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18/09/2014 14:42
What you need to know about Multi-channel vs. Omni-channel

When it comes to retail, there’s a common misconception that multichannel and omni-channel can be used interchangeably. Many don’t realise that there’s a difference between the two. At the end of the day it’s all just about shopping, right? Not quite – certainly not for the supply chain.

Multi-channel vs omni-channel

Multi-channel and omni-channel are two unique retail concepts that have disrupted the way logistics and transportation operates.

Multi-channel retail came about with the increased number of channels by which customers could interact with and purchase from retailers. It focuses on what retailers offer their customers and, in most cases, means they dictate what and when shoppers can purchase from a physical or ecommerce store.

However, digital advances have propelled us into a much more dynamic shopping experience, disrupting the relationship between the customer and the retailer. Within this whirlwind of change is the logistics manager, who is expected to deliver goods to the right place, at the right time.

This is where omni-channel comes in. It focuses on providing a seamless retail experience – from the point of order, right through to receiving the goods – by connecting multiple channels. According to the latest figures by the British Retail Consortium, retailers who have adapted the omni-channel model have reaped the benefits at the beginning of this year, with increased sales in-store, online, through mobile and click-and-collect services.

So what does this mean for the logistics and transportation manager?

With the power now falling on omni-channel shoppers, who dictate how, when and where they shop, some retailers are struggling to meet demands. But this doesn’t need to be the case.

Visibility is the key to a successful omni-channel model. And this applies not only to the front-end retail staff, but also across the whole supply chain, all the way back to the manufacturers. Sitting in the centre is the crucial role of the logistics and transport manager, who supports the entire framework by keeping the workflow in check and has visbility into inventories.

The logistics and transport manager must be agile, scalable and ready to react 24/7. They require a supply chain strategy that can meet new challenges on fulfillment, logistics and speed-to-delivery. As retailers operate globally across different channels, so does the supply chain.

Traditional transportation networks are no longer sufficient to serve the changing demands of the new omni-channel consumer. Today, retailers must be ready to deliver to homes and businesses around the world, cheaper and faster than ever, often with same day or next day delivery.

As such, staying on top of the latest innovations around transportation management is a must. Tighter partnerships with transportation carriers and gaining better visibility are crucial. Indeed, technology can help supply chain managers get a better handle on inventory sourcing and transportation options. Done properly, this will increase sales and improve customer loyalty through a more reliable fulfillment and delivery strategy.

Order fulfillment management and transportation strategies must be aligned to in-store, online, mobile, and click-and-collect orders. Omni-channel retail is here to stay, and it’s time to invest in a reliable technology platform that can cross silos, break down geographic barriers and streamline logistics processes for a more successful supply chain.

By Evan Puzey, Chief Marketing Officer, Kewill