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GETTING CLOSE TO YOUR CUSTOMER WITH MULTIPLE FULFILLMENT CENTERS Operating to 1000 islands of INDONESIA Copyright © 2016 8Commerce. All right reserved.

Getting Close to Your Customer With Multiple Fulfillment Centers

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Page 1: Getting Close to Your Customer With Multiple Fulfillment Centers

GETTING CLOSE TO YOUR CUSTOMER WITH

MULTIPLE FULFILLMENT CENTERS

Operating to 1000 islands of INDONESIA

Copyright © 2016 8Commerce. All right reserved.

Presenter
Presentation Notes
final
Page 2: Getting Close to Your Customer With Multiple Fulfillment Centers

Copyright © 2016 8Commerce. All rights reserved.

Table of Content

CONDITION NOW

DISTRIBUTED APPROACH

TECHNOLOGY CONCLUSION

Page 3: Getting Close to Your Customer With Multiple Fulfillment Centers

Copyright © 2016 8Commerce. All rights reserved.

Delivery Time Average delivery time 4 days 20 hours

Condition Now

CLSA mid 2015

Fulfillment in Indonesia Mostly only exist in Jabodetabek ( Single Fulfillment )

1,420 Km to Medan

663 Km to Surabaya Jabodetabek

Page 4: Getting Close to Your Customer With Multiple Fulfillment Centers

Copyright © 2016 8Commerce. All rights reserved.

Condition Now

0

2

4

6

8

10

12

Jakarta Surabaya Medan

eCommerce Delivery (days)

Delivery Time (days)Population (mio)

Condition Now

CLSA mid 2015

Page 5: Getting Close to Your Customer With Multiple Fulfillment Centers

Copyright © 2016 8Commerce. All rights reserved.

0

1

2

3

4

5

6

Jakarta Surabaya Medan

eCommerce Delivery (days)

Delivery Time (days)

Sales Contribution %

Free Delivery (4-7 days)

Free Delivery (1-2 days)

More profit

111% Transport cost Jabodetabek Surabaya

-5% Storage cost Jabodetabek vs Surabaya

Page 6: Getting Close to Your Customer With Multiple Fulfillment Centers

Copyright © 2016 8Commerce. All rights reserved.

Potential market to tap on

Condition Now

eMarketer December 2015

65,6 %

Indonesia #2 fastest growing e-commerce

in Asia after india

Growth in 2015

44 %

Non – Jakarta sales account

and increasing

10 %

Online retail sales forecast is growing

Online retail sales Forecast 2019

$ 20

Outer Java tends to spend US$20 more in online

shopping than people in Jakarta and Java

Spend more

Page 7: Getting Close to Your Customer With Multiple Fulfillment Centers

Copyright © 2016 8Commerce. All rights reserved.

The Challenges Make your outside Jakarta customers spend the same delivery cost as Jakarta.

Get the product faster (delivery time)

Increase customer satisfaction

Grow your existing market

Page 8: Getting Close to Your Customer With Multiple Fulfillment Centers

Copyright © 2016 8Commerce. All rights reserved.

Advance eCommerce

amazon.com has implemented Multi Fulfillment Centers

In 28 States

Amazon Fulfillment Centers

Presenter
Presentation Notes
final
Page 9: Getting Close to Your Customer With Multiple Fulfillment Centers

Copyright © 2016 8Commerce. All rights reserved.

Advance eCommerce

Walmart combined store DC With eCommerce FC

Walmart store

Presenter
Presentation Notes
final
Page 10: Getting Close to Your Customer With Multiple Fulfillment Centers

Copyright © 2016 8Commerce. All rights reserved.

Multi Fulfillment Centers in Indonesia

Close to your customer

Potential to Grow your market

Outside jakarta

Faster Delivery

Lower Cost

Customer outside Jakarta

Page 11: Getting Close to Your Customer With Multiple Fulfillment Centers

Copyright © 2016 8Commerce. All rights reserved.

Using Multi Fulfillment Centers

Transform your operation electronicaly

Multiple DC and operation

Real time visibility Intelligence reporting

Higher customer satisfaction

Page 12: Getting Close to Your Customer With Multiple Fulfillment Centers

Copyright © 2016 8Commerce. All rights reserved.

