efashion12 - ronald teijken - ibm
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© 2012 IBM Corporation© 2012 IBM Corporation
Logistiek achter de verkoop
Connecting the dots....
Ronald Teijken IBM Smarter Commerce expert EMEA
© 2012 IBM Corporation© 2012 IBM Corporation
Wat wil de consument?
e
© 2012 IBM Corporation© 2012 IBM Corporation
Meerdere kanalen om zijn/haar product te kopen
(winkel, online, call center, smartphone, kiosk, tablet, .....)
Seamless Cross-Channel shopping
© 2012 IBM Corporation© 2012 IBM Corporation
Bepalen waar een pakje wordt bezorgd
(Thuis, Buren, ServicePoint, Lockerpoint,
afhalen webwinkel outlet, ander adres)
© 2012 IBM Corporation© 2012 IBM Corporation
Bepalen wanneer een pakje wordt bezorgd
(Ochtend, Middag, Avond, Zaterdag, tijdvenster, datum)
© 2012 IBM Corporation© 2012 IBM Corporation
Weten wat de status van zijn pakje is.
Real-time Track & Trace
© 2012 IBM Corporation© 2012 IBM Corporation
Zekerheid
© 2012 IBM Corporation© 2012 IBM Corporation
Verwachten een eenvoudig en gratis retour mogelijkheid
© 2012 IBM Corporation© 2012 IBM Corporation
Retouren in online warenhuizen
58%9
© 2012 IBM Corporation© 2012 IBM Corporation
Thuisbezorgen
96%-> 84%10
© 2012 IBM Corporation© 2012 IBM Corporation
Retourneren per post geniet de voorkeur, maar kan Logistiek Nederland dit aan?
52%11
© 2012 IBM Corporation© 2012 IBM Corporation
Verwachting consumenten voor retourneren: gratis
88%12
© 2012 IBM Corporation© 2012 IBM Corporation
Cross-channel commerce addresses some of the most exciting retail opportunities…
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Lost sales due to stock-outs
Expand assortment without expanding physical store footprint
Deliver on customer expectation for seamless cross-channel experience
Expand fulfillment options and sell higher-margin services
Increase inventory turns and reduce markdowns
© 2012 IBM Corporation© 2012 IBM Corporation
Store Create Order Check StatusCancel Order
Initiate/Track Return
Schedule DeliveryChange
OrderPickup
Research Product
Create Order Check StatusCancel Order
Initiate/Track Return
Schedule Delivery or
PickupChange Order
Schedule Store Pickup
Research ProductMobile
Create Order Check StatusCancel Order
Schedule Delivery or
PickupChange Order
Schedule Store Pickup
Research ProductWeb
Initiate/Track Return
Consumer’s Expect a Seamless Cross-Channel Experience
Call Center
Create Order Check StatusCancel Order
Initiate/Track Return
Schedule Delivery or
PickupChange Order
Schedule Store Pickup
Research Product
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85% of consumers “expect a seamless experience across all channels for a retailer”1
Multi-channel shoppers spend 30% to 50% more than their single-channel counterparts, forcing traditional merchandising activities to deliver a truly transparent connection between all customer touchpoints.
1 Source: “Cross-Channel Brand Interaction: 2010 Consumer Preferences,” Sterling Commerce,
2 Source: Gartner, The 2010 Retail Handbook for Becoming Demand Driven
© 2012 IBM Corporation
71% of consumers engage in cross-channel shopping with mobility assisting both shoppers and sales associates
Source: Deloitte Consulting; Motorola
Consumer Mobility 56% of holiday shoppers planned to check / compare prices via
their mobile phone while in the store 43% of consumers would like to use mobile apps to create
shopping lists and find products in the store 38% would like to use a retailer’s store WiFi network to search for
product information 61% of shoppers believe they were better connected to consumer
information, competitive pricing and product availability than store associates
41% of shoppers were not satisfied with their ability to receive in-store stock availability
Store Associate Mobility 75% of store personnel say they provide a better in-store shopper
experience when equipped with mobile device 67% of shoppers cited a better in-store experience when in-store
personnel had mobile devices 68% of shoppers would have purchased an out-of-stock item if an
associate was able to order the item and deliver it to their home
© 2012 IBM Corporation© 2012 IBM Corporation16
Offers(hundreds)
Customers(millions)
Channels(multiple)
Timing(any day/time)
1: Tue 1/4 am
2: Wed 9/4 pm
3: Tue 15/4 am
4: Mon 21/4 am
5: Fri 25/4 pm
Tremendous complexityi.e. 10m customers, 5 channels, 100 products/offers = 247 combinations!
