Innovation Process at Omnichannel DCs Undergoing Shifts in Channel Mix

Abstract

An increase in digital demand has forced a DC that previously fulfilled mostly wholesale orders to adjust its operational strategy and pursue innovation to address the shift in channel mix. This thesis aims to develop and propose an innovation framework that can be used to identify the areas in the DC that are constrained and what technologies can be used to tackle these constraints. The proposed process is based on external innovation methods identified through research and internal innovation methods present in the company today. Once developed, the proposed innovation process is evaluated through the application of a previous DC innovation to ensure viability. The proposed process is then applied to the DC today to recommend areas and technologies for innovation investment. It is concluded that the proposed process performs well when applied to a previous innovation and is therefore deemed as viable. When applied to the DC today, the process recommends an investment in the DC’s footwear selection area using process and staffing optimization.