![Page 1: Managing Growth in an Omni-Channel World - …...2015/10/03 · Supply Chain Management Inventory Procurement Order Management Wholesale to Small Boutiques Wholesale to Large Retail](https://reader033.vdocuments.mx/reader033/viewer/2022042414/5f2f2aa83097ae4811139341/html5/thumbnails/1.jpg)
Managing Growth in an Omni-Channel World
1
Breaking the Mold of Outdated ERPs
October 15, 2015
Marc Kalman
![Page 2: Managing Growth in an Omni-Channel World - …...2015/10/03 · Supply Chain Management Inventory Procurement Order Management Wholesale to Small Boutiques Wholesale to Large Retail](https://reader033.vdocuments.mx/reader033/viewer/2022042414/5f2f2aa83097ae4811139341/html5/thumbnails/2.jpg)
What We Will Cover
• What is Omni-Channel?
• Market Challenges
• Save the Sale
• Turning to the Supply Chain
• What Does the