2This document is an exclusive document available to FlevyPro members - http://flevy.com/pro
Contents
Overview
Omni-channel Retail
Templates
The content on this page has been partially hidden.
FlevyPro members can download the full document here:
http://flevy.com/browse/flevypro/omni-channel-strategy-series-omni-channel-supply-chain-3315

This framework discusses various aspects of Pricing Management,
including key pillars, key considerations, operating models, etc.
Presentation Overview
Companies will have difficulty moving forward if separated, disintegrated channels
are established.
The e-commerce market continues to grow exponentially. More people are opting for the
convenience of online shopping.
The future of e-commerce is Omni-channel Retailing. A single channel is no longer enough. The
challenge is to find a seamless solution for both the customer experience and internal processes.
Omni-channel Retailing means being available at any time and anywhere, making it convenient
for the customer.
In this changing landscape, 3 critical focus areas are now challenging our company’s
performance.
This presentation provides an overview to all 3 areas and then a deeper dive into the third focus
area, Omni-channel Supply Chain.
Topics covered include Delivery & Return Strategies, Order Management Systems (OMS), next
steps, relevant benchmarks, among other topics.
This deck also includes slide templates for you to use in your own business presentations.
1 Omni-channel Marketing 2 Mobile Payment 3 Omni-channel Supply Chain

The development of e-commerce is changing the 21st century retailer’s
landscape
Evolution of Retail
Omni-channel Retailing is now demanded to be available anytime anywhere by customers.
E-commerce is booming and retailers face many challenges and opportunities. The rapid development of the
e-commerce industry has led to traditional retailers moving into the online market.
Our company is facing pressure to adapt to e-commerce challenges. The strategy focusing on a single channel is no
longer sufficient in attracting the demanding customers of the 21st century.
The future
The recent move towards
multi-channel operationsThe emergence of e-tailers
Traditional bricks-and-
mortar operations
Physical store
The customers will come
to us
We need to sell online Many customers shop
across channels
Relevant products and services
anywhere
E-commerce Multi-channel Omni-channel
Source: Omni-channel Retail, Deloitte, 2015
Companies are now evaluating the benefits of adding a physical presence either temporary or
permanent. This is to respond to the changing marketplace and to meet growing customer demands.

Contents
Overview
Omni-channel Retail
Templates

Omni-channel Retailing is challenging business to rethink our marketing
and operational strategies
Omni-channel Retail – Overview
Succeeding online relies on our ability to design and implement a strategy that presents
our company in all channels our customers’ desire.
Omni-channel Retailing means being available at any time and anywhere. The focus is making it convenient
for our customers.
Omni-channel Retailing is the future of e-
commerce. This requires our companies to rethink
our strategies and to redefine our business models.
A single channel is no longer enough.
Online channels have been treated as a distinct,
separate channel without integration to the over-all
bricks-and-mortar business model. This is now
changing. Not only must reach customers through
multiple channels, but this omni-channel
experience must also be seamless.
Customers now demand information
about stock levels, delivery times,
and shipping options regardless of
where within the retailer’s network
they are situation.
The challenge is to find a seamless
solution for both the customer
experience and internal processes.
This implies an integrated backend
across the channels, particularly
when it comes to customer data.

Increasing customer’s conversion rate requires strategic management
of critical factors influencing e-commerce
Omni-channel Retail – Critical Focus Areas
If management effectively and efficiently, the 3 critical factors can be market generators
and facilitators.
Companies are now facing challenges within 3 key areas that significantly impact our performance. In e-
commerce, these 3 main areas must be given the highest attention to maximize results given our limited
resources.
Omni-channel
Marketing
Supply Chain
Driven by pressure
effectiveness
This is a key
revenue driver
Remember:
the customer rules
The three
critical focus areas
have a large impact
on the customer
conversion rate. They
all make an impact
on the customer’s
purchase
decisions.
$

