Retail Leadership 091008 - Oracleopnpublic/documents/webcont… · • Leadership in Retail ... promotion profitability Most innovative solutions in retail promotions planning Promotional

Retail SolutionsPresenter’s Name:Presenter’s Title:

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• Leadership in Retail

• Innovation in Industry Solutions

• Results Achieved by Oracle Customers

Agenda


Oracle in RetailDid You Know?

9 of the top 10 North American retailers useOracle Applications to run their business

16 of the top 16 global grocers use Oracle Applications and Technology

20 of the top 20 global retailers depend onOracle Retail Applications and Technology


The Challenges We’re Hearing

Accurate Customer Demand Information:How do we ensure we have the right products on the shelf?Out-of-Stocks are the single greatest pressure retailers face.

!

Customer Loyalty:How do we continue to satisfy the needs of today’s demanding customers?More retailers are using science to support the art of the customer relationship.

!

Global Expansion:How do we prepare our organization for sustainable growth?As retailing becomes increasingly consolidated and global, there is a growing feeling of exposure inthe supply chain and in staffing.

!


Analyst Quotes

“Oracle Retail took a strong early stance on standardizing on a Java platform. This results in a product that is more mature than other Java solutions on the market, and is a strong offering in the overall market. For retailers with heavy cross-channel requirements, Oracle Retail scored top marks.”

“Oracle received the highest cumulative rating across seven categories of merchandise management functionality.

“From the proportion of private label in its overall mix to the brand of its inventory software (Oracle), is one key to the company’s (Nordstrom) success.”

“Oracle’s #1 ranking in RIS News’ 2006 Software LeaderBoardprovides true validation of what Oracle set out to accomplish with its major focus on the retail industry.”





Agenda


Optimize Planning and Merchandising Decisions

Improve Localized Assortments

Enable Rapid Expansion

Oracle Retail SolutionsTransform the Economics of Retail



Requirement Oracle Capability The Oracle Difference

Ranked #1 retail software company

Develop better store /SKU level merchandising plans

Integrated Merchandise Planning & Execution

Increase store promotion profitability

Most innovative solutions in retail promotions planning

Promotional Planningand Optimization

Make better markdown decisions Retail Price Optimization Fastest ROI for retailers


Integrated Merchandise Planning and ExecutionLink Strategic and Merchandise Planning

• Plan using either unit volume or sales values and convert where necessary to support role-based views

• Utilize pre-defined templates to create top-down, middle-out, or bottom-up plans

• Develop, reconcile, and approve pre-season and in-season plans

• Evaluate KPIs on sales, inventory, gross margin, open-to-buy, etc.

• Support cost or retail accounting methodsDC / Store and Item

Retail Channel

Product Category

Corporate Plan(Sales, Inv & Margin goals)


Nexcom ImprovesProduct Availability

SOLUTIONS• Oracle Retail Merchandising Solutions

CHALLENGES / OPPORTUNITIES• Needed to upgrade its supply chain operations

• Getting the right inventory in the right stores

CUSTOMER PERSPECTIVE“Last fiscal year, the Oracle Retail Merchandising System resulted in an improved product availability of 5.5% points – that high level of availability translated into an improvement in cumulative retail sales totaling 5.2% growth.”Richard GarzaChief Information Officer

RESULTS• Product availability improvements• Better cumulative retail sales• Improved ability to forecast more

accurately at the location/item level

COMPANY OVERVIEW• Retail operation direct operations US $2.3B

• 50 stores and 8 DC’s

• Multiple business operations and formats









Build localized store assortments

AssortmentOptimization

Unique industry-leading statistical models

Most proven solution for soft and hard lines retailers

Build store level detail into central buy plans

Store / SKU Level Forecasts

Allocate and replenishby store

Rated #1 in functionality by AMR Research

Push andPull Optimization


Assortment OptimizationAchieve the Ideal In-Store Product Mix

• Leverage rules-based allocation to align store merchandise by department or category

• Use unit-driven demand to tailor assortments and space allocation at store/ shelf level

