WHITE PAPER #3
Omnichannel
supply chain
Crafting seamless
customer journeys
Omnichannel strategies represent a growing opportunity for companies to seamlessly integrate various channels, both digital and physical, and create a unified and cohesive customer experience.
From personalised shopping experiences, driven by data on customer preferences and behaviors, to optimisation of distribution networks, omnichannel strategies have the power to significantly enhance customer satisfaction. This, in turn, often translates into increased sales and customer loyalty.
Unsurprisingly, e-commerce accounted for 14% of total retail in 2019, increased to 19% in 2022 and is likely to reach 25% by 2027. As e-commerce continues to grow rapidly, companies must quickly solve their supply chain challenges, particularly related to inventory management to avoid stockouts, overstocking and offer seamless product returns and exchanges.
At FM Logistic, we are inspired by consumers for customers. We leverage prevailing consumer trends when collaborating with our customers on supply chain models. This report is a testament to this commitment. Here, we delve deeply into the opportunities and challenges of omnichannel and explore how companies can extract value for their consumers via their supply chain.
To give a comprehensive perspective of the omnichannel supply chain model across various markets, we surveyed logistics professionals from diverse sectors – FMCG, retail, beauty and luxury – stationed in France, Poland, and India. Our objective was to understand how organisations managing omnichannel sales (both online and offline), harness the power of omnichannel logistics. We are particularly interested in:
- the current e-commerce market and its share in terms of retail volume
- the extent to which companies have progressed in fully integrating their omnichannel supply chains for both e-commerce and offline sales
- the factors influencing the adoption of omnichannel supply chain
- the primary omnichannel challenges faced by companies while implementing omnichannel logistics
- the reasons why companies choose to outsource to a 3PL for their omnichannel supply chain needs and their expectations. ◆
EXECUTIVE SUMMARY
Insights into five critical facets of omnichannel supply chain driving forces
Traditional sales (offline) dominate but e-commerce is on a fast track
Traditional or offline sales continue to hold the lion’s share of the total retail volume of most businesses, indicating that brick-and-mortar retail remains the backbone of the retail industry amid the increasing popularity of e-commerce.
Jump to Key Insight #01
Fully integrated omnichannel supply chain is the future
The trend towards supply chain integration is likely to continue as companies embrace digital technologies, prioritise customer-centric approaches, and seek operational efficiencies to stay competitive.
Jump to Key Insight #02
High logistics costs and shortage of stock are key factors driving omnichannel adoption
By eliminating silos in the distribution process, omnichannel supply chain comes to retailers’ rescue as it can help them reduce logistics costs and shortage of stock.
Jump to Key Insight #03
Hiring and training the top challenges in omnichannel logistics
While an omnichannel supply chain undoubtedly offers many benefits as compared with partially integrated or siloed supply chains, companies are wary of the challenges they could encounter when transforming their supply chains.
Jump to Key Insight #04
Most retailers seek 3PL help for omnichannel implementation
Businesses are likely to transition to an omnichannel supply chain in less than two years. This transition is anticipated to be quick as companies strive for a first-mover advantage in a dynamic space. While transitioning to an omnichannel logistics, retailers will likely seek help from external support/3PL service providers.
Jump to Key Insight #05
Omnichannel strategies represent a growing opportunity for companies to seamlessly integrate various channels, both digital and physical, and create a unified and cohesive customer experience.
From personalised shopping experiences, driven by data on customer preferences and behaviors, to optimisation of distribution networks, omnichannel strategies have the power to significantly enhance customer satisfaction. This, in turn, often translates into increased sales and customer loyalty.
Unsurprisingly, e-commerce accounted for 14% of total retail in 2019, increased to 19% in 2022 and is likely to reach 25% by 2027. As e-commerce continues to grow rapidly, companies must quickly solve their supply chain challenges, particularly related to inventory management to avoid stockouts, overstocking and offer seamless product returns and exchanges.