Meeting the increasing demands of digital-era customers requires a
strategic approach to facilitating e-commerce
Critical Focus Areas – Details
This presentation will focus on the third critical focus area—Omni-channel Supply Chain.
The 3 critical focus areas can serve as our company’s parameters in approaching Omni-channel Retailing.
Pressure to
increase
marketing
effectiveness
Consumers demand a more personalized shopping experience, making
marketing offers based on consumers’ shopping behavior important.
It is a challenge to know which channels to use to get the highest conversion
rate and sales performance.
Omni-
channel
Marketing
1
The
customer
rules
Customers demand better service levels, high availability of the product, and
faster delivery.
New Fulfillment and Supply Chain Strategies have emerged as our companies
respond to the changing marketplace by developing alternative solutions.
A key
revenue
driver
The availability of convenient, mobile payment solutions decides the
consumer’s purchasing decision. Customers want quick, safe, and simple
payments.
Our company must develop our own in-house payment solutions to control
costs and to increase influence on customer’s decisions.
Mobile
Payment
2 $
Omni-
channel
Supply
Chain
3

Contents
Overview
Omni-channel Retail
Templates

Supply Chain fundamentals are shifting to align to customer
expectations
Omni-channel Supply Chain – Overview
Omni-channel fulfillment must break down the barriers between the various channels to
meet the increased complexity of orders across various channels.
The Supply Chain is the backbone of e-commerce operations. Its design is of critical importance. The setup
and execution of the Supply Chain drives Customer Experience.
Traditionally, Supply Chain Management (SCM) has
been a key enabler to profitability and long term
success. SCM can be defined as the management of
the flow of goods of services, from the movement of
the raw materials till the final product is received by
end consumer.
With the rise of the Omni-channel Supply Chain, there
are more and more variations and thus complexity in
how the final product is received by the consumer.
A well-functioning Supply Chain can achieve internal
efficiencies, speed up deliveries, and reduce costs.
Today, the Omni-channel Customers of
the 21st century demand even more
than previous generations. They
expect products delivered whenever
and wherever they wish.
For our company to be competitive, we
need to re-think order fulfillment and
logistics operations to meet the
demands of the Omni-channel
Customer.

As we evaluate delivery and return options, we must realize that it is the
customer’s world
Omni-channel Supply Chain – Delivery & Return Strategies
While each delivery and return alternative has its advantage, there is no one model that
fits all.
The customer now determines which delivery option our company should offer. Our company must listen and
pro-actively adapt to the customer’s expectations of fulfillment and delivery options.
Understanding the
customer is critical to
deciding the optimal
strategy. Delivery
and return strategies
our company
decides to undertake
must be customer-
driven.
There are 5 core Delivery and Return Strategies:
Drop-
shipping
Same
day
delivery
Click-
and-collect
Reserve-
and-collect
Delivery
lockers
1
25
34

Our company must adapt the Delivery and Return Strategy that can
optimize the company’s operational efficiency
Omni-channel Supply Chain – Delivery & Return Strategies (Details)
Regardless what strategy our company takes, what is important is we get to drive excellent
customer satisfaction.
Each of the Delivery and Return Strategies are distinctly different in terms of application and logistical
requirement. Our company must know which strategy can be operationally effective and optimal to our
business model.
Dropshipping is when a customer order triggers a
shipment from a third party provider (3PL). It can be
an effective way of reducing inventory holding costs
and warehouse space.
Less inventory on hand means that capital is freed up
for other investments.
Click-and-collect is a challenging strategy to
implement. The customer places an order with a
retailer who delivers, or uses a supplier to deliver, the
product to the retailer’s physical location of the
customer’s choice.
Customers are given flexibility and control over their
purchase as they are able to choose a convenient
location from which to pick up their item.
The main challenge is to make the process a seamless
solution, both for the retailer and the customer.
Reserve-and-collect is similar to click-and-collect. This
allows for checkout to occur after the customer views the
items in person.
With this strategy, our company is required to have an
organized inventory managed by a strong order
management system.
Delivery lockers are placed in convenient locations and
are only opened using a code given to the customer in
connection with a purchase online.
This is convenient for our customers as they are able to
return items using the locker.
The downside is these are not very dynamic and may be
a challenge during periods of high sales.
Same day delivery is a fulfillment strategy. This means
that the item ordered is in stock in our warehouse located
close to a major city and is delivered the same day to our
customer by a delivery firm.
This may be a challenge for larger cities and only
applicable to some industries.
Drop-
shipping
1
Click-
and-collect
2
Reserve-
and-collect
3
Delivery
lockers
4
Same day
delivery
5