• Plan receipt flow andpre-pack configurations

• Drive replenishment flow by aligning receipts with available resources

• Reconcile allocation to merchandise plan

Outlets

10 Units

50 Units

50 Units

50 Units

Specialty Stores

30 Units

10 Units

20 Units

40 Units

Shoes

Ready-to-Wear

Item-Level Merchandise Plans

Distribution Center


CHALLENGES / OPPORTUNITIES• In stock positions on key selling items were low• Needed to improve financial controls• Improve customer experience by having the right

product at the right price available

CUSTOMER PERSPECTIVE“Perhaps the system that had done the most to boost Nordstrom’s performance is a perpetual inventory system the retailer put into place in the first quarter of 2003. The solution from Oracle gave us a level of visibility into location-specific SKU data that was unprecedented. Additionally, the solution brought new markdown-management and replenishment capabilities to Nordstrom. The rollout kicked off 32 consecutive months of same-store sales growth and expanded our gross margin by 300 base points.”Allen O’Neal, Manager, Logistics Systems

RESULTS• SG&A improved 3.1%• Pre-tax earnings 7.5% growth since 2001• Stock price nearly quadrupled since 2002• Gross margin 300 basis points higher• In-stock percentage up 500 basis points

COMPANY OVERVIEW• Leading Specialty retailer with over 185 stores • Revenue $7.6B • Multiple format stores

SOLUTIONS• Retail Merchandising • Retail Optimization• Retail Replenishment• Financials• Human Resources

Nordstrom ImprovesGross Margin









Control brand consistency360 Views,Workforce Mgmt, Digital Asset Mgmt

Most complete brand management solutions to deliver consistent customer experience

Most complete support for complex business models

Adapt to new formats and acquisitions

MultipleOrganization Support

Rapidly scale for newstore growth

Used by 17/20 largest retailers

Integrated Merchandising andFinancials


Comprehensive Workforce ManagementControl Brand Consistency

• Develop and enforce associate hiring profiles• Create effective training content, deployment and measurements• Manage store behaviors and compensation

Plan, Recruit& Hire

Review& Reward

Develop& Retain

Exit /Retire

BrandConsistency

• Align recruitingwith the needs of the organization

• Plan, budget, and forecast headcount

• Track applicants from recruit to hire

• Streamline on-boarding process

• Track employeecompetencies

• Deliver access to blended learning content and community

• Manage career development

• Automate review processes

• Communicate performance metrics real-time

• Measure and reward store behaviors

• Integrate compwith associate development

• Provide access to retirement benefits

• Maintain ex-employee data for archive / compliance


CHALLENGES / OPPORTUNITIES• Growing sales through repeat customers with

excellent service

• Drive consistent programs across all HR functions

CUSTOMER PERSPECTIVE“We’ve already had a decline in turnover since we implemented PeopleSoft Enterprise and Authoria. We are confident that PeopleSoft Enterprise can help us strengthen our employee relationships and make us an employer of choice in our industry.”Nancy Miller, VP of Employee Services

RESULTS• Provide self service functionality to it’s

133, 000 users• Standardized processes across all HR

functions• Ability to process over 120,000 weekly

time entries

COMPANY OVERVIEW• Over 1300 restaurants, across multiple brands

• Employees: 133,000 employees

• Revenue: US$5.7B

SOLUTIONSPeopleSoft Enterprise

• Human Capital Management

• Benefits Administration

• Payroll

Darden Serves in Multiple Brands


• Real Time Visibility to Retail Back-office Corporate Administration, including Financials and Real Estate

• Scale without Losing Customer-Centric Focus

Enable Rapid Enable Rapid ExpansionExpansion

• Provide the Right Products all the Time

• Differentiate Store Assortments by Customer ProfileImprove Localized Improve Localized

AssortmentsAssortments

• Accurate Demand Information for Better In-Stock Positions

• Business Intelligence behind Every Planning Decision

Optimize Planning Optimize Planning and Merchandising and Merchandising

DecisionsDecisions

Oracle Retail Solutions Summary


Oracle’s Retail Footprint

CustomerDemand &Enterprise

AnalyticsAnalytics CRM & MarketingCRM & Marketing Loyalty Call Center Sales Field ServiceMarketing Order Mgmt Pricing CTOWeb Store

