Retailers and the Supply Chain in the omnichannel world

April 17, 2012 - 0 Comments

In previous blog I wrote about the impact of omnichannel on retailers and how some retailers are coping with the new realities succesfully, and some are not.  In our next conversation with Brian Kilcourse, managing director of Retail Systems Research we talked about the impact of omnichannel on the  retail supply chain.

Some of the points we discussed are:

Retail profit is built on the supply chain, retailers sell at the price that the market will bear, with pricing transparency, it is tougher to sustain price discrepencies.

Demand has become unpredictible with shoppers being more active in finding what want in price/feature combination and  are leveraging technology to find it. 

The traditional push model of supply chain is based on manufacturers define the products and use advertising to create consumer demand and drive products to retailers using promotions and incentives.  This is no longer working as consumers are no longer passive and actively defining their shopping expectations.

Winning retailers look out to the vendor ecosystem and share information with suppliers to increase flexibility to adjust to consumer demands.

Lagging retailers looks at the supply chain only from the loading dock of the distribution center to the stores.

Since this video was recorded, Retail Systems Research  has released their research titled “Retail Supply Chain 2012: Globalization, Localization, and Cross-Channel” which I encourage our readers to read.

Thank you

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