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How omni-channel can be the future of retailing

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  • 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
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    Cited by:

    1. 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).
    2. 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.
    3. 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).
    4. 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.
    5. 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.
    6. 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.
    7. 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).
    8. 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.
    9. 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.
    10. 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.
    11. 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).
    12. 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).
    13. 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.
    14. 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.
    15. 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.
    16. 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.
    17. 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).
    18. 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.
    19. 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.
    20. 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.
    21. 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).
    22. 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).

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