online retail conference 2012 ron koehler

Confidential & Proprietary

Ron Koehler

CEO Australia and New Zealand

Schenker Australia, Sydney, 24th May 2012The Supply Chain behind eCommerce

Ron Koehler | Cebit 2012 Confidential & Proprietary

E Commerce Today

Overview of Eco-system

Conclusion | Q&A

Support Framework

AGENDA

Success Factors / Requirements

A Case Study

Ron Koehler | Cebit 2012 Confidential & Proprietary

Information

Education Entertainment

Communication E commerce

Ron Koehler | Cebit 2012 Confidential & Proprietary

E Commerce in Australia

source: Telstra Smartphone Index

12

12

eShop

410Buy

15%

source: ABS

$143b

2011

5-6%9.5M2011

source: BuddeComm

Shoppers

15-27% e

4yrs

eRetail eSales

Ron Koehler | Cebit 2012 Confidential & Proprietary

…the NBN will allow eBay sellers and other ecommerce participants to reach a larger customer base throughout Australia

…allow innovation in how we buy and sell online and enrich the customer experience.

“

“

Senator Stephen Conroy Minister for Broadband, Communications and the Digital Economy

Ron Koehler | Cebit 2012 Confidential & Proprietary

Source: A commissioned study conducted by Forrester Consulting of 54 Australian online retail professionals on behalf eBay, 2010

Challenges affecting profitable growth on online retailing

Percentage

Ron Koehler | Cebit 2012 Confidential & Proprietary

Challenges affecting profitable growth on online retailing

Percentage

Source: A commissioned study conducted by Forrester Consulting of 54 Australian online retail professionals on behalf eBay, 2010

Ron Koehler | Cebit 2012 Confidential & Proprietary

Percentage

Reasons for dissatisfaction or abandonment of e-commerce transaction, 2009

Source: Forrester Consulting

Dissatisfied Abandoned Transaction

Ron Koehler | Cebit 2012 Confidential & Proprietary

Reasons for dissatisfaction or abandonment of e-commerce transaction, 2009

Source: Forrester Consulting

Percentage

Dissatisfied Abandoned Transaction

Ron Koehler | Cebit 2012 Confidential & Proprietary

LOGISTICSIS KEY TO SUSTAINABLE

E-COMMERCE

Ron Koehler | Cebit 2012 Confidential & Proprietary

E & M Commerce

Eco system

Final delivery

Arrival at DB Schenkerdestination office

eSchenkerregistration

login

User

Password

Permanent tracking

Shipment data entry

Data transmission tolocal DB Schenker office

http://ebusiness.dbschenker.com

Pick-upAir, land and ocean carriage

Ron Koehler | Cebit 2012 Confidential & Proprietary

Enabling Global Trade – E2EDoor-to-door solutions, Supply chain management

Value added

services

Value added

services

Ron Koehler | Cebit 2012 Confidential & Proprietary

Supply Chain Management Competency

Co –exist

Needs to be supported by total supply chain

Clear growth in e-Commerce and m-commerce (mobile commerce)

Retail DirectRetail Direct

B2B DC Based B2B DC Based

Consumer DirectConsumer Direct

Multi Channel Strategy

Multi Channel Strategy

Ron Koehler | Cebit 2012 Confidential & Proprietary

How to fulfill customer expectation?

Challenges Time of Delivery

Security to Customers

Mode of Delivery

Integrity to Customers & Brand Owner

Cost of Delivery

Time to Market

Ron Koehler | Cebit 2012 Confidential & Proprietary

Total Supply Chain Reporting

Delivery Priority, Partner Management

Exception Management

To Customers, Trucking Partners, Schenker Operations

Key Success Factors

MonitorMonitor

VisibilityVisibility

ReportReport

ManageManage

Ron Koehler | Cebit 2012 Confidential & Proprietary

eBusiness Partnerships DB Schenker(Global Network)

DB Schenker(Global Network)

End Consumer(Multiple Vertical

Markets)

End Consumer(Multiple Vertical

Markets)

Transport Partners(Air/Ocean/Road)

Transport Partners(Air/Ocean/Road)

Suppliers(Domestic & International)

Suppliers(Domestic & International)

Government Agencies

(Customs/AQIS)

Government Agencies

(Customs/AQIS)

