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© 2010 IBM Corporation October 10, 2011 Smarter Commerce IBM’s Sterling Application Suite

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Page 1: IBM Presentations: Smart Planet Templatepublic.dhe.ibm.com/partnerworld/pub/swg/websphere/order_manage… · IBM’s Sterling Order Management.... Recognized by analysts as industry

© 2010 IBM CorporationOctober 10, 2011

Smarter CommerceIBM’s Sterling Application Suite

Page 2: IBM Presentations: Smart Planet Templatepublic.dhe.ibm.com/partnerworld/pub/swg/websphere/order_manage… · IBM’s Sterling Order Management.... Recognized by analysts as industry

© 2010 IBM Corporation2

―Senior executives want a great customer experience to be a competitive differentiator.‖

Page 3: IBM Presentations: Smart Planet Templatepublic.dhe.ibm.com/partnerworld/pub/swg/websphere/order_manage… · IBM’s Sterling Order Management.... Recognized by analysts as industry

© 2010 IBM Corporation

IBM’s Sterling Order Management....

Recognized by analysts as industry

leading for both B2C and B2B

Has 13+ years of industry leading order

orchestration

Has over a decade of Distribution

experience with over 100 clients in the

US

Understands and fits complex

manufacturing and distribution models

Can be leveraged for future acquisitions,

and new requirements that are driven by

customers, the retail industry and

competitors

Invests in latest technologies – Java

based API, Web Services integration

“Sterling Commerce a Leader in the Forrester Wave for Order Hubs. Of all the vendors evaluated, Sterling Commerce earns the highest marks for overall product vision.”

3

Page 4: IBM Presentations: Smart Planet Templatepublic.dhe.ibm.com/partnerworld/pub/swg/websphere/order_manage… · IBM’s Sterling Order Management.... Recognized by analysts as industry

© 2010 IBM Corporation

Understand and

anticipate

customer

behavior and

needs based on

customer

insights across

all channels

4

Adapt sourcing and

procurement based

on customer

demand and

optimize supplier

interactions across

extended value

chains

Market, sell and

fulfill the right

product and service

at the right price,

time and place

Servicecustomers flawlessly, predict and drive customer loyalty

In this new era, businesses need to:

Power has shifted to the customer — compressing margins and changing paradigms

Page 5: IBM Presentations: Smart Planet Templatepublic.dhe.ibm.com/partnerworld/pub/swg/websphere/order_manage… · IBM’s Sterling Order Management.... Recognized by analysts as industry

© 2010 IBM Corporation

What does Smarter Commerce mean to these clients?

5

Crocs

For Crocs*, a $700M

manufacturer, Smarter

Commerce means transforming

their fulfillment operations and

supply chain so internet

customer orders are filled with

nearly 100% accuracy through

their network of suppliers at the

lowest cost

Best Buy

Same store revenue increased by

double digits in pilot stores of

cross-channel commerce, while

decreasing during the same

period for stores that were not

part of the pilot. An extended

catalog to incorporate non-

stocked items has increased

revenue and customer satisfaction.

*Case studies based on Coremetrics, Sterling Commerce and Unica solutions

Cabela’s

Enables confidence that the right

inventory is available when their

customers want it – no matter

what channel they use to reach

Cabela’s.

Page 6: IBM Presentations: Smart Planet Templatepublic.dhe.ibm.com/partnerworld/pub/swg/websphere/order_manage… · IBM’s Sterling Order Management.... Recognized by analysts as industry

© 2010 IBM Corporation

Create OrderCheck Status

Cancel OrderInitiate/Track

Return

Schedule DeliveryChange Order PickupResearch

ProductStore

“Consumers Don’t See Channels”

Call Center Create OrderCheck Status

Cancel OrderInitiate/Track

Return

Schedule Delivery or PickupChange Order

Schedule Store Pickup

Research Product

Create OrderCheck Status

Cancel OrderInitiate/Track

Return

Schedule Delivery or PickupChange Order

Schedule Store Pickup

Research ProductMobile

Create OrderCheck Status

Cancel OrderSchedule Delivery

or PickupChange OrderSchedule

Store PickupResearch Product

Web

A complete view of a customer order across all channels allows a company to support the customer no matter where the order was placed or where it is in the sales process

6

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

1 Source: “Cross-Channel Brand Interaction: 2010 Consumer Preferences,” Sterling Commerce,Title Source: RSR “Enabling Buy Anywhere/Get Anywhere” 2011

