Inventory Management for Commerce Anywhere · • Maintains the supplier-item-location relationship...

Inventory Management for Commerce Anywhere

Ramesh Cidambi Senior Vice President - I.T and Logistics Dubai Duty Free Carla Anderson Solution Market Director RGBU September 29, 2014

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Oracle Confidential – Internal/Restricted/Highly Restricted 2


Today’s Consumer Has Changed

will not wait for products to come into stock 87%

will search online or try another retailer to find the product they want

More than half want accurate inventory

31% have used click and collect for the first time

93


Dubai Duty Free Ramesh Cidambi, Senior Vice President - I.T and Logistics

• Dubai Duty Free has grown into becoming the world’s largest airport retailer with sales approaching $2 billion USD

• Oracle E-business suite along with Oracle Commerce and Retail applications, in conjunction with an automated distribution center.

• These solutions support the extraordinary growth in its airport retail business; Serving 70 million passengers traveling through Dubai Airport.

Oracle Confidential – Internal/Restricted/Highly Restricted 4

September 29th, 2014

RAMESH CIDAMBI

Senior Vice President - IT & Logistics

[email protected]

Dubai Duty Free

AGENDA • Airport Retailing

• Dubai Duty Free and Oracle • Oracle E-Business Suite and Point-of-Sale

• Oracle Retail and Warehouse Automation

• DDF Online with Oracle Commerce

• The Future

• Technology

• Logistics

• Airport Development

Travel Retailing by Channel – 2013

Travel Retailing by Region – 2013

Travel Retailing in 2012 : $ 55 Billion

Dubai Duty Free is the single largest airport retailer in the world

Dubai Airport

Terminals 1,2 and 3 Concourses A, B, C,F and D under construction

Retail in Concourse C (1)

Serves Other Airlines (OAL). 22.6% of total sales. Opened April 2000

Serves Emirates Airlines 37% of total sales

Retail in Concourse B (2)

Concourse A – Liquor & Tobacco

Serves Emirates Airlines and especially A380s 21% of total sales

Retail in Concourse F (Terminal 2)

Serves Fly Dubai and other budget airlines 7.5% of total sales, and fastest growing

Terminal 1 Arrivals

Arrivals airside in all three Terminals are 9.7% of sales

Landside retail under 2%

Dubai World Central

• Opened on 27th October of 2013 with 1.2% of total sales

Concourse D – Opening Q1 2015

Sales – 1984 to 2013

17% compounded growth over 29 years

Sales Contribution – 2007 to 2013





• The Future

• Technology

• Logistics


DDF Technology Evolution

Timeline of Dubai Airport and Dubai Duty Free Expansion

Point-of-Sale Features

• 550 NCR Dynakey Point-of-Sale Terminals

• Custom-built software to support airport retailing, including functionality for multi-currency, LAGs, and Flight data capture

• Robust application for running processing 25 million transactions a year

• Integration of credit card authorization with sale transaction (Visa, MasterCard, American Express, Diners, JCB and Union Pay)

• Supports ‘Chip and Pin’ to EMV standard

• Dynamic Currency Conversion (DCC) for Visa and MasterCard

• Digital advertising on Customer facing screens

• Payment Card Industry Data Security Standard (PCI/DSS) compliant, with encryption-decryption of credit card data using pin-pads

Oracle E-Business Suite

Role of Oracle E-Business Suite

• Sales of USD 250 million in 2001, quadrupling to a 1 billion USD by 2008

• Oracle EBS supported the growth by:

– Maintaining tight integration within applications

– Robust database and technology in a 24x7 business

– Superior functionality in Financials, Payroll, Purchasing, Inventory Control and Business Intelligence

– Leading to improvement in business processes across functional areas

– Reducing time taken to close books each month from two weeks to 4 working days

– Minimal growth in ‘back-office’ employees

– Providing good quality data across the organization

Oracle Retail

• Oracle Retail Applications added to the Oracle E-business suite within the applications stack

• Better management of master data

• Visibility and accuracy of stocks within the warehouse and across the organization

• Better management of price changes and promotions

• Increased efficiency in invoice matching

• Improved stock replenishment process

Oracle Retail

Retail Merchandising System(RMS)

• Holds foundation data

• Maintains the supplier-item-location relationship for the life cycle of the product

• Well defined product hierarchy

• Allows better data analysis at all levels

• User Define Attributes (UDAs) allows to extend the hierarchy for deeper analysis

• Retail Organizational Hierarchy (Terminal 3 - Concourse A - Shop 1) helps in better data analysis as retail expands

Oracle Retail

Retail Merchandising System(RMS) • Clear visibility of stocks at different buckets (on-hand, on-order, reserved, expected, in-

transit etc.)

