#multi channel retailing
This is a Great Question. Here s the difference:
Multichannel Retailing is something that retailers have been doing for a long time. This means that they were selling through more than once channel. For example, brick-and-mortar stores, catalogue, and kiosks.
Each channel may be managed separately, with it s own demand forecasts, promotions, and even price adjustments. These traditional methods produce a tremendous amount of out-of-stocks, carrying costs, lost sales, and unnecessary markdowns every year.
Omni-Channel Retailing has evolved with the introduction of Predictive Analytics technology that has allowed retailers to gather more data about their supply chain, and make better decisions. These decisions are made by taking the entire business into account, dozens of factors, trends, forecasts, and interrelations of each piece of the business.
In a true Omni Channel environment, the entire retail organization works in concert. From merchandise planning, to assortment planning, purchasing, allocation, replenishment, and to promotions, price optimization, and event management. This significantly reduces inventory costs, and increases customer service lever at each channel to maximize gross margin.
Our company has been offering a fully integrated Retail Predictive Analytics platform for over ten years. Take a look at our solution map below.
You should also take a look at this article on how Retalon s Predictive Analytics are the answer to Smart Fulfillment in Omni Channel Retailing:
Hope this helps, give me a shout if you have any questions about anything above! Yan Krupnik | LinkedIn
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I’ve written about my thoughts on this topic here: Omnichannel is a buzzword. Multichannel is a strategy. But, I’ll sum up the contents of that article…
The original poster is correct. Omnichannel and multichannel are not the same thing, even though they are often incorrectly used interchangeably.
However, another myth that’s floating around (even in this thread) is that omnichannel is a more modern evolution of multichannel. THIS IS NOT TRUE! “Omnichannel is a newer term, but it is not the evolution of multichannel .
Break down what those words actually mean. “Multi” means more than one. “Omni” means every (“omnichannel meaning “every channel”). Trying to be “omni” means making a strategic decision to be everywhere. It’s not about architecting a customer experience, based on where you customers want/need you to be. It’s about assuming your customer need omnipresence, which simply isn’t true.
“Omni isn’t actionable. It’s unfocused.
Omnichannel also focuses too much on customer touchpoints. You do need to create effective customer touchpoints, but that alone will not deliver an exceptional customer experience. Omnichannel does not account for what must go on behind the scenes of your business.
On the other hand, multichannel strategy means building a customer experience via the channels your customer needs you in. It also means building the operational ability to deliver an exceptional customer experience across those channels. I define it as the intersection of three concepts:
- Customer Type – How you need to interact with different customer segments (B2B and B2C customers are very different).
- Fulfillment Method – How you fulfill customer orders (e.g. inventory management, drop shipping, 3PL).
- Sales Outlet – How you manage customer touchpoints (e.g. merchandising, marketing, eCommerce) across multiple channels.
Multichannel strategy incorporates all of these elements. Omnichannel strategy really only worries about the third.
Don’t get caught up in the media buzz of the term “omnichannel”. It doesn’t mean “doing multichannel better”.
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