HomePublicationsInsightsFirst Thoughts on Omni-Channel

First Thoughts on Omni-Channel

Faced with the rapid evolution of technologies related to research methods and retail purchases, the possibility for consumers to move between different channels of a company is no longer a differential and has become a requirement. With the increase in search functionality and purchase solutions, a consumer culture emerges in the customer that requires integration between existing platforms, in order to optimize the search and purchase process. In a didactic way, some authors suggest that the intersection between Retail, Technology and Culture gave rise to the so-called Omni-channel.

omni-channel funnel

Figure 1 – Omni-channel Components

Source: ILOS

 

It should be noted the difference between Multi-channel companies and Omni-channel companies. Companies that have several channels (websites, applications, physical stores, etc.), but do not allow the customer to migrate and move freely through the channels in a fluid and integrated way, cannot be called Omni-channel, only Multi-channel.

Omni-channel, in addition to representing a great advance in the purchase process, allowing, for example, a customer to buy a product online and exchange it in the physical store, it is also a great opportunity for the company to personalize the service for each customer, promoting rapprochement.

With the interconnections mentioned above working consistently, it is possible to create new experiences in moments before, during and after the purchase. For example: allowing the customer to set “preferences for later” on websites and applications, such as payment methods, delivery addresses, product categories of greatest interest; customizing options; saving past purchases and defining favorite products for future purchases; among others. In this way, the company can interact with the customer, offering more product options in a more targeted way. Ultimately, it is the brand's opportunity to ensure that the customer's first interaction with the company becomes a habit.

Still on this interconnection, one should analyze the change in the role of physical stores in the current scenario. It is very common nowadays for consumers to look for information or test a product in the store and simultaneously search on their mobile device to find out more about offers and try to find more attractive prices for a later online purchase. This phenomenon, known as showrooming, has brought up the debate regarding the direction that physical retailers should take.

With regard to the logistics operation, it is already being discussed that the stores would start to perform the functions of DCs, as they would be responsible for delivering products to the customers closest to the store, increasing delivery efficiency. At a time when Factories, Distribution Centers and Stores have to perform other functions, a much greater complexity arises with regard to the operation and database of inventories.

Based on this, let us have the following reflections:

  • Are companies prepared to deal with all these flows of goods of different profiles, consolidated and fractioned, for DCs, stores and individuals?
  • Could it be that Brazil, with all its tax situation and its logistical transport difficulties, due to the precarious conditions of its railway and road networks, has the potential to advance, at the pace that consumers want, towards the Omni-channel?

 

References

<http://www.ey.com/Publication/vwLUAssets/EY-re-engineering-the-supply-chain-for-the-omni-channel-of-tomorrow/$FILE/EY-re-engineering-the-supply-chain-for-the-omni-channel-of-tomorrow.pdf>

<https://www2.deloitte.com/content/dam/Deloitte/se/Documents/technology/Omni-channel-2015.pdf>

Sign up and receive exclusive content and market updates

Stay informed about the latest trends and technologies in Logistics and Supply Chain

Rio de Janeiro

TV. do Ouvidor, 5, sl 1301
Centro, Rio de Janeiro - RJ
ZIP CODE: 20040-040
Phone: (21) 3445.3000

São Paulo

Alameda Santos, 200 – CJ 102
Cerqueira Cesar, Sao Paulo – SP
ZIP CODE: 01419-002
Phone: (11) 3847.1909

CNPJ: 07.639.095/0001-37 | Corporate name: ILOS/LGSC – INSTITUTO DE LOGISTICA E SUPPLY CHAIN ​​LTDA

© All rights reserved by ILOS – Developed by Design C22