At FM Logistic, we are inspired by consumers for customers. We leverage prevailing consumer trends when collaborating with our customers on supply chain models. This report is a testament to this commitment. Here, we delve deeply into the opportunities and challenges of omnichannel and explore how companies can extract value for their consumers via their supply chain.
To give a comprehensive perspective of the omnichannel supply chain model across various markets, we surveyed logistics professionals from diverse sectors – FMCG, retail, beauty and luxury – stationed in France, Poland, and India. Our objective was to understand how organisations managing omnichannel sales (both online and offline), harness the power of omnichannel logistics. We are particularly interested in:
- the current e-commerce market and its share in terms of retail volume
- the extent to which companies have progressed in fully integrating their omnichannel supply chains for both e-commerce and offline sales
- the factors influencing the adoption of omnichannel supply chain
- the primary omnichannel challenges faced by companies while implementing omnichannel logistics
- the reasons why companies choose to outsource to a 3PL for their omnichannel supply chain needs and their expectations. ◆
So, where do businesses currently stand in their omnichannel trajectory, and what’s their projected path ahead ?
EXECUTIVE SUMMARY
Insights into five critical facets of omnichannel supply chain driving forces
Traditional sales (offline) dominate but e-commerce is on a fast track
Traditional or offline sales continue to hold the lion’s share of the total retail volume of most businesses, indicating that brick-and-mortar retail remains the backbone of the retail industry amid the increasing popularity of e-commerce.
Jump to Key Insight #01
Fully integrated omnichannel supply chain is the future
The trend towards supply chain integration is likely to continue as companies embrace digital technologies, prioritise customer-centric approaches, and seek operational efficiencies to stay competitive.
Jump to Key Insight #02
High logistics costs and shortage of stock are key factors driving omnichannel adoption
By eliminating silos in the distribution process, omnichannel supply chain comes to retailers’ rescue as it can help them reduce logistics costs and shortage of stock.
Jump to Key Insight #03
Hiring and training the top challenges in omnichannel logistics
While an omnichannel supply chain undoubtedly offers many benefits as compared with partially integrated or siloed supply chains, companies are wary of the challenges they could encounter when transforming their supply chains.
Jump to Key Insight #04
Most retailers seek 3PL help for omnichannel implementation
Businesses are likely to transition to an omnichannel supply chain in less than two years. This transition is anticipated to be quick as companies strive for a first-mover advantage in a dynamic space. While transitioning to an omnichannel logistics, retailers will likely seek help from external support/3PL service providers.
Jump to Key Insight #05
Traditional sales (offline) dominate but e-com is on a fast track
Traditional or offline sales continue to hold the lion’s share of the total retail volume of most businesses, indicating that brick-and-mortar retail remains the backbone of the retail industry amid the increasing popularity of e-commerce.
While traditional stores remain the predominant revenue channel, e-commerce orders have gained significant momentum since the onset of the Covid-19 pandemic. Even as the pandemic started easing, this preference has become ingrained in people’s shopping habits and prevails today.
According to our survey, 87% of companies have witnessed an increase in their e-commerce orders since the start of the pandemic.
Apart from the pandemic, multiple pick-up and delivery options such as same-day delivery, rising internet penetration, and the growing number of smartphone users have driven the growth of e-commerce orders over the past three years. The variety of delivery options has played a key role in the growth of e-commerce, where delivery methods such as click and collect or curb-side pick-up have become increasingly popular, as they allow consumers to avoid queues and collect orders at their convenience.
Additionally, the period between 2019 and 2022 witnessed an exceptional increase of ~1 billion in the number of smartphone users across the globe. This is due to factors such as rising disposable income, availability of good-quality affordable smartphones, expansion of 4G and 5G networks by operators, increasing adoption of smartphones during the Covid-19 pandemic for online purchase, content consumption, and staying connected with friends and family through audio/video calls. ◆
We have seen a lot of growth in online sales in the last 2-3 years. Our penetration into a large number of smaller cities and towns has definitely given a boost to e-commerce orders. Earlier, retailers did not have much of a presence in tier-2 and tier-3 cities, but with expansion into these pin codes, especially those in remote, interior areas, the order flow has started to increase. So, I would say, logistic outreach has given a boost to e-commerce business.
