Enabling the Multi-Channel Retail Supply Chain (Strategic Focus)

Date: June 1, 2010
Pages: 38
Price:
US$ 3,395.00
Publisher: Datamonitor
Report type: Strategic Report
Delivery: E-mail Delivery (PDF)
ID: E0672CA66E4EN
Leaflet:

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Enabling the Multi-Channel Retail Supply Chain (Strategic Focus)
Introduction

For many retailers within APAC and around the world, the question of whether or not to adopt a multi-channel retailing strategy has already been answered: multi-channel retailing is a business imperative. But there still remains much confusion about how to implement technology that supports a multi-channel operation that's efficient, effective, and focused on the total customer experience.

Scope
  • Considers four key channels for retailers: stores, catalog, online, and mobile, with a detailed analysis of the supply chain dynamics of each.
  • Provides technology recommendations to retailers that have already decided to engage in multi-channel retailing.
  • Primarily looks at APAC, but retains a relevance to retailers around the world.
Highlights

Too often, key data has been siloed within individual channels or within legacy technologies. Ovum believes that it is essential for retailers to shift to a composite-channel strategy, however, in order to accomplish this from the IT side, retailers will need to improve the underlying data upon which business processes rely.

Reasons to Purchase
  • Understand the challenges facing the supply chain aspects of multi-channel retailing.
  • Gain insight into Ovum's recommendations for IT leaders to support the business goals of multi-channel retailing.

SUMMARY

Catalyst
Ovum view
Key messages
There are numerous channels available to retailers, therefore the mix is critical
Retailers must focus on the composite-channel
Fulfillment is the end goal of multi-channel retailing
Core retailing data needs to be drastically improved for multi-channel optimization
Application environments hold the key to multi-channel retailing support
Table of Contents
Market Context: The Shift Online and its Implications for Retailers
The retail industry is coming out of recession and looking for quick growth
Acquisitions are seen as a vital element of growth strategy
Is technology driving the industry? A shift to new channels is underway
Internet penetration is increasing across APAC
Mobile penetration is increasing, but in a far more volatile fashion than the internet
Business Focus: Optimizing the Retail Supply Chain for Multi-channel in APAC and Abroad
There are numerous channels available to retailers, therefore the mix is critical
Bricks and mortar stores remain the foundation of the retail industry
Catalogs and call centers have broadened the reach of retailers
The online channel has emerged as a force in the retail industry
M-commerce is emerging, but is only prevalent in some countries
Cross-channel as the multi-channel intersection point
Retailers must focus on the composite-channel
Organizational structure - no longer multi-channel, but the composite-channel
Demand forecasting will be reliant upon people, data, and functionality across the channels
Consolidated inventory management allows for quick stock reallocation
Multi-channel scale can drive consolidated supplier interactions
Establish the financial value of a channel independently, but do not make it operationally independent
Fulfillment is the end goal of multi-channel retailing
A rules-based approach is being taken to order fulfillment but is also introducing complexity
Historic supply chain strategies may be hindering fulfillment
Cross-docking has left little warehouse space for the pick-and-pack processes of multi-channel retail
VMI can create headaches for retailers
The returns process is absolutely critical for retailers, but often overlooked
Technology Focus: Getting Multi-channel Right the First Time
Core retailing data needs to be drastically improved for multi-channel optimization
A single truth of data should be the goal for retailers
MDM can assist retailers that are looking to improve data quality
Application environments hold the key to multi-channel retailing support
Retailers should focus on reaching an end-state application architecture
Integrating enterprise applications can assist business process support
Retailers should look to leverage an ESB and BPM
An architecture approach to application integration can reduce project duration
Application rationalization and consolidation should be done in tandem with multi-channel strategies
Retailers need to consider the other practicalities of implementing multi-channel technology
An incremental approach to multi-channel technology makes the most sense
Outsourcing is a key option available to retailers
Cloud computing is not expected to feature heavily in multi-channel retailing technology
A shortage of both IT and business skills is something that retailers should address early
IT's role in multi-channel strategies should be as a unifying force

RECOMMENDATIONS

Recommendations for enterprises
Treat multi-channel as a composite-channel
Build a single source of data truth
Audit existing enterprise environments to determine potential support for multi-channel process support
Recommendations for vendors
Focus on providing modular solutions
Provide expertise where possible and have a knowledge capability ready to go

APPENDIX

Ask the analyst
Definitions
Further reading
Methodology
Disclaimer

LIST OF TABLES

Table 1: Fulfillment rules-based questions
Table 2: Multi-channel retail fulfillment options

LIST OF FIGURES

Figure 1: APAC retail industry size ($bn) and growth (%), 2007-11
Figure 2: Number of acquisitions in the APAC retail industry, 2008-10
Figure 3: Internet penetration (%) across APAC countries, 2000-15
Figure 4: Mobile penetration (%) across APAC countries, 2000-15
Figure 5: The roles of m-commerce in the retail shopping experience
Figure 6: Cross-channel customer interaction flows
Figure 7: A siloed multi-channel retail strategy
Figure 8: Composite-channel retailing
Figure 9: Multi-channel retail fulfillment paths
Figure 10: Data duplication is a drawback of siloed channel IT
Figure 11: MDM can help retailers untangle data processes and drive structure
Figure 12: A multi-channel retailing application architecture
Figure 13: An ESB can integrate legacy and external applications
Figure 14: Oracle's approach to multi-channel retail architecture

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Enabling the Multi-Channel Retail Supply Chain (Strategic Focus)
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