CUSTOMER FEEDBACK OPPORTUNITIES
Customer feedback keeps our company informed if there is a
misalignment with our customers in terms of delivery and returns
Omni-channel Supply Chain – Customer Feedback & Opportunities
When misalignment exists, investments are not prioritized based on customer desires.
Knowing what is important to our customers enable our company to direct our investments priorities to where
it should focus on.
Here are 2 important pieces of customer feedback:
1 Customers consider availability of delivery/pick-
up options and having clear instruction about
return policies as most important.
2 Retailers consider being able to deliver to
customers within 3 days as most important.
There are key opportunities that our company can
optimize to drive sales performance through the
Supply Chain.
1 Seamless integration between various channels
will be critical to meet customer expectations.
2 E-commerce players need to tailor their
solutions to customer expectation.
3 Continue to invest in alternative delivery options
to accommodate demanding customers.
4 Optimize returns management through physical
and online channels.

A robust order management system leads to seamless channel
integration
Omni-channel Supply Chain – Order Management System (OMS)
An up-to-date OMS must back up our business to be able to offer all delivery options to our
customers.
An omni-channel world where the customer interacts and moves between physical and digital channels require
a robust Order Management System (OMS).
OMS is the core of e-
commerce operations
that makes the
integration between the
order and delivery
channels seamless.
The OMS is not only for
processing orders. It is
also providing
intelligence and visibility
surrounding inventory,
delivery options as well
as customer information.
The OMS provides our
company with real-time
information at all times,
regardless of delivery
channel or point of order.
Call
center
Website Mobile
Store Catalog
eComm
delivery
centers
Pop up
store
Bricks-
and-
mortar
Kiosk
Retail
delivery
centers
Order
management
system
Online
Offline

Order Management System optimizes operational efficiency
of business
Omni-channel Supply Chain – Order Management System (OMS) Benefits
An omni-channel OMS becomes more critical as customers order through multiple
channels and through multiple locations.
There are numerous benefits our company can gain from an omni-channel OMS.
Here are the 4 primary areas of benefit.
Distributed Order
Management
1
The OMS provides
functionality to assist with
order routing, returns
management, order
splitting, tax calculations,
payment processing,
partial shipments, and
order exception manage-
ment, which are all critical
components for e-tailers.
Single View of
Inventory
2
Inventory visibility is the
most critical function
delivery by the OMS. The
OMS provides real-time
information about the
available inventory
across our organization,
regardless of which
channels are accessed.
Store Fulfillment
3
Store fulfillment is
important for e-tailers that
also operate with physical
stores. An OMS provides
functionality surrounding
shipping from stores, store
pickup, and click-and-
collect.
Customer Service
4
The OMS is an effective
way to increase customer
service. It provides
information about order
details, order capture, and
refunds/credits.

Increased transportation
cost remains a key return-
related issue
Significant cost savings can be achieved with
improved product information and meeting delivery
criteria.
Handling costs for returns
Another opportunity is to reduce the handling
costs as a result of high return rates.
Warehouse costs for
returns
Incurring fewer returns will allow our company to
use warehouse space optimally and for value
added activities.
WAYS TO MANAGE COSTS
The high costs of returns have continued to be a challenge for the
e-commerce industry
Omni-channel Supply Chain – Returns
Companies that optimize the costs of returns management will be the leaders in the
marketplace.
The increasingly demanding Omni-channel Customer expects to be able to return an item wherever they like.
To satisfy the new age customer, it’s all about maximizing convenience.
A generous return policy
has become a key
competitive advantage
and a critical component
of the customer offering.
While generous return
policy drives sales, it is
also a major cost driver.
Managing the key
contributory costs can
enable our company to
achieve optimal results
from a generous return
policy.
1
2
3