Supply ChainPlanning

Supply ChainExecution

Business OperationsBusiness OperationsMerchandise Planning

& OptimizationMerchandise Operations

Store Operations

InfrastructureInfrastructureIntegration and Collaboration

Enterprise Infrastructure

Corporate AdministrationCorporate Administration

Indirect Procurement Projects

EPM Financials

Compensation

Human Resources Real Estate

ITITHRHRHelpdesk

Store Inventory Mgmt

Point-of-Sale

Workforce Scheduling

Learning Mgmt

Store Helpdesk

Workforce Comms

TransportationManagement

ReplenishmentOptimization

Sourcing

Warehouse Management

Home Delivery

Advance InventoryPlanning

Supply NetworkOptimization

Value Chain Allocation

Value ChainCollaboration

PIMMerchandiseFinancial Planning

Assortment Planning

Item Planning

Category Mgmt

Price Optimization

Promotion Planning& Optimization

Trade Management

Invoice Match

Merchandise Management

Price Management

Sales AuditDemand Forecasting

Returns Management


The Only Complete Retail Solution

PartnersPartners PeoplePeoplePeople

PlatformPlatform

ProcessProcess

ResultsResults

Oracle Uniquely Delivers a Competitive Advantage by Leveraging People, Partners, Process, and Platform


People: Oracle’s Ecosystem Creates Advantage

950 customers participating in Customer Advisory Boards

500 Industry & Product strategy council members

35 Fusion strategycouncil members

1,300 participants in early customer adoption programs

425 user groups

30,000 applications customers

220,000 database customers

5,000 middleware ISVs

1,700 application ISVs

9,000 database ISVs

30,000 middleware customers

29,000 developers, support engineers

and consultants275,000 275,000

Customers Customers Benefiting Benefiting

from Shared from Shared InnovationInnovation


DatabaseDatabase

MiddlewareMiddleware

ApplicationsApplications

ConsultingConsulting

TrainingTraining

SupportSupport

Process: Top to Bottom Support for Retail

#1 Enterprise Software Vendor• ERP, CRM, SCM and more• Most scalable, reliable, secure infrastructure• Most complete range of on-demand and on-premise

deployment options

Built-In Retail Capabilities• Integrated merchandise planning and execution• Item planning for store / SKU level forecasts• Localized assortment planning• Optimized store level allocations & replenishments• Globally scalable human resources management

including temporary labor scheduling

Largest Software Support Team• 21,000+ development and support engineers • 145+ countries


Platform: Oracle Fusion Middleware Leads the MarketBestBest--SellingSelling

• 32,000+ Customers Deployed • 70% of World’s 50 Largest Firms• $1B+ Business

Oracle 55%

Oracle 55%

Others 45%

Others 45%

Source: Gartner’s Market Share Application Integration & Architecture

Source: Gartner’s Market Share Application Integration & Architecture

40%

30%

20%

10%

0%

39.6%

6.7% 7.1%

Oracle IBM Total Mkt

Growth Rates

#1 Middleware By Share

Fastest Growing Middleware

Highest RatedHighest RatedOnly Vendor in Gartner and

Forrester Leader Quadrants for All Middleware Components

Source: Forrester Research Ranking of Application Platform Servers

Oracle

IBMSAP

Microsoft

0% 5% 10% 15% 20% 25% 30%

SOA Vendor of Choice

Oracle Leads the Pack

IBMSAP

SUN Microsystems

Microsoft

Novell

LeadersStrongPerformersContenders

Strong

StrongWeakWeak

Strategy

Market Presence

CurrentOffering

Oracle

Most ComprehensiveMost ComprehensiveIndustry's Most Comprehensive

Platform for Developing, Deploying& Integrating Enterprise Apps

Rich Functionality

Integrity Management

Business Intelligence

SOA Management

Business Rules Engine

Activity Monitoring

BPEL Process Management

Portal, Collab,Content Mgmt

EnterpriseService Bus

J2EE Server & Dev Tools

SAPSAPIBMIBMORCLORCL





Agenda


Recently, 8 publicly traded companies across the globe cited results from Oracle Retail projects to their shareholders as reasons to invest in their stock

What Customers are Achieving


Retail Customer Results

“The combination of Oracle, Retail, and ProfitLogic is appealing on many levels, but for me the real standout is the ability to integrate planning, optimization, and execution on one common platform.”

