First it was "multi-channel." Then, the "omnichannel." But retail supply chains hoping to succeed today need to adopt the concept of the "customer channel," says Randy Evins, industry adviser for food retail with SAP. 

The grocery industry has been working to enable omnichannel fulfillment over the past 10 years, in line with customers’ growing preference for shopping in multiple channels. The omnichannel tried to accommodate that trend, but it ended up “encasing” multiple processes — e-commerce, store operations and the supply chain — with technology applications. The “customer channel,” by contrast, seeks to eliminate the distinction between various shopping methods and focuses exclusively on what the customer wants and needs, Evins says. 

“They become the channel,” he adds, “and then that drives the rest of the process.”

Evins cites five “pillars of work” that exist within the customer channel: a single view of the business, customer trust, personalized experience, unified commerce, and digitized supply chains. The first and last pillars combine to help retailers stock inventory that shoppers desire, regardless of where they’re shopping. The result is both satisfied customers and a more efficient supply chain.

Under the old way of handling orders, a truck arriving late at a warehouse might be turned away. Under the “customer channel” mentality, that wouldn’t happen: The warehouse manager “won’t risk not receiving the truck because it has a customer order on it,” Evins says.

It’s not about measuring service levels, he says. “The goal is 100% customer satisfaction. That’s a different paradigm. Most supply chain folks don’t think that way.”

The model requires changing the mindset of supply chain managers so that they’re no longer focused on receiving, moving and shipping boxes. “You’re creating a customer service experience inside of your business process,” Evins says. “That’s not what they do today.”