How to optimize the omnichannel supply chain network?

Optimizing the supply chain network in support of an omnichannel approach requires the following steps:


Integrate inventory across channels and in transit


This requires significant technology investment and may also require a review of the existing inventory allocation and ownership model.


Design a flexible and dynamic distribution network


Can existing storage and processing capacity be translated into a virtual network? Can this be managed and reallocated based on demand? Are suppliers and logistics providers appropriately aligned with flexible, dynamic contract terms?


Expand the utilization of physical assets in support of the omnichannel strategy


Could stores, warehouses, and distribution centers serve a greater role in direct-to-consumer fulfillment (in some or all locations, and possibly with phased introduction)? Is it possible to segment and evaluate fulfillment options based on product characteristics such as value, volume, seasonality, service requirements, and margin?


Consider innovative last-mile delivery options


Do last-mile capabilities complement the product portfolio and omni-channel customer expectations? Companies must model the preferred delivery options for cost impact to select the right approach. Would it be better to develop in-house delivery centers or outsource to service providers?

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