Single Fulfillment Centers

Multi Fulfillment Centers in Indonesia

Supplier

FC Customer

Multi Fulfillment Centers

Supplier

FC Customer

FC Satellite FC Satellite

Page 13: Getting Close to Your Customer With Multiple Fulfillment Centers

Copyright © 2016 8Commerce. All rights reserved.

Invest Your Own FC

Multi Fulfillment Centers in Indonesia

Resource, technology, assets, time

Feel more in control

Outsource to 3PL

Lower cost, faster

Service level control

Page 14: Getting Close to Your Customer With Multiple Fulfillment Centers

Copyright © 2016 8Commerce. All rights reserved.

Multi Fulfillment Centers in Indonesia

FC 1 FC 2 FC 3 FC n

Order Management System

Online Store

TMS

Offline Store Future Expansion

Intelligence Reporting

Supply Chain Analyst

Page 15: Getting Close to Your Customer With Multiple Fulfillment Centers

Copyright © 2016 8Commerce. All rights reserved.

Supply Chain Analyst

Optimized Inventory balance

Stock Days

By Region Inventory visibility reports

Fulfillment Report

Delivery Lead Time

By Region By Date

Top 10 items (qty and value)

Normal and promotion sales

By region by date

Projected sales*

Sales Reports

Page 16: Getting Close to Your Customer With Multiple Fulfillment Centers

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Supply Chain Analyst

AREA 1 AREA N

Optimized Inventory Balance

AREA 2 (MAIN)

Page 17: Getting Close to Your Customer With Multiple Fulfillment Centers

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Conclusion

Distributed approach potentially increase your customer satisfaction

Focus on existing market outside Jakarta

Technology to consolidate and coordinate

Supply chain analyst to optimize the inventory level

Page 18: Getting Close to Your Customer With Multiple Fulfillment Centers

Copyright © 2016 8Commerce. All rights reserved.

What 8commerce do

eCommerce technology & fulfillment that integrated and automated all process across digital marketing, store operation & fulfillment centers

Page 19: Getting Close to Your Customer With Multiple Fulfillment Centers

Copyright © 2016 8Commerce. All rights reserved.

Our Advantages

Revenue sharing for dedicated online store

(saves at least IDR 400 mio in 2 years)

Sales focused, performance

marketing (KPI in online sales

conversion)

Integrated marketing and

operation

Proactive store operation

Fulfillment Center in 7 main

Indonesia cities (deliver faster and more efficiently)

Page 20: Getting Close to Your Customer With Multiple Fulfillment Centers

Copyright © 2016 8Commerce. All rights reserved.

eCommerce System

Scalable, secure, high availability eCommerce system

IBM technology And Magento technology

Performance Marketing

KPI on traffic to sales conversion

UI/UX designer

IBM partner

Revenue share model (dedicated site)

Organic marketing Social media, email marketing

Paid marketing (GDN, SEM, remarketing)

Yearly marketing strategy > monthly > follow up

Integrated marketing and operation

Page 21: Getting Close to Your Customer With Multiple Fulfillment Centers

Copyright © 2016 8Commerce. All rights reserved.

Store Operations

Proactive order management

Product cataloging and content management

Fulfillment Center

Multi location (7 main cities) – faster, lower cost

Multi channel

Customer service (pre & post sales)

Payment (3rd party)

Infor WMS

Real time stock information

Order status update, Detailed tracking

ISO 9001, 14001, OHSAS 18001

Shared resources

Return handling

Decades of experience

Page 22: Getting Close to Your Customer With Multiple Fulfillment Centers

Copyright © 2016 8Commerce. All rights reserved.

8commerce Assets

Page 23: Getting Close to Your Customer With Multiple Fulfillment Centers
Presenter
Presentation Notes
final
Page 24: Getting Close to Your Customer With Multiple Fulfillment Centers

Copyright © 2016 8Commerce. All rights reserved.

THANKS AND LETS COLLABORATE!

RONNY RITONGADI [email protected]

+62811821009 www.8commerce.com

85.000 sqm DC 99,8% stock accuracy

7 main cities 600+ fleets