Fully integrated omnichannel supply chain is the future
The trend towards supply chain integration is likely to continue as companies embrace digital technologies, prioritise customer-centric approaches, and seek operational efficiencies to stay competitive.
Rising proliferation of e-commerce has increased the importance of omnichannel logistics owing to its numerous benefits. An integrated supply chain can allow companies to streamline their operations, reduce redundancies, and optimise the flow of goods from suppliers to end customers. This efficiency can lead to cost savings and better use of resources. Companies can optimise their inventory levels and avoid overstocking or stockouts, by combining omnichannel distribution. This helps in reducing online and offline carrying costs and ensuring products are available when needed. Companies can also respond more quickly to changes in demand, supply disruptions, or market shifts. They can adjust production and distribution processes to meet changing customer needs and market conditions. An integrated supply chain can also help companies leverage economies of scale by consolidating all aspects of the supply chain from production, warehousing, and distribution activities, leading to cost advantages.
No aspects of the supply chain are currently fully integrated as per our survey results. Still, organisations are likely to increase the level of full integration with the “Planning” aspect to be entirely integrated.
As companies embrace digital transformation and adopt advanced technologies, integrating B2B and B2C operations becomes a more feasible and strategic approach. Advanced supply chain management software and data analytics tools facilitate this integration and collaboration. ◆
High costs and shortage of stock drive omnichannel adoption
What are the specific challenges in logistics that motivate businesses to embrace omnichannel supply chain today? Let us take a look at the most pressing ones.
Omnichannel supply chain comes to retailers’ rescue as it can help them reduce logistics costs and operational expenses by eliminating silos in the distribution process. This concept can be illustrated with a straightforward example of a retailer using an omnichannel supply chain. In this setup, both the retailer’s warehouse, responsible for fulfilling online orders, and its physical brick-and-mortar stores have access to identical information about each customer’s specific order. This integrated approach enables the retailer to determine the most cost-effective and efficient channel for order fulfilment, optimising the overall process.
Our survey confirms that 46% of companies said that high logistics costs influenced their decision to adopt an omnichannel supply chain. Apart from high logistics costs, ‘shortage of inventory/out-of-stock instances’ is another key challenge that has facilitated the adoption of an omnichannel supply chain model, for 46% of respondents in our survey.
In an omnichannel environment, retailers can fulfil customer orders from any channel, helping them reduce/minimise the instances of product shortage, thereby improve the customer experience. ◆
For us, inventory assortment, be it in a dark store or a store closer to the market, is one of the most significant factors in adopting an omnichannel supply chain. If you have 500 or 1,000 SKUs on your website, you can’t replicate the entire assortment of 1,000 items into all the stores or at all the distribution points. The number of SKUs you can service from the omnichannel or a physical store comes at a cost. This is the major challenge that pushes us to opt for an omnichannel supply chain, as it has helped us minimise out-of-stock instances, as well as reduce our turnaround time.
Omnichannel supply chain comes to retailers’ rescue as it can help them reduce logistics costs and operational expenses by eliminating silos in the distribution process. This concept can be illustrated with a straightforward example of a retailer using an omnichannel supply chain. In this setup, both the retailer’s warehouse, responsible for fulfilling online orders, and its physical brick-and-mortar stores have access to identical information about each customer’s specific order. This integrated approach enables the retailer to determine the most cost-effective and efficient channel for order fulfilment, optimising the overall process.
Our survey confirms that 46% of companies said that high logistics costs influenced their decision to adopt an omnichannel supply chain. Apart from high logistics costs, ‘shortage of inventory/out-of-stock instances’ is another key challenge that has facilitated the adoption of an omnichannel supply chain model, for 46% of respondents in our survey.
