The Omnichannel Retail Supply Chain

The Transformation of Retail
Retail is undergoing a transformation spurred by technology and consumer demand. The new requirement for retail success is a single, clear view of every channel in the supply chain.

Consumers hold the power in this market. They’re demanding more options and leveraging retailers against each other to get the best value for their money. A competitive and increasingly global retail environment is leading retailers toward an omnichannel strategy as they integrate their distribution channels to better serve customers.

Many companies are in the process of fusing their channels and adopting powerful, cloud-based technology to gain visibility into inventory, share data with trading partners, and find new ways to offer phenomenal customer service and survive in the wake of the transition.

However, they are far from finished, and the tactics they employ over the next few years will have a profound impact on the future of the shopping experience. Some of today’s household names will emerge as the pioneers of omnichannel retail, while others will fall victim to slowing revenues and waning customer loyalty.

The Onset of Omnichannel
Swift changes in technology, supply chain complexity, and consumer behavior are generating a need for a new model that allows a retail customer to have the same buying experience over all distribution channels. An omnichannel retail experience is becoming one of the largest factors of success for brands.

Modern retail came about at the turn of the 20th century, with pioneers like Sears, Roebuck and Co. and J.C. Penney Company, Inc. Over the next several decades, department stores and apparel shops popped up all over cities and suburbia alike, joined by big-box retailers in the ‘60s and challenged by product-specific category killers in the ‘70s. Those that survived the fragmentation of the retail industry sustained largely the same model until the arrival of ecommerce in the 1990s.

Then, among the dotcoms, Amazon came along; it thrived on an incredibly efficient supply chain coupled with a vast selection of products. Zappos arrived on the scene with outstanding customer service and a compelling brand story.

Suddenly, traditional merchants were faced with the prospect of losing sales to online competitors.

They began investing in their own ecommerce offerings, racing to establish themselves as a customer favorite in a world of rapidly expanding choices.

Just within the last several years, omnichannel has become central to the retail discussion. Retailers are fighting to integrate their distribution channels and compete on better visibility and better customer service. Sweeping changes across the retail environment are happening, and the choices that industry executives make now will result in the survival - or downfall - of today’s leaders.