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.