Omnichannelity in the supply chain: how to get organised?
Taking care of your omnichannel supply chain from upstream to downstream

Increasingly efficient e-tailers, a constantly expanding offer, increased product availability, all in city centres that are less and less accessible and faced with increasingly mature customers: these are the factors that are pushing towards omnichannelity and the need to to think globally about the supply chain. Upstream - in purchasing, sales forecasting, procurement, stock management, order preparation and shipping - but also downstream via transport, returns and after-sales service, it is necessary to know how to structure and organise its supply chain to meet the needs of consumers, on physical and/or digital networks:
"In an omnichannel world, there is not one but many supply chains, and omnichannelity represents a blurring of the boundaries between channels. It is therefore necessary to provide a single response to a consumer who is navigating between channels and to offer him a seamless experience. This is the challenge facing retailers. The supply chain responds to these needs but is also active and a driving force in the development of the service proposal, and thus contributes directly to business development," explains Olivier Dubouis, partner at Diagma.
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Best practices for a seamless omnichannel experience
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At Decathlon, Thibault Vandenberghe, chief supply officer in charge of supply for retail and digital transformation, mentions a first angle of attack to make a success of omnichannelity: think about the range, "what we sell and how we structure the offer". He also insists on the distribution network: "it is necessary to propose services adapted to the type of offer. At Decathlon, we set out the different scenarios, put in place industrial solutions and let the retailers use these solutions to tell us what worked best in order to continue learning. An example of this is the implementation of a drive-through system during Covid.
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For his part, Adrien Homolle, supply chain transformation director at Sephora, adds two aspects to stand out: customer customisation and innovation. "More than 250 brands and 40,000 references with their own specificities require the ability to provide a demanding level of service and product availability. We respond to this via different types of delivery: classic, express, click and collect, but also via additional associated services such as engraving or smart sampling. The customer drives the need for pragmatic and adaptable solutions. In order to respond, several mixes must be taken into account: scalability, flexibility, cost, quality of service, etc.
Logistics industrialisation, customer customisation and adaptability, the keys to a successful strategy
Finally, while evoking their experiences and their projects, the two experts give some valuable advice: ensure perfect execution of operations, provide elements of differentiation to the customer, think about the industrialisation of its logistics tools, size the mechanisation solutions according to the fluctuations of the business and the evolving behaviour of the customer, but also analyse the transformation of the logistics professions and apprehend the question of return. A demanding organisation that the supply chain players integrate, implement and optimise every day in the service of the end customer.
To watch the full webinar and learn more about Decatlhon and Sephora's omnichannel strategies:
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Questions asked during the webinar
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Concerning the IS adaptation part - we inherited 20 different ERPs in Europe which prevented us from having DCs for our clients, so we needed to enter the complex world of order orchestration layer
Decathlon: Even with a relatively standard environment, there are major projects to make these new schemes possible. In the long term, this will require overhauls and a more modular organisation of our IS by product and teams in agile mode.
Sephora: We have chosen an ERP (SAP) as a core model, an OMS, a front-end. Despite this, we still have other systems to connect (WMS, etc.) which require constant adaptation of our IT systems.
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"The consumer demands what the citizen refuses"... how do you manage the time -CO2 balance?
Decathlon: Our objective is to make environmental data visible in the choices of customers in order to make them actors (display on the product, on the services).
Sephora: For us, the fastest delivery is the least "costly" in terms ofCO2: Click & Collect; in fact, most of our city centre shops are delivered by Green (electric or CNG). We are otherwise considering consumer expectations in terms ofCO2 information vs. type of delivery.
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How have you readapted your SC on the reverse side (return, exchange...)?
Decathlon: Still learning from the experience of returning to Decathlon, reverse logistics is still in its infancy.
Sephora: The returns section for shops has been developed for many years: in particular, with the revaluation of products or packaging used and returned by our customers in shop. For web returns: these can be made in shop or directly by carrier; this last point is still being improved, although it represents a very low rate in France.
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What key indicators do you track in order to measure the supply chain performance of your omnichannel offers?
Decathlon: Product availability, asset turnover and reduction of environmental impact are the 3 key indicators of transformation (For efficiency it is indeed the triptych Cost, Quality, Time).
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What criteria led to the internalisation of depots (Décathlon) and outsourcing (Séphora)?
Decathlon: We have invested in this business since its creation, we work with partners, but in our opinion, the choice of know-how remains a determining factor in being innovative and differentiating.
Sephora: The outsourcing of our logistics partners is historical; but we have a limited number of partners so as to gain synergy and speed in the implementation of new tools.
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Are the indicators at Decathlon parameters of choice in the delivery solution to the customer? (Shipment of the product where it is available versus as close as possible even if it leaves from different points; the fastest versus the most economical...)
Decathlon: The first priority is availability, then we will offer the target 3 scenarios for the customer: cheaper, faster, less environmental impact.
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Do you have different legal entities in your network that have led to questions about margins, who carries the stock, internal re-invoicing, physical returns, etc.?
Decathlon: Yes, this is an important issue to consider because in a model with more market place the options are even more numerous.
Sephora: Yes, we have different legal entities per country.
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What WHO technologies do you use?
Decathlon: The technologies chosen are developed by our digital teams, and some of the components are those of the publishers of our stock sources.
Sephora: We use Order Dynamics as our OMS, in conjunction with Salesforce and SAP.
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What technical solution do you use for omnichannel?
In particular for the management of stocks available for sale in mini-warehouses.Decathlon: The work of accessibility of stocks in shops and warehouses is managed in the website application. We are limited today by the choice of scenarios and this also means that we have to manage this intelligence on all fronts. Technical architecture work is underway to decouple the display of the promise from the scenario calculation modules and to make these functions compatible with an infinite number of stock sources. This is a project that is currently being deployed and is scheduled for 2022.
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There is a lot of talk about ROPO. How do you manage web-based product search data on shop inventory?
Decathlon: We display shop stocks in our shopping paths. If the customer decides to complete his purchase in shop without managing it in Click & Collect 1h, it is the customer identification data that allows us to reconcile the search and purchase. We do not monitor this data on a daily basis but it is done.
Sephora: We take into account shop and warehouse stocks during the customer journey on our website, with the customer being offered purchase completion in/from a shop (C&C or SFS) or delivery.
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You have talked about reducing the environmental impact of transport by 45% in 3 years. What indicators are you monitoring to ensure that this objective is achieved?
Decathlon: We detail this objective with indicators for the choice of modes of transport, the evolution of the energy used for these same transports, the kilometres travelled and the fill rate of our trucks.












