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How omni-channel can be the future of retailing

DECISION volume 43, pages 135–144 (2016)Cite this article

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.

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Notes

  1. R. Lieber, “Adding it up: Amazon Ship vs. Costco Shop,” New York Times, March 4, 2011.

  2. J. Plucinska. “Amazon plans to distribute goods through thousands of brick-and-mortar stores in India.” Time. http://time.com/4107649/amazon-udaan-stores-india/ (Nov 10, 2015). Accessed on November 20, 2015.

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Authors and Affiliations

  1. Kellogg School of Management, Northwestern University, 2001 Sheridan Rd, Evanston, IL, 60208, USA

    Sunil Chopra

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  1. Sunil Chopra
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Correspondence to Sunil Chopra.

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Chopra, S. How omni-channel can be the future of retailing. Decision 43, 135–144 (2016). https://doi.org/10.1007/s40622-015-0118-9

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  • DOI: https://doi.org/10.1007/s40622-015-0118-9

Keywords

  • Supply chain management
  • Omni-channel retailing