“We are laying the foundation for the future of our business and our ability to provide customer and shareholder value.”

“The ability to make pricing decisions according to local customer preferences will enhance the shopping experience for our customers and contribute to our overall goals of improved store productivity.”

“In order to ensure fresh merchandise for our customers, we are making merchandising the heart of our operations, building upon the Oracle database.”


Has an unmatched retail install base with 17 of the top 20 global retailers

Is ranked #1 in Retail Software by RIS News, 2006

Delivers unparalleled speed-to-value with over 80 successful implementations at retailers in the last year

Only Oracle…

The Oracle Difference

Appendix

Additional Customer Success

Stories


CHALLENGES / OPPORTUNITIES• Limited cross and up-sell opportunities due to

disparate systems

• Customer information resided in four front-end systems

CUSTOMER PERSPECTIVE“Oracle brings unity to our entire customer interaction. That was clearly a differentiator. We also gained a certain comfort level by having a single vendor from the applications all the way through the technology stack.”Patrick PiccininnoVice President Information Technology

RESULTS• Complete integrated view of customer

data• Increased access to data so management

can resolve issues more quickly• Improved operational efficiencies for

franchisees

COMPANY OVERVIEW• More than 1,200 Restaurants

• Revenue: US$ 250M in revenue

SOLUTIONS• Customer Data Hub

• Tele-Service

• Database

• Middleware

IHOP Improves Efficiency for Franchisees


SOLUTIONS• Oracle Database 10g

• Oracle Application Clusters

CHALLENGES / OPPORTUNITIES• High maintenance costs

• Low system performance

CUSTOMER PERSPECTIVE“Our migration to Oracle Retail Application Clusters 10g from our legacy, single-instance fail-over model required minimal changes to our applications. Following or migration, we have improved the performance of our applications and user satisfaction.”Jim Meredith, IT Manager

RESULTS• Created a more reliable, scalable, & cost

effective data infrastructure• Reduced ongoing administrative support • Improved batch execution times and

significantly reduced performance complaints

COMPANY OVERVIEW• Retail and distribution

• Over 500 employees

• US$ 73M in revenue

Replacements Improves IT Performance and Reliability


SOLUTIONSJD Edwards EnterpriseOne Solutions

• Supply Chain Management

• Financial Management

CHALLENGES / OPPORTUNITIES• Needed to upgrade its legacy systems

• Needed to streamline core business processes

• Standardize on ERP system

CUSTOMER PERSPECTIVE“Ghirardelli’s goal is to be number one not only in terms of chocolate but also in terms of customer service – it’s having the right product at the right time to meet all our customer’s needs.”Margaret StrattonDirector of Logistics

RESULTS• 50% reduction in monthly close time• 99% inventory accuracy benchmark, and

increased visibility• Improved customer satisfaction, with

built controls and accountability

COMPANY OVERVIEW• Retail and distribution

• Revenue: US$130M

Ghirardelli Chocolate


SOLUTIONS• Oracle E-Business Suite

CHALLENGES / OPPORTUNITIES• Centralize sourcing and procurement operations for

the entire company

• Lower total cost of goods

• Optimize $7 billion annual spend

• Update existing financial system and reduce customizations

• Effectively track costs and avoid budget overruns

CUSTOMER PERSPECTIVE"We bought the entire Oracle E-Business Suite because it was pre-integrated, pre-tested, and pre-defined. We've gotten a lot of leverage and a lot of benefit from proceeding that way.”Keith Morrow, CIO

RESULTS• System-wide procurement solution to

create ‘significant' savings• Greater efficiencies cut closing times by

one-third• Timely access to project data allows tight

control over capital expenditures Proactive Construction Project Tracking

• Consolidated hundreds of individual business systems into an integrated, complete solution

COMPANY OVERVIEW• Convenience stores with 5,800 stores

• Revenue: US$ 1.1B

7-Eleven

Documents

Retail Leadership 091008 - Oracleopnpublic/documents/webcont… · • Leadership in Retail ... promotion profitability Most innovative solutions in retail promotions planning Promotional