IDEAS home Printed from https://ideas.repec.org/a/spr/decisn/v43y2016i2d10.1007_s40622-015-0118-9.html
   My bibliography  Save this article

How omni-channel can be the future of retailing

Author

Listed:
  • Sunil Chopra

    (Northwestern University)

Abstract

We discuss how omni-channel retailing should be structured to create a supply chain that is both cost effective and responsive to customer needs. Given the complementary strengths of the physical and online channels, hybrid structures should be designed to use both channels. The physical channel should be used to serve frequent and predictable needs and the online channel should be used to provide variety and serve sporadic needs. The physical channel can also serve as a showroom and pickup location for the online channel. This hybrid structure can be particularly effective in emerging markets where new online players can partner with existing local retailers to benefit both parties and the consumer.

Suggested Citation

  • Sunil Chopra, 2016. "How omni-channel can be the future of retailing," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 43(2), pages 135-144, June.
    • Handle: RePEc:spr:decisn:v:43:y:2016:i:2:d:10.1007_s40622-015-0118-9
    DOI: 10.1007/s40622-015-0118-9
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s40622-015-0118-9
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s40622-015-0118-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Erik Brynjolfsson & Yu (Jeffrey) Hu & Mohammad S. Rahman, 2009. "Battle of the Retail Channels: How Product Selection and Geography Drive Cross-Channel Competition," Management Science, INFORMS, vol. 55(11), pages 1755-1765, November.
    2. Erik Brynjolfsson & Michael D. Smith, 2000. "Frictionless Commerce? A Comparison of Internet and Conventional Retailers," Management Science, INFORMS, vol. 46(4), pages 563-585, April.
    3. Eric T. Anderson & Karsten Hansen & Duncan Simester, 2009. "The Option Value of Returns: Theory and Empirical Evidence," Marketing Science, INFORMS, vol. 28(3), pages 405-423, 05-06.
    4. Neslin, Scott A. & Shankar, Venkatesh, 2009. "Key Issues in Multichannel Customer Management: Current Knowledge and Future Directions," Journal of Interactive Marketing, Elsevier, vol. 23(1), pages 70-81.
    5. Chopra, Sunil, 2003. "Designing the distribution network in a supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 39(2), pages 123-140, March.
    6. Erik Brynjolfsson & Yu (Jeffrey) Hu & Duncan Simester, 2011. "Goodbye Pareto Principle, Hello Long Tail: The Effect of Search Costs on the Concentration of Product Sales," Management Science, INFORMS, vol. 57(8), pages 1373-1386, August.
    7. Chris Forman & Anindya Ghose & Avi Goldfarb, 2009. "Competition Between Local and Electronic Markets: How the Benefit of Buying Online Depends on Where You Live," Management Science, INFORMS, vol. 55(1), pages 47-57, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jena, Sarat Kumar & Meena, Purushottam, 2022. "Competitive sustainable processes and pricing decisions in omnichannel closed-up supply chains under different channel power structures," Journal of Retailing and Consumer Services, Elsevier, vol. 69(C).
    2. Jena, Sarat Kumar & Meena, Purushottam, 2022. "Shopping in the omnichannel supply chain under price competition and product return," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    3. JoAnne Labrecque & Maurice Doyon & Raymond Dupuis & Genevieve Dufour, 2019. "Compétitivité du secteur agroalimentaire à l’heure du commerce électronique," CIRANO Project Reports 2019rp-16, CIRANO.
    4. Magalhães, David José Ahouagi Vaz de, 2021. "Analysis of critical factors affecting the final decision-making for online grocery shopping," Research in Transportation Economics, Elsevier, vol. 87(C).
    5. Dany Vyt & Magali Jara & Olivier Mevel & Thierry Morvan & Nélida Morvan, 2022. "The impact of convenience in a click and collect retail setting: A consumer-based approach," Post-Print halshs-03624658, HAL.
    6. Yin, Chin-Ching & Chiu, Hung-Chang & Hsieh, Yi-Ching & Kuo, Chia-Yu, 2022. "How to retain customers in omnichannel retailing: Considering the roles of brand experience and purchase behavior," Journal of Retailing and Consumer Services, Elsevier, vol. 69(C).
