Comparative Study of Multi-channel and Omni-channel on Supply Chain Management

Abstract

Today’s business competition is a necessity. Every company tries to provide the best service to its consumers or customers. To increase the number of consumers, many Company are developing and implementing the concept of channel distribution. Channel distribution is an important part of Supply Chain management. Currently, many companies apply the concept of Multichannel distribution or commonly called Multichannel and Omnichannel. Companies are confused about whether to implement Multichannel or Omnichannel. Many people think that both are same or similar. In terms of consumers, sometimes consumers have difficulty when using services that have to repeatedly log in, have difficulty making complaints, and so on. This paper proposes a comparative study between Multichannel and Omnichannel based on two approaches, namely the Information Technology Resources approach and Phillip Kotler’s 9 (nine) Channel Distribution concept. The results of the analysis show that Multichannel has advantages in terms of development costs and business risks, while Omnichannel shows advantages in terms of users, information, negotiation, ordering, payment, physical, and ownership.