The Evolution of Omni-Channel Retailing and its Impact on Supply Chains

Sunil Chopra*

*Corresponding author for this work

Research output: Contribution to journalConference article

Abstract

We discuss how omni-channel supply chain networks can be structured in terms of facilities, inventory, transportation and information to be both cost effective and responsive to customer needs. This requires exploiting the complementary strengths of the physical and the online channel to create an omni-channel portfolio that can tailor the fulfillment of each customer request based on product and customer characteristics. To be successful, a firm must target price or service conscious customers using different channels based on the demand uncertainty, value, and information complexity of the product being sold. In general, the physical channel should be used to serve frequent and predictable needs in a cost effective manner. The online channel should be used to provide variety and serve sporadic needs at low cost. The physical channel can also serve as a showroom and pickup location for the online channel to improve customer service and decrease cost.

Original languageEnglish (US)
Pages (from-to)4-13
Number of pages10
JournalTransportation Research Procedia
Volume30
DOIs
StatePublished - Jan 1 2018
Event2018 EURO Mini Conference on Advances in Freight Transportation and Logistics, emc-ftl 2018 - Padova, Italy
Duration: Mar 7 2018Mar 9 2018

Fingerprint

Supply chains
customer
supply
Costs
costs
Pickups
uncertainty
firm
demand
Values

Keywords

  • competitive strategy
  • logistics
  • Omni-channel retailing
  • supply chain management

ASJC Scopus subject areas

  • Transportation

Cite this

@article{cfc804300860411a9f5a19e4d4048d7a,
title = "The Evolution of Omni-Channel Retailing and its Impact on Supply Chains",
abstract = "We discuss how omni-channel supply chain networks can be structured in terms of facilities, inventory, transportation and information to be both cost effective and responsive to customer needs. This requires exploiting the complementary strengths of the physical and the online channel to create an omni-channel portfolio that can tailor the fulfillment of each customer request based on product and customer characteristics. To be successful, a firm must target price or service conscious customers using different channels based on the demand uncertainty, value, and information complexity of the product being sold. In general, the physical channel should be used to serve frequent and predictable needs in a cost effective manner. The online channel should be used to provide variety and serve sporadic needs at low cost. The physical channel can also serve as a showroom and pickup location for the online channel to improve customer service and decrease cost.",
keywords = "competitive strategy, logistics, Omni-channel retailing, supply chain management",
author = "Sunil Chopra",
year = "2018",
month = "1",
day = "1",
doi = "10.1016/j.trpro.2018.09.002",
language = "English (US)",
volume = "30",
pages = "4--13",
journal = "Transportation Research Procedia",
issn = "2352-1457",
publisher = "Elsevier BV",

}

The Evolution of Omni-Channel Retailing and its Impact on Supply Chains. / Chopra, Sunil.

In: Transportation Research Procedia, Vol. 30, 01.01.2018, p. 4-13.

Research output: Contribution to journalConference article

TY - JOUR

T1 - The Evolution of Omni-Channel Retailing and its Impact on Supply Chains

AU - Chopra, Sunil

PY - 2018/1/1

Y1 - 2018/1/1

N2 - We discuss how omni-channel supply chain networks can be structured in terms of facilities, inventory, transportation and information to be both cost effective and responsive to customer needs. This requires exploiting the complementary strengths of the physical and the online channel to create an omni-channel portfolio that can tailor the fulfillment of each customer request based on product and customer characteristics. To be successful, a firm must target price or service conscious customers using different channels based on the demand uncertainty, value, and information complexity of the product being sold. In general, the physical channel should be used to serve frequent and predictable needs in a cost effective manner. The online channel should be used to provide variety and serve sporadic needs at low cost. The physical channel can also serve as a showroom and pickup location for the online channel to improve customer service and decrease cost.

AB - We discuss how omni-channel supply chain networks can be structured in terms of facilities, inventory, transportation and information to be both cost effective and responsive to customer needs. This requires exploiting the complementary strengths of the physical and the online channel to create an omni-channel portfolio that can tailor the fulfillment of each customer request based on product and customer characteristics. To be successful, a firm must target price or service conscious customers using different channels based on the demand uncertainty, value, and information complexity of the product being sold. In general, the physical channel should be used to serve frequent and predictable needs in a cost effective manner. The online channel should be used to provide variety and serve sporadic needs at low cost. The physical channel can also serve as a showroom and pickup location for the online channel to improve customer service and decrease cost.

KW - competitive strategy

KW - logistics

KW - Omni-channel retailing

KW - supply chain management

UR - http://www.scopus.com/inward/record.url?scp=85054050980&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85054050980&partnerID=8YFLogxK

U2 - 10.1016/j.trpro.2018.09.002

DO - 10.1016/j.trpro.2018.09.002

M3 - Conference article

VL - 30

SP - 4

EP - 13

JO - Transportation Research Procedia

JF - Transportation Research Procedia

SN - 2352-1457

ER -