Research identifies top ten good practices for multi-channel retailers

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New research by the Cranfield School of Management has identified ten 'good practices' for retailers operating across multi-channels.

The research concluded that while retailers are making great strides in their quest to offer a multi-channel service all, without exception, still have a long way to go before they can claim their multi-channel operations are fully optimised.

It also found that there is a wide divergence of opinion on how to deal with the main challenges. One major area of dispute was whether products and offers should be consistent throughout all channels. While many said they wanted to present a consistent offering, opponents maintained that web channels should be treated differently to others because they provide opportunities to extend ranges and trial new lines.

The research was conducted in association with Manhattan Associates and led by Christina Bekiari in her work towards an MSc at the school.
 
Craig Sears-Black, UK managing director at Manhattan Associates, commented, "What seems clear from this research is that many retailers and 3PLs are unprepared on a technology and process level to take on the challenges of the multi-channel environment. Without a significant amount of agility in the supply chain and a singular focus on achieving cross-channel operational and service excellence, many organisations will simply find it very difficult to meet the twin goals of margin enhancement and service improvement."
 
The 10 top tips for multi-channel retailing identified by the researche were as follows:
 
- Always have complete stock visibility – nothing else matters if a company cannot see what stock it has and where it is.

- Be clear on the customer proposition – this will ensure that all processes are focused on achieving the right goals.

- Integrate multi-channel systems. All channels are linked, via the customer, so it's important that an organisation links them in the back-office as well.

- Promote click-and-collect. This requires the physical integration of channels, but enables companies to gain more value from customers.

- Manage ranges. It is easy to fill space on a website, but the fulfilment of the endless-aisle can be problematic.

- Build partnerships across the supply base. This will make processes throughout the supply chain easier to execute.

- Prioritise forecasting and planning. Without visibility and expectation of what's coming up, companies will always be playing catch-up.

- Keep similar stock together. Do not split items by channel, it distorts visibility of stock levels and lowers agility.

- One order = One delivery. Make sure that every order, regardless of how many items it has, is fulfilled as one delivery. Ultimately, it's cheaper and better for the customer.

- Maintain price consistency, unless your goal is to drive customers to one channel or another, prices should be kept consistent.
 

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