JD offers boundaryless retail with its Omni-channel solutions
Pass Lei, Head of Innovation, JD Worldwide, on combining online and offline channels to improve efficiency and meet customer expectations.
What pressures are new retail channels putting on supply chains?
The pressure on supply chains comes from the integration of supply chains. Normally in the retail industry, online business supply chains are distinct from offline business supply chains. However, new retail channels are increasingly becoming omnichannel. This requires the integration of supply chains, which consists of integrating systems, operations and organisations etc. All of these elements are the fundamentals of a business. So to some extent, new retail channels, especially omni-channels, are reshaping companies, businesses and more generally, the industry.
What solutions do you offer to help overcome these and meet the next generation of consumers’ expectations?
Coming from existing omni-channel practices, Ochama is designed for Omnichannel and to meet the new generation of customers’ expectations. It is not only a brand, but also a solution for new retail formats. Ochama is built on the latest digital systems which support one inventory (integration of online and offline inventory). Customers can place orders by delivery, or pick up in shops, or directly buy merchandises in the store. Retail is boundary-less for the customers. Ochama system has been designed to use the smartest ways to allocate and arrange merchandise according to customers choices. This system can not only quickly fulfill customers needs, but also improve operation efficiency of supply chains, therefore giving Ochama cost advantages. This enables us to offer better prices to our customers, which further enhances our customer shopping experience.
THE EFFICIENCY PER SQUARE METRE OF TRADITIONAL BRICK AND MORTAR CAN BE GREATLY IMPROVED
Taking for example, robotic shops. Why is so important to combine digital with traditional brick and mortar?
The cost of labour is high and aging issues will make labour cost higher in the future. In the end, all of these costs will be added to merchandise prices and paid by customers. Through robotic technology, it can save labour cost and release employees from routine, repeated and even dangerous work. This way staff will be able to focus on more creative and valuable jobs. Meanwhile, all the saving from robotic technology will give back to the customers. As robotic technology is more and more mature, we think it has the opportunity to reform cost structure of traditional retail industry. The efficiency per square metre of traditional brick and mortar can be greatly improved.
What advantages does Ochama offer?
Ochama is the short name of Omni-Channel Amasing. We want to leverage the efficiency of online channels to complement the experience of offline channels. Customers can get their merchandises through more convenient channels and at a better price. Why we can offer better prices to customers is because we greatly save operation cost through technologies which include logistic technology, omni-channel digitalization solution, robotic technology etc. The saving rate can reach up to 50% of operation cost, which leads huge advantages for Ochama to offer good prices to customers.