efashion12 - ronald teijken - ibm

© 2012 IBM Corporation© 2012 IBM Corporation

Logistiek achter de verkoop

Connecting the dots....

Ronald Teijken IBM Smarter Commerce expert EMEA


Wat wil de consument?

e


Meerdere kanalen om zijn/haar product te kopen

(winkel, online, call center, smartphone, kiosk, tablet, .....)

Seamless Cross-Channel shopping


Bepalen waar een pakje wordt bezorgd

(Thuis, Buren, ServicePoint, Lockerpoint,

afhalen webwinkel outlet, ander adres)


Bepalen wanneer een pakje wordt bezorgd

(Ochtend, Middag, Avond, Zaterdag, tijdvenster, datum)


Weten wat de status van zijn pakje is.

Real-time Track & Trace


Zekerheid


Verwachten een eenvoudig en gratis retour mogelijkheid


Retouren in online warenhuizen

58%9


Thuisbezorgen

96%-> 84%10


Retourneren per post geniet de voorkeur, maar kan Logistiek Nederland dit aan?

52%11


Verwachting consumenten voor retourneren: gratis

88%12


Cross-channel commerce addresses some of the most exciting retail opportunities…

13

Lost sales due to stock-outs

Expand assortment without expanding physical store footprint

Deliver on customer expectation for seamless cross-channel experience

Expand fulfillment options and sell higher-margin services

Increase inventory turns and reduce markdowns


Store Create Order Check StatusCancel Order

Initiate/Track Return

Schedule DeliveryChange

OrderPickup

Research Product

Create Order Check StatusCancel Order


Schedule Delivery or

PickupChange Order

Schedule Store Pickup

Research ProductMobile



PickupChange Order


Research ProductWeb


Consumer’s Expect a Seamless Cross-Channel Experience

Call Center




PickupChange Order


Research Product

14

85% of consumers “expect a seamless experience across all channels for a retailer”1

Multi-channel shoppers spend 30% to 50% more than their single-channel counterparts, forcing traditional merchandising activities to deliver a truly transparent connection between all customer touchpoints.

1 Source: “Cross-Channel Brand Interaction: 2010 Consumer Preferences,” Sterling Commerce,

2 Source: Gartner, The 2010 Retail Handbook for Becoming Demand Driven

© 2012 IBM Corporation

71% of consumers engage in cross-channel shopping with mobility assisting both shoppers and sales associates

Source: Deloitte Consulting; Motorola

Consumer Mobility 56% of holiday shoppers planned to check / compare prices via

their mobile phone while in the store 43% of consumers would like to use mobile apps to create

shopping lists and find products in the store 38% would like to use a retailer’s store WiFi network to search for

product information 61% of shoppers believe they were better connected to consumer

information, competitive pricing and product availability than store associates

41% of shoppers were not satisfied with their ability to receive in-store stock availability

Store Associate Mobility 75% of store personnel say they provide a better in-store shopper

experience when equipped with mobile device 67% of shoppers cited a better in-store experience when in-store

personnel had mobile devices 68% of shoppers would have purchased an out-of-stock item if an

associate was able to order the item and deliver it to their home

© 2012 IBM Corporation© 2012 IBM Corporation16

Offers(hundreds)

Customers(millions)

Channels(multiple)

Timing(any day/time)

1: Tue 1/4 am

2: Wed 9/4 pm

3: Tue 15/4 am

4: Mon 21/4 am

5: Fri 25/4 pm

Tremendous complexityi.e. 10m customers, 5 channels, 100 products/offers = 247 combinations!


This is changing the entire way products are sourced, manufactured and distributed—and making business more complex than ever

Customer expectations of service, price and delivery are soaring

Customers now have unlimited access to information and can instantly share it with the world

Social networking and mobile commerce have dramatically changed the dynamic between buyer and seller

We have entered the age of the empowered customer

250 millionNumber of tweets sent via Twitter each day

75%Percentage of people who believe companies don’t tell the truth in advertisements

$93 billionAmount in sales missed due to out of stock inventory

Sources:, Techcrunch Oct 2011, Yankelovich, Evolution of Advertising and Media, 5th Annual Store Systems Study, IHL Group and RIS News, 200817


And they are reshaping businesses

e

SOCIAL

MOBILE

GLOBAL

PUSH

PULL

LOCAL

18

RATINGS

REVIEWS

TRUST

LIKE

CROWD SOURCING

LOYALTY


BuyAdaptive

procurement and optimized supply chain

MarketTargeted and personalized

marketing across all channels

ServiceAnticipate

behavior and deliver flawless

customer service

Sell Seamless

cross-channel customer

experience

Placing the customer at the center of your business and synchronize your business processes

19

MarketBuy

Service Sell


Bringing it all together …

Buy Market Sell Service

20

Good marketing is service Service feedback drives better

marketing

Marketing displays relevant ads eCommerce provides marketing

with real-time shopping behavior

Good service drives cross, up-sell and repeat sales

Service options offered to customers during the selling process

Consumer demand shapes decisions on supplier sourcing, inventory

Inventory and logistics drive fulfillment

Excess inventory influences marketing campaigns and mark-down pricing

Campaign results impact inventory plans


Begin with these questions for your Smarter Commerce journey

Do you deliver exceptional customer experience across all touch points?

Could your supply chain interrupt service to your customers?

21

Can you deliver the perfect order?

Can you reduce stock-outs, improve customer satisfaction and still make your margins?

