RSR Research: Retailers must adapt supply chain to omni-channel model

Walnut Creek, Calif. – Most retailers have yet to adapt their supply chains to the emerging omni-channel retail model. According to a new report from RSR Research, “Supply Chain Execution 2014: Making Omni-channel Profitable,” although most retail supply chains are only designed to fulfill the store channel, store is the third-most-common channel slated for retailer investment in the next three years (67%), with online/e-commerce (82%) and mobile commerce (70%) ahead.



However, when asked to name their top three supply chain execution challenges, retailers recognized the importance of omni-channel. The most popular challenges were consumers expect a more seamless omni-channel experience (73%), the pattern of consumer demand and how retailers fulfill it has changed (67%), and competitive pressures create shorter order cycles (58%).



In addition, the report finds that mid-tier retailers with annual revenue of $250 million to $1 billion are much more likely than retailers with $1 billion or more in annual revenue to cite omni-channel supply chain inhibitors such as supply chain not designed to support omni-channel fulfillment (86% mid-tier 68% large), lack of coordination between supply chain, merchandising and marketing (57% mid-tier 42% large) and lack of inventory accuracy (43% mid-tier 40% large).