In an omnichannel environment, retailers can fulfil customer orders from any channel, helping them reduce/minimise the instances of product shortage, thereby improve the customer experience. ◆
For us, inventory assortment, be it in a dark store or a store closer to the market, is one of the most significant factors in adopting an omnichannel supply chain. If you have 500 or 1,000 SKUs on your website, you can’t replicate the entire assortment of 1,000 items into all the stores or at all the distribution points. The number of SKUs you can service from the omnichannel or a physical store comes at a cost. This is the major challenge that pushes us to opt for an omnichannel supply chain, as it has helped us minimise out-of-stock instances, as well as reduce our turnaround time.
KEY BENEFITS
OF OMNICHANNEL LOGISTICS
Retailers can benefit from an omnichannel supply chain in a multitude of ways such as improved customer experience, enhanced inventory management, increased operational efficiency and competitive advantage.
Improved customer experience
With omnichannel logistics, retailers can ensure customers receive consistent information, can track orders, and enjoy seamless delivery and returns. Per our survey, 62% of companies believe that an omnichannel supply chain helps improve customer experience through faster delivery.
Enhanced inventory management
Omnichannel logistics provides real-time inventory visibility, optimised stock levels, accurate demand forecasting and planning, and inventory centralisation in strategic locations, thereby enabling enhanced inventory management. In our survey, 60% of companies stated that an omnichannel supply chain ensures efficient stock management.
Increased operational efficiency
Companies can improve operational efficiency through inventory optimisation, flexibility in order fulfilment and enhanced resource utilisation. According to our survey, 48% of companies believe an omnichannel supply chain results in seamless order preparation and delivery.
Competitive advantage
In an omnichannel environment, businesses can gain a competitive advantage through increased sales and revenue, data-driven insights and satisfied customers. Per our survey, 44% of companies believe that omnichannel logistics provide access to all customer data on a single platform.
I think that the main benefit of an omnichannel supply chain is that it helps you to improve customer experience as you can merge your stock available at different channels and deliver the product from different channels. The customer can buy the product from anywhere, online or in a store, and brands or retailers can easily check product availability and fulfil customer orders more efficiently. As customers, you can always find a product, and as brands, you can have improved visibility into the inventory.
What are the keys to successfully implementing an omnichannel supply chain?
Most logistics players have already taken a real step forward by integrating innovative hardware like robotics and picking tools. But to truly establish an efficient omnichannel supply chain, companies must have a seamless convergence of IT and data collection systems with their clients. This has become essential to foster an intelligent and interconnected logistics model while avoiding silos that affect operational efficiency. This is the only way to take products from the producer to the warehouse and ultimately into the hands of the end customer, whether in a physical store, a click-and-collect point or at home. On their side, companies need to understand the budget involved in omnichannel logistics projects, and to become more mature on the subject.
“To truly establish an efficient omnichannel supply chain, logistics players must have a seamless convergence of IT and data collection systems with their clients”
What are the benefits of omnichannel logistics for customers?
First and foremost, an omnichannel supply chain meets the end customer’s expectations by delivering the right product, to the right place, at the right time. It allows to respond to customer centricity and provide the product anywhere, regardless of where it is purchased: at home, in a shop, at a delivery point, etc. The possibilities are boundless. This enhanced efficiency will translate into higher sales, enabling businesses to grow their market share. Companies will also be able to reduce their costs, thanks to better real-time stock control and greater responsiveness in terms of product rotation. Embracing an omnichannel supply chain is a strategic move for companies, with significant potential gains and a virtuous circle of growth.
How do you see the future of the omnichannel supply chain?
AI and data will allow considerable progress in omnichannel supply chains, enabling more precision and efficiency. Predictive analytics allow the proactive planning of supply chain flows in line with evolving customer expectations.
Growing awareness of the carbon footprint of specific logistics models is another element contributing to the growth of omnichannel logistics. Amazon is a prime example: it has undeniably pioneered mass distribution and computerised logistics. However, this model is increasingly facing constraints due to its substantial environmental impact and a decline in product quality.