• Easy to track stock movements

• Helps stock assortment planning

• Sophisticated auto-replenishment function

• Options to set min/max qty., delivery days, display stock qty.

• Cost management at location level for better control

• Grouping tools for easy creation of item-location assortment

• ‘Like-Store’ functionality simplifies item location to a new store

Warehouse Management

Warehouse Management System (WMS) from Oracle Retail

• Absolutely necessary for an automated warehouse

• Management of receiving yard and put-aways

• Processes over 450 orders a day from retail outlets

• Segregates picks depending on which part of the warehouse item is available

• Consolidates items from different warehouse pick locations for shipment to outlets

• Interfaces with Material Handling and Control System (for automated warehouse) and other Oracle Retail applications

• Limited reporting within application

Warehouse Automation

• Why Automate

• High Density Storage of palletized and tote items

• Efficient put-away process

• Fast Picking (190,000 picks in December) with both ‘picker to item’ and ‘item to picker’ options

• Ability to manage peaks (10,825 picks on December 18th with 396,307 units)

• Total of 1.9 million picks for 60 million units in 2013

• Average in 2013 was 6,000 picks

• Perpetual Count of inventory

Warehouse Automation

First retailer with automated storage and retrieval system in region

Storage for 8160 pallets in Phase I and 12,464 in Phase II for total of 20,624

85% occupancy in pallet warehouse

41% of all picks in Phase I and 17% in Phase II

Fast mover Pick Locations (1,440 and 32%)

Item to picker in pallet storage area

Slow Mover Picking – 19,184 and 25%

Tote storage – 10,400 totes with 97% occup.

Tote Picking – 11% of picks

Shuttle for Totes – 17,280 totes with 73% occup

Shuttle System Picking – 31% of picks (2,139 daily)

Issuing Area – 600 pallets a day sent

DDF Online with Oracle Commerce

Cataloging

Cataloging • Need to get the online hierarchy right

• Clear definition of the product attributes

• Defining data quality standard for images and attributes

• Catalog service provider must have

• Strong experience in online cataloging

• Technical expertise and the resources to aggregate data and deliver quality results in time

• Professional photography experience to custom shoot products

Challenges • Integrating with multiple catalog data providers using different methods

• Aggregating data from different source in different formats

• Getting approval from brand owners for the catalog data

• Standardizing image for size variants

• Sourcing data for new arrivals, travel retail exclusives

Inventory Management and Fulfilment

Inventory • Items classified as ‘pre-orderable online’ or ‘In-store purchase’

• One single online catalog across all terminals

• Wider range of products for online customers

• Easy to manage

• No physical inventory set aside for online shop

• Online inventory is 10% of the shop stock

• Guaranteed stock availability for online customers

• Inventory rules can be set at category level

• Stocks refreshed periodically from Oracle Retail Merchandising System

• Price periodically refreshed from Oracle Retail Price Management

Inventory Management and Fulfilment

Fulfilment • Fulfilment done from airport shops

• Special picking procedure for airport environment

• Custom developed Order Fulfilment Module

• Integrated with Oracle Retail for stock updates

Challenges • Stocks not always distributed across airport locations

• Fulfilment across terminals operationally demanding

• Increases the possibility of partially fulfilled orders

• Difficult to improve the fulfilment window

• knowing the exact collection point at the time of pre-order

• Change of collection points due to unplanned flight changes

• Results in increased number of uncollected orders

Payment Gateway

Online Payment • Implemented Cyber Source payment gateway

• Cyber Source has enhanced fraud monitoring system

• Understanding needed of the rules in detail before deployment

• Impact analysis of enabling the rules helps

• Custom procedure to handle rejects due to fraud screening

Challenges • Change of payment gateway from MIGS2 to CyberSource

• Handling rejects from customers who were trusted earlier due to new rules

• Migrating FS & MM customers from legacy system

• Login issues due to old passwords not conforming to new standard

• Facilitating customer adoption to the new site

DDF Online - Logical Flow

Oracle Commerce Integration

Integration by application

• XML based using HTTP, SOAP based services

• ATG – Brand Bank (for Beauty, Liquor, Watches products)

