Omnichannel Distribution Strategies

The rapid growth of mobile technology and e-commerce has dramatically changed retail behaviors and the needs of the supply chains that support these behaviors. Research identifies key challenges in responding to omnichannel market demands and develops strategies to cope with these challenges.

Omnichannel retailing brings a number of challenges, including the need for more coordination between trading partners, more complex logistics networks that support and integrate multiple distribution channels and delivery models, as well as increasingly high consumer expectations regarding the convenience and reliability of delivery services.

We are exploring how the growth of e-commerce is affecting retailers, manufacturers and other actors in a supply chain, transforming their strategies from multichannel to omnichannel distribution strategies.

One of the current projects is analyzing the impact of integrating online and offline channels in a market in Asia where e-commerce is growing fast. We propose a model that helps retailers to re-design their distribution strategies. While most of the existing research in this area has focused on the sales side of the omnichannel movement, our work focuses on appropriately designing the physical distribution network that would integrate online and offline distribution channels.

We are also conducting research to help retailers to quantify customer preferences in an omnichannel environment, where different pickup options are offered to online consumers. New distribution channels and multi-modality to reach online customers are proposed. The goal is to help companies to identify where and how to roll out new capabilities and allow them to focus on strengthening their omnichannel network design in smarter ways.