In this dynamic landscape, companies like FM Logistic are well-positioned to help their customers navigate the complexities of building a sustainable and efficient omnichannel supply chain. FM Logistic has developed a robust foundation with excellent IT solutions and warehouse processes such as unit picking and multi-customer warehouses, which maximise space utilisation, means, resources and cost-effectiveness. Additionally, they have equipped their sites with solar panels and fuel cells, reducing their carbon footprint. FM Logistic is committed to sustainability and accountability, which makes all the difference to responsible customers. ◆
Three questions to Stéphane Rauber
What are the keys to successfully implementing an omnichannel supply chain?
Most logistics players have already taken a real step forward by integrating innovative hardware like robotics and picking tools. But to truly establish an efficient omnichannel supply chain, companies must have a seamless convergence of IT and data collection systems with their clients. This has become essential to foster an intelligent and interconnected logistics model while avoiding silos that affect operational efficiency. This is the only way to take products from the producer to the warehouse and ultimately into the hands of the end customer, whether in a physical store, a click-and-collect point or at home. On their side, companies need to understand the budget involved in omnichannel logistics projects, and to become more mature on the subject.
“To truly establish an efficient omnichannel supply chain, logistics players must have a seamless convergence of IT and data collection systems with their clients”
What are the benefits of omnichannel logistics for customers?
First and foremost, an omnichannel supply chain meets the end customer’s expectations by delivering the right product, to the right place, at the right time. It allows to respond to customer centricity and provide the product anywhere, regardless of where it is purchased: at home, in a shop, at a delivery point, etc. The possibilities are boundless. This enhanced efficiency will translate into higher sales, enabling businesses to grow their market share. Companies will also be able to reduce their costs, thanks to better real-time stock control and greater responsiveness in terms of product rotation. Embracing an omnichannel supply chain is a strategic move for companies, with significant potential gains and a virtuous circle of growth.
How do you see the future of the omnichannel supply chain?
AI and data will allow considerable progress in omnichannel supply chains, enabling more precision and efficiency. Predictive analytics allow the proactive planning of supply chain flows in line with evolving customer expectations.
Growing awareness of the carbon footprint of specific logistics models is another element contributing to the growth of omnichannel logistics. Amazon is a prime example: it has undeniably pioneered mass distribution and computerised logistics. However, this model is increasingly facing constraints due to its substantial environmental impact and a decline in product quality.
In this dynamic landscape, companies like FM Logistic are well-positioned to help their customers navigate the complexities of building a sustainable and efficient omnichannel supply chain. FM Logistic has developed a robust foundation with excellent IT solutions and warehouse processes such as unit picking and multi-customer warehouses, which maximise space utilisation, means, resources and cost-effectiveness. Additionally, they have equipped their sites with solar panels and fuel cells, reducing their carbon footprint. FM Logistic is committed to sustainability and accountability, which makes all the difference to responsible customers. ◆
Hiring and training talent as top challenges in omnichannel logistics
While an omnichannel supply chain undoubtedly offers many benefits as compared with partially integrated or siloed supply chains, companies are wary of the challenges they could encounter when transforming their supply chains. Let’s look at the key challenges that retailers face or anticipate to face during the adoption of an omnichannel supply chain.
Talent hiring and training
Amid an urgent need for professionals with the required analytical, technical and supply chain management skills to develop and manage an omnichannel supply chain, several organisations struggle to hire and train a workforce with such diversified skills.
Data management and analytics
The complexity and volume of data generated from multiple sources, such as online and offline sales channels in an omnichannel environment, result in challenges concerning data integration, data quality and real-time data processing for companies.
Fulfilment optimisation
The need for efficient inventory management, streamlined order processing and coordinated fulfilment across multiple channels such as online, mobile, and physical stores make optimised order fulfilment a challenge in implementing omnichannel logistics.
Technology integration
Integrating various technologies to create a seamless and efficient system remains a key challenge as companies face difficulties in adapting their legacy systems to the complexities involved in omnichannel logistics.
