A4 Flashcards
What is the key difference between multi-channel (MC) and omni-channel (OC) retail logistics?
MC logistics operate separate channels (online and in-store) independently
OC logistics integrate all channels into a seamless system for fulfillment and inventory management.
Why is inventory integration important in omni-channel logistics?
It enables flexible and demand-driven inventory allocation, reduces stock redundancy, and improves order fulfillment efficiency.
Example: A retailer with integrated inventory can fulfill an online order from a nearby store instead of a warehouse, reducing shipping time and costs.
How do picking processes evolve from MC to OC logistics?
In MC logistics, picking is done separately for each channel.
In OC logistics, picking is integrated into a common zone, allowing efficient fulfillment for both store and online orders.
What is the role of outlet density in pick-up services in OC retailing?
Higher outlet density makes pick-up services (Click-and-Collect or Click-and-Reserve) more beneficial, as customers can conveniently collect orders from nearby stores.
Example: A retailer with many physical stores in a city can use them as pick-up points, reducing reliance on home delivery.
How does product assortment change in OC logistics?
Retailers initially offer a smaller online assortment but gradually expand it to exceed the in-store assortment, creating a “virtual shelf extension.”
Why is delivery velocity crucial in omni-channel retailing?
Customers expect faster deliveries, ideally next-day, but same-day delivery is often cost-prohibitive.
Example: Amazon Prime offers same-day delivery in select cities, but for most products, next-day shipping is the norm.
How do return policies differ between MC and OC logistics?
MC retailers often require online returns to be shipped back,
OC retailers allow returns across channels (e.g., returning an online purchase in-store).
What is the significance of IT systems in OC logistics?
Integrated IT systems, like a unified ERP, provide real-time inventory tracking, enabling seamless coordination between online and offline channels.
What are the main challenges of transitioning from MC to OC logistics?
Complex IT system integration:
High initial investment costs
Organizational restructuring
Training employees for new logistics models
