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OMNI CHANNEL CONTINUES
TO GROW IN SIZE
PAUL YOUNG CPA, CGA
MAY 7, 2017
PAUL YOUNG - BIO
• CPA, CGA
• Financial Solutions
• SME – Business Process Changes
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
• Academia – Advance Accounting, Public Finance
and Advanced Management Systems
Contact information:
Paul_Young_CGA@Hotmail.com
OMNI CHANNEL – WHAT IT IS
• Omnichannel (also spelled omni-channel) is a multichannel approach to sales
that seeks to provide the customer with a seamless shopping experience
whether the customer is shopping online from a desktop or mobile device, by
telephone or in a bricks and mortar store.
Tech Target – Karen Goulart
ISSUES FACING RETAILER AND MARGIN
• http://www.retailwire.com/discussion/is-omnichannel-a-retail-margin-crusher/
Method Results
In-Store The “bricks and mortar” model’s economies of scale involves
shipping truckloads to fixed points (stores) and customers
managing their own delivery in terms of cash and carry from the
stores.
Pure e-Tailer Much of the cost in pure e-tail revolve around warehousing,
infrastructure and personal home delivery. If the retailer can
manage inventory turns, grow the long tail opportunities and
manage price elasticity/discounting, it is not so bad selling online,
even with direct shipping to homes.
Click and Collect More troublesome is click and collect, which earned a margin of
23 percent under the analysis. While convenient for the customer,
BOPIS creates incremental labor and operational costs to ensure
that the specific item is in stock, plus requiring staff for the
collection point in-store.
Ship from Store . Not only are items shipped from stores to homes shipped twice,
incremental systems and people are required to pick, pack and
ship individual items from stores and maintain accurate shelf
inventory. Very few, if any bricks and mortar retailers can survive
the burdens and low margins of ship-from-store sales.
CAN OMNI CHANNEL HELP RETAIL STORE CHAINS
• https://www.ecommerce-nation.co/omni-channel-retail-future-ecommerce/
• Improve Efficiency
• Enhanced Data Collection
• Higher Margins
• Integrated Data Analysis and Communication
IBM AND OMNI CHANNEL
Source - https://www-01.ibm.com/marketing/iwm/dre/signup?source=mrs-form-5236&S_PKG=ov43061&cm_mmc=Search_Google-_-
Watson+Customer+Engagement_Watson+Commerce+-+Digital+Commerce-_-WW_NA-_-
%2Bomnichannel%20%2Bretail_b_ov43061&cm_mmca1=000001HG&cm_mmca2=10001397&mkwid=af559dba-3bc5-4316-a387-
3f68c67eeb5c|1039|191517087779&cvosrc=ppc.google.%2Bomnichannel%20%2Bretail&cvo_campaign=Watson%20Customer%20Engagement_Watson%20Commerce
%20-%20Digital%20Commerce-WW_NA&cvo_crid=191517087779&Matchtype=b
SUPPLY CHAIN / FOPM - SOLUTIONS
• Financial Solutions (Data and Supply Chain Options)
• https://www.slideshare.net/paulyoungcga/supply-chain-automation-
solutions

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OMNI CHANNEL CONTINUES TO GROW IN SIZE

  • 1. OMNI CHANNEL CONTINUES TO GROW IN SIZE PAUL YOUNG CPA, CGA MAY 7, 2017
  • 2. PAUL YOUNG - BIO • CPA, CGA • Financial Solutions • SME – Business Process Changes • SME – Risk Management • SME – Close, Consolidate and Reporting • SME – Public Policy • SME – Financial Solutions • SME – Supply Chain Management • Academia – Advance Accounting, Public Finance and Advanced Management Systems Contact information: Paul_Young_CGA@Hotmail.com
  • 3. OMNI CHANNEL – WHAT IT IS • Omnichannel (also spelled omni-channel) is a multichannel approach to sales that seeks to provide the customer with a seamless shopping experience whether the customer is shopping online from a desktop or mobile device, by telephone or in a bricks and mortar store. Tech Target – Karen Goulart
  • 4. ISSUES FACING RETAILER AND MARGIN • http://www.retailwire.com/discussion/is-omnichannel-a-retail-margin-crusher/ Method Results In-Store The “bricks and mortar” model’s economies of scale involves shipping truckloads to fixed points (stores) and customers managing their own delivery in terms of cash and carry from the stores. Pure e-Tailer Much of the cost in pure e-tail revolve around warehousing, infrastructure and personal home delivery. If the retailer can manage inventory turns, grow the long tail opportunities and manage price elasticity/discounting, it is not so bad selling online, even with direct shipping to homes. Click and Collect More troublesome is click and collect, which earned a margin of 23 percent under the analysis. While convenient for the customer, BOPIS creates incremental labor and operational costs to ensure that the specific item is in stock, plus requiring staff for the collection point in-store. Ship from Store . Not only are items shipped from stores to homes shipped twice, incremental systems and people are required to pick, pack and ship individual items from stores and maintain accurate shelf inventory. Very few, if any bricks and mortar retailers can survive the burdens and low margins of ship-from-store sales.
  • 5. CAN OMNI CHANNEL HELP RETAIL STORE CHAINS • https://www.ecommerce-nation.co/omni-channel-retail-future-ecommerce/ • Improve Efficiency • Enhanced Data Collection • Higher Margins • Integrated Data Analysis and Communication
  • 6. IBM AND OMNI CHANNEL Source - https://www-01.ibm.com/marketing/iwm/dre/signup?source=mrs-form-5236&S_PKG=ov43061&cm_mmc=Search_Google-_- Watson+Customer+Engagement_Watson+Commerce+-+Digital+Commerce-_-WW_NA-_- %2Bomnichannel%20%2Bretail_b_ov43061&cm_mmca1=000001HG&cm_mmca2=10001397&mkwid=af559dba-3bc5-4316-a387- 3f68c67eeb5c|1039|191517087779&cvosrc=ppc.google.%2Bomnichannel%20%2Bretail&cvo_campaign=Watson%20Customer%20Engagement_Watson%20Commerce %20-%20Digital%20Commerce-WW_NA&cvo_crid=191517087779&Matchtype=b
  • 7. SUPPLY CHAIN / FOPM - SOLUTIONS • Financial Solutions (Data and Supply Chain Options) • https://www.slideshare.net/paulyoungcga/supply-chain-automation- solutions

Editor's Notes

  1. 1. http://searchcio.techtarget.com/definition/omnichannel