How omni-channel can be the future of retailing

Abstract

We discuss how omni-channel retailing should be structured to create a supply chain that is both cost effective and responsive to customer needs. Given the complementary strengths of the physical and online channels, hybrid structures should be designed to use both channels. The physical channel should be used to serve frequent and predictable needs and the online channel should be used to provide variety and serve sporadic needs. The physical channel can also serve as a showroom and pickup location for the online channel. This hybrid structure can be particularly effective in emerging markets where new online players can partner with existing local retailers to benefit both parties and the consumer.