Page 7: IBM Presentations: Smart Planet Templatepublic.dhe.ibm.com/partnerworld/pub/swg/websphere/order_manage… · IBM’s Sterling Order Management.... Recognized by analysts as industry

© 2010 IBM Corporation

Smarter Commerce delivers a maximum customer experience

7

Creates a personal connection‒Precision segmentation & marketing‒Optimized search & content‒Social commerce support

Delivers consistency in every channel‒Ordering‒Validation‒Availability & promising

Provides appropriate communication‒Status updates & required notifications‒Proactive alerts

Simplifies unique requirements‒Catalogs‒Pricing & promotions‒Complex configuration & quoting‒Delivery & services‒Dependent activities

Promises reliable multi-channel visibility‒Current/previous order history & dependencies‒Template orders

Customer

Maximizes flexibility‒Adaptable to new requirements‒Variable order & line processes‒Flexible shipping options‒Optimized sourcing & promising‒Faster assimilation of acquisitions

Enables placing one order‒All products & services‒Complex orders

Page 8: IBM Presentations: Smart Planet Templatepublic.dhe.ibm.com/partnerworld/pub/swg/websphere/order_manage… · IBM’s Sterling Order Management.... Recognized by analysts as industry

© 2010 IBM Corporation

IBM’s Sterling Cross-Channel Order Orchestration

8

Aggregates order activity and monitors the fulfillment lifecycle

Supports all order channels & centralizes & stores all order information

Centralizes all inventory information & optimizes sourcing & promising (& fulfillment)

Provides a configurable, extensible, & scalable platform for integration & growth

Page 9: IBM Presentations: Smart Planet Templatepublic.dhe.ibm.com/partnerworld/pub/swg/websphere/order_manage… · IBM’s Sterling Order Management.... Recognized by analysts as industry

© 2010 IBM Corporation

Order Orchestration, Monitoring & Visibility

9

Capabilities

Enables aggregating, managing, & monitoring orders from all channels

Provides a single order repository to create, modify, & monitor & track an order’s lifecycle real-time

Coordinates intelligent sourcing & fulfillment across the extended enterprise

Benefits

Delivers a single face to the customer through all channels

Maximizes customer satisfaction & revenue

Improves order fill-rates & cycle times

Reduces order management & expediting costs

Enables management by exception

Reduces inventory costs & obsolescence

Page 10: IBM Presentations: Smart Planet Templatepublic.dhe.ibm.com/partnerworld/pub/swg/websphere/order_manage… · IBM’s Sterling Order Management.... Recognized by analysts as industry

© 2010 IBM Corporation

Typical Order Flow

Create Order Reserve Inventory Release for Shipping Shipped

ConfirmedShipped

10

Page 11: IBM Presentations: Smart Planet Templatepublic.dhe.ibm.com/partnerworld/pub/swg/websphere/order_manage… · IBM’s Sterling Order Management.... Recognized by analysts as industry

© 2010 IBM Corporation

Typical Flows Will Change

Create Order Reserve Inventory Release for Shipping Shipped

Created ShippedNeedsApproval

?

Approval

Yes

No

Approved

DisapprovedCall ManagerCall CustomerApprove or Cancel

11

Page 12: IBM Presentations: Smart Planet Templatepublic.dhe.ibm.com/partnerworld/pub/swg/websphere/order_manage… · IBM’s Sterling Order Management.... Recognized by analysts as industry

© 2010 IBM Corporation

Disruptions Will Arise

Create Order Reserve Inventory Release for Picking Shipped

Created ShippedNeedsApproval

?

Approval

Yes

No

Approved

DisapprovedCall ManagerCall CustomerApprove or Cancel

Status Delay

Reserved Released for Picking

Call ManagerInventory UnavailableRe-source InventoryCall Customer

12

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© 2010 IBM Corporation

Dependent Activities Will Be Required

Create Order Reserve Inventory Release for Picking Shipped

Created ShippedNeedsApproval

?

