Omnichannel Supply Chain Transformation in Retail: From Store to Door and Beyond
In today’s retail landscape, the supply chain is no longer a back-office function—it is a strategic growth engine and a critical enabler of seamless, profitable omnichannel experiences. As consumer expectations for speed, convenience, and personalization continue to rise, retailers must reinvent their supply chains to deliver on the promise of unified commerce, while maintaining operational efficiency and resilience in the face of ongoing disruption.
The New Imperative: Omnichannel Supply Chain Reinvention
The acceleration of e-commerce, the proliferation of fulfillment options (from BOPIS and curbside to last-mile delivery), and the volatility of global markets have exposed the limitations of traditional, siloed supply chains. Today’s digital shoppers expect to buy anywhere, fulfill anywhere, and return anywhere—placing unprecedented demands on inventory visibility, demand planning, and fulfillment agility. Yet, only a minority of retailers have full inventory visibility across stores, in transit, and in returns, while fulfillment costs and return rates continue to climb.
To thrive, retailers must move beyond incremental improvements and embrace holistic supply chain transformation—one that is data-driven, customer-centric, and powered by advanced technologies like AI and cloud.
The Publicis Sapient and IBM Approach: Pillars of Omnichannel Supply Chain Excellence
Publicis Sapient, in partnership with IBM, helps retailers unlock value across the supply chain by focusing on four foundational pillars:
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1. Global Inventory Visibility
A single, real-time view of inventory across all channels is the bedrock of omnichannel retail. Our approach enables:
- Near real-time inventory accuracy through robust store processes, RFID, and cloud-based systems
- A single source of truth for inventory, reducing stockouts, markdowns, and safety stock
- Seamless customer experiences—if an item is out of stock in-store, associates can instantly locate it elsewhere and offer fulfillment options (ship-to-home, pickup at another location, etc.)
Client Story: Eileen Fisher
Eileen Fisher implemented a consolidated inventory system for physical and digital stores, creating an “endless aisle” that reduced order cancellations, increased e-commerce sales by double digits, and improved capacity management for store teams.
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2. AI-Powered Demand Planning
Modern demand planning leverages AI and machine learning to synthesize internal and external data—historical sales, digital traffic, weather, social trends, and more—to predict demand with greater accuracy. This enables:
- Optimized inventory levels and reduced markdowns
- Agile response to demand spikes or disruptions (e.g., weather events, viral trends)
- Dynamic fulfillment logic that routes orders to the most profitable or expedient node (store, DC, 3PL, vendor)
Client Impact:
A top international retailer leveraged rapid onboarding of new stores and optimized picking rates, driving $400M+ in incremental revenue and a 35% improvement in e-commerce order picking efficiency.
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3. Fulfillment Optimization
Omnichannel fulfillment is about orchestrating inventory and logistics across all channels to optimize for speed, cost, and customer satisfaction. Our Fulfillment Optimization Framework unifies:
- Real-time inventory APIs
- Fulfillment optimization engines (pre- and post-order, slot management)
- Shipping optimization
- Flexible fulfillment models (BOPIS, curbside, ship-from-store, micro-fulfillment)
- Last-mile delivery orchestration
- Multi-echelon inventory optimization
Case in Point:
Retailers using these frameworks have achieved up to 48% fulfillment from stores, improved conversion rates through accurate delivery promises, and reduced shipping costs by up to 8%.
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4. Returns Management
Returns are a trillion-dollar challenge for retail, with online returns rates far outpacing brick-and-mortar. Our approach combines:
- AI-driven insights to predict and reduce returns (e.g., better sizing recommendations, improved product content)
- Operational efficiency in reverse logistics—dynamic routing, rapid restocking, and re-commerce
- Customer-centric policies that balance cost, speed, and loyalty (e.g., incentivizing in-store returns, personalized return options)
Client Story: British Multinational Retailer
A British multinational retailer used our returns optimization solution to identify purchases likely to be returned with 80% accuracy, saving millions by avoiding discounts, markdowns, and unprofitable customers.
Technology as a Catalyst: Cloud, AI, and Automation
True supply chain transformation is only possible with a modern technology foundation. Cloud platforms enable real-time data sharing, scalability, and rapid experimentation—critical for adapting to demand shifts and testing new fulfillment models. AI and machine learning power predictive analytics for demand planning, inventory optimization, and returns reduction. Automation—robotics, RPA, and micro-fulfillment—drives efficiency and scalability in both warehouses and stores.
Client Impact:
A large domestic retailer migrated to a cloud-based e-commerce platform, achieving a $30M lift in holiday sales, 50% reduction in development costs, and 25x faster release cycles—freeing teams to focus on innovation, not infrastructure.
Proven Methodologies and Client Success Stories
Publicis Sapient’s SPEED approach—Strategy, Product, Experience, Engineering, Data & AI—ensures that supply chain transformation is not just a technology upgrade, but a holistic reinvention of operations, customer experience, and business models. Our work with global leaders like Eileen Fisher and a global jewelry brand demonstrates the power of:
- End-to-end supply chain visibility and orchestration
- Agile, cross-functional teams that break down silos between supply chain, merchandising, and digital
- Continuous test-and-learn cycles to optimize fulfillment, returns, and customer experience
Client Story: Global Jewelry Brand
A leading jewelry brand worked with Publicis Sapient to optimize its omnichannel fulfillment strategy. By leveraging advanced analytics and intelligent order routing, the brand reduced delivery times, minimized shipping costs, and improved customer satisfaction, all while maintaining tight control over inventory.
The Path Forward: From Cost Center to Growth Engine
The future of retail supply chain is agile, intelligent, and customer-obsessed. By investing in global inventory visibility, AI-powered demand planning, fulfillment and returns optimization, and a modern cloud foundation, retailers can:
- Increase profitability by reducing costs and unlocking new revenue streams
- Enhance customer loyalty through seamless, personalized omnichannel experiences
- Build resilience to navigate ongoing disruption and seize new opportunities
At Publicis Sapient, in partnership with IBM, we design and deliver supply chain transformations that drive measurable business impact—today and for the future. Ready to reinvent your supply chain for the omnichannel era? Let’s start the conversation.