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“Technology and automation will play a key role in omnichannel supply chains”
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About the expert
Dr. Eva Ponce is the Director of Online Education at MIT’s Center for Transportation & Logistics. She leads the MITx MicroMasters Program in Supply Chain Management, which has reached tens of thousands of students from over 190 countries. She also directs the MIT Omnichannel Supply Chain Lab, where her research focuses on e-commerce, omnichannel strategies, and sustainable supply chains. With over 25 years of teaching and research experience, Dr. Ponce has been recognized with the Irwin Sizer Award for her significant innovations and improvements to MIT education and serves on the Advisory Board of the Management Program at Harvard Extension School.
Eva Ponce, research scientist and Director of MIT CTL’s Omnichannel Supply Chain Lab, shares her insights on the evolution of the omnichannel experience, the impact of artificial intelligence, and emerging technologies in logistics and e-commerce.
How is the omnichannel customer experience evolving?
The omnichannel experience is shifting significantly due to changes in customer behavior and expectations. Around 70% of shopping journeys now begin online, with consumers using devices like smartphones, tablets, and laptops to browse products. Customer demands are also increasing. For example, 70% of shoppers expect to receive their online orders the same day or the next day.
Despite this trend, 85% of purchases in the US still occur in physical stores, although 40% of these buyers start their search online. Many want flexible options, such as home delivery, in-store pickup, or curbside pickup, where items are brought to their cars with minimal interaction. Another emerging business model is showrooms, where customers can try products in-store and purchase them online.
AI will without question play a transformative role in the future of e-commerce
Similarly, technology is a major player. Companies like Adidas and Nike are integrating endless aisles into their physical stores, allowing potential clients to browse and purchase products with greater convenience. Retailers are leveraging these interactive in-store screens to display inventory from fulfillment centers, enabling customers to shop beyond what’s physically available in-store. Last year, 85% of holiday shoppers in the US used a mix of online and offline channels, underscoring the rise of omnichannel consumers.
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“Digital technologies are vital for guaranteeing stock availability and providing accurate inventory information” How can artificial intelligence take omnichannel retail to the next level?
Businesses can use AI in many ways. According to my lab’s latest survey in omnichannel, about 70% of organizations said that demand forecasting is one of the top areas impacted by the use of AI. Why? Because it allows them to integrate real-time data, like weather patterns or regional consumer habits, with historical trends to enhance forecast accuracy.
Likewise, many companies are employing AI to improve the customer experience and deliver more personalized services and marketing campaigns. On a more advanced level, this technology is being applied to stock management, connecting inventory systems with demand forecasting for greater accuracy. Businesses are also using AI to enhance transportation, workforce, and warehouse management — areas that are increasingly critical in today’s fast-changing environment.
What’s the role of digital technologies in ensuring inventory availability across multiple warehouses and stores?
Digital technologies are vital for guaranteeing stock availability and providing accurate inventory information. Tools like RFID (radiofrequency identification) enable companies to achieve end-to-end visibility, allowing them to track items not only within a store but across the entire supply chain. These technologies are helping businesses gain inventory accuracy at the store level, where maintaining precision can often be demanding.
What strategies can address inventory placement challenges in omnichannel distribution?
Deciding where to store items, fulfill orders, and manage deliveries is a major challenge for omnichannel retailers. This can be addressed by selecting the right type of logistics facility and level of automation. Some organizations are opting for highly automated warehouses dedicated exclusively to online orders to ensure efficient fulfillment. Others are turning to micro-fulfillment centers — smaller, automated facilities often located in the backrooms of stores. These warehouses bring inventory closer to customers, enabling same-day or even two-hour deliveries.
Retailers can also adopt dynamic replenishment systems to align stock levels with real-time sales data, improving supply management. Likewise, regular reviews of inventory systems are crucial, as shifts in consumer behavior often require frequent adjustments to product positioning across the supply chain — sometimes quarterly, monthly, or even weekly.
How can warehouses adapt to the complexities of omnichannel order fulfillment?
Technology and automation will play a key role in omnichannel supply chains. Solutions on the rise include automated storage and retrieval systems (AS/RSs), autonomous mobile robots (AMRs), picking robots, loading and unloading robots, and drones for inventory control within warehouses. All these technologies are helping businesses handle the complexities of omnichannel order fulfillment.
Warehouse management systems are also imperative for seamless coordination of information flows. The integration of automation, technology, and robust digital systems is fundamental for successfully navigating the complexities of omnichannel logistics.
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“Over the next 5 to 10 years, we’ll see an increased use of automation and technology, especially in modern logistics facilities” Which emerging technologies will shape the future of e-commerce?
AI will without question play a transformative role in the future of e-commerce. It enables companies to offer a more personalized customer experience while streamlining operations by connecting systems such as inventory management, demand forecasting, and transportation.
In addition to AI, automation and robotics are set to redefine e-commerce. Autonomous mobile robots, including those offered as robots-as-a-service, are not only boosting productivity and efficiency but also providing the flexibility essential for success in omnichannel and e-commerce environments. These emerging technologies are projected to grow significantly in the coming years.
What changes should we expect in e-commerce logistics over the next decade?
Over the next 5 to 10 years, we’ll see an increased use of automation and technology, especially in modern logistics facilities. Warehousing has been one of the supply chain areas most impacted and transformed by the growth of e-commerce. Technologies like AI will become indispensable for managing complexity and optimizing operations. The future will hold greater opportunities for organizations that successfully integrate automated systems — such as storage solutions, autonomous robots, cobots, and warehouse management software — with AI tools.
In the next decade, I believe we’ll also see a shift in the workforce. Upskilling and reskilling employees will become a priority as companies adapt to new technologies. Businesses will need to pay attention to this transition to ensure associates can effectively use these advanced tools and maximize their potential. Workforce development will be one of the most significant transformations in the coming years.
Another major change will involve human-machine interaction. The adoption of new technologies and automation will grow in popularity to handle the increasing complexities of omnichannel supply chains. This evolution will require empowering the workforce to harness the best of both worlds — human and machine capabilities.