• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • Login
  • Subscribe
  • Logout
  • My Profile

  • CORONAVIRUS
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • REGIONS
    • Asia Pacific
    • Canada
    • China
    • Europe
    • Latin America
    • Middle East/Africa
    • North America
  • THINK TANK
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Retail Revolution: Four Ways Supply Chains Are Evolving

Retail Revolution: Four Ways Supply Chains Are Evolving

April 4, 2017
SupplyChainBrain

Today's consumers are more connected than ever, and their tech savviness is changing how they interact with retailers. They want to browse, research and purchase through every channel — brick-and-mortar, online and mobile — and retailers are tailoring their offerings to this desire to shop anytime, anywhere, without disruption. Customers also want to receive their purchases more quickly than in the past, as two-day, one-day and even same-day delivery become more common.

In order to meet consumers' dramatically heightened expectations, retail and direct-to-consumer supply chains need to transform across four different dimensions.

Network and flow path strategy
Omnichannel execution expands the universe of possible flow paths to the consumer, resulting in a wide range in potential levels of service, at varying costs, using multiple infrastructures. As supply chains come together, companies need the ability to enable or disable flow paths based on a known cost and service level. Understanding this cost to serve at a detailed level is critical to setting the right strategy.

Order execution and returns
Distributed order management can intelligently route customer orders, via the best method, to the optimal fulfillment location based on configurable rules such as service level, freight cost minimization or markdown avoidance.

Questions to consider include how orders will be sourced and what rules will be applied to each order. Inventory visibility is a must, and shipment policies will need to be established, from shipment sizing to minimum order quantity. Similar rules need to be in place for returns — in many cases, it may not pay to move the product at all, making it more cost-effective to simply give the customer a credit.

Supply-chain planning and inventory management
With more options available to fulfill orders, supply-chain strategies will need to be based on flexibility. For example, it may be more efficient to stock inventory at stores rather than at warehouses. As stores become fulfillment centers and new product flow paths are enabled, forecasts can no longer be channel-independent. In addition, inventory managed as a single, cross-channel pool changes deployment and allocation strategies, including opportunities for retailers to offer a non-stocked assortment.

Metrics and analytics
Traditional supply-chain metrics are unable to capture the breadth of omnichannel planning and execution. The next generation of metrics will incorporate customer service, sales, cost and execution components, including customer segment and geography perspectives. More sophisticated analytics will be required to mine data at this more detailed level, visualize it and use it to adjust strategies.

The Outlook

In an omnichannel world, the most successful companies will be those that effectively transform their operations — from strategy through planning, execution and measurement — simultaneously delivering on consumers’ desired experiences and making omnichannel operations more profitable.

RELATED CONTENT

RELATED VIDEOS

Logistics Reverse Logistics Transportation & Distribution Technology Inventory Planning/ Optimization SC Planning & Optimization Supply Chain Visibility Transportation Management Global Supply Chain Management Quality & Metrics Consumer Packaged Goods E-Commerce/Omni-Channel Retail
KEYWORDS consumer packaged goods E-Commerce/Omni-Channel Global Supply Chain Management Inventory Planning/ Optimization Logistics Quality & Metrics Retail Reverse Logistics SC Planning & Optimization Supply Chain Analysis & Consulting Supply Chain Visibility Technology Transportation & Distribution Transportation Management
  • Related Articles

    Retail: Effective Supply Chains Are Critical to Retailers

    Annual Report Highlights Digital Challenges, Trends of Retail Supply Chains

    Four Ways IoT Can Unkink Your Supply Chain

  • Related Directories

    Kuebix

SupplyChainBrain

100 Great Supply Chain Partners Issue 2009

More from this author

Wake up to Coronavirus Updates and the latest Supply Chain News!

Subscribe to our Daily Newsletter

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • Coronavirus-watch-Armada

    Virus Update: Biden Sees Fast Rollout of J&J Vaccine; Astra CEO Defends Delivery Shortfall

    Coronavirus
  • West Coast Port Congestion

    Shippers Need Alternatives to West Coast Port Congestion

    Logistics
  • Mexico

    The Near-Shoring Trend: Will China’s Loss Be Mexico’s Gain?

    Logistics
  • Robotic automation

    Autonomous Supply Chains Are on the Horizon

    Coronavirus
  • Drugmakers

    Research Lays Groundwork for More U.S.-Made Drugs

    Coronavirus

Digital Edition

Scb feb 2021 lg

2021 Supply Chain Management Resource Guide

VIEW THE LATEST ISSUE

Case Studies

  • Remote Implementation: A Dose of the Right Medicine for B2B Pharmacy

  • LSP Saves Customer $1.5 Million a Year With MPO Global Inbound Management

  • Auto Supplier Wows Key Client Using riskmethods Supply Chain Savvy

  • Integrating Shipping and Compliance Saves Conglomerate Millions

  • How a Consumer Goods Giant Upped Its On-Time Delivery Performance

Visit Our Sponsors

6 River Systems ArcBest Armada
aThingz BluJay Burris Logistics
DSC Logistics DCSA (Digital Container Shipping Association) DHL Resilience360
Genpact Geodis GEP
Honeywell Intelligrated Infor Logility
Magnitude Software MPO Old Dominion
Oliver Wight OpenSky Ports America
Purolator QAD Precision Red Classic
Riskmethods Snapfulfil TGW Systems
Transportation Insights Watson Land Company Westfalia Technologies
Workjam Yang Ming  
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2021 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing