Omni channel Supply Chain Optimization and Mode Selection Based on Smart New Retail

Abstract

Smart new retail mode has rapidly become the hot shopping mode. In order to develop vigorously in the new retail environment, it is urgent for merchants to set up supply chain network reasonably. This paper constructs a supply chain newsvendor model consisting of 1 wholesaler and N retailers. Analyse how channel conversion rate, negotiation ability of supply chain members, number of retailers, and other factors affect the balance among supply chain members when offline demand, online demand, and cross-channel demand exist simultaneously. Combined with the case data of two fast fashion brands, this paper compares and analyses the profit changes of decentralized supply chain and centralized supply chain under the influence of multiple factors. The study shows that there is no absolute optimal supply chain model and the choice of supply chain model will change with the change of influencing factors. However, no matter in which supply chain mode, improving channel conversion rate and controlling the number of retailers are beneficial. In addition, in decentralized supply chain, balance can be achieved among supply chain members so as to achieve Pareto optimality. Wholesalers should take the initiative to promote the transformation of demand among channels, and should not be too strong in member negotiations. This paper analyses the basic characteristics of the supply chain network under the new retail, and establishes the network optimization strategy that is easy to implement, which can help enterprises to carry out the supply network layout more effectively under the smart new retail mode.