Approval

Yes

No

Approved

DisapprovedCall ManagerCall CustomerApprove or Cancel

Status Delay

Reserved Released for Picking

Call ManagerInventory UnavailableRe-source InventoryCall Customer

Warehouse Picking

Special HandlingWorkorder

Picked

Ready toShip

Warehouse Management

13

Page 14: IBM Presentations: Smart Planet Templatepublic.dhe.ibm.com/partnerworld/pub/swg/websphere/order_manage… · IBM’s Sterling Order Management.... Recognized by analysts as industry

© 2010 IBM Corporation

Order Fulfillment Process Modeling

14

Capabilities

Manages and monitors orders at a line item level

Enables configuring all processes via a process definition framework & modeler

Supports different processes for different participants, i.e. divisions, customers, carriers, etc

Benefits

Reduces TCO, i.e. flexible process modeling versus customization a/or programming

Enables reacting to business & environment changes easily

Page 15: IBM Presentations: Smart Planet Templatepublic.dhe.ibm.com/partnerworld/pub/swg/websphere/order_manage… · IBM’s Sterling Order Management.... Recognized by analysts as industry

© 2010 IBM Corporation

All Order Types – Simple & Complex

15

Simple Sales Order

More Complex Sales Order

Return Order

Purchase Order

We are built on the fact that there is no single order process that will work to provide you and your customers with visibility and delivery expectations.

Page 16: IBM Presentations: Smart Planet Templatepublic.dhe.ibm.com/partnerworld/pub/swg/websphere/order_manage… · IBM’s Sterling Order Management.... Recognized by analysts as industry

© 2010 IBM Corporation16

Enterprise

RequisitionsReplenishment OrdersTransfer OrdersWork Orders

Suppliers

QuotesPurchase Orders

Blanket POsPlanned POs

Outsourced Providers

Drop Ship OrdersValue-Added ServicesContract Mfg. Orders

Service & Delivery Orders

Customers

Sales OrdersContinuity Orders

Return OrdersExchange OrdersService & Delivery

Orders

Carriers

Shipments Loads

Warehouses

Release Orders

Stores

Pickup Orders

16

Order Management Key Entities

16

Page 17: IBM Presentations: Smart Planet Templatepublic.dhe.ibm.com/partnerworld/pub/swg/websphere/order_manage… · IBM’s Sterling Order Management.... Recognized by analysts as industry

© 2010 IBM Corporation

Event, Alert & Communication Management

17

Capabilities Enables configuring rules for real-time monitoring of

inventory, order, & shipment actions & events

Enables configuring reactive & pro-active monitors & alerts, i.e. sense & respond

Enables configuring exception queues with monitoring & escalation

Benefits Enables anticipating & preempting problems

Enables escalating problems

Enables managing by exception

Page 18: IBM Presentations: Smart Planet Templatepublic.dhe.ibm.com/partnerworld/pub/swg/websphere/order_manage… · IBM’s Sterling Order Management.... Recognized by analysts as industry

© 2010 IBM Corporation

Comprehensive Order Management – Simple & Complex

18

Line Level Decomposition Linking All Subsequent Activities

Capabilities

Line-level execution Independence / dependence Rules-based Configurable shipping rules

Complex, multi-stage fulfillment Drop-ship, procure-to-order, build-to-order,

delivery / services, etc.

N-tiered order management Link processes and maintained dependencies

Benefits

One source for all order truth and activity

Improved efficiency and order accuracy

Leveraged resources and maximized adaptability

Page 19: IBM Presentations: Smart Planet Templatepublic.dhe.ibm.com/partnerworld/pub/swg/websphere/order_manage… · IBM’s Sterling Order Management.... Recognized by analysts as industry

© 2010 IBM Corporation

Extended Catalog – Drop Ship

19

Capabilities

Automatic purchase order creation Process monitoring for timely response

Collaboration Acknowledgement Ship confirmation

Web-based portal Review, acknowledge and release orders Documentation and labeling Ship confirmation Inventory availability

Benefits

ExclusivelyEDI

EDI +Portal

EDI +Portal

Proactively manage your drop ship process and community by exception

End-to-end drop ship support for the supplier Supplier performance monitoring Accurate promising with inventory availability

Page 20: IBM Presentations: Smart Planet Templatepublic.dhe.ibm.com/partnerworld/pub/swg/websphere/order_manage… · IBM’s Sterling Order Management.... Recognized by analysts as industry

© 2010 IBM Corporation

Returns Management

20

Capabilities

Enables directed workflow for all tasks with visibility & status tracking, & alerts & event management

Supports automated item re-classification, based on return status & disposition codes, & configurable rules

Enables linking return to original sales order and all subsequent return processing activities

Enables ‘blind return’ processing

Benefits

Provides end-to-end return processing visibility, i.e. ‘one version of the truth’

Ensures timely processing of returns by enabling managing internal / external process participants

Can be readily reconfigured to support changing returns (business) processes

Received atReturn Location

RepairWorkorder

?

