs, FCs; increased intolerance to stockouts;
returns.
• Which products (assortment)? Personalization?
• How much?
• When to raise re-order requests
• When and Where?
• Fulfillment – evolution from simple Vehicle Routing Problems(VRP) to omnichannel
VRPs
• Pricing – channel level differences, retailers are gradually making this uniform.
• But a unified experience is beyond just prices – returns, order placement, history,
personalization etc.

11/23/2020 RV | IIM Lucknow | 2020-21 5


Some formats

11/23/2020 RV | IIM Lucknow | 2020-21 6


Source: Rooderkerk, Kok, Omnichannel Assortment Planning, 2019

11/23/2020 RV | IIM Lucknow | 2020-21 7


Channel alignment

• The reality is far more complex


• Take BOPS for example
• BOPS will create more opportunities for cross-selling once a customer visits a store
• BOPS might cannibalize an existing online channel
• Incentives will be misaligned – need careful sharing of credit across channels, else will be a
coordination disaster
• Not all products might be suitable for BOPS – some may be better off with STS

11/23/2020 RV | IIM Lucknow | 2020-21 8


Re-imagining the role of stores

• The store now handles multiple functions


• Traditional – select, forecast, stock, display, sell
• Newer functions
• Fulfilment
• Recommending and cross selling.
• Information function
• Process returns from online
• Where should I place the pickup counter in BOPS?
• In SFS, who handles these operations? Where?

11/23/2020 RV | IIM Lucknow | 2020-21 9


Assortment Planning for OmniChannel
• Strategic challenges
• Channel expansion – some channels may be outside
control
• Showrooming and Webrooming
• Responses from traditional and online players
• Channel integration
• Tactical Challenges
• Assortment composition
• Transferable and non-transferable demand
• Even online channels are thinking of rationalizing,
probably not Amazon!
• Contextual assortment
• Coordinating assortment across channels
• Operational challenges
• Information symmetry – kiosks, QR codes
• Decision aids Source: Rooderkerk, Kok, Omnichannel Assortment
• Inventory Planning, 2019
• Returns

11/23/2020 RV | IIM Lucknow | 2020-21 10


Exercise – Thought experiment
• You are heading supply chains for a company that is a manufacturer and retailer of
eye-glasses
• You currently operate as a pure-play online retailer with single online channel
• You would like to expand to other quadrants
• Think. What steps would you take?

11/23/2020 RV | IIM Lucknow | 2020-21 11

You might also like