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Adaptive Retailing:
Path to greater sales,
margins and
customer satisfaction
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Key challenge in retailing
CHANNEL EXPLOSION
Stores Catalog
1950s
Malls
1990s
eCommerce
2007
Mobile Commerce
2009+
Social Digital Display
Tablets Gaming
GoogleTV
CHANING CUSTOMER BEHAVIOR
COMPETITIVE THREATS
GOVERNMENT REGULATIONS
RESPONDING TO RAPID CHANGES IN ENVIRONMENT
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Adaptive Retailing Overview
Competitors Market Forces
Changing Needs
PAM Operations
Adaptive Retailing
Responsive Promotions
& Pricing
Adaptive Portfolio
Configurable Inventory
Intelligent Supplier
Mgmt
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Approach to Delivery
Optimization (Planning)
Collaborative Execution Engine
(Execution)
Establish Visibility & Control Points (Feedback)
Step
3
Step
2
Step
1
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Responsive Pricing
Competitor Segments
Price Data
Promotional Data
Pricing Rules
Constraints
Recommendation Engine
Supplier Input
Confirm/ Modify Pricing
Pricing Data Replication
Critical Article Review
• Optimized pricing process while adding value from >2 weeks to 3 days
• Delivery accomplished in 14 weeks
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Intelligent Supplier Management
• Plan in advance based on global objectives
• Focus on most critical contracts
• Decision making information when needed
• Information currency
Historical Data
Customer Needs
Portfolio Consideration
Impact Analysis
Supplier Contract
Objectives
Highlights
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Questions
How responsiveness is your organization to changes?
Sat Vijayaraghavan Retail Practice, Thoughtworks [email protected]
Marco Bon Delivery Manager IT, Gruppo PAM [email protected]