To StockGood2nd Class

RepairedRefurbishedReturnDisposeReturn to Vendor

Dispose

To Vendor

Return to CustomerOriginal Order

Replace/Exchange Order

Page 21: IBM Presentations: Smart Planet Templatepublic.dhe.ibm.com/partnerworld/pub/swg/websphere/order_manage… · IBM’s Sterling Order Management.... Recognized by analysts as industry

© 2010 IBM Corporation

Global Inventory Sourcing & Promising Optimization

21

Capabilities

Provides real-time visibility of inventory at own & external locations with advanced search

Provides a single console through which to view & manage demand / supply match, & resolve issues

Provides real-time ATP, based on configurable, inventory type based, promising rules (to batch a/or lot number)

Supports configurable categories for segmenting inventory, & business rules for defining user access

Benefits

Improves product availability & decreases stock-outs

Improves inventory utilization across the value chain

Decreases transportation expediting costs

Page 22: IBM Presentations: Smart Planet Templatepublic.dhe.ibm.com/partnerworld/pub/swg/websphere/order_manage… · IBM’s Sterling Order Management.... Recognized by analysts as industry

© 2010 IBM Corporation

Global Inventory Sourcing & Promising Optimization

22

Capabilities

Provides real-time visibility of inventory at own & external locations with advanced search

Provides a single console through which to view & manage demand / supply match, & resolve issues

Provides real-time ATP, based on configurable, inventory type based, promising rules (to batch a/or lot number)

Supports configurable categories for segmenting inventory, & business rules for defining user access

Benefits

Improves product availability & decreases stock-outs

Improves inventory utilization across the value chain

Decreases transportation expediting costs

Page 23: IBM Presentations: Smart Planet Templatepublic.dhe.ibm.com/partnerworld/pub/swg/websphere/order_manage… · IBM’s Sterling Order Management.... Recognized by analysts as industry

© 2010 IBM Corporation

Intelligent Sourcing Engine Determines Complex Fulfillment

23

Splitting order as needed - Fulfill by Line

– by suppliers etc.

– By different internal systems

Source from:– Multiple locations

– Drop ship from partners

– Service partners

Source By– Priority

– Geographical location

– Inventory cost

– Handling cost

– Transportation cost

– Reduced no. of shipments (merge in transit etc.)

Optimized Sourcing of Orders– Intelligent sourcing engine determines the

most optimal location

– Automated rules based backorder handling.

– Multiple Shipment options (Ship Complete, Ship Line etc.)

– Enable transfers in stock-out situations

– Effective use of segmented or safety Stocks

Ability to anticipate and respond to exceptions is increasingly

critical as over 60% of an enterprise’s inventory is often

managed outside the four walls of the enterprise

Page 24: IBM Presentations: Smart Planet Templatepublic.dhe.ibm.com/partnerworld/pub/swg/websphere/order_manage… · IBM’s Sterling Order Management.... Recognized by analysts as industry

© 2010 IBM Corporation

Store Associate Mobility

24

Capabilities Allows Store Associates to use a mobile device to

check inventory in any location

Collaborate with another store electronically to hold the product

or Complete the Sale on the mobile device before the customer ever leaves the store

Allows visibility into the full product catalog to help the customer with product details and special offers

Allows Store Associates to use a mobile device to stage items for customer in-store pick-up

Benefits Increasing revenue through additional transactions

that would have been lost due to the stock-out

Improves productivity and responsiveness of store associate – no need to be tied to the customer service desk

Engages customers with valuable information that aids the shopping experience

Helps cross-sell and up-sell other products

Improves brand image by leveraging mobile technology

LogoHere

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© 2010 IBM Corporation

How it works!

• Drill into features•Delivers marketing, accessories, specials, up-sells and cross-sells

• Immediately see where inventory resides in your area

• See a map of locations

• Pick a store to hold or pick a ship option

• Complete check-out

• Search for an item

• Order is complete

Page 26: IBM Presentations: Smart Planet Templatepublic.dhe.ibm.com/partnerworld/pub/swg/websphere/order_manage… · IBM’s Sterling Order Management.... Recognized by analysts as industry

© 2010 IBM Corporation

Comprehensive Store Order & Inventory Management

Capabilities Comprehensive order lifecycle control

Order creation

Inventory lookup

Sourcing & promising

Order monitoring

In store pickup

Order notification Acknowledgement Pick confirmation

Handle returns

Comprehensive control of inventory movement

Inbound receiving

Inventory adjustment

Inventory monitoring

Pick/pack/ship

Page 27: IBM Presentations: Smart Planet Templatepublic.dhe.ibm.com/partnerworld/pub/swg/websphere/order_manage… · IBM’s Sterling Order Management.... Recognized by analysts as industry

© 2010 IBM Corporation

Call Center

27

Capabilities

Multi-channel call center solution gives CSRs visibility into selling and ordering processes across channels and fulfillment methods

Full capability for managing a customer’s order and providing current information.

