August 1, 2014

Most retail supply chains are not ready for omnichannel commerce

Less than one-fourth of retail CEOs participating in a recent study believe the rise of omnichannel shopping will affect their organizations.

By DC Velocity Staff

A new study suggests that many global retailers aren't prepared for the challenges of the omnichannel world. Eighty-three percent of retail chief executive officers (CEOs) participating in a survey commissioned by JDA Software said their supply chains currently are "not optimal" for meeting omnichannel's demands. The consulting firm PwC contacted 409 CEOs at retail enterprises worldwide on behalf of the software company earlier this year. The survey's findings are detailed in a report titled CEO Viewpoint: The Strategic Role of Supply Chain in an All-Channel World.

Omnichannel commerce does not seem to be top of mind for many of the CEOs. Just over one-third (34 percent) consider the rise of omnichannel shopping to be a potential threat, and a mere 22 percent believe it will affect their organizations. They appear instead to be focusing on traditional growth areas. For example, 65 percent of respondents from the largest 250 retail organizations by revenue said their top revenue-growth priority in the next 12 months was expansion into new markets. Only one-third of the respondents cited enhancing distribution capacity and supply chain management as a key driver of profitable growth.

The report and commentaries on the findings are available here.

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