ABSTRACT
While omni-channel retail has rapidly become a source of growth in consumer goods and retail, few companies are confident about their ability to execute it and maintain margins. An EY survey determined that omni-channel is a critical driver for growth for the consumer goods and retail industry, but that the traditional consumer goods supply chain is not fit for purpose and must be re-engineered. The primary reason for many of these barriers is that most consumer goods supply chains were traditionally seen as a cost center to deliver goods to stores. The four trends to consider are: diversification of sales channels, densification of products, decentralization of production and digitalization of products. Companies have some big decisions to make about when and how to invest in realigning their supply chains to accommodate an omni-channel pipeline. When e-commerce first emerged, most retailers were able to use a small section of an existing distribution center to fulfill online orders.
