Supply chains not optimised for omni-channel retailing, says PwC survey

A global retail survey from PwC has revealed that 83% of CEOs believe supply chains are “not optimal” to meet today’s omni-channel shopping demands.

However, according to the survey of more 400 retail industry CEOs conducted by PwC for JDA Software, half of respondents recognise that their supply chain can be a strategic differentiator.

While omni-channel retailing has been recognised as the norm by reports from Accenture and Retail Systems, only 34% of CEOs consider the rise of omni-channel shopping to be an external threat, while only 22% said it will have a direct impact on their organisation.

“The rise of omni-channel is one of the most transformational shifts that has occurred in retail in recent times,” said Baljit Dail, chairman of the board and interim CEO, JDA Software. “Retailers who don’t understand the strategic alignment of their supply chain with consumer expectations are in danger of becoming non-competitive.

“This isn’t about making a tweak to the operating model, it requires a massive change. The good news appears to be that there is an emerging group of visionary CEOs who understand that staying competitive during this inflection point requires a dramatic shift of their current operating models to deliver operational effectiveness and top- and bottom-line growth.”

"Supply chain has moved from the back office to the store front as consumers seek to seamlessly shop across virtual and brick-and-mortar channels," added Bruce H. Rogers, chief insights officer, Forbes Media.

The survey revealed that CEOs who focus on optimising their supply chains have 15% lower supply chain costs, less than half the inventory levels and more than three times shorter cash-to-cash cycles.

Only 15% believe that their supply chain today is resilient enough to address the threat of external disruptions.

To find out more, download CEO Viewpoint: The Strategic Role of Supply Chain in an All-Channel World.