Wizard driven order entry and modification as well as scripting

Proactive alert management

Benefits

Decreased call time, reduced training costs and more accurate orders

Increase customer satisfaction by handling customer requests and exception events more efficiently.

Page 28: IBM Presentations: Smart Planet Templatepublic.dhe.ibm.com/partnerworld/pub/swg/websphere/order_manage… · IBM’s Sterling Order Management.... Recognized by analysts as industry

© 2010 IBM Corporation

IBM Sterling Call Center enables your call center representatives to perform:

Item Configuration – Configurable items, Style Size Color, Gift Wrapping, Personalization, Sourcing,

Pre-Orders

Customer Management – Addresses, Payments, Holds, Buying History

Order Create and Modify– Promo Codes, Coupons, Special Tender, Discounts, Price Match, Fulfillment

Method, Level Of Service, Ship-Deliver-Pickup, Pre-Order– Modification Rules, Reships, Up sells, Cross Sells, Gift Options, Notes , Price

Match, Appeasements

Order Inquiry– Payments, Shipments, Related Orders (Internal), Appointments, Returns

Fulfillment Options– Provided Services, Delivery Appointments, In-Store Pickup, Store Transfers

Returns and Replacements– Refunds, Exchanges, Advanced Exchanges, Service Recovery

Operations and Exceptions– Alert Queues, Routing and Escalations, FTC Compliance, Call Scripts, Call

Center Announcements

Page 29: IBM Presentations: Smart Planet Templatepublic.dhe.ibm.com/partnerworld/pub/swg/websphere/order_manage… · IBM’s Sterling Order Management.... Recognized by analysts as industry

© 2010 IBM Corporation

Delivers Cross-Channel Consistency With Order Management

29

Page 30: IBM Presentations: Smart Planet Templatepublic.dhe.ibm.com/partnerworld/pub/swg/websphere/order_manage… · IBM’s Sterling Order Management.... Recognized by analysts as industry

© 2010 IBM Corporation

Sterling Collaborates With ERP

30

Customer Expectations

– Improved the personalized customer experience with flexible fulfillment processes.

– Customers and partners have end-to-end visibility.

– Provides process monitoring to ensure consistency and improve communication.

Order Orchestration Opportunities

– Orchestrates multiple ERP and Legacy OMS instances to enable one face to customers, suppliers and partners.

– Provides a consistent orchestration of orders, regardless of channel, division, or system

– Enables order process agility to meet customer, location, product and business demands.

– Extends order fulfillment processes beyond the 4 walls of the organization.

Technology

– Enables smoother transition through acquisition and ERP consolidation.

– Flexible to meet new challenges from business, competition or the market.

– Industry leading integration technology to tie customer, suppliers, partners and systems together.

“90% of users still have not

achieved the ultimate goal of

unifying the Customer

Fulfillment (CF) process. In

fact, the extended order

management process remains

fragmented across numerous

ERP instances (and) legacy

systems…In addition, the

process is changing

dramatically, based on

strategies to outsource,

customer demands for

responsiveness, and revenue

strategies linked to new

channels or service offerings.”- AMR Research

Page 31: IBM Presentations: Smart Planet Templatepublic.dhe.ibm.com/partnerworld/pub/swg/websphere/order_manage… · IBM’s Sterling Order Management.... Recognized by analysts as industry

© 2010 IBM Corporation

Systems of Record (ex. ERP)

These are the systems that form the foundation for your enterprise.

They manage the information necessary to run your business.

They're transaction oriented and are core to financial reporting and regulatory compliance.

Their pace of change is slow, with their life span measured in decades.

They're most likely delivered on premises.

Systems of Differentiation

Systems that help drive competitive differentiation for your company.

They connect to customers and trading partners.

They help speed time to market and overall agility.

They're more collaborative in nature.

They leverage data from systems of record.

Many of these systems will be deployed on premises, but some may be delivered as a cloud application.”