    7. Piotr Sawicki & Hanna Sawicka, 2021. "Optimisation of the Two-Tier Distribution System in Omni-Channel Environment," Energies, MDPI, vol. 14(22), pages 1-22, November.
    8. Li, Gang & Zhang, Tao & Tayi, Giri Kumar, 2020. "Inroad into omni-channel retailing: Physical showroom deployment of an online retailer," European Journal of Operational Research, Elsevier, vol. 283(2), pages 676-691.
    9. Yue Liu & Guang Song, 2023. "Role of Logistics Integration Capability in Enhancing Performance in Omni-Channel Retailing: Supply Chain Integration as Mediator," Sustainability, MDPI, vol. 15(11), pages 1-22, June.
    10. Adivar, Burcu & Hüseyinoğlu, Işık Özge Yumurtacı & Christopher, Martin, 2019. "A quantitative performance management framework for assessing omnichannel retail supply chains," Journal of Retailing and Consumer Services, Elsevier, vol. 48(C), pages 257-269.
    11. Vyt, Dany & Jara, Magali & Mevel, Olivier & Morvan, Thierry & Morvan, Nélida, 2022. "The impact of convenience in a click and collect retail setting: A consumer-based approach," International Journal of Production Economics, Elsevier, vol. 248(C).
    12. Nail Tahirov & Najmaddin Akhundov & Simon Emde & Christoph H. Glock, 2025. "Configuration of last-mile distribution networks for an encroaching manufacturer," Annals of Operations Research, Springer, vol. 344(2), pages 679-720, January.
    13. Hui-Ming Deanna Wang & Foo Nin Ho, 2023. "The Effects of Information Technology in Retailer Performance and Survival: The Case of Store-Based Retailers," SAGE Open, , vol. 13(4), pages 21582440231, December.
    14. Balram Avittathur & Jayanth Jayaram, 2016. "Supply chain management in emerging economies," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 43(2), pages 117-124, June.
    15. Dolega, Les & Rowe, Francisco & Branagan, Emma, 2021. "Going digital? The impact of social media marketing on retail website traffic, orders and sales," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
    16. Pedro Cuesta-Valiño & Javier Alonso-García & Federico Pablo-Martí & Estela Núnez-Barriopedro, 2024. "Constraints and barriers on industrial customer performance in an omnichannel ecosystem," Review of Managerial Science, Springer, vol. 18(9), pages 2749-2780, September.
    17. Junxia He & Jian Liu & Fan Yang & Xia Zhao, 2022. "Returns Freight Insurance Policy and the Impact from a BOPS Retailer," SN Operations Research Forum, Springer, vol. 3(1), pages 1-36, March.
    18. Bansal, Vishal & Bisi, Arnab & Roy, Debjit & Venkateshan, Prahalad, 2024. "Integrated inventory replenishment and online demand allocation decisions for an omnichannel retailer with ship-from-store strategy," European Journal of Operational Research, Elsevier, vol. 316(3), pages 1085-1100.
    19. Ruchi Mishra & Rajesh Kr Singh & Venkatesh Mani, 2023. "A hybrid multi criteria decision-making framework to facilitate omnichannel adoption in logistics: an empirical case study," Annals of Operations Research, Springer, vol. 326(2), pages 685-719, July.
    20. Hajdas, Monika & Radomska, Joanna & Silva, Susana C., 2022. "The omni-channel approach: A utopia for companies?," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    21. Abadie, Amelie & Roux, Mélanie & Chowdhury, Soumyadeb & Dey, Prasanta, 2023. "Interlinking organisational resources, AI adoption and omnichannel integration quality in Ghana’s healthcare supply chain," Journal of Business Research, Elsevier, vol. 162(C).
    22. Zhe Zhang & Xiaoni Wen, 2024. "Physical or virtual showroom? The decision for omni-channel retailers in the context of cross-channel free-riding," Electronic Commerce Research, Springer, vol. 24(4), pages 2609-2635, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. David R. Bell & Santiago Gallino & Antonio Moreno, 2018. "Offline Showrooms in Omnichannel Retail: Demand and Operational Benefits," Management Science, INFORMS, vol. 64(4), pages 1629-1651, April.
    2. Ratchford, Brian & Soysal, Gonca & Zentner, Alejandro & Gauri, Dinesh K., 2022. "Online and offline retailing: What we know and directions for future research," Journal of Retailing, Elsevier, vol. 98(1), pages 152-177.