© 2012 IBM Corporation© 2012 IBM Corporation
This is changing the entire way products are sourced, manufactured and distributed—and making business more complex than ever
Customer expectations of service, price and delivery are soaring
Customers now have unlimited access to information and can instantly share it with the world
Social networking and mobile commerce have dramatically changed the dynamic between buyer and seller
We have entered the age of the empowered customer
250 millionNumber of tweets sent via Twitter each day
75%Percentage of people who believe companies don’t tell the truth in advertisements
$93 billionAmount in sales missed due to out of stock inventory
Sources:, Techcrunch Oct 2011, Yankelovich, Evolution of Advertising and Media, 5th Annual Store Systems Study, IHL Group and RIS News, 200817
© 2012 IBM Corporation© 2012 IBM Corporation
And they are reshaping businesses
e
SOCIAL
MOBILE
GLOBAL
PUSH
PULL
LOCAL
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RATINGS
REVIEWS
TRUST
LIKE
CROWD SOURCING
LOYALTY
© 2012 IBM Corporation© 2012 IBM Corporation
BuyAdaptive
procurement and optimized supply chain
MarketTargeted and personalized
marketing across all channels
ServiceAnticipate
behavior and deliver flawless
customer service
Sell Seamless
cross-channel customer
experience
Placing the customer at the center of your business and synchronize your business processes
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MarketBuy
Service Sell
© 2012 IBM Corporation© 2012 IBM Corporation
Bringing it all together …
Buy Market Sell Service
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Good marketing is service Service feedback drives better
marketing
Marketing displays relevant ads eCommerce provides marketing
with real-time shopping behavior
Good service drives cross, up-sell and repeat sales
Service options offered to customers during the selling process
Consumer demand shapes decisions on supplier sourcing, inventory
Inventory and logistics drive fulfillment
Excess inventory influences marketing campaigns and mark-down pricing
Campaign results impact inventory plans
© 2012 IBM Corporation© 2012 IBM Corporation
Begin with these questions for your Smarter Commerce journey
Do you deliver exceptional customer experience across all touch points?
Could your supply chain interrupt service to your customers?
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Can you deliver the perfect order?
Can you reduce stock-outs, improve customer satisfaction and still make your margins?
Can your customer and suppliers see into your supply chain?
© 2012 IBM Corporation© 2012 IBM Corporation
As a Result, the List of Requirements to Create the Perfect Order Has Grown
1. Support multiple channels.
2. Enable stakeholder centricity. Customers, suppliers, partners, and employees must be able to access the system
3. Deliver a consistent brand experience.
4. Provide both product and service selection.
5. Propose configuration and quantity
6. Guarantee quality
7. Enforce pricing policy
8. Recommend sourcing options
9. Offer delivery and/or installation options
10. Incorporate a period of time (On time delivery)
11. Identify final locations.
12. Suggest packaging options and requirements
13. Include documentation
14. Determine order frequency
15. Present accurate and timely invoicing.
16. Facilitate returns
17. Allow warranty claims
18. Manage service agreements
19. Address repairs
20. Finalize settlement processes.
Source: Re-Staple Yourself to an Order: Next Generation Order Management is Critical for Supply Chain Success, Supply Chain Digest white paper, April 2010.
© 2012 IBM Corporation© 2012 IBM Corporation23
Providing a unified cross-channel customer experience can be costly and difficult to execute across multiple systems and organizations
Difficult to obtain a holistic view of supply and demand
Lack of visibility into inventory across systems and partners
Poor insight into profitable customers Manual processes are needed to fulfill an order Difficult to change order processes when
needed High transportation costs due to poor route
and load planning No process to capture customer sentiment or
social media
© 2012 IBM Corporation© 2012 IBM Corporation
Is customer information driving your business?
