Innovative Logistics Strategies for Omnichannel … Logistics Strategies for Omnichannel Fulfillment ... Today’s presentation is available to download on ... KPMG © 2016 Openbravo

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Innovative Logistics Strategies for Omnichannel

Fulfillment September 15th, 2016


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Today’s Presenter

Geoff Nairn

Enterprise Solutions Specialist

@ Openbravo


Introduction

New supply chain

challenges for retailers

How Openbravo can help

Takeaways

QnAs

Agenda


SKU proliferation

Lengthening supply chains

Handling returns

Inventory accuracy

Carrier costs

End-to-end visibility

Multiple channels

New fulfillment options

Supply Chain Challenges for Retailers


Omnichannel Brings More Challenges

Managing inventory

across multiple

locations and

channels is difficult.

More warehousing

staff and smarter

technology needed

to pick online orders.

Bigger warehouses

needed to offer the

“endless aisle” DCs

need to be closer to

customer.

Returns become

more of a problem

as more consumers

buy online.


• Amazon Prime’s same-day delivery is

available in 30 US cities nationwide,

more than double the locations

available two years ago.

• One in four shoppers say they would

consider abandoning online

shopping if same-day delivery is not

an option.

Source: Business Insideer

The Need for Speed in Fulfillment


How Home Depot Solved the Last-mile Problem

42% of Home Depot’s

online orders handled by

stores

90% of its online returns

handled by its stores


Ecommerce Boom Continues

R

% change

% of total retail sales

Retail E-commerce Sales Worldwide

Source: emarketeer

Trillions dollars


Amazon Revolutionizes Fulfillment


53%

25%

12%

62%

17%

9%

46%

21%

10%

55%

17%

8%

in store PC mobile device

Preferred Purchase Method

Apparel & footwear

Furniture & homeware

Sports equipment

DIY

The Continuing Importance of the Physical Store

Source: PwC


Need for Better Returns Management

4% to 6% of all retail

purchases are

returned.. But

online its much

higher

0% 10% 20% 30%

Fashion

Sports

Health

Furniture

Homeware

Electrical

Online Returns

Source: KPMG


Get Closer to Customer for Faster Fulfillment

Source: McKinsey Number of distribution centers needed

Pe

rce

nta

ge

of

ord

ers

fu

lfiil

led

on

tim

e


Home Depot has remodeled its supply chain,

building the foundation for a new type of

fulfillment center intended to blend online and in-

store shopping

Blending Fulfillment for Omnichannel Customers


• You need scale

• Integrate online and retail operations

• Consider store-based fulfillment

• Share inventory across channels

• You need business rules to handle

supply chain complexity

How to Revolutionize your Supply Chain


Do Online-only Offers Make Sense?


Ship-from-Store Benefits

Source:Teradata

For the Customer

Expanded product assortment

Fewer out of stock / back order scenarios

Fast delivery (expectation of 80% within 1

day; 96% within 2 days)

Products “always available” when

desired

For the Retailer

10-20% incremental e-commerce

revenue

Increase inventory sell through

Decrease markdowns

Optimize store assets and labor 10-20%

Revenue

uplift


Buy-Online-Pickup-in-Store Benefits

Source:Teradata

For the Customer

Convenience of online shopping

Same day pickup

No shipping costs

For the Retailer

37% purchase additional products while

picking up in-store

Leverage store assets

Increase foot traffic and upsell opportunity

Demonstrate unique and differentiated

guest experience

37%

Purchase additional

products


63%

25%

Percentage of retailers with access to

inventory across all channels

Winners

Laggards

Source: RSR Research

Enterprise-wide inventory visibility separates the leaders

from the laggards in successful omnichannel execution

Inventory Visibility is Key to Omnichannel Success


Real-time Inventory Visibility with Openbravo

■ Centralized real-time tracking of goods

movements, inventory status and quantities

across all channels and locations - physical

stores, headquarters or distribution centers.

■ Set up different warehouse rules and easy

management of goods transfers, picking and

packing activities and reservations.


Leverage New Technologies with Openbravo

■ Mobile warehouse functionality for inventory

count, goods movements and picking lists for a

more convenient and accurate capture of data.

■ Ability to integrate RFID in sales and inventory

processes for faster data capture and accuracy.


Key Takeaways Today’s customers demand higher speed,

convenience and personalization.

To compete better, retailers need to offer new

fulfillment capabilities such as Buy Online, Pick up

in-Store or In-store Fulfillment.

Supply chains need to be redesigned to offer

greater flexibility and agility.

Distribution centers need to be integrated to

handle online and store orders.

You need a technological solution that provides

real-time inventory visibility across all channels.


Any Questions?

You can submit additional questions or

comments after the webinar on Twitter.

Hashtag: #obravowebinar

#obravowebinar



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Email: [email protected]

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Thank you very much

for your attention

http://www.openbravo.com/contact

mailto:[email protected]

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Innovative Logistics Strategies for Omnichannel … Logistics Strategies for Omnichannel Fulfillment ... Today’s presentation is available to download on ... KPMG © 2016 Openbravo