    3. Necati Ertekin & Mehmet Gümüş & Mohammad E. Nikoofal, 2022. "Online-Exclusive or Hybrid? Channel Merchandising Strategies for Ship-to-Store Implementation," Management Science, INFORMS, vol. 68(8), pages 5828-5846, August.
    4. Hoskins, Jake D., 2020. "The evolving role of hit and niche products in brick-and-mortar retail category assortment planning: A large-scale empirical investigation of U.S. consumer packaged goods," Journal of Retailing and Consumer Services, Elsevier, vol. 57(C).
    5. Jeffrey D. Shulman, 2014. "Product Diversion to a Direct Competitor," Marketing Science, INFORMS, vol. 33(3), pages 422-436, May.
    6. Nishtha Langer & Chris Forman & Sunder Kekre & Baohong Sun, 2012. "Ushering Buyers into Electronic Channels: An Empirical Analysis," Information Systems Research, INFORMS, vol. 23(4), pages 1212-1231, December.
    7. Santiago Gallino & Antonio Moreno & Ioannis Stamatopoulos, 2017. "Channel Integration, Sales Dispersion, and Inventory Management," Management Science, INFORMS, vol. 63(9), pages 2813-2831, September.
    8. Steel, Will & Daglish, Toby & Marriott, Lisa & Gemmell, Norman & Howell, Bronwyn, 2013. "E-Commerce and its effect upon the Retail Industry and Government Revenue," Working Paper Series 4333, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    9. Stahl, Konrad & Legros, Patrick, 2019. "Local Search Markets and External Competition," CEPR Discussion Papers 13764, C.E.P.R. Discussion Papers.
    10. Scott K. Shriver & Bryan Bollinger, 2022. "Demand Expansion and Cannibalization Effects from Retail Store Entry: A Structural Analysis of Multichannel Demand," Management Science, INFORMS, vol. 68(12), pages 8829-8856, December.
    11. Son, Jungmin & Kim, Jikyung (Jeanne) & Choi, Jeonghye & Kim, Mingyung, 2017. "Linking online niche sales to offline brand conditions," Journal of Business Research, Elsevier, vol. 70(C), pages 74-84.
    12. Delphine Irac & Claire Célérier & Philippe Askenazy, 2010. "Vente à distance, internet et dynamiques des prix," Économie et Prévision, Programme National Persée, vol. 194(3), pages 1-13.
    13. May Truong & Alok Gupta & Wolfgang Ketter & Eric van Heck, 2022. "Buyers’ Strategic Behavior in B2B Multichannel Auction Markets: When an Online Posted Price Channel Is Incorporated into a Dutch Auction System," Information Systems Research, INFORMS, vol. 33(4), pages 1344-1367, December.
    14. Anuj Kumar & Amit Mehra & Subodha Kumar, 2019. "Why Do Stores Drive Online Sales? Evidence of Underlying Mechanisms from a Multichannel Retailer," Service Science, INFORMS, vol. 30(1), pages 319-338, March.
    15. Jae Young Lee & David R. Bell, 2013. "Neighborhood Social Capital and Social Learning for Experience Attributes of Products," Marketing Science, INFORMS, vol. 32(6), pages 960-976, November.
    16. Gauri, Dinesh K. & Jindal, Rupinder P. & Ratchford, Brian & Fox, Edward & Bhatnagar, Amit & Pandey, Aashish & Navallo, Jonathan R. & Fogarty, John & Carr, Stephen & Howerton, Eric, 2021. "Evolution of retail formats: Past, present, and future," Journal of Retailing, Elsevier, vol. 97(1), pages 42-61.
    17. Xinxin Li & Bin Gu & Hongju Liu, 2013. "Price Dispersion and Loss-Leader Pricing: Evidence from the Online Book Industry," Management Science, INFORMS, vol. 59(6), pages 1290-1308, June.
    18. KIM, Kyeongbae & LEE, Gong, 2024. "Who Benefits from Food Delivery Platforms? The Heterogeneous Effects of Platforms on Restaurant Sales," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 65(1), pages 65-93, June.
    19. Brent Kitchens & Anuj Kumar & Praveen Pathak, 2018. "Electronic Markets and Geographic Competition Among Small, Local Firms," Information Systems Research, INFORMS, vol. 29(4), pages 928-946, December.
    20. Julia Bock-Schappelwein & Michael Böheim & Elisabeth Christen & Stefan Ederer & Matthias Firgo & Klaus Friesenbichler & Werner Hölzl & Mathias Kirchner & Angela Köppl & Agnes Kügler & Christine Mayrhu, 2018. "Politischer Handlungsspielraum zur optimalen Nutzung der Vorteile der Digitalisierung für Wirtschaftswachstum, Beschäftigung und Wohlstand," WIFO Studies, WIFO, number 61256.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:decisn:v:43:y:2016:i:2:d:10.1007_s40622-015-0118-9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.