Skip to 0 minutes and 6 secondsToday, omni-channels have given consumers more choices to shop. Let's take a look at some of those options.

Skip to 0 minutes and 54 secondsHey, Apa. How are you? Where's your food? Ah, speak of the devil. Pizza for Apa. Thank you.

Skip to 1 minute and 7 secondsThis is an excellent example of how omni-channel is changing consumer behaviour. Here, we see two different individuals purchasing their meals using two different devices. And their meals are delivered in two different ways Omni-channel is gradually forcing retailers to re-organize their supply chains and logistics. In the case of the KFC, Sonja chooses to pick up her purchase, while Apa opts for delivery of her pizza. Although it is always good to provide customers with options, these options do affect how businesses would manage their supply chain. In the case of Sonja's pick-up, businesses would need to stock adequate goods at the bricks-and-mortar stores for both offline and online customers.

Skip to 2 minutes and 8 secondsIt will also mean that retailers need to relay the customer's order in a timely manner at the physical store. Inventory management must be re-calibrated in an omni-channel environment. Apa's pizza appears to be a simple delivery. But it complicates the logistics operations. There is a trade-off for business in having delivery managed by a third party, rather than in-house. Some businesses incur the greatest costs in the final stage of delivery, also known as the 'last mile'. For some, delivery costs may even outweigh the profit of the sale.

Skip to 2 minutes and 58 secondsAnything, anytime, and anywhere may come at a cost for companies adopting omni-channel. However, this is the ultimate in customer service.

What's an omni-channel supply chain?

The rise of e-business has changed the face of supply chains forever. We’ve gone from the conventional supply chains that we all understood to omni-channel supply chains, which seem to be changing constantly to keep meeting customer expectations.

This week we introduce the main features of an omni-channel supply chain and key logistical challenges to manage a seamless retail omni-channel.


Poll

If you’ve had an experience with online shopping take our poll and select the option that shows how the retailer (product supplier) fulfilled your order.

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This video is from the free online course:

Business Futures: Understanding Omni-channel Retailing and Supply Chains

RMIT University