Retailers have adopted omnichannel strategies to compete in an increasingly evolving marketplace driven by disruptive technology empowering consumer preferences to shop anywhere, anytime. Many retailers have had trouble in managing the evolution of people, processes, and technology related to omnichannel. Implementing an effective omnichannel strategy requires planning and execution across the entire organization, not just an addition to the marketing and fulfilment functions. The challenges of an omnichannel environment are frequently subtle, driven by complexities and systemic stressors created by omnichannel operations. These include:

• Systems integrations
• Processes, process SOPs, and compliance mechanisms at HQ, DC and store levels
• Organizational and store structure design
• Store level staffing, training and controls
• Inventory visibility and data integrity
• Product fulfillment (including Ship from Store, Buy Online Pick Up at Store & Ship from DC)
• Supply chain alignment
• Performance metrics and incentives designed to support store level Omni Channel activities

Our approach:

Root cause analysis (key steps):
• Analysis of current state
• Key organizational processes assessment
• Organization assessment
• Technology and interfaces validation
• Reporting


• Increased customer satisfaction
• Reduced shrink and lost assets
• Improved omnichannel fulfillment
• Improved supply chain inventory accuracy
• Proactive KPI tracking and data analytics

Case Study
ClientA multi-banner, $6B+ multichannel U.S. retailer
Project NameOmnichannel shrink assessment
Client business challenge being addressedOur client experienced an increase and significant variability in shrinkage after implementing Ship-from-Store (SFS) and Buy Online, Pickup in Store (BOPIS) operations. As a result, BCI was asked to assess the current state shrink-management approach by focusing on financial transactions, interface validation, SFS/BOPIS touch points (system and people), and merchandise trails.
BCI solution and approachBCI began by conducting a high-level assessment to identify and quantify the root causes of shrink by reviewing all functional areas of the business where loss occurs, including merchandising, marketing, supply chain, transaction flows, finance, inventory control, and store operations. Utilizing a comprehensive review methodology, our team collected and analyzed relevant data and reports, assessed current state processes, identified and validated interfaces, sample tests, matched and validated data from core systems, and considered appropriate benchmark results for comparison purposes. Through the assessment review process, BCI was able to identify and quantify the primary causes of shrink and recommend specific initiatives to address the gaps identified with people, processes, and technology related to omnichannel. BCI subsequently conducted a high-level, cost-benefit analysis to define a roadmap that detailed specific actions the client could take to improve omnichannel operations and reduce organizational shrink – in both the short and mid-term timeframes.
Engagement benefits & value to client• Comprehensive assessment of omnichannel headquarters and store operations shrink review. Through our assessment, we were able to identify multiple shrink drivers that explained approximately -$10.0M of total shrink, including exhaustive roadmap for implementation of recommended initiatives.
• Identified further opportunities in internal supply chain and store merchandise transfers execution resulting in 6-12% shrink improvement.
• Predictive risk (shrink) model enhancement – Incorporated data analysis recommendations presented in this assessment in in-process model enhancement.
• Recommended an organizational design alignment assessment to comprehensively assess support and store organizational structure to support omnichannel operations. Improvement projected $4-8 million/ annually.

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