Managing Growth in an Omni-Channel World - …...2015/10/03 · Supply Chain Management Inventory...

Managing Growth in an Omni-Channel World

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Breaking the Mold of Outdated ERPs

October 15, 2015

Marc Kalman

What We Will Cover

• What is Omni-Channel?

• Market Challenges

• Save the Sale

• Turning to the Supply Chain

• What Does the Future Hold

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BizSlate is a cloud-based solution that measurably helps your business increase revenue and profit by

improving the relationships between your customers, orders, and inventory.

Quick Intro to BizSlate

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Supply Chain Management

Inventory

Procurement

Order Management

Wholesale to

Small Boutiques

Wholesale to Large Retail

B2C

Quick Intro to BizSlate Omni-Channel SaaS ERP for SMBs

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What is Omni-Channel

A Multi-channel approach to sales that seeks to provide the customer with a seamless shopping

experience whether customer is shopping online from a desktop or mobile device, by telephone, or in a bricks and mortar store.

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• Customer Centricity

• Customer is dictating route they take to transact

• Systems & process within retail simply facilitate the customer journey to transact and be served

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Linear Retail Supply Chain Model


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Linear e-Commerce Supply Chain Model


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What is the Customer Journey?

• Research online -> Buy in store

• Buy online -> Pickup in store

• Buy online -> Return to store

• Buy in store -> Ship to destination

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Inventory

Wholesale to

Small Boutiques

Wholesale to Large Retail

B2C

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Social


Managing Multiple Channels as a Supplier

• Started approximately 2003

• Best Buy pioneered as a means to compete with Walmart

– Couldn’t compete on price

– Best Buy concluded they could better compete focusing on customer experience

– This is where ‘Customer Centricity’ was born

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• Fast Forward to 2015

– A good chunk of retailers now doing something about Omni-channel instead of just talking about it

– More retailers now treating Omni-channel as corporate strategy instead of being reactive to consumer demands

– Went from “We don’t know what consumers want from us” to “What’s Next?”

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Lesson #1:

You cannot be Omni-channel without being Customer Centric

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Market Challenges

• New “instant” delivery models increased retailers’ need for speed in responding to consumer demand

• Amazon 2-day “free” delivery via “Prime” could still be beat in store for those needing it “now”

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Market Challenges

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Market Challenges

• Marketers scramble for better ways to communicate with this new customer

• Now have to deal with volume of frequent transactions being optimized

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Market Challenges

• The traditional retail model is built for moving goods from manufacturer to store

– And from manufacturer via drop ship to consumer

– Both are separate linear processes

• Omni-channel is multi-facetted and complex

• Model is not designed for this

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Market Challenges

• Supply chain challenges are acute • Lack of visibility into inventory (across locations)

• Increased pressure on inventory turn and margin

• Retailers’ growing sense of missing out

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Market Challenges

• Omni-channel is still a process in evolution

• Enormous investments in distribution centers and the systems that support them

• Many systems not yet on par with Omni-channel needs

• Stores are not properly zoned as pick/pack/ship

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Market Challenges

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Save the Sale

• Let’s Say a Store’s Service Level is 90%

• If Ship from Store Cross Channel -> 5%?

• Net Positive Gain (even with added costs)

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Save the Sale

• “SAVE the Sale”

– whether by exposing Store Inventory online or

– by empowering store associates to make the sale without having inventory directly on-hand

• A BIG WIN!

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Save the Sale

Lesson #2:

Cross-Channel Inventory Visibility is Essential

Turning to the Supply Chain

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Global Retail & Consumer Goods CEO Survey: The Omni-Channel Fulfillment Imperative, JDA, 2015

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Global Retail & Consumer Goods CEO Survey: The Omni-Channel Fulfillment Imperative, JDA, 2015

• The path to Omni-channel fulfillment

– Capture customer demand wherever it lives

– Prioritize based on Customer needs

– Orient on the store to connect demand capture to in store first

– Work through the manual in store process before deciding how to automate

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• Next Step:

– Speed of fulfillment

– The need to access and sell all inventory, no matter where it happens to be located

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• Issues to Address

– What if Store is Out of Stock?

– Where; When; How; How Fast?

– Can Ship From be Best Optimized?

• When / Where / Cost

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• Are your suppliers part of your omni-channel strategy?

• How fast could they replenish you?

• Could they drop ship direct to consumer?

• How real-time is available inventory visibility through to your suppliers?

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• The mindset is to use stores as “local fulfillment centers”

• Pick/pack/ship in-store is more expensive than traditional warehouse due to productivity

• Route shipping to store for shipping based on availability & proximity to consumer destination

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What Does the Future Hold

• RFID will play important role

• Suppliers will become part of Visibility Ecosystem

• ERP-to-ERP Integration

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Customers Drive Journey

Customer Centricity is Essential

Inventory Visibility is Key

Don’t Get Left Behind

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Conclusion

Thank you!

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Questions

Managing Growth in an Omni-Channel World - …...2015/10/03 · Supply Chain Management Inventory...

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