• ATG – CNET ( for Technology products)

• ATG – Oracle Retail (for inventory, pricing, promotions)

• ATG – OFM ( for customer order details and status update)

• OFM – Oracle Retail ( for stock updates)

• OFM – Airport Systems ( for flight data)

• ATG – “ Win with DDF” ( for Finest Surprise & Millennium Millionaire)

Hosting using OMCS

Oracle Managed Cloud Services (OMCS) • Server infrastructure and technology stack managed by Oracle

• Client must understand the environment in the fullest detail possible

• One production and two non-production instances

• PCI compliant with periodic reviews

• Well established administrative procedures

• Controlled production deployment

Hosting using OMCS

Oracle Managed Cloud Services (OMCS) • DDF needed to engage Oracle Commerce deployment specialist

• Feedback to OMCS Management on:

• Preview instance for cataloging

• Read- only access to production logs

• Needed for first level trouble – shooting

• Need to raise SR to request for logs

• Problem resolution time increases correspondingly

• Need for read-only access to production database


Soft launch on Apr 28th , 2014 • To DDF staff and selected customers

• Included migration of Finest Surprise & Millennium Millionaire from corporate site

• DDF had an opportunity to

• Review feedback from customers and staff

• Smoothen FS & MM migration and stabilize

• Review and refine new fraud management rules with respect to payment

• Review and improve catalog assortment and data quality

• Review and refine the Order Fulfilment process


Public launch on Sep 21st, 2014 • Online catalog has over 2800 items from eight categories

• ‘Reserve and Collect’ service for passengers

• Departures - Concourse A, Concourse B Concourse C, Terminal 2

• Arrivals - Terminal 1, Terminal 2, Terminal 3

• Customers can place orders from 7 days to 48 hours prior to travel

• Payment for items made at the time of collection

• LAG restrictions and allowances will apply at the point of collection

• Sale of Finest Surprise and Millennium Millionaire tickets using CyberSource Payment Gateway

• 25,000 tickets sold, USD 6 million sales since the soft launch till 23-Sep-2014

• Average tickets per day - 175, average sales per day - USD 40,000

DDF Online - The Next Steps

• ‘DDF Online’ primarily a customer service initiative

• Print campaign launched to advertise service

• Launch of online campaign imminent

• Build customer database

• Continue to expand the online assortment

• Explore possibilities of additional revenue stream

Business Applications

Application Architecture





• The Future

• Technology

• Logistics


The Future

Technology • Financials, HR & Payroll

• Online Payments to suppliers

• Self-service applications for staff

• RFID for asset tracking

• Retail Operations

• EDI initiatives(eg. PO, Invoice) to increase supply-chain efficiency

• RFID inventory for better tracking and accuracy

• Location based mobile initiatives to better target in-store customers

• In-store kiosks for price checking and other services

• Point-of-Sale

• Mobile Point-of-Sale to improve customer service

• Real time inventory look-up

The Future

Technology • DDF Online

• Accepting payments online

• Integration of promotions

• Option to shop from airport lounges

• Mobile apps for iOS and Android users

• Incorporate social media into DDF Online

Logistics • Expansion of tote warehouse, shuttle system

• High density, efficient AS/RS for very small items

• New initiatives

• Advanced vehicle tracking using e-Seal

• Improving supplier compliance levels

The Future

Airport Development • Development at Dubai Airport

• Development at Dubai World Central • New USD 32 billion airport development

• 135 million passenger capacity in phase I

• Support facility to match passenger capacity

Questions and Answers

Inventory Management for Commerce Anywhere · • Maintains the supplier-item-location relationship...

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