Omnichannel distribution and last mile delivery
Complications about inventory management, the need to achieve a certain delivery speed and flexibility and ensuring efficient returns and reverse logistics are some aspects that companies find challenging in omnichannel distribution and last mile delivery.
Most retailers seek 3PL help for omnichannel implementation
In the complex real world of omnichannel supply chain implementation, seeking a reliable 3PL provider can be a Game-Changing strategic move.
Businesses are likely to transition to an omnichannel supply chain in less than two years.
This transition is anticipated to be quick as companies strive for a first-mover advantage in a dynamic space. Almost half of the companies intending to adopt an omnichannel supply chain aim to do so in the next six months to two years, according to our survey. While transitioning to an omnichannel logistics, retailers will likely seek help from external support/3PL service providers.
Considering the solid expertise of external service providers in setting up seamless and robust supply chain networks, most organisations engage with such providers to help them tackle the challenges faced during their transition to an omnichannel supply chain. When adopting an omnichannel supply chain, organisations face three significant challenges that drive them to seek 3PL support: IT integration, operations execution, and data synchronisation. These obstacles often require the expertise and resources that 3PL providers can offer to ensure a seamless and efficient omnichannel strategy.
On the other hand, retailers have high expectations for improvement in three key areas of implementing their omnichannel supply chain with the help of a 3PL: delivery efficiency, IT integration, and customer experience. By leveraging the capabilities of 3PL partners, retailers aim to enhance the speed and accuracy of deliveries, streamline IT systems to foster better coordination, and ultimately create a superior customer experience across all channels. Collaborating with 3PL providers is becoming crucial in overcoming challenges and succeeding in the ever-evolving world of omnichannel retail. ◆
Strategies for successful
implementation of omnichannel logistics
A solid omnichannel logistics environment is not a matter of chance but requires strategic planning and a proven approach backed by several best practices to avoid possible failures. Let us explore some strategies and best practices that organisations can leverage to establish efficient omnichannel logistics.
Integrated technology solutions
For seamless omnichannel logistics, organisations must adopt integrated technology, which blurs the boundaries between offline and online retail environments and facilitates real-time exchange of customer information across different purchase channels. It is advisable to invest in an integrated technology platform that can handle order management, inventory management and customer data; and is scalable and flexible to accommodate future growth and meeting customer expectations.
Inventory visibility and demand forecasting
Ensuring efficient omnichannel logistics requires optimised inventory accurate and demand forecasting. Organisations can achieve this by using real-time inventory tracking and automated systems to update inventory levels as soon as an order is placed or fulfilled. This helps prevent stockouts and overstock situations, ensuring products are available when and where customers want them.
Fulfilment flexibility
Retailers cannot risk a sub-optimal customer experience throughout the purchase process. They must offer multiple fulfilment options, such as ship-from-store, buy-online-pick-up-in-store (BOPIS), and same-day delivery. Providing customers with flexibility enhances their shopping experience and increases satisfaction.
Scalable and agile infrastructure
Retailers with an agile and scalable supply chain with respect to order processing, warehouse and last mile delivery are better equipped to meet customer demands effectively. Cloud computing, scalable transportation, flexible fulfilment methods and warehouse automation are some of the ways that ensure a scalable and agile omnichannel logistics infrastructure.
Sustainability and green logistics
As more shoppers adopt sustainable lifestyles, they expect companies to adopt environmentally-friendly logistics processes and operations. Consumers specifically expect companies to focus on sustainable and green logistics to reduce waste production. Companies can consider using sustainable packaging materials, generating green energy on site and adopting greener vehicles for last-mile deliveries to optimise the supply chain as part of a responsible energy transition policy.
Collaborative partnerships
The shift to omnichannel logistics has made collaboration necessary between all the stakeholders in a supply chain, such as manufacturers, suppliers, distributors, retailers, e-commerce platforms, logistics service providers, and technology companies. By working together and sharing resources, information and expertise, the various players can streamline the distribution process, reduce costs, and improve efficiency
Key aspects of collaborative partnerships in an omnichannel logistics
What does the future hold with AI?
