Readying Retailers for Omnichannel Fulfillment

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Readying Retailers for Omnichannel Fulfillment

July 16, 2015

Readying Retailers for Omnichannel Fulfillment

July 16, 2015 Click here to go to the recorded webinar in Brighttalk

https://www.brighttalk.com/webcast/12131/163869


Xavier Places Product Marketing Director

@xplacesc

xavier-places-cano

▪More than 15 years experience in IT sector

▪ International consultancy firms as ERP, CRM and BI Business Unit responsible

▪ In Openbravo since 2007 ▪ Services Director ▪ Retail Lead, for the launch of the Retail vertical ▪ Business Development Director ▪ Product Marketing Director

Today’s Presenter

http://twitter.com/xplacesc

https://www.linkedin.com/pub/xavier-places-cano/0/a6b/b33?domainCountryName=&csrfToken=ajax%3A6608645611679850545


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▪ Introduction ▪ Key Dimensions to Evaluate your Readiness ▪ Examples of Leading Retailers ▪ Key Takeaways ▪ Q&A

Agenda and Goals


The Omnichannel Customer

▪Convenience, to buy, pay, receive and return how they prefer

▪ Speed, to receive ordered products or information

▪ Personalization, on each interaction with the brand

21%

more profitable


Channel Shift

In the next 5 years, the most significant shift in omnichannel

fulfillment will be the in-store pickup of goods,

a fulfillment option predicted to virtually double by 2017.

35% 13% 5%Source: Planet Retail 2014


Readiness Assessment


Five Key Dimensions

Customer

Product

InventoryOrder/Fulfillment

Technology


Customer Dimension

▪ Identify an executive who has consolidated ownership of the customer experience.

▪ Create a working team consisting of multiple functional areas and IT to work together to identify how customer data can be used internally more widely and strategically.

▪ Have a customer data leadership team that sets out the policies and procedures required to identify new customer data sources, ensure data quality, and ensure a single version of the truth.

▪ Ensure Marketing, Channels, and Merchandising operate off of the same shared perspective on customer behavior and segments.

Customer

Product


Technology


Product Dimension

▪ Manage assortments across channels on a portfolio basis. For example, products are planned to be introduced online, expanded into stores, and then cleared via online at end of life. Pricing decisions are made across channels.

▪ Manage a master assortment that can be leveraged in any channel, and localized by channel and geography, as well as by customer segment.

▪ Integrate user-generated content, like for example, product ratings and reviews that can be featured in stores.

▪ Create product content organized by its role in enabling a path to purchase.

▪ Implement a proper master data management to ensure product information is consistent across all channels.

Customer

Product


Technology


Inventory Dimension

▪ Provide visibility about all available inventory for sale, including inventory in suppliers' locations, in returns, or in transit, regardless of the channel where it is physically located.

▪ Aspire to an almost real-time visibility about your stock levels in all locations.

▪ Enable channels to reserve stock in remote locations and provide visibility about its status.

▪ Incorporate supplier considerations as well as channels in your demand planning.

▪ Implement mechanisms to increase visibility and transfer of inventory across channels

Customer

Product


Technology


Order/Fulfillment Dimension

▪ Give Supply Chain the ownership of customer orders, to optimize inventory locations outside of the store.

▪ Design your distribution network to minimize logistic costs and delivery times according to your geographical coverage

▪ Allow capture orders in any channel, regardless of that channel's ability to fulfill the order.

▪ Leverage customer data during customer order and fulfillment processes to propose product recommendations.

▪ Implement algorithms to help optimizing inventory fulfillment options.

▪ Leverage store fulfillment. ▪ Support typical cross-channel scenarios

like buy online-pick up in the store, buy online-return in the store, buy online-ship from store or reserve in the store

Customer

Product


Technology


Assisted Sale and Inventory Visibility

Click here to get a copy of the Openbravo Store Solution Datasheet including Web POS features

https://www.openbravo.com/content/pdf/Datasheet_Openbravo_Store_Solution_May15_EN.pdf


Distributed Order Management▪Manages the fulfillment process behind

the scenes to provide a better shopping experience and delivery promise

▪Orchestrates fulfillment across enterprise and channels

▪ Provides single view of the inventory across the entire distribution network

▪ Responsible for determining delivery method and dates

▪ Responsible for determining best locations from which inventory is taken

▪Communicates information during selling process to ensure order capture


E-commerce platform

Marketplaces

Payment Processor

Logistic ProvidersStores

Groupe Adeo places the Openbravo Commerce Suite at the heart of the new Home’s Up complete multichannel retail solution

