Challenges and Strategies in Omni-channel Logistics for Retailers

This report delves into the multifaceted challenges that retailers face in the realm of omnichannel logistics. It highlights key issues such as the lack of stock visibility metrics, fragmented supply chain processes, and the difficulty in identifying the most efficient delivery methods. The report further explores the strategies retailers are adopting to adapt to the changing landscape, including aligning stock placement with market demand and improving value and velocity in omnichannel activities. Despite these efforts, retailers are confronted with operational cost increases, distribution disruptions, and return management complexities. The report references academic sources to support its findings, providing a comprehensive overview of the current state of omnichannel logistics and the hurdles faced by businesses in this evolving environment. The analysis underscores the importance of proactive innovation and strategic adjustments for retailers to thrive in a competitive market. The document is available on Desklib, a platform providing past papers and solved assignments for students.

Running Head: Omnichannel 1
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Omni-channel logistics aids retailers to tailor the way their products are bought and supplied to
satisfy modern customer needs and wants. Modern customers are looking forward to getting the
products they want both in the online presence and in the stores of the retailer. Most transactions
are happening online with customers making purchases in the comfort of their homes and the
products are delivered to them, thanks to technological advancement, (Jocevski, Arvidsson,
Miragliotta, Ghezzi, & Mangiaracina, 2019). Increased expectations in the consumer
gratification has made numerous businesses to embrace new supply chain strategies that ensures
cost-effectiveness and timely delivery. Omni-channel logistics has greatly affected the way
businesses are conducted. However, it has come with a bundle of challenges. this paper will
discuss some of the challenges faced by retailers.
Lack of stock visibility metrics. It is highly important for retailers using omnichannel logistics to
have clear knowledge of their stock. This is crucial to avoid making promises on the delivery
time that cannot be achieved by the retailer due to out of stock product. Most retailers have found
it challenging to keep track of their inventory, (Xu & Jackson 2019). However, this can be
solved using the order fulfillment process in managing the inventory.
Fragmented supply chain processes. If the various supply chain processes adopted by the retailer
does not seamlessly work together, customer satisfaction may not be realized. Retailers find it
highly difficult to adopt clear and supply chain strategies that work smoothly.
Identifying the right mode of delivery. There are numerous ways a product can be transported to
the customer. However, finding the right one that will efficiently deliver the product to the
customer at a minimum cost is very challenging. This has been a challenge for most retailers.
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The retail sector is facing a cataclysmic shift that is as a result of omnichannel logistics. Retailers
have been forced to up their strategies so as to realize significant transactions in the current
market place, (Paul, Agatz, Spliet, & De Koster, 2019). To adapt to the new online purchase
behavior by the customers, firms need to adopt various strategies so as to remain viable. Some of
the strategies are discussed below.
Aligning stock placement with the market demand. Aligning stock in the right place is highly
crucial to omnichannel activities. Hence, it is essential to leverage investment in establishing
relevant infrastructure that will support Omni-channels. Most of the retailers have incorporated
the necessary infrastructure to enable online transactions.
Improvement of value and velocity in the omnichannel activities. The primary aim of online
retailing is to ensure product availability whenever and at the time the customer wants it.
Competitiveness of the online retailing requires speedy delivery of a product, normally in smaller
quantities, while operating within the projected costs. retailers have initiated velocity and value
in their online transaction processes.
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While online has created potential opportunities for entities to reach their customers, most firms
have adopted the necessary strategies to ensure the optimum tractional process. however, most of
these strategies have been met with numerous challenges. some of the challenges are:
Increased costs of operations- new market demands for the establishment of an online platform
and meet the various orders at minimum costs has been hugely a burden to the retailers. Most of
the costs are unavoidable as firms are required to meet the increasing market expectations. This
has highly derail most of the strategies adopted by the retailers.

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Distribution disruption and returns- online product delivery is an expensive undertaking.
However, returns are the most challenge faced by retailers, (Paul, Agatz, Spliet, & De Koster,
2019). Returns have led to retailers restructuring various strategies from time to time.

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References
Jocevski, M., Arvidsson, N., Miragliotta, G., Ghezzi, A., & Mangiaracina, R. (2019). Transitions
towards omni-channel retailing strategies: a business model perspective. International Journal of
Retail & Distribution Management.
Paul, J., Agatz, N., Spliet, R., & De Koster, R. (2019). Shared Capacity Routing Problem− An
omni-channel retail study. European Journal of Operational Research, 273(2), 731-739.
Xu, X., & Jackson, J. E. (2019). Investigating the influential factors of return channel loyalty in
omni-channel retailing. International Journal of Production Economics, 216, 118-132.
Song, S., Shi, X., & Song, G. (2019). Supply chain integration in omni-channel retailing: a
human resource management perspective. International Journal of Physical Distribution &
Logistics Management.