Transformation of traditional retailer in the era of New Retail

The report summarized 5 major trends in Omni-channel Retail:

  • Rise of cross channel multi-business enterprise: Enterprises are becoming multi-channel retailers to fulfill customer demand for diversification in retail services and channels.
  • High expectation for services: Growing consumer high quality of consumer services, efficient order deliver and personalized product and services.
  • Increasing inventory conflicts: Shortage of stock is the major roadblock in omni-channel retail revenue generation.
  • Intensification & sharing of logistics operation: Logistics industry is developing in the direction of increased scale, intensification and refined operation. The future of supply chain management will revolve around operational capacity and value chain control.
  • Supply chain transformation driven by data analysis: Data has never been this important; end to end data collection and consolidation lies the foundation of omni- channel retail.

Deloitte believes that in the new retail transformation process, the supply chain will play a key role in the following areas:

  • Omni-channel supply chain: Brands need to consider customer segmentation and segment - specific service target, and establish a supply chain operation that will “connect with customers” and “serve customers”.
  • Forecast and coordination plan: To adapt to the highly volatile market demand, brands should focus on supply chain planning with improvement on cross function coordination, accuracy of forecast and the flexibility to respond to change.
  • Omni-channel order delivery: Cross-channel delivery requires connectivity between the ordering and stock system; supply chain capacity needs to support “increasing number of batches with decreased volume per batch”.
  • Smart manufacturing: Brands need to use digital and intelligent means to enhance the manufacturing process and efficiency to establish product customization capacity and gain competitive advantage.
  • Inventory planning and arrangement: Plan and control the pace of purchase and delivery; data traceability, analytical capacity and supply chain execution capability are the foundation of agile inventory model.
  • Warehouse and logistics management: Warehousing and logistics departments should focus on providing added value services; Implementation of appropriate logistics outsourcing strategy will help to reduce the cost and enhance management efficiency.
  • Supply chain framework and data analysis: Enterprises need a system that integrate well with upstream and downstream partners, enhanced data management practice and responsive IT capacity.
(English version)
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