The impact the omni-channel has on the supply chain. Not just distribution and transportation, but also return logistics and customer service.

1. The Impact of the Omni-Channel on the Supply Chain
By Lauren Bechtel

2. Omni-channel
shoppers spend 50%more than
single channel shoppers

7. 86% of consumers want more retailers to add “buy online, pickup
in-store” to their arsenal of shipping methods – WD Partners report
• .
Benefit: Customers can be re-
engaged creating additional sales once they
enter the store

8. Supply Chain
Visibility
Lack of inventory visibility
Increases the need for safety
stock
Makes forecasting, planning,
and purchasing difficult
Inability to promise inventory
availability
Optimizing inventory can
address several difficulties…
High Storage costs
Inability to fill orders
promptly
Margin loss on markdowns
Inefficient fulfillment process
And provide several
advantages
Inventory optimization
Channel fulfillment has less
challenges
Increased adaptability to
channel evolution
Impact of overall peak
volumes can be reduced

9. Point of
Interaction
Point of Return
Point of
Fulfillment
POI and POF mapping - Great Start
Omni Channel Supply Chain Strategy
Maximizing profitability requires intelligent, automated
decision-making based on real-time visibility into:
Inventory, orders and events, & constrain-based planning

10. Key Concepts: POIs, POFs and PORs
(1) Points of
Interaction (POIs):
Physical or digital
locations from which
orders can be placed.
(2) Points of
Fulfillment (POFs):
Locations from which
a customer order can
be shipped/ fulfilled.
(3) Points of Return
(PORs): Physical or
digital locations from
which a customer can
return all or part of an
order.
Points of Interaction
(POIs)
Points of Return
(PORs)
Points of Fulfillment
(POFs)
Source: SCDigest

11. Points of Interaction
Store Guideshops
Inventory only show
rooms
Pop up movable store Website
Virtual fitting roomsVirtual reality stores
Physical Virtual

12. ADVANTAGE
Instant gratification
After sales support
Direct interaction with
sales team
Quality assurance
DISADVANTAGE
Huge capital
investment
Limited to area where
store is located
Physical

13. -low cost- Glasses from Warby Parker cost only $95, compared with other prescription
glasses that can cost between $150-$300 or more.
-convenience- Warby Parker offers the option to try-on and ultimately purchasing glasses
online, without having to leave your home.
-socially responsible-
Warby Parker cares about
people, and proves this
by providing glasses to
people in need.
-eyeglasses are a
necessity-Eyeglasses are
a necessity for people
all around the world,
which is a really great
benefit to a company that sells eyewear.
Strengths
Often times, the biggest difference between two products that do
the same thing is the story that it tells, and how people relate
to it.

14. Point of Return
ON ONE HAND ON THE OTHER HAND
People who return….
• Buy more stuff
• Spend more money
• Feel satisfied with returning to
the store
By 2017 projected e-commerce
sales will reach $440
Billion…Projected retail returns
will be equivalent to $460 Billion

15. Reverse Logistics
Omni-channel strategies may also help in reducing returns.
The omni-channel experience encourages customers to utilize
multiple channels to assure they’re making the right purchase
Contact with the customer after the sale is also important
Access to better information leads to better purchases and
fewer returns.

16. Two broad approaches to online fulfillment:
• Store-based fulfillment locations -orders are fulfilled at physical retail stores
• Warehouse/DC-based fulfillment locations - orders are fulfilled at warehouses/DCs
• Integrated/Multi-channel DCs. Filling ecommerce, store, and wholesale replenishment orders
from a single distribution center
• Dedicated/Single-channel DCs. Running separate fulfillment facilities for stores, wholesale, and
on-line customers.
• Third-party DCs: Shipping consolidators & Online marketplace. Fulfilling ecommerce, store,
and/or wholesale replenishment orders from outsourced third-party DCs

17. Multi-echelon Network with Dynamic Flows
Non Traditional
Supply Chain Flows

19. Demand and Supply
Defining and Mapping POIs, POFs, and PORs
Points of Interaction (POIs) Points of Fulfillment (POFs)
Own Stores
Own Web
Kiosk
Catalog
Sales Rep
Outlet Store
Channel Web
Main DCs
Regional DC
Vendor Drop Ship
Own Stores
Vending Machine
Own E-Commerce DCs
Mobile
Dark Store
Wholesaler
Channel Store 3PL E-Commerce DCs
A critical early step in the Omnichannel journey is to first identify
current or planned Points of Interaction and Point of Fulfillment and
Point of Return.
Source: SCDigest

20. eCommerce Enablement and Optimization
Source: SCDigest

21. Defining and Mapping POIs & POFs
Points of Interaction (POIs) Points of Fulfillment (POFs)
Own Stores
Own Web
Kiosk
Phone
Sales Rep
Outlet Store
Channel Web
Main DCs
Regional DC
Vendor Drop Ship
Own Stores
Mobile
Wholesaler
Channel Store

22. 2
Sustainability Is…..
• A change in mindset and the way you
do business and not just a new
program or two.
• Very unique to every company and
therefore, there is no one-sized-fits-
all approach.

23. population X consumption ≠

24. Source: United Nations

25. On a finite planet, should consumers have a
choice about sustainable products
Or should all choices be sustainable?

27. “Millennials: The Challenger Generation”
48% of Millennials agree with this
statement:
“The things I consume have more
power to change things than the
people I vote for.”