The future of predictive analytics and AI in the omnichannel supply chain holds tremendous promise for seamless coordination and enhanced customer experiences. With the proliferation of data sources from various channels, AI-powered predictive analytics will evolve to provide real-time insights into consumer behaviours, preferences, and demand fluctuations. These insights will enable supply chains not only to anticipate shifts but also to dynamically adjust inventory levels and distribution strategies across multiple channels. The convergence of AI and big data will pave the way for holistic demand forecasting, optimised stock allocation, and efficient resource management. This synergy will empower retailers to offer personalised experiences while minimising stockouts and excess inventory. As AI continues to learn and adapt, the omnichannel supply chain of the future will thrive on data accuracy, agility, and the ability to harmonise diverse channels into a cohesive, responsive ecosystem.
Changing solutions for
the next-generation of supply chain
The landscape of omnichannel supply chain solutions is constantly evolving, driven by the ever-changing business environment and dynamic consumer needs. As technology advances and new trends emerge, businesses need to remain adaptable and agile to stay competitive. Embracing innovation and data-driven strategies is becoming essential to create a seamless and integrated customer experience across multiple channels. Companies that successfully navigate and embrace this evolving landscape will gain a significant advantage in meeting customer expectations, optimising operational efficiency, and ultimately achieving long-term success in the omnichannel marketplace. The journey towards refining and perfecting omnichannel supply chain solutions is a continuous one, requiring ongoing dedication and commitment from businesses seeking to thrive in today’s rapidly changing business landscape. ◆
What does the future hold with AI?
The future of predictive analytics and AI in the omnichannel supply chain holds tremendous promise for seamless coordination and enhanced customer experiences. With the proliferation of data sources from various channels, AI-powered predictive analytics will evolve to provide real-time insights into consumer behaviours, preferences, and demand fluctuations. These insights will enable supply chains not only to anticipate shifts but also to dynamically adjust inventory levels and distribution strategies across multiple channels. The convergence of AI and big data will pave the way for holistic demand forecasting, optimised stock allocation, and efficient resource management. This synergy will empower retailers to offer personalised experiences while minimising stockouts and excess inventory. As AI continues to learn and adapt, the omnichannel supply chain of the future will thrive on data accuracy, agility, and the ability to harmonise diverse channels into a cohesive, responsive ecosystem.
Changing solutions for
the next-generation of supply chain
The landscape of omnichannel supply chain solutions is constantly evolving, driven by the ever-changing business environment and dynamic consumer needs. As technology advances and new trends emerge, businesses need to remain adaptable and agile to stay competitive. Embracing innovation and data-driven strategies is becoming essential to create a seamless and integrated customer experience across multiple channels. Companies that successfully navigate and embrace this evolving landscape will gain a significant advantage in meeting customer expectations, optimising operational efficiency, and ultimately achieving long-term success in the omnichannel marketplace. The journey towards refining and perfecting omnichannel supply chain solutions is a continuous one, requiring ongoing dedication and commitment from businesses seeking to thrive in today’s rapidly changing business landscape. ◆
Where do your clients currently stand in their omnichannel trajectory?
The impact of COVID-19 has been a catalyst for e-commerce, hence the adoption of omnichannel supply chains. As of today, most of our customers have embraced omnichannel in the retail sector, but it is still more nuanced among the fast-moving consumer goods (FMCG) industry, as some companies wonder about e-commerce as a complementary distribution channel they could directly develop and operate.
“Before proposing an omnichannel solution, we always start by exchanging with our customers to identify their specific needs”
How do you support your customers willing to deploy an omnichannel supply chain?
Before suggesting an omnichannel solution, we always start by exchanging with our customers to identify their specific needs and understand their future challenges. This step allows us to design tailored solutions in close collaboration with our customers.
It is important to note that supply chain strategies vary from one customer to another. Some opt for consolidated omnichannel warehouses where various distribution channels converge; others maintain distinct warehouses and logistics operations for each distribution channel (B2B and e-commerce).