Successful e-commerce demands a customer-driven Supply Chain
Omni-channel Supply Chain – Next Steps
Gaining mastery of the Supply Chain management capabilities keeps our company
ahead of the race.
Supply Chain performance continues to be measured largely by numbers. However, as the customers expect
deliveries anywhere at any time, it is becoming difficult to evaluate performance purely from a numbers
perspective.
LeadingPerformingDevelopingEntry level
Key
questions
to answer
Functionality
does not exist
Basic functionality
exists
Advanced
functionality exists
Industry leader
No clear vision exists for e-
commerce supply chain and
order fulfillment
Limited shipping options offered
to customers
Shipments are made on an ad
hoc basis
No strategy for optimizing
returns management
What should the supply chain
look like for our e-commerce
operations?
Are there additional shipment
and delivery options that can be
offered to customers?
A supply chain strategy with a clear
vision exists for the e-commerce
operations
Several shipping options, treated as
separate/isolated channels, are
available to the customers
Shipments are planned and
consolidated where possible, with
accurate estimated vs. actual delivery
date
Policies are developed for returns
management to reduce costs
How can we leverage our supply chain
to drive additional sales?
What fulfillment options should we
adopt and how can we increase
integration between them?
How can we reduce costs while
maintaining customer service?
The supply chain strategy is well
designed and executed with the use of
systems (WMS, OMS, etc.)
Optimized returns management
Multiple shipping and delivery options
exist (e.g., click-and-collect, same day
delivery, etc.) with integration between
the various channels
Shipment and return KPIs are tracked
and benchmarked against industry
peers
How can we tailor our fulfillment
strategy to the changing demands of
the market?
How can we fully integrate the various
delivery/return channels?
How can we reduce costs related to
deliveries and returns?
Supply
chain man-
agement
capabilities
A tailored supply chain with a mix of
fulfillment strategies
Real-time tracking of order and
shipment s made available to the
customer
Order fulfillment and shipments are
enabled by technologies
Seamless integration between all
channels
How can we stay ahead of the market?
What is the next big innovative idea?
Increased availability of various delivery options are driving
costs of the Supply Chain. This requires a larger degree of
integration between the various channels. Our company
needs to take on the necessary next steps to achieve a
customer-driven Supply Chain.

Closely monitoring our Supply Chain based on established benchmarks
enables our company to take the appropriate action and strategies
Omni-channel Supply Chain – Benchmarks
The lower the percentage, the most effective is our Supply Chain in managing level of
returns or fulfillment cost per order.
In today’s omni-channel marketplace, our organization has a tremendous opportunity to take action and
become the leader of tomorrow.
Having an integrated,
customer-oriented Supply
Chain that meets the
Omni-channel Customers’
expectations can be
achieved.
Our company just needs to
assess performance based
on established Supply
Chain benchmarks.
The key performance
indicators (KPIs) are
quantifiable measures
used to evaluate the
success of our
organization in meeting
specific objectives.
E-tailer Key Performance Indicator (KPI) Entry level Average Leading
Supply chain and fulfillment
Fulfillment cost per order (SEK)
Customer service cost per order (SEK)
Labor cost
Warehouse cost
Turnover per m2 warehouse
Trade inventory days
Shipment cost
Return cost as percentage of revenues
Returns as percentage of items
83
46
18%
3%
8,000
280
20%
48%
50%
45
32
12%
0.8%
35,400
50
7%
10%
11%
32
18
9%
0.4%
52,300
0
5%
2%
2%
Operational
Gross margin
Revenue growth
Repeat customer rate
Percentage of sales on repeat customers
Average order value (AOV) (SEK)
AOV repeat customers (SEK)
Operating margin
15%
-5%
17%
24%
150
210
-3%
30%
15%
27%
41%
750
1,300
3%
45%
32%
52%
59%
9,300
9,500
6%
BENCHMARKS

Contents
Overview
Omni-channel Retail
Templates

Insert headline
Evolution of Retail – TEMPLATE
Insert bumper.
The future
The recent move
towards multi-
channel operations
The emergence of
e-tailers
Traditional bricks-
and-mortar
operations
Physical store E-commerce Multi-channel Omni-channel
The customers will
come to us
We need to sell online
Many customers shop
across channels
Relevant products and
services anywhere

