Transformation of the Supply Chain around retail, omnichannel and unified trade
December 23, 2020
December 23, 2020
In recent years, the advent of digital technology and changing consumer trends have led the Supply Chain to undergo profound changes. Before this transformation, we could observe two sales models, with multi-channel retailers on one side and pure e-commerce players on the other. Today, these two models are also undergoing a transformation: they are blending together to create a brand new model, the omnichannel model. Multichannel retailers are becoming omnichannel, and pure e-commerce players are expanding their product lines by partnering with marketplaces. The goal of combining these two sales models is to win over more and more customers, while placing them at the heart of their strategy (customer centric) by offering them reduced order processing and delivery times. These promises create greater logistical complexity, forcing the Supply Chain to adapt by transforming itself into a multi-channel model.
Preparing its omnicanal transformation implies understanding that one must involve one's company as a whole so that the change can be carried out in an optimal way. You cannot carry out an omnichannel transformation in only one part of your company, because they will all be impacted by this change. If a service turns out not to be ready, your transformation will not be successful and may even serve you.
You need to perform your multi-channel transformation guided by three questions around customer centric:
Before making your omnichannel transformation, you will need to start by auditing your current model:
The most important process of your omnichannel transformation is to transform both your supply chain and your logistics. You will have to lead a physical and organizational evolution of your flows, while remaining vigilant because it is a complex transformation to lead. This development will have to start with a geographic redistribution of your sites. Indeed, with the establishment of multiple sales channels, your inventory and order management will be upset by the changes. It will therefore be strategic to set up a central site, piloting your other sites, specialized by sales channel. This will allow you to better manage the influx of orders on your different platforms, optimize order processing and group shipments. The reorganization of your Supply Chain and your logistics chain will have to be carried out according to criteria that you will have defined, corresponding to the objectives and needs of your company.
When implementing an omnichannel strategy, the warehouse becomes a strategic location, just as important - if not more - as the store. You will now carry out logistics operations previously carried out only in stores. Your warehouse is no longer just a storage place for your products to supply your stores, you now prepare your customers' orders, manage parcel returns, etc.
It is important to reorganize the space in order to make it operational for the various agents who will be responsible for preparing the packages for your customers. To improve their productivity, you can use automation, mechanization and robotization tools. Your best ally will prove to be a complete inventory management software allowing you to manage the stocks of your different products, replenishments, but also the customer order process (preparation, shipping, etc.).
The management of returns is an important point of your omnichannel strategy, you will be able to observe an upsurge in product returns, which your agents will have to manage. Your objective will then be to have a good management of these returns, but you must first of all identify the problem at its source, in order to reduce this quantity of returned products. Thus, your agents will be able to fully devote themselves to order preparation, and you will significantly increase the level of customer satisfaction while retaining your new customers.
As mentioned previously, to succeed in your omnichannel transformation, you will need to rely on intelligent tools to manage your Supply Chain in a unified commerce context. Indeed, the value of your business from the point of view of your customers lies in your supply chain, the main factors of satisfaction being a preparation and a fast and error-free delivery to the desired place. You will therefore need to use the data at your disposal in order to offer your customers a solution adapted to their needs.
For this, you will need to use information systems capable of managing a lot of data, in order to be able to analyze and adapt your Supply Chain to unified commerce:
The plan to transform your business towards an omnichannel model must therefore be carried out across all your logistics and supply chain processes, in order to optimize all your sites and processes. Using smart process automation tools and smart inventory or order management software is essential if you want to achieve this transformation in the short and long term. It will indeed be necessary to equip yourself with a Smart Supply solution to have a global approach to your Supply Chain.