From the standpoint of both business-to-business and end-consumer transactions, multi-channel sourcing is of vital importance in maintaining fluid operations. Gone are the days when a manufacturer, distributor, or retailer was able to rely on a single source for acquisition of goods or materials. Greater redundancy is allowing businesses increased agility and response capability when the threat of a supply chain interruption becomes evident.
Defining Multi-Channel Sourcing
In business-to-business terms, multi-channel sourcing can refer to the practice of establishing multiple means of acquiring manufacturing materials or goods for retail sale. When a primary supplier experiences an interruption, one or more safety valve-type solutions are always at the ready so a manufacturer or retailer can continue business as usual. This is similar to multi-sourcing at the consumer level.
Creating New Retail Solutions
With the continuing increase in demand for fast delivery, many companies are turning to alternative means of customer order fulfillment. Rather than relying on large distribution centers which may be located hundreds or thousands of miles from the point of delivery, retail chains in particular have started to employ individual stores as pick-and-ship operations, utilizing selling floors and stockrooms as an extension of larger warehousing operations.
The effect is similar to multi-sourcing at the supply chain level: customers seeking items that are not available in their local store can in many cases have them shipped, cheaply and quickly, from a nearby zip code. By providing redundancy, there is no impediment to the transaction, and customer retention is improved. Comparatively, at the macro level, a manufacturer could continue to produce new goods by way of reliable access to necessary materials.
Summary
It is easy to see why multi-channel sourcing is so critical at each step of the logistical process. Such redundancy also benefits the transport industry as a whole by ensuring consistent volume for carriers who might otherwise see reduced demand in response to a reduction in the availability of certain commodities. By preparing contingency plans and better utilizing existing resources, businesses of all sizes can better protect themselves against service interruptions that might otherwise threaten operational efficiency.
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