Our objective is to create hubs in strategic locations in order to develop omnichannel multi-customer sites allowing pooling solutions for transport. We are able to provide a fully integrated solution from identifying suitable lands to constructing the warehouse, operating omnichannels and multi brands or multi clients logistics operations and ultimately delivering it to the end customer through pooling transportation. Our customers have everything to gain from a single multi-channel, multi-customer warehouse: scalability, resources and transport optimisation, shared pack centres etc…
“Our customers have everything to gain from a single multi-channel, multi-customer warehouse: scalability, resources and transport optimisation, shared pack centres etc…”
Developing an omnichannel, multi-customer hub is a long process that takes several years to prepare. It involves a significant budget, but this is an investment for the future. Our customers need to harbour a long-term vision (over six to ten years) to fully realise the transformative potential of this groundbreaking logistics model. We want to stand as a guiding force in the evolution of our customers’ supply chain operations, championing a shared, multi-customer warehousing approach that unlocks efficiency, cost savings, and future-ready logistics capabilities. ◆
Key insights from Béatrice Ogée
Where do your clients currently stand in their omnichannel trajectory?
The impact of COVID-19 has been a catalyst for e-commerce, hence the adoption of omnichannel supply chains. As of today, most of our customers have embraced omnichannel in the retail sector, but it is still more nuanced among the fast-moving consumer goods (FMCG) industry, as some companies wonder about e-commerce as a complementary distribution channel they could directly develop and operate.
“Before proposing an omnichannel solution, we always start by exchanging with our customers to identify their specific needs”
How do you support your customers willing to deploy an omnichannel supply chain?
Before suggesting an omnichannel solution, we always start by exchanging with our customers to identify their specific needs and understand their future challenges. This step allows us to design tailored solutions in close collaboration with our customers.
It is important to note that supply chain strategies vary from one customer to another. Some opt for consolidated omnichannel warehouses where various distribution channels converge; others maintain distinct warehouses and logistics operations for each distribution channel (B2B and e-commerce).
Our objective is to create hubs in strategic locations in order to develop omnichannel multi-customer sites allowing pooling solutions for transport. We are able to provide a fully integrated solution from identifying suitable lands to constructing the warehouse, operating omnichannels and multi brands or multi clients logistics operations and ultimately delivering it to the end customer through pooling transportation. Our customers have everything to gain from a single multi-channel, multi-customer warehouse: scalability, resources and transport optimisation, shared pack centres etc…
“Our customers have everything to gain from a single multi-channel, multi-customer warehouse: scalability, resources and transport optimisation, shared pack centres etc…”
Developing an omnichannel, multi-customer hub is a long process that takes several years to prepare. It involves a significant budget, but this is an investment for the future. Our customers need to harbour a long-term vision (over six to ten years) to fully realise the transformative potential of this groundbreaking logistics model. We want to stand as a guiding force in the evolution of our customers’ supply chain operations, championing a shared, multi-customer warehousing approach that unlocks efficiency, cost savings, and future-ready logistics capabilities. ◆
We have deployed an integrated research methodology combining desk research, quantitative surveys and in-depth expert discussions to gather the required insights and develop a detailed report. We conducted a survey with 105 respondents across three sectors – Consumer goods (36); retail (49); and beauty and luxury (20). The respondents were based in France (36), Poland (32) and India (37).
The survey respondents include professionals from organisations involved in both direct to consumers e-commerce and traditional sales channels.
The study has been conducted by Phronesis Partners, an independent company. The participants’ identity is confidential and cannot be disclosed.
Disclaimer: While some of the facts and figures presented in the report may appear to be more or less optimistic than the actual scenario, they are strictly based on the survey results and the findings gathered from desk research and expert discussions. ◆
Our guiding principles
for a Supply Change
“Make responsible
consumption
possible for all.”
Thanks to
Béatrice Ogée
Vanessa Baille
Joanna Vitetta
Stéphane Rauber
Philipp Auerbach
Hamza Harti
Eric Duboille
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