Dr. Michael Krings

DHL Omnichannel Day 2017

Troisdorf, DHL Innovation Center, May 4th 2017

Omnichannel Success Factors – Supply Chain Strategy @ Parfümerie Douglas

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Douglas is the driver of the beauty market: innovative shopping and service

experience with a „touch of luxury“, always emotional and close to customers

Market leader in the selective beauty market

in Europe with

Approx. 1.700 parfumeries1

in 19 countries and

15.000 employees2

More than 17 mill. people in Europe own a

Douglas or Nocibé loyalty card3

Assortment range of more than 35.000

products (online), with many exclusive brands

which are only at Douglas available

Comprehensive services in the stores e.g.

Day Spa, Douglas Hair Design, manicure, …

Complete and seamless omni channel

services of parfumeries, online shop and

mobile app

Introduction of Douglas

1 As of 31st March 2015; including freanchisees

2 Annual average in the pafumerie business (without trainees) in BY 2013/2014

3 10 mio. Douglas loyalty card holders and 7 mio. Nocibé loyalty card holders as of 31st March 2015

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Douglas‘ Supply Chain Management covers the entire supply chain: all value

chain levels, channels and transports are included

Private Label / Exclusive

Brands- DC Zossen

Customer level Distribution level

B C

D

Suppliers of selective brands

CDC A

B C

B C A

A

BCD

Supplier level

Douglas Supply Chain

Douglas Stores

E-Commerce DCs

(Cross Channel DC)

Ship to store

Ship to

customer

range of control

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Douglas has increased its logistical infrastructure consequently over the last years – core element is the modular SAP LES platform

Basic concept of SAP LES

One step

X-Dock

One step

X-Dock

Central

DC

PL&EB*

One step

X-Dock

Central

DC

PL&EB

Central

DC

E-Com

One step

X-Dock

Central

DC

PL&EB

Central

DC

E-Com

Bulk-

break-

to-zero

Standardised, scalable processes

Comprehensive process transparency

Flexible options of development

KPI based, permanent optimization

Basic strategy: Cross Docking

Focus on supplier management

and collaboration

* PL & EB: private label and exclusive brands

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Supply chain development has to be sychronized with customer require-ments – a four step process leads to a close link between the channels

Indipendency

Separate development

of e-commerce and

stationary logistics

Alignment

Common development

and alignment of

solutions

Synergies

Operations of logistics

„under one roof“

Omni Channel

Utilization of „best

practice“ services

depending on the

customers

requirements

Phases of development of the omni channel supply chain

Status Douglas

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The offer of omni channel services follows the customers needs and will be increased and internationally implemented

Services for the „customer journey“

On line shop

order

@

Store and

event finder

Returns to

store

Delivery Payment Information Availability Pre-sales info …

Ship to

store

Omni channel

vouchers

Store

vouchers

Indivual

shipping

schedule

Online

appointment

Source: Parfümerie Douglas, Cross Channel & Business Development, as of 6/2016

Mobile

payment

Guided

selling

partner /

Douglas

beauty

tab

Online stock

information

Online product

reservation

* Pilot phase

Same

Day

Delivery

3. Mai 2017

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■ Low picking

costs

■ Low returns

■ High order

frequency

A flexible step-by-step approach leads to higher customer satisfaction while delivery quality stays a distinctive success factor

Approach to higher delivery quality

Guaranteed

next day

delivery

No minimum

order value

Late order

cut off (> 20

p.m.)

Near SDD /

silent

upgrading

Time Slot

delivery

■ Regional structure

■ Loyalty card

■ Innovative services

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Situative shopper behaviour requires a modular, fully integrated and trans-parent supply chain concept: omni channel logistics is obligatory

It is the objective to cover all requirements by a modular concept which allows increasing integration and strong capability to control all supply chain processes

Logistics must face its challenges: capability to perform omni channel logistics is obligatory. Therefore logistics achieves more strategic relevance.

Shopper behaviour defines the retail landscape of tomorrow: customers decide by situation which shopping location they want to use

Summary

A modular stepwise approach will lead to high customer satisfaction

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Summary: the requirements of omni channel logistics are increasing constantly – we are prepared for (almost) each and everything!

Thank you for your

attention!

Source: Online Handel 2014

Now would you please be so kind and wait some ten minutes in order to take

those parcels right back with you …