Can your customer and suppliers see into your supply chain?


As a Result, the List of Requirements to Create the Perfect Order Has Grown

1. Support multiple channels.

2. Enable stakeholder centricity. Customers, suppliers, partners, and employees must be able to access the system

3. Deliver a consistent brand experience.

4. Provide both product and service selection.

5. Propose configuration and quantity

6. Guarantee quality

7. Enforce pricing policy

8. Recommend sourcing options

9. Offer delivery and/or installation options

10. Incorporate a period of time (On time delivery)

11. Identify final locations.

12. Suggest packaging options and requirements

13. Include documentation

14. Determine order frequency

15. Present accurate and timely invoicing.

16. Facilitate returns

17. Allow warranty claims

18. Manage service agreements

19. Address repairs

20. Finalize settlement processes.

Source: Re-Staple Yourself to an Order: Next Generation Order Management is Critical for Supply Chain Success, Supply Chain Digest white paper, April 2010.


Providing a unified cross-channel customer experience can be costly and difficult to execute across multiple systems and organizations

Difficult to obtain a holistic view of supply and demand

Lack of visibility into inventory across systems and partners

Poor insight into profitable customers Manual processes are needed to fulfill an order Difficult to change order processes when

needed High transportation costs due to poor route

and load planning No process to capture customer sentiment or

social media


Is customer information driving your business?

Optimize inventory utilization

Provide a seamless and unified cross-channel customer experience

Provide a personalized customer experience with advanced analytics

Automate transportation processes to optimize order fulfillment

4 ways to get started by optimizing Order Management and Fulfillment processes

24


Optimize Inventory Utilization

25

Balance supply and demand with better visibility across the supply chain

Efficiently utilize inventory across all locations

Sell virtual inventory that is drop-shipped from partners

Utilize event-driven monitoring of inventory levels to automatically trigger replenishment


Challenge

Solution

Results

Crocs has improved fill rates to nearly 100%

26

• Fill rates on internet orders is nearly 100%, an improvement of 10-13%

• All inventory is now planned and reserved by channel

• Accurate real-time available-to-promise number for all channels

• Heavily customized ERP system that required manual processes

• Poor order accuracy in the wholesale channel• No comprehensive view of inventory across

internet, retail, and wholesale channels

Order Management system that provides an accurate and near real time available-to-promise picture and robust sourcing and scheduling capabilities

Customer Profile

Crocs, Inc. designs, develops, and manufactures footwear for men, women, and children worldwide from specialty resins.Operates manufacturing facilities in Mexico, Italy, and China, with distribution centers worldwide$645 Million in annual sales

“Sterling Order Management is doing exactly what Crocs needed it to do, with an expected return on investment within 12 months of implementation.

Brian Horsman, Crocs, Inc.

http://www.shoesforall.com/img/controlvariables/crocs-logo.jpg


Provide a seamless and unified cross-channel customer experience

27

Source complex orders across a network of internal and external locations

Provide flexible fulfillment methods to the customer – order online, modify via call center, pick up in store

Deliver a uniform face to customers by providing a single version of the truth for all customer fulfillment issues

Efficiently coordinate complex fulfillment processes in a single environment


Debenhams at a Glance

UK’s second largest department store

Growing multi channel and international presence

Strong sales, profitability and cash flow generation

IBM WebSphere Commerce and Sterling Order Management customer since 2006


Focus & Strategy


Provide a personalized customer experience with advanced analytics

32

Gain better customer insight into ordering habits

Provide up-sell and cross sell offers based on the ordered product and past behavior

Gain insight into supply chain performance and on-time delivery

Anticipate demand based on past history and up-coming events


Challenge

Solution

Results

Neck and Neck leverages real-time analysis of their customers to deliver more personalized offers

33

• Lacked the integrated tools needed to build, maintain and expand customer loyalty.

By deploying a comprehensive data mining solution using IBM SPSS Modeler, the company improved market segmentation modeling and gained decision-making tools for better customer management.

Customer Profile

Dedicated to the design and distribution of children’s fashion. Based in Madrid, the firm was established in 1993, and has expanded to 200 stores, 1,867 employees, along with a commercial network of 211 points of sale – making the company a leader in its sector.

“This is an enormous increase in profitability when taking into consideration that the average customer purchase is between €100 and €120 across 90,000 affected customers.”

- Neck and Neck

• Increased campaign response rates by more than 25%• Boosted sales by 15% in one year• Reduced the number of catalogs and promotional mailings

while increasing consumer outreach success• Quickly achieved payback: the increase in sales in just one

campaign recovered the amount invested in the solution


Automate transportation processes to optimize order fulfillment

34

Optimize shipment & route planning

Deliver better customer service through shipment monitoring and pre-emptive issue resolution

Interface to 10,000+ carriers to find the optimal space for your freight

Automate transportation invoicing processes

Automate the monitoring of contract\rate compliance


Cross-channel visibility and automated processes that help enable the utilization of multiple fulfillment strategies

Single source of customer order and inventory visibility helps ensure a seamless experience for the customers, partners, and suppliers

Synchronized multi-tiered order orchestration and fulfillment optimizes inventory and reduces supply chain costs beyond your enterprisePredictive analytics, reports, and dashboards, allowing employees to make more informed decisions and automatically improving business processes

Hide the cross-channel complexities while enabling a unified customer experience !

efashion12 - ronald teijken - ibm

Technology