innovative logistics strategies for omnichannel fulfillment
TRANSCRIPT
© 2016 Openbravo Inc. All Rights Reserved. 1
Innovative Logistics Strategies for Omnichannel
Fulfillment September 15th, 2016
© 2016 Openbravo Inc. All Rights Reserved. 2
Today’s presentation is available to download on
the Attachment tab on the webinar page.
Visit openbravo.com/retailers/resources/overview/
Check out additional resources and don’t forget to
share them with your colleagues.
Have a question? Click on the Question tab.
Q&A will be at the end of today’s presentation.
Submit additional questions or comments after the webinar on Twitter.
Hashtag: #obravowebinar
Simple steps to increase the
value of today’s webinar experience
© 2016 Openbravo Inc. All Rights Reserved. 3
Today’s Presenter
Geoff Nairn
Enterprise Solutions Specialist
@ Openbravo
© 2016 Openbravo Inc. All Rights Reserved. 4
Introduction
New supply chain
challenges for retailers
How Openbravo can help
Takeaways
QnAs
Agenda
© 2016 Openbravo Inc. All Rights Reserved. 5
SKU proliferation
Lengthening supply chains
Handling returns
Inventory accuracy
Carrier costs
End-to-end visibility
Multiple channels
New fulfillment options
Supply Chain Challenges for Retailers
© 2016 Openbravo Inc. All Rights Reserved. 6
Omnichannel Brings More Challenges
Managing inventory
across multiple
locations and
channels is difficult.
More warehousing
staff and smarter
technology needed
to pick online orders.
Bigger warehouses
needed to offer the
“endless aisle” DCs
need to be closer to
customer.
Returns become
more of a problem
as more consumers
buy online.
© 2016 Openbravo Inc. All Rights Reserved. 7
• Amazon Prime’s same-day delivery is
available in 30 US cities nationwide,
more than double the locations
available two years ago.
• One in four shoppers say they would
consider abandoning online
shopping if same-day delivery is not
an option.
Source: Business Insideer
The Need for Speed in Fulfillment
© 2016 Openbravo Inc. All Rights Reserved. 8
How Home Depot Solved the Last-mile Problem
42% of Home Depot’s
online orders handled by
stores
90% of its online returns
handled by its stores
© 2016 Openbravo Inc. All Rights Reserved. 9
Ecommerce Boom Continues
R
% change
% of total retail sales
Retail E-commerce Sales Worldwide
Source: emarketeer
Trillions dollars
© 2016 Openbravo Inc. All Rights Reserved. 10
Amazon Revolutionizes Fulfillment
© 2016 Openbravo Inc. All Rights Reserved. 11
53%
25%
12%
62%
17%
9%
46%
21%
10%
55%
17%
8%
in store PC mobile device
Preferred Purchase Method
Apparel & footwear
Furniture & homeware
Sports equipment
DIY
The Continuing Importance of the Physical Store
Source: PwC
© 2016 Openbravo Inc. All Rights Reserved. 12
Need for Better Returns Management
4% to 6% of all retail
purchases are
returned.. But
online its much
higher
0% 10% 20% 30%
Fashion
Sports
Health
Furniture
Homeware
Electrical
Online Returns
Source: KPMG
© 2016 Openbravo Inc. All Rights Reserved. 13
Get Closer to Customer for Faster Fulfillment
Source: McKinsey Number of distribution centers needed
Pe
rce
nta
ge
of
ord
ers
fu
lfiil
led
on
tim
e
© 2016 Openbravo Inc. All Rights Reserved. 14
Home Depot has remodeled its supply chain,
building the foundation for a new type of fulfillment center intended to blend online and in-
store shopping
Blending Fulfillment for Omnichannel Customers
© 2016 Openbravo Inc. All Rights Reserved. 15
• You need scale
• Integrate online and retail operations
• Consider store-based fulfillment
• Share inventory across channels
• You need business rules to handle
supply chain complexity
How to Revolutionize your Supply Chain
© 2016 Openbravo Inc. All Rights Reserved. 16
Do Online-only Offers Make Sense?
© 2016 Openbravo Inc. All Rights Reserved. 17
Ship-from-Store Benefits
Source:Teradata
For the Customer
Expanded product assortment
Fewer out of stock / back order scenarios
Fast delivery (expectation of 80% within 1
day; 96% within 2 days)
Products “always available” when
desired
For the Retailer
10-40% incremental e-commerce
revenue
Increase inventory sell through
Decrease markdowns
Optimize store assets and labor 10-20%
Revenue
uplift
© 2016 Openbravo Inc. All Rights Reserved. 18
Buy-Online-Pickup-in-Store Benefits
Source:Teradata
For the Customer
Convenience of online shopping
Same day pickup
No shipping costs
For the Retailer
37% purchase additional products while
picking up in-store
Leverage store assets
Increase foot traffic and upsell opportunity
Demonstrate unique and differentiated
guest experience
37%
Purchase
additional products
© 2016 Openbravo Inc. All Rights Reserved. 19
63%
25%
Percentage of retailers with access to
inventory across all channels
Winners
Laggards
Source: RSR Research
Enterprise-wide inventory visibility separates the leaders
from the laggards in successful omnichannel execution
Inventory Visibility is Key to Omnichannel Success
© 2016 Openbravo Inc. All Rights Reserved. 20
Real-time Inventory Visibility with Openbravo
■ Centralized real-time tracking of goods
movements, inventory status and quantities
across all channels and locations - physical
stores, headquarters or distribution centers.
■ Set up different warehouse rules and easy
management of goods transfers, picking and
packing activities and reservations.
© 2016 Openbravo Inc. All Rights Reserved. 21
Leverage New Technologies with Openbravo
■ Mobile warehouse functionality for inventory
count, goods movements and picking lists for a
more convenient and accurate capture of data.
■ Ability to integrate RFID in sales and inventory
processes for faster data capture and accuracy.
© 2016 Openbravo Inc. All Rights Reserved. 22
Key Takeaways Today’s customers demand higher speed,
convenience and personalization.
To compete better, retailers need to offer new
fulfillment capabilities such as Buy Online, Pick up
in-Store or In-store Fulfillment.
Supply chains need to be redesigned to offer
greater flexibility and agility.
Distribution centers need to be integrated to
handle online and store orders.
You need a technological solution that provides
real-time inventory visibility across all channels.
© 2016 Openbravo Inc. All Rights Reserved. 23
Any Questions?
You can submit additional questions or
comments after the webinar on Twitter.
Hashtag: #obravowebinar
#obravowebinar
© 2016 Openbravo Inc. All Rights Reserved. 24
© 2016 Openbravo Inc. All Rights Reserved. 25
Web: www.openbravo.com/contact
Email: [email protected]
Spain Office: +34 932 725 947
France Office: +33 (0)1 70 08 73 62
India Office: +91 33 4004 7358
Mexico Office: +52 559171 1841
Thank you very much
for your attention