2013 Global Consumer Report

Omnichannel has gained immense attention in the retail industry as new technology continues to change consumer behavior. A great deal of technology investment has been made on the “front end” of the experience, with a heavy focus on advanced marketing and merchandising technology. However, consumers also have high expectations on the “back end” of the omnichannel experience, and retailers should not underestimate or underinvest in technologies designed to better coordinate supply chains and inventory flows.

In September 2013, GT Nexus conducted a survey to compare and contrast retail consumer buying patterns and product delivery expectations in the context of today’s new multichannel retail environment. It found that consumers purchased across an array of channels, trending towards greater variety with younger demographics. And while consumers appreciated the ability to shop across a variety of channels, the retailers’ ability to fulfill customer orders was insufficient. The majority of respondents across regions experienced late orders, out-of-stock issues during collection times, or inability to return items in a reliable manner.

Consumers expect retailers to fill orders from any channel efficiently and on time. Omnichannel shopping is a growing global trend, and retailers need to focus on reallocating spend from front-end consumerism to back-end logistics. Retailers will need to create a seamless supply chain process, starting with procurement and ending with delivery to customer, to successfully meet these new expectations.