Omnichannel
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The impact the omni-channel has on the supply chain. Not just distribution and transportation, but also return logistics and customer service.
Omnichannel
- 1. The Impact of the Omni-Channel on the Supply Chain By Lauren Bechtel
- 2. Omni-channel shoppers spend 50%more than single channel shoppers
- 7. 86% of consumers want more retailers to add “buy online, pickup in-store” to their arsenal of shipping methods – WD Partners report • . Benefit: Customers can be re- engaged creating additional sales once they enter the store
- 8. Supply Chain Visibility Lack of inventory visibility Increases the need for safety stock Makes forecasting, planning, and purchasing difficult Inability to promise inventory availability Optimizing inventory can address several difficulties… High Storage costs Inability to fill orders promptly Margin loss on markdowns Inefficient fulfillment process And provide several advantages Inventory optimization Channel fulfillment has less challenges Increased adaptability to channel evolution Impact of overall peak volumes can be reduced
- 9. Point of Interaction Point of Return Point of Fulfillment POI and POF mapping - Great Start Omni Channel Supply Chain Strategy Maximizing profitability requires intelligent, automated decision-making based on real-time visibility into: Inventory, orders and events, & constrain-based planning
- 10. Key Concepts: POIs, POFs and PORs (1) Points of Interaction (POIs): Physical or digital locations from which orders can be placed. (2) Points of Fulfillment (POFs): Locations from which a customer order can be shipped/ fulfilled. (3) Points of Return (PORs): Physical or digital locations from which a customer can return all or part of an order. Points of Interaction (POIs) Points of Return (PORs) Points of Fulfillment (POFs) Source: SCDigest
- 11. Points of Interaction Store Guideshops Inventory only show rooms Pop up movable store Website Virtual fitting roomsVirtual reality stores Physical Virtual
- 12. ADVANTAGE Instant gratification After sales support Direct interaction with sales team Quality assurance DISADVANTAGE Huge capital investment Limited to area where store is located Physical
- 13. -low cost- Glasses from Warby Parker cost only $95, compared with other prescription glasses that can cost between $150-$300 or more. -convenience- Warby Parker offers the option to try-on and ultimately purchasing glasses online, without having to leave your home. -socially responsible- Warby Parker cares about people, and proves this by providing glasses to people in need. -eyeglasses are a necessity-Eyeglasses are a necessity for people all around the world, which is a really great benefit to a company that sells eyewear. Strengths Often times, the biggest difference between two products that do the same thing is the story that it tells, and how people relate to it.
- 14. Point of Return ON ONE HAND ON THE OTHER HAND People who return…. • Buy more stuff • Spend more money • Feel satisfied with returning to the store By 2017 projected e-commerce sales will reach $440 Billion…Projected retail returns will be equivalent to $460 Billion
- 15. Reverse Logistics Omni-channel strategies may also help in reducing returns. The omni-channel experience encourages customers to utilize multiple channels to assure they’re making the right purchase Contact with the customer after the sale is also important Access to better information leads to better purchases and fewer returns.
- 16. Two broad approaches to online fulfillment: • Store-based fulfillment locations -orders are fulfilled at physical retail stores • Warehouse/DC-based fulfillment locations - orders are fulfilled at warehouses/DCs • Integrated/Multi-channel DCs. Filling ecommerce, store, and wholesale replenishment orders from a single distribution center • Dedicated/Single-channel DCs. Running separate fulfillment facilities for stores, wholesale, and on-line customers. • Third-party DCs: Shipping consolidators & Online marketplace. Fulfilling ecommerce, store, and/or wholesale replenishment orders from outsourced third-party DCs
- 17. Multi-echelon Network with Dynamic Flows Non Traditional Supply Chain Flows
- 19. Demand and Supply Defining and Mapping POIs, POFs, and PORs Points of Interaction (POIs) Points of Fulfillment (POFs) Own Stores Own Web Kiosk Catalog Sales Rep Outlet Store Channel Web Main DCs Regional DC Vendor Drop Ship Own Stores Vending Machine Own E-Commerce DCs Mobile Dark Store Wholesaler Channel Store 3PL E-Commerce DCs A critical early step in the Omnichannel journey is to first identify current or planned Points of Interaction and Point of Fulfillment and Point of Return. Source: SCDigest
- 20. eCommerce Enablement and Optimization Source: SCDigest
- 21. Defining and Mapping POIs & POFs Points of Interaction (POIs) Points of Fulfillment (POFs) Own Stores Own Web Kiosk Phone Sales Rep Outlet Store Channel Web Main DCs Regional DC Vendor Drop Ship Own Stores Mobile Wholesaler Channel Store
- 22. 2 Sustainability Is….. • A change in mindset and the way you do business and not just a new program or two. • Very unique to every company and therefore, there is no one-sized-fits- all approach.
- 23. population X consumption ≠
- 25. On a finite planet, should consumers have a choice about sustainable products Or should all choices be sustainable?
- 27. “Millennials: The Challenger Generation” 48% of Millennials agree with this statement: “The things I consume have more power to change things than the people I vote for.”