The consumer value chain is taking on more and more importance as consumers have increased pressure and changes to the omni channel shopping and purchasing practices and capabilities. Consumers have embraced technology to provide the tools and capabilities to support their changing lifestyle needs in their drive to redefine the omni channel retail market. Consumers are looking at value that is derived from pricing comparisons across competitors along with the ability of the retailers to meet the availability and delivery requirements to support the consumer demands. The consumer value chain now must be considered and addressed by retailers with at least the same level of importance as supply chain, omni channel capabilities and marketing plans.
Consumers now have the technology that allows them to quickly and efficiently shop for products along with the methods and capabilities to select the purchase method that best fits into their lifestyle needs. This value chain now is impacting the entire extended retail supply chain as a result of the impact of consumer demands. As the technology improves and expands in reach, this consumer value chain will also expand. Some areas that are most important are inventory location and delivery capabilities, which will directly drive the greatest impact on the consumer value chain, and also the greatest impact on the retail market.
Retailers now are at another crossroads where they must revise their extended supply chain and sales capabilities in reaction to the consumer demands. These changes in the the market require that retailers step up their efficiencies and capabilities in their extended supply chains in order to meet the changing demands. This means that retailers must increase their collaboration with consumers in order to integrate and support the consumer value chain and especially to understand and meet the changing consumer demands. Retailers are coming to realize the importance of the consumer value chain in their strategic plans and execution because now consumers have the capabilities to bypass individual retailers in their shopping and purchasing and most importantly, consumers are not shy about using these capabilities.
Retailers must incorporate the consumer value chain in their plans and this requires retailers to collaborate with consumers to provide the means and the process to understand and incorporate the future consumer demands. Retailers must look to the future now and collaborate with consumers to incorporate the methods and practices to support the consumer value chain going into the future. Retailers are in a major rebuilding cycle now and it is most important now to incorporate the methods that will allow the retailers to align with the continuously changing consumer value chain.
And now for the audience participation portion of the show…
ECommerce will have wide ranging impacts on both the retail and manufacturing sectors. How can you focus these abilities to improve the consumer's experience? Improving the consumer’s experience will require a re-evaluation of the sales channels, the manufacturing channels and practices and the supply chain channels and practices from the raw materials to the consumers’ homes. In order to ensure and maintain success in this new reality you must harness the tools and capabilities in many new areas. How can you support these continuously changing requirements?