JPK

Gro

upBusiness Forecasting and Analytics Forum

March 1-2 • San Francisco, CA

Creating a ConsumerDriven Supply Chain

Using customer satisfaction

as a measure of high performance

March 1, 2:15pm

View presentation online at:

https://jpkgroupsummits.com/attendee1

Arnaud Deshais – RedBubblePrior to working at Redbubble, Arnaud was the Director of Supply Chain Management for

Art.com in Emeryville, California. He has almost 20 years of global supply chain experienceincluding Production Planning, Forecasting, S&OP, Purchasing, Partner Management,

Logistics and Distribution, Vendor Managed Inventory and Consignment for a wide range ofindustries such as Electronics, Aerospace, Medical Devices, Biotechnologies and

E-business Retail. Mr. Deshais was a Consultant Manager for CapGemini Ernst and YoungSupply Chain Practice for 4 years. Mr. Deshais holds an MBA from Clemson University.

Customer Centric

Supply Chain

Management

Arnaud Deshais, CFPIM, CSCP, CIRM

Agenda

Presenter’s background

Introduction to Redbubble

E-commerce supply chain dynamics

Fulfillment at Redbubble

Net Promoter Score

Supply Chain and Analytics

Presenter’s background: Arnaud Deshais

25 years of experience in supply chain

Functional and consulting

Across multiple industries

Across supply chain disciplines

Currently Head of Supply Chain and Quality Assurance at

Redbubble

Introduction to Redbubble

Redbubble – online marketplace for independent artists

Company created in 2006

Headquartered in Melbourne, Australia

14 million unique images

1.2 million customers (2014)

60,000 artists made sales exceeding $30 millions (2014)

Customers buy the artist design on a variety of products (t-

shirts, stickers, pillows, mugs, leggings, scarves, skirts,

notebooks)

• More relevant

• More authentic

• Connected to seller

• More personal

• Differentiated

Consumers Seeking Personal

Style

• POD Wall Products

• POD Garments

• POD Home-wares

• POD Accessories

• Cut and Sew

• 3D Printing

• Etc…

Advances in Printing

Technology

THE ERA OF

CREATIVE

INDIVIDUALISM

5

RB is positioned at the intersection of two

powerful waves of change

2015 Trends in E-Commerce

Global E-commerce sales expected $1.7 trillion this year

>7 % of global retail sales

E-commerce sales in Asia > 35% growth year over year

Increasing multi channels strategy

Integration with social media (Facebook, Twitter..)

Use of video for product selling

Personalization

Mobile strategy

Same day delivery

Redbubble Fulfillment 8 Steps

1 Artist uploads their own design

2 Customer places order online (global/local)

3 Customer pays through the web site

4 Redbubble passes the order to the third party printer

5 Fulfillment (global/local)

6 Drop shipment (global/local) through carrier

7 Redbubble pays the third party printer

8 Redbubble pays the artist his/her commission

Let’s begin our journey…

Let’s find a design YOU like…

From an Artist YOU like…..

Now let’s find a product YOU like…..

Now let’s find a product YOU like…...

Now let’s find a product YOU like…..

And proceed to check out ...

What Happens Next…

Order

Physical

Product(s)

delivered

Order(s)

Shipment

CUSTOMER

ARTIST

INTERNET

PLATFORM

FULFILLER

FULFILLER

FULFILLER

Mass Customization

Mass Production of “one of a kind”

Requires Collaboration with the customer and the seller

Challenge to the mass market

POD: Print on demand

Zero inventory

We are selling millions of products with every single one being

crafted just for you, the customer

Drop Shipping Basics

From “practical E-commerce” Jeremy Hanks

Supply Chain Factors

Delivery speed

− Amazon benchmark

− Printing turn around time

− Localizing fulfillment for faster delivery

Capacity

− One / multiple partners

− Back ups for risk management

Quality

− Print quality

− Product quality

− Design quality

Customer satisfaction: as measured by NPS

What is Net Promoter Score ?

Customer loyalty metric and organizational discipline

Measure level of satisfaction customers have about the

service and opportunities to improve the customer

experience

Developed by Satmetrix, Bain & Company and Fred

Reichfeld

Net Promoter Score

Group Exercise

100 Surveys

Promoters = 52

Detractors = 38

Net Promoter = 14

Score # Surveys

10 44

9 8

8 5

7 5

6 6

5 8

4 5

3 8

2 0

1 11

Net Promoter Score – Repeat Business

“How likely are you to recommend XYZ to a friend or a

colleague ?”

NPS correlates to repeat business and referrals

Companies with higher NPS grow faster than competition

How do you gather Survey Data ?

Email

Phone

Text message

Social media

Others?

Is “Likely to Recommend” the only question in

your survey?

Could be the only question

Use satisfaction criteria such as

Delivery

Value

Quality

Free comments field, great for feedback

Possibility to read Comments using a Wordle

(www.wordle.net)

How to get good response rates ?

Lottery, prize

Coupon, discount

Promise feedback to customers. We heard your voice and

we are taking action

Measure performance on a regular basis (weekly)

NPS and Supply Chain Linkages

Delivery time and delivery conditions are key success factors for a high NPS Score

Delivery time = time to receive the product or service

Delivery condition = packaging, convenience

Ability to assess the supply chain performance from the customer point of view

Infrastructure Needed for NPS

Data acquisition system (email ?)

Data collection system

Reporting structure

Metrics integration

Team

Program Governance

Program leader

Sponsor

Cross functional representation

Meeting Agenda:

Metrics

Action items review

Rotating topics

Example of Supply Chain Data Analytics

Delivery time satisfaction by:

Country/State/Zip

Demographics

Brand

Fulfillment method (make-to-stock, make-to-order ,etc.)

Logistics carrier

Example of NPS Lessons Learned

in the Supply Chain Field

Actual Supply

Chain

Performance

Customer

Perception

Recommended

Action

High Low Lead time

Reduction

Low Low Lean, 6 sigma

High High Sustain

Low High Possible

Savings

Managing the Feedback loop

Response to individual comments

Gain the detractors back

Keep the promoters

Turn the passives into promoters

Use incentives

Cultural Differences

Rating systems and scales are

understood differently based on cultures

Bias based on how “acceptable” it is to provide low/high

scores

Generally speaking, Japan and France can score lower and

Latin America higher

Common Risk: Measuring not Acting

Be careful with “analysis paralysis”

NPS data can be analyzed and over-analyzed

Program team members might request more analysis to

delay change and actions

Solution: TEST a change and measure the impact for 2

samples (A/B test)

NPS Criticisms/Limitations

Bias towards happiest customers

Assumes you will recommend “How likely ..?”

Just a score!

Ambiguity. NPS can be down while all satisfaction criteria

being up.

Some brands are very controversial but do very well

Building a Responsive Supply Chain

Sense by measuring

− NPS

− Customer Contacts

− Delivery times

− Social Media

Respond

− Customer Recovery

− Root cause and fix

− Modify/Correct

− Re-measure

Analytics Driven Supply Chain

Area of Big Data

− Information = value

− Retail = many individual transactions

− Information vs Insights

Organization

− Analytics team providing

support

− Inside Business Team

− data analyst

− One source of truth

Forecasting and S&OP

Using Sales Data from Big Data to create demand forecasts

− seasonality

− growth

− trends

− New products

Creating the S&OP model

− Use the forecasts

− Look at capacity constraints

− Resolve the constraints