31Source: Is It Time to Rethink Your Enterprise Application Portfolio Strategy? (June 28, 2010) Gartner AMR, by Dennis Gaughan

A new technology delivery approach is required that delivers differentiating capabilities quickly and ecosystem-wide

+

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© 2010 IBM Corporation

Manages Warehouses As a Logical Network

32

Packing

Task Management

Wave Planning

Shipment Planning

Shipping

Receiving

Put-away

VAS

Cycle Counting

QC/Inspection

Centralized Control of the Network For Complete Visibility

Common Interaction Layer (Browser, RF, Scanners, MHE, RFID, Scales…)

Business Process Management

Event Management

Common Participant Management and Product Management

Analytics & Performance Management

Interoperability Services

Packing

Task Management

Wave Planning

Shipment Planning

Shipping

Receiving

Put-away

VAS

Cycle Counting

QC/Inspection

Common Interaction Layer (Browser, RF, Scanners, MHE, RFID, Scales…)

Business Process Management

Event Management

Common Participant Management and Product Management

Analytics & Performance Management

Interoperability Services

Centralized Control of the Network For Complete VisibilityOne or Many Warehouses, One or Many Processes

Page 33: IBM Presentations: Smart Planet Templatepublic.dhe.ibm.com/partnerworld/pub/swg/websphere/order_manage… · IBM’s Sterling Order Management.... Recognized by analysts as industry

© 2010 IBM Corporation

Comprehensive Data Gathering Supports BI

33

Capabilities

Data marts to track order metrics across important dimensions like customer, segment, geography, industry

Easy to use dashboards and reports to make key business metrics available to business owners to track their performance

Comprehensive ETL and reporting capability for easy authoring of ETL scripts and reports from a single data definition

Benefits

Grow revenue and reduce costs by creating levers for strategic control throughout an organization – improving the ROI

Automate tactical decisions and facilitate strategic decisions by making key business metrics available to business owners

Create mash-ups from analytics into applications to provide actionable insight to business users to facilitate decision making

Optional

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© 2010 IBM Corporation

IBM/Sterling Order Management Typical Retail Footprint

Sterling GIS – B2B Sterling GIS - EAI

Perfo

rman

ce M

an

ag

em

en

tG

lob

al V

isib

ilit

y

Sterling Supply Chain Visibility

IBM POS Checkout

Tendering

Sterling Call Center Task Based Call Center

Call Scripting

Sterling Store Store Based Order Processing

Save-the-sale

Sterling Selling Channels MobileWeb

Fulfillment Network.

Networked Locations

Sterling Warehouse Management 3PL’s

Sterling Store OperationsDrop Shippers

Store Network

Brand 2 Division 2Brand 1 Division 1 Acquisition

Sterling Order Management

Cross-Channel Business Services: Customer, Order, Inv, Catalog, Pricing, Promotion, Configuration, Returns

Business Process Platform & Event ManagementMulti-Client / Multi-Tenant Data ModelService Oriented Architecture (SOA)

Other Systems

• ERP

• Merchandising

• WMS

• Other

Other Services

• Payment

• Fraud

• Tax

• Address

34

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© 2010 IBM Corporation

WebSphere Commerce integration with Sterling Order Management

Sterling Order Management

Continuing to streamline the ability to leverage WC and Sterling side-by-side

35

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© 2010 IBM Corporation

Industry Leading, Industry Standard Technology

36

Monitoring the life cycle of every order type with appropriate and consistent communication as well as notification and actionable services that arise in the processes through configurable events and alerts that improve customer satisfaction and fulfillment accuracy.

Aggregating and organizing data that provides comprehensive business intelligence around the processes managed and monitored by Sterling’s solutions. It can also enhance an enterprise datawarehouse strategy by connecting Sterling’s data marts to the enterprise datawarehouse to enable and improve performance visibility throughout all order processes.

