**2. Literature review**

### **2.1 Evolution and definition of Omnichannel strategy**

It started with the creation of "Single channel" which is categorized in two formats: B&M (Brick and Mortar) refers to the traditional physical stores in which *The Requirements of Product Lifecycle Management (PLM) Frameworks for Integration… DOI: http://dx.doi.org/10.5772/intechopen.104417*

demands are fulfilled at retail stores [1]. Direct channel refers to a channel which directly connected to the on-hand inventory from the top-level (It happens through the internet). Due to the direct connection between channel and manufacturer, inventory tracking is easy [2, 3].

Then "Dual-channel" or "Multi-channel" is introduced. It is defined as using more than one channel for sale products e.g., B&M and direct channel. Multi-channel comes with the benefits like products are more available for customers by using more than one channel, more profit in comparison with single-channel [4].

Closed-Loop-Supply-Chain (CLSC) is classified in the Multi-channel category which defines as after product is used by the customer, end-product is returned to the manufacturer for remanufacturing and re-distribution and keep cooperation of customers, they receive compensation [5].

Cross-channel conception and cross-channeling are synonymous terms in media marketing to designate the properties of products or services that are marketed via various media, telecommunications, or institutional channels [6]. Communication and sales take place through different channels that are interconnected. A customer can therefore obtain information across all channels. The networking of the channels is noticeable to the customer- behind it, there is a common database [7]. Even though cross-channel helps in many ways but there is still a problem: the system relies on the customer to act as an integrator of the data; Furthermore, in cross-channel strategy, there is a lack of centralized product knowledge base for the supply chain to synchronize whole channels. To reach this level of matureness, the omnichannel concept has been launched to have a holistic view of all channels for both consumer and supply chain members [8].

The first definition of omnichannel retailing is defined as "an integration of sales experience that melds the benefits of physical stores with the information and rich experience of online shopping" [9]. The term "Omni-retailing" for the first time was used in 2012 [10]. In 2013, the phrase 'Omni-retailing' as "a coordinated multichannel offering that provides a seamless experience when using all of the retailer's shopping channels" which indicates consumers use all channels and run into seamless integration is suggested [11]. In [12], is mentioned that the omnichannel idea emerged from the "click and mortar" context.

The concept of omnichannel is come from the evolution of multichannel, in multichannel, there is a gap between online and offline stores while in omnichannel customers can easily move among online stores, mobile devices, and B&M [13]. Even though multichannel retailing concentrates on the interaction among channels, omnichannel retailing goes to the upper level which is concentrated on the community and access to the mass/social media [14].

Omnichannel refers to the cooperative planning, management, and monitoring of the numerous available sales channels and customer touchpoints to optimize the customer experience and the company's success across the dissimilar sales channels and process steps. Customers can shift among the various channels (stationary, online, mobile, call center, social media, catalogs) at any time. Channels and brands interact with one another. Customer-contact points are the result of direct or indirect contact with a brand or company (together with retailers). Omnichannel management is sometimes referred to as cross-channel management. However, some see cross-channel as an intermediate phase in the integration of the multiple channels of the multi-channel on the way to becoming an Omnichannel. Although the sales channels are connected in the cross-channel, the procedure steps are not all professionalized. Full multi-channel integration will only be attained in the future due to

legal, technological, organizational, and operational challenges [15]. The evolution of Omnichannel has been shown in **Figure 1**.