Optimize inventory utilization
Provide a seamless and unified cross-channel customer experience
Provide a personalized customer experience with advanced analytics
Automate transportation processes to optimize order fulfillment
4 ways to get started by optimizing Order Management and Fulfillment processes
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© 2012 IBM Corporation© 2012 IBM Corporation
Optimize Inventory Utilization
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Balance supply and demand with better visibility across the supply chain
Efficiently utilize inventory across all locations
Sell virtual inventory that is drop-shipped from partners
Utilize event-driven monitoring of inventory levels to automatically trigger replenishment
© 2012 IBM Corporation© 2012 IBM Corporation
Challenge
Solution
Results
Crocs has improved fill rates to nearly 100%
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• Fill rates on internet orders is nearly 100%, an improvement of 10-13%
• All inventory is now planned and reserved by channel
• Accurate real-time available-to-promise number for all channels
• Heavily customized ERP system that required manual processes
• Poor order accuracy in the wholesale channel• No comprehensive view of inventory across
internet, retail, and wholesale channels
Order Management system that provides an accurate and near real time available-to-promise picture and robust sourcing and scheduling capabilities
Customer Profile
Crocs, Inc. designs, develops, and manufactures footwear for men, women, and children worldwide from specialty resins.Operates manufacturing facilities in Mexico, Italy, and China, with distribution centers worldwide$645 Million in annual sales
“Sterling Order Management is doing exactly what Crocs needed it to do, with an expected return on investment within 12 months of implementation.
Brian Horsman, Crocs, Inc.
© 2012 IBM Corporation© 2012 IBM Corporation
Provide a seamless and unified cross-channel customer experience
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Source complex orders across a network of internal and external locations
Provide flexible fulfillment methods to the customer – order online, modify via call center, pick up in store
Deliver a uniform face to customers by providing a single version of the truth for all customer fulfillment issues
Efficiently coordinate complex fulfillment processes in a single environment
© 2012 IBM Corporation© 2012 IBM Corporation
Debenhams at a Glance
UK’s second largest department store
Growing multi channel and international presence
Strong sales, profitability and cash flow generation
IBM WebSphere Commerce and Sterling Order Management customer since 2006
© 2012 IBM Corporation
Focus & Strategy
© 2012 IBM Corporation
Focus & Strategy
© 2012 IBM Corporation
Focus & Strategy
© 2012 IBM Corporation© 2012 IBM Corporation
Provide a personalized customer experience with advanced analytics
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Gain better customer insight into ordering habits
Provide up-sell and cross sell offers based on the ordered product and past behavior
Gain insight into supply chain performance and on-time delivery
Anticipate demand based on past history and up-coming events
© 2012 IBM Corporation© 2012 IBM Corporation
Challenge
Solution
Results
Neck and Neck leverages real-time analysis of their customers to deliver more personalized offers
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• Lacked the integrated tools needed to build, maintain and expand customer loyalty.
By deploying a comprehensive data mining solution using IBM SPSS Modeler, the company improved market segmentation modeling and gained decision-making tools for better customer management.
Customer Profile
Dedicated to the design and distribution of children’s fashion. Based in Madrid, the firm was established in 1993, and has expanded to 200 stores, 1,867 employees, along with a commercial network of 211 points of sale – making the company a leader in its sector.
“This is an enormous increase in profitability when taking into consideration that the average customer purchase is between €100 and €120 across 90,000 affected customers.”
- Neck and Neck
• Increased campaign response rates by more than 25%• Boosted sales by 15% in one year• Reduced the number of catalogs and promotional mailings
while increasing consumer outreach success• Quickly achieved payback: the increase in sales in just one
campaign recovered the amount invested in the solution
© 2012 IBM Corporation© 2012 IBM Corporation
Automate transportation processes to optimize order fulfillment
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Optimize shipment & route planning
Deliver better customer service through shipment monitoring and pre-emptive issue resolution
Interface to 10,000+ carriers to find the optimal space for your freight
Automate transportation invoicing processes
Automate the monitoring of contract\rate compliance
© 2012 IBM Corporation© 2012 IBM Corporation35
© 2012 IBM Corporation
Cross-channel visibility and automated processes that help enable the utilization of multiple fulfillment strategies
Single source of customer order and inventory visibility helps ensure a seamless experience for the customers, partners, and suppliers
Synchronized multi-tiered order orchestration and fulfillment optimizes inventory and reduces supply chain costs beyond your enterprisePredictive analytics, reports, and dashboards, allowing employees to make more informed decisions and automatically improving business processes
Hide the cross-channel complexities while enabling a unified customer experience !
© 2012 IBM Corporation37
ronald_teijken@nl.ibm.com@SCM_Ronald0031613246747
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