Logistics of omnichannel retailing

In the world of distribution, all players are now being hammered with the injunction to become omnichannel. The rise of this term, which replaces multi-channel, reflects the profound change that has affected distribution methods. Historically, distribution was essentially store-based. From the 1990s onwards, however, the development of the Internet gradually undermined this integrated model. Today, the consumer has a choice when it comes to purchasing a product: product selection can now be carried out in-store, but also via paper catalogs, online catalogues, augmented reality tools, and so on. Orders can be taken in-store or remotely, with computers and mobile applications now taking precedence over mail or telephone. Above all, physical pick-up is now possible in multiple locations: either consumers can collect products from a warehouse, as IKEA offers, or they can have them delivered to their home within a few hours, or they can collect their products from a relay point or a station left-luggage office.

The rise of the omnichannel has raised a number of logistical questions for companies, prompting them to rethink their distribution logistics. Should retailers offer their customers every possible channel? How can channels be combined to develop logistical synergies while satisfying marketing objectives? These questions about omnichannel distribution logistics are made all the more complex by the fact that, in addition to flows to consumers, return flows from consumers have exploded and need to be integrated, as do direct logistics flows between consumers, which are developing with the collaborative economy.

In order to answer these questions, this article is organized in three parts. The first part begins with a clear definition of omnichannel. It first looks at the rise of online sales, which has led to a multiplication of channels. It then lists the different channels available today to enable a consumer to buy a product. She concludes by defining omnichannel distribution strategy as a way for a company to develop an integrated approach to the different channels it offers, in order to provide the consumer with a seamless experience between these channels.

The second part analyzes the role of logistics in a company's omnichannel strategy. It stresses that a crucial point is to integrate logistics dimensions into the design of the omnichannel strategy, which must absolutely be co-designed by marketing and logistics teams. She goes on to explain that four types of omnichannel strategy can be pursued, each of which calls for the implementation of dedicated logistics.

Finally, the third part looks at the logistics management of reverse and direct channels between consumers. It begins by highlighting the factors behind...