Insert headline
Omni-channel Retail Focus Areas – TEMPLATE ALTERNATE
Insert bumper.
Omni-channel
Marketing
Supply Chain
Driven by pressure
effectiveness
This is a key
revenue driver
Remember:
the customer rules
$

Insert headline
5 Delivery & Return Strategies – TEMPLATE
Insert bumper.
Drop-
shipping
Same
day
delivery
Click-
and-collect
Reserve-
and-collect
Delivery
lockers

Insert headline
5 Delivery & Return Strategies – TEMPLATE ALTERNATE
Insert bumper.
Drop-
shipping
Same
day
delivery
Click-
and-collect
Reserve-
and-collect
Delivery
lockers
1
25
34
• Insert filler text, filler text, filler text,
filler text, filler text.
filler text, filler text.
filler text, filler text, filler text, filler text.
• Insert filler text, filler text, filler text.

Insert headline
Order Management System (OMS) – TEMPLATE
Insert bumper.
Online
Offline
Call center Website Mobile
Store Catalog
eComm
delivery
centers
Pop up
store
Bricks-and-
mortar
Kiosk Retail
delivery
centers
Order management
system
Filler text,
filler text,
filler text
Filler text,
filler text,
filler text
Filler text,
filler text,
filler text
Filler text,
filler text,
filler text
Filler text,
filler text,
filler text
Filler text,
filler text,
filler text
Filler text,
filler text,
filler text
Filler text,
filler text,
filler text
Filler text,
filler text,
filler text
Filler text,
filler text,
filler text
Filler text, filler
text, filler text

Download 100s of similar frameworks from the
FlevyPro Library:
https://flevy.com/pro/library/frameworks

Need more frameworks? Download our Complete Business Frameworks
Reference Guide, a 350+ slide compilation of 50+ frameworks, on Flevy
The Complete Business Frameworks Reference
Guide is a best selling document on Flevy. It is 350+
slides--covering 50+ common management consulting
frameworks and methodologies. A summary is
provided for each business framework.
The frameworks in this deck span across Corporate
Strategy, Sales, Marketing, Operations, Organization,
Change Management, and Finance.
This reference guide is great for those who need a
refresher on common frameworks, as well as be
introduced and learn new useful frameworks.
You can find this document here;
http://flevy.com/browse/business-document/complete-
consulting-frameworks-toolkit-644

Flevy (www.flevy.com) is the marketplace
for premium documents. These
documents can range from Business
Frameworks to Financial Models to
PowerPoint Templates.
Flevy was founded under the principle that
companies waste a lot of time and money
recreating the same foundational business
documents. Our vision is for Flevy to
become a comprehensive knowledge base
of business documents. All organizations,
from startups to large enterprises, can use
Flevy— whether it's to jumpstart projects, to
find reference or comparison materials, or
just to learn.
Contact Us
Please contact us with any questions you may have
about our company.
• General Inquiries
support@flevy.com
• Media/PR
press@flevy.com
• Billing
billing@flevy.com

1
Flevy (www.flevy.com) is the marketplace
for premium documents. These
documents can range from Business
Frameworks to Financial Models to
PowerPoint Templates.
Flevy was founded under the principle that
companies waste a lot of time and money
recreating the same foundational business
documents. Our vision is for Flevy to
become a comprehensive knowledge base
of business documents. All organizations,
from startups to large enterprises, can use
Flevy— whether it's to jumpstart projects, to
find reference or comparison materials, or
just to learn.
Contact Us
Please contact us with any questions you may have
about our company.
• General Inquiries
support@flevy.com
• Media/PR
press@flevy.com
• Billing
billing@flevy.com

Omni-channel Strategy Series: Omni-channel Supply Chain

Recomendados

Recomendados

Mais conteúdo relacionado

Mais de Flevy.com Best Practices

Mais de Flevy.com Best Practices (20)

Último

Último (20)

Omni-channel Strategy Series: Omni-channel Supply Chain