Impact analysis of a cross-channel strategy in the fashion retail industry: a conceptual framework

In the fast changing environment of the retailing industry, adapting to changes in customer requirements can make the difference in being a highly successful and profitable market leader. In last years, one of the main challenge to meet customers’ needs is the integration of traditional stores with mobile channels in a new synchronized operating model called cross-channel retailing. It gives to customers the opportunity to have a seamless experience across all company’s channels. The simultaneous and integrated management of all channels is not simple and assumes that the supply chain meets the requirements of visibility, accuracy and control of information, flexibility and efficiency. Furthermore, some processes such as inventory management and logistics become extremely critical by adopting a cross-channel retailing. In this context, this paper proposes a conceptual framework for the definition of physical and informative flows which are necessary to successfully implement this strategy and its impact on a traditional supply chain. This not simply means managing demand coming from mobile channels in addition to the brick and mortar one, but requires the actual integration of all the processes of planning and execution in order to optimize performances. This paper analyses the particular case of the fashion industry supply chain and defines how distribution and replenishment processes may be affected by the adoption of the cross-channel.