Supply chains are becoming more complex. Australian retail supply chains today must be capable of managing increasing customer expectations (lead-times, pricing, options), channel diversification (online, store, multi-channel, omni-channel) as well as increasingly complex product sourcing strategies.
A step-change in supply chain design and capability is required if retailers are to remain competitive in the long-run. Omni-channel sales provides a seamless and uniform experience for the customer no matter which channel they choose. This key differentiator from multi-channel increases complexity which many businesses are ill equipped to handle.
There are significant challenges in enabling omni-channel fulfilment in a cost effective and profitable manner. Because of the seamless nature of omni-channel, businesses must also develop a culture of cross functional synergy, breaking down the silos. Omni-channel fulfilment is as much a challenge of cultural change as it is a challenge of system or process change. Many brick and mortar (B&M) retailers are taking their offerings online. In this rush, companies with supply networks designed to support their B&M stores cannot adequately serve their online customers without impacting their bottom lines. The challenge is making ecommerce work for the consumers and the business.
Planning becomes even more pivotal to success:
Execution and physical network requires re-design:
Less tolerance exists for getting it wrong as reverse logistics can be expensive, unit pick costs are inflated and stock transparency via real-time data as well as managing excess stock becomes more critical.
Omni-channel fulfilment will give customers constant access to your business thereby also providing your business with constant access to existing and potential customers. This ‘constantly on’ mentality provides great potential in increasing both your customer base and revenue.
GRA recognises that omni-channel fulfilment is the next stage in supply chain evolution. We will work with you, looking at business goals, competitors, and future trends to determine the best omni-channel strategy suited to your business.
Enabling the strategy are the People, Processes, Systems and Data. Opportunities will be identified for closer alignment between your supply network and your business strategy through a review of current systems and processes, as well as benchmarking against best practice.
Working with you we will provide recommendations on strategy and execution and assist on the journey towards best practice omni-channel fulfilment.
Businesses that do omni-channel fulfilment well will see increased customer satisfaction, gains in market share and greater brand awareness while maintaining or improving margins.
GRA Director Shanaka Jayasinghe talks with GRA Director Dan Knox about Online Retail – the challenges and opportunities for Australian organisations.
This whitepaper explains why online retailing is so challenging, what can be learnt from overseas, and how retailers can be positioned to profit through their online business. Download the whitepaper E-Commerce - Transforming Australian Supply Chains
This presentation outlines three topical supply chain investments which if implemented effectively can substantially transform an organisation's supply chain into a competitive advantage. View the presentation Retail Supply Chain Whitepaper - Part One and Part Two
Find out who we have worked with in the Retail industry.
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