An integrated solution, complimentary to ERP that provides end-to-end order and supply chain visibility to customers, suppliers and partners with authorized access

Page 37: IBM Presentations: Smart Planet Templatepublic.dhe.ibm.com/partnerworld/pub/swg/websphere/order_manage… · IBM’s Sterling Order Management.... Recognized by analysts as industry

© 2010 IBM Corporation

Retailer

Consumers

Web

Call Center

Mobile

Stores Cross-Channel Retailing

• Research• Shop• Buy• Track• Receive• Return

OrderHub

Call Center Create OrderCheck Status

Cancel OrderInitiate/Track

Return

Schedule Delivery or PickupChange Order

Schedule Store Pickup

Research Product

Store Create OrderCheck Status

Cancel OrderInitiate/Track

Return

Schedule DeliveryChange Order PickupResearch

Product

Create OrderCheck Status

Cancel OrderInitiate/Track

Return

Schedule Delivery or PickupChange Order

Schedule Store Pickup

Research ProductMobile

Create OrderCheck Status

Cancel OrderSchedule Delivery

or PickupChange OrderSchedule

Store PickupResearch Product

Web

True Cross-Channel Selling and Fulfillment

37

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© 2010 IBM Corporation

Same store sales out performedthe department store average after rolling out cross-channel capabilities. Inventory turns

went to 5.41 in 2009 from 4.84 in 2005, a five-year high, and

likelihood of markdowns was dramatically reduced.

Source: Nordstrom Links Online Inventory to Real World, The New York Times, Aug 23, 2010

Let’s net out benefits retailers are seeingRetailers are achieving significant benefits by deploying cross-channel capabilities to the Store

Same store revenue increased by double digits

in pilot stores of cross-channel commerce, while

decreasing during the same period for stores that were not part of the pilot.

Source: Best Buy presentation given at Sterling Customer Connection

Conference, April 2010

Wal-Mart Has a Web Plan to Bolster In-Store Sales“Pick Up Today” allows

customers to submit orders of 40,000 items online and pick up a few hours later in their local

store. “Not only do we see it as a nice convenience for

customers, but we also saw it as a way to drive incremental

traffic to the stores, and incremental sales,” Steve Nave,

SVP & GM Walmart.com.

The New York Times March 11, 2011

38

50%more spending annually

Cross-channel customers across retail segments spend 50% more annually than web- or store-only customers

4.5xaverage customer lifetime value (LTV)

Cross-channel customers on average have a customer lifetime value 4.5x greater than single-channel shoppers

$30more per visit to your store

Cross-channel customers spend $30 more per visit to a physical store than store-only customers

Source: Andrew Morris Advisors

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© 2010 IBM Corporation

For, BonTon IBM’s Sterling Order Management....

Has over a decade of Distribution

experience with over 100 clients in the

US

Understands and fits complex

distribution models

Can be leveraged for future acquisitions,

and new requirements that are driven by

customers, the retail industry and

competitors

Has a strength of Integration – 30 years

of proven success

Invests in latest technologies – Java

based API, Web Services integration

Has 13+ years of retail industry leading

order orchestration

Lowest Risk option for youFastest Time to MarketsEasiest Talent acquisition

“Sterling Commerce a Leader in the Forrester Wave for Order Hubs. Of all the vendors evaluated, Sterling Commerce earns the highest marks for overall product vision.”

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© 2010 IBM Corporation

Smarter Commerce delivers a maximum customer experience

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Creates a personal connection‒Precision segmentation & marketing‒Optimized search & content‒Social commerce support

Delivers consistency in every channel‒Ordering‒Validation‒Availability & promising

Provides appropriate communication‒Status updates & required notifications‒Proactive alerts

Simplifies unique requirements‒Catalogs‒Pricing & promotions‒Complex configuration & quoting‒Delivery & services‒Dependent activities

Promises reliable multi-channel visibility‒Current/previous order history & dependencies‒Template orders

Customer

Maximizes flexibility‒Adaptable to new requirements‒Variable order & line processes‒Flexible shipping options‒Optimized sourcing & promising‒Faster assimilation of acquisitions

Enables placing one order‒All products & services‒Complex orders

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In Summary IBM’s Sterling Order Management

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Delivers one comprehensive solution to manage and monitor order fulfillment, optimize inventory, engage suppliers and proactively recognize disruptions.

Provides for management by exception through proactive alerts with escalation.

Maximizes flexibility to assimilate new acquisitions and adapt to new business, industry and competitive strategies.

Reduces total cost of ownership and optimizes business processes by leveraging out-of-the-box capabilities and the extendibility methodology.

Enables a best-in-class customer experience:

one order for all products and services

consistency and reliable visibility

in all channels.

buy from any channel, fulfill from any

source and return to any location.

Is built on an industry standard , industry leading and “IT friendly” technology.

Leverages all sources of inventory with reliable promising to the customer and extends the product catalog to outside suppliers.