Click here to get a copy of the Home’s Up Success Story

OMS Example: Home’s Up

http://www.openbravo.com/retailers/detalle_cliente/homes-up/


UPS Pulse of the Online Shopper, June 2015

Store Fulfillment

▪ Different SLAs, schedules and metrics

▪ Train the people for new activities ▪ Increased task management

complexity ▪ Enable a new store space ▪ Handle frequent parcel shipments

that can increase costs ▪ Changes in replenishment, with

more frequent need of stock

Challenges

▪ Provide added convenience to customers ▪ Increase in-store traffic ▪ Minimize out-of-stock ▪ Get products to customers faster ▪ Increase inventory turnover

45% have made a new purchase when picking up the purchase in store, among those who have used an in-store pickup option

70% of those who return items to a store will purchase a new item


Best Practices for Store Fulfillment

▪ Put daily “ship from” limits in place ▪ Don’t enable small footprint stores ▪ Don’t enable your most profitable stores ▪ Give store managers control to throttle or opt

out due to operational constraints

▪ Invest in dedicated ‘pick’ staff for store pickup ▪ Staff the pick-up desk at all times ▪ Put the pick-up desk at the store entrance ▪ Enable guest pickup options online ▪ Ask for photo ID or scan a 3D barcode receipt ▪ Have the pickup order to hand (not in the stock

room) ▪ Establish pickup KPI‟s and monitor

Picking process optimization ▪ Use of mobile devices ▪ Batch picks together ▪ Split by zone or floor ▪ Enable route optimization ▪ Consider single order picks for priority

pickup orders ▪ Task management

Basic needs for pack & ship: ▪ De-tagging ▪ Wi-Fi connectivity ▪ Packing inventory ▪ Packing table and storage space ▪ Carrier integrated weigh station ▪ Invoice & pack slip printer ▪ Carrier integration and label printing ▪ Carrier pickup access

Store Shipments

Store Pick-Up

Deliver-to-store

In a Deliver-to-store scenario the customer also picks up the products in the store, but the stock comes either from other store or from a central fulfillment center

Receptions process optimization ▪ Use of mobile devices

Basic needs for pack & ship: ▪ Wi-Fi connectivity ▪ Unpacking table and Storage space


Technology Dimension

▪ Evaluate any IT investment against your omnichannel strategy.

▪ Enable business leaders to influence or own the strategic direction of cross-channel investments.

▪ Invest on technologies that provide the highest possible freedom to adapt to future needs and allow to adapt for competitiveness

▪ Ensure new technologies will allow you to leverage existing legacy systems.

Customer

Product


Technology


Benchmark


New Position: Chief Omnichannel Officer

Robert B. Harrison Brent Kirby

A new executive position to oversee the integration of all channels and ensure the execution of the company omnichannel strategy


Online Inventory Visibility


Click and Collect Gaining GroundJohn Lewis delivered more online orders by click and collect than by home delivery for the first time in its latest financial year.

54% of online orders were delivered to the store for pick up in a year in which click and collect orders

grew by 47% compared to the same time last year.


As a result of its ship-from-store program, Nordstrom's turnover

spiked to 5.41 from a previous five-year high of 4.84.

Impact on Inventory Turnover


Added Convenience with Reserve in Store


Buy Online in the Store

Customers can explore over a million of products that cannot be found on the shelves of the brick and mortar stores. The in-store kiosks created double-digit growth in sales since they were introduced in stores in July 2014.


Omnichannel Distribution Network

▪ Supply Chain remodeling started in 2007

▪+2.000 stores. 35.000 SKU’s

▪18 RDC (Rapid Deployment Centers)

▪3 DFC (Direct Fulfillment Center). 100.000 SKU’s.

50% improvement in speed of order prcessing

▪ Legacy network of 70 DC (Distribution Centers)

RDC

DFC

DC

Store

Customer / Home

Supplier

1. Customer enters an online order 2. DFC receives it and ships to home or to a RDC 3. RDC receives it and ships to a store 4. Customer picks up the order 5. Store could also fulfill order from its stock

eComm


Key Takeways

Key Takeaways


Key Takeaways▪ Omnichannel customers continuously

demand higher speed, convenience and personalization in all interactions.

▪ Store stock is now used to fulfill most click & collect orders

▪ Ensure customer is placed at the center of your strategies.

▪ Ensure product information is consistent across channels and personalize assortments by channel and customer profiles.

▪ Provide enterprise wide inventory visibility to all your sales channels.

▪ Adopt an OMS to support distributed order management and leverage store fulfillment.

▪ Invest in technologies aligned with your omnichannel strategy that provide you future freedom while helping to leverage prior investments.


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Thank you very much for your attention

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