Schenker partners with

all facets of the Supply Chain

utilising multiple

communications methods and

interface standards

Need for Systems Integration

Ron Koehler | Cebit 2012 Confidential & Proprietary

Case Study

E2E Multi Channel Model

Ron Koehler | Cebit 2012 Confidential & Proprietary

Supply Chain Framework

SpeedRisk mitigationCost effectiveness

RedundanciesFlexibilityScalability

Overseas factories

Transfers

Air & Ocean freight

SYD

MEL

ADL

BRI

PER

Metro Deliveries

Residential 5 to 9pmTime slotsFull Track & TraceSign on glass

Regional Deliveries

Urgent

Milestone TnT @ ctn level Web visibilityExceptions auto-reports

NBD for 88% of AUWeb visibilityCOD

Merge Hubs

VMI & mergeVMI & merge VMI pick, pack & merge

VMI pick, pack & merge

One order, One delivery

One order, One delivery

SYD VMI

Ron Koehler | Cebit 2012 Confidential & Proprietary

Text sent to customer on departure from factory

Delivery date on SMS calculates international & domestic lead time

CUSTOMERCUSTOMER

Text to Customer on Departure

Your order 1234543 is available for delivery on 30th

Feb between 9am – 1pm.

To confirm this delivery reply “1”.

Or for delivery 31st Feb between 9am – 1pm reply “2”.

For change of delivery address or a call back reply “3”.

Ron Koehler | Cebit 2012 Confidential & Proprietary

Response from Customer

1 2 3

Thank you. You will receive a phone call to book in delivery within the next 1 business day.

Thank you. Your delivery is confirmed for Tuesday 31st Feb between 9am – 1pm.

Thank you. Your delivery is confirmed for Monday 30th Febbetween 9am – 1pm.

Ron Koehler | Cebit 2012 Confidential & Proprietary

Text to Customer on Day of Delivery

Carrier route optimisation

Delivery window reduced from 4 hours to 2 hours

Your order 1234543 has been loaded on board for delivery. It will be delivered between 9am – 11am today.

Ron Koehler | Cebit 2012 Confidential & Proprietary

Reverse Logistics Solution

Customerreturns

Productreturns

Send for repair,

refurbish, scrap

Consumers Service CentreReverse Log

Hub Repairers

Recyclers

Refurbishers

Manufacturers

Ron Koehler | Cebit 2012 Confidential & Proprietary

Reverse Logistics Solution

Customerreturns

Productreturns

Send for repair,

refurbish, scrap

Call and service centre

Answer calls from customer for product repairs/servicing

Search for solution & advice customer

Minor repairs & product replacements

Service/replacement

Consumers Service CentreReverse Log

Hub Repairers

Recyclers

Refurbishers

Manufacturers

Ron Koehler | Cebit 2012 Confidential & Proprietary

Reverse Logistics Solution

Customerreturns

Productreturns

Send for repair,

refurbish, scrap

Consumers Service CentreReverse Log

Hub Repairers

Recyclers

Refurbishers

Manufacturers

Reverse logistics hub

Storage & management of finished goods & spare parts

Inspect & process faulty products

Issue good products & serviced parts to customers & service centres

Order fulfillment

Ron Koehler | Cebit 2012 Confidential & Proprietary

Reverse Logistics Solution

Customerreturns

Productreturns

Send for repair,

refurbish, scrap

Consumers Service CentreReverse Log

Hub Repairers

Recyclers

Refurbishers

Manufacturers

Repairs, remanufacture, refurbishment & scrapping

Process faulty products

Replenish good products or parts to the reverse logistics hub

Replenishment

Ron Koehler | Cebit 2012 Confidential & Proprietary

National Coverage Australia

Sydney(Corp Office)

Perth

Melbourne

Adelaide

Brisbane

Darwin

Townsville

Mackay

Rockhampton

Canberra

Hobart

DB Schenker hub Regional hub

Scheduled services

Door-to-Door delivery Australia wide

Daily interstate line haul & sensitive freight services

Own fleet supplemented by auditable external partners

Full visibility through online tracking or EDI

Rail & domestic ocean freight provided on request

Real time Confirmation Of Delivery (COD) by scratch on glass

Online Proof Of Delivery (POD) imaging

Ron Koehler | Cebit 2012 Confidential & Proprietary

Global network of 2000+ offices

DB Schenker IT systems require a high bandwidth globally

System integration with worldwide customers

Servicing global supply chains

Connecting with airlines, shipping lines, customs authorities & transport companies worldwide

Real-time online visibility on a global scale

Confidential & Proprietary

Schenker Australia, Sydney, 24th May 2012

Thank

You!