Multi-tenant separation of business units and yet leveraging of products, customers, processes and business rules

ProspectName/Logo

Here

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―Senior executives want a great customer experience to be a competitive differentiator.‖

―Customer experience is one of the great frontiers for innovation. It will decide the winners and losers in the years ahead.‖

―How customers are treated (their actual experience) is an essential part of the company's brand and its market differentiation...‖

―Whether you like it or not, the real growth of your business is a direct result of the quality of the experience customers have with you.‖

―Every business has unique opportunities to create meaningful connections with their customers every day. To succeed with all customers, social and more traditional, companies need to create and maintain consistency of experience across all channels.‖

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―As customers get even more demanding, manufacturers are under pressure to get it right every single time... or else.‖

―Senior executives want a great customer experience to be a competitive differentiator.‖

The Perfect Order

1. The Right Product in the

2. Right Quantity from the

3. Right Source to the

4. Right Destination in the

5. Right Condition at the

6. Right Time with the

7. Right Documentation for the

8. Right Cost.

―Manufacturers will (need to) transform business models to better meet the needs of increasingly demanding customers.‖

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© 2010 IBM Corporation

Additional Information

Who should you target– Sales & Marketing Executives

– Operations Executives

– Supply Chain Executives

– IT Executives

Questions to start– Are you satisfied with how you are servicing your customers through all channels – web, call center,

mobile, kiosk, EDI, etc.)?

– Are you competitive in your market?

– How is your customer satisfaction rating? Is it based on SLA’s?

– How common is it for customers to place orders across multiple business units with your

organization?

– How much of your business comes in via 3rd party resellers and channel partners? How do your

customers get visibility of their orders?

– Do you ever lose sales, miss customer due dates or have excessive manual handling of orders as a

result of inaccurate or incomplete visibility to inventory?

– Can you offer customers configured items, special deals, or cross-sell selections that are customized

to their particular region or buying behavior and span multiples sales channels?

– What SLAs do you have in place with your customers about “perfect orders” (on time, in full, in spec)

and what challenges do you have with that today?

– Do you leverage a variety of third parties like contract manufacturers, LSPs, and distributors to get

products to market?

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© 2010 IBM Corporation

What keeps CEO’s and CFO’s awake at night?

Evolution of increasing customer expectations

Role of Internet and electronic commerce

Mergers and acquisitions

The ability to manage scale

Keeping up with the competition

Future competitors

New and innovative strategies for competitive advantage

Ability to remain/become profitable

Lowering cost and improving efficiencies

Staying power of alliances

Pressures on price and margins

What keeps them awake, keeps the CIO awake too!

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© 2010 IBM Corporation

Business needs that require IBM’s Sterling Order Management

Any one or more of the following:

– Multiple sales channels (web, kiosks, CTO, call center, etc. etc. etc.)

– Customers that require tender loving care

• Alert critical requirements

– Multiple supply channels with tight schedules

– Drop shippers (extended catalog), 3PL’s, and other outsourced fulfillment models

• Outsourced manufacturing models

– Multiple divisions or complex organizations

– Large value of outstanding returns

– Multiple systems (ERP, MRP, CRM, etc.)

• Old technology replacement

– Strong acquisition strategy

– Complex logistics model

– Alert critical requirements

Anything that can detract from customer satisfaction success.

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© 2010 IBM Corporation

IBM is the right partner for Smarter Commerce

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• Leading industry capabilities and offerings

o Analytics, B2B Integration, Decision Optimization, Enterprise Marketing Management, Order Management, Selling and Fulfillment

o Modular approach to address key challenges today and grow with confidence

• Leader in research and development

• $2.5 billion invested since 2010 to create a truly smarter approach to commerce

• New services practice with more than a thousand dedicated experts

• Expertise in over 20 industries to help create a solution customized for your specific needs

• Leader in Smarter Computing - Over 50,000 hardware and software developers optimizing systems to manage needs driven by commerce applications

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© 2010 IBM Corporation

Together we will deliver Smarter Commerce

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• We collaborate with you to enhance, extend, and

re-define your approach to deliver value through

oActing on Customer Insight

oEvolving your Customer Value Strategy

oOptimizing Customer & Partner Engagement

• We help you address most pressing concerns

now and prepare for future growth

• We can help you leverage and extend your

existing technology and investments

…increasing the value you generate for your

customers, partners and shareholders in a rapidly

changing digital world.

Over 2,000 of the world’s top brands

rely on IBM to improve their business insight

and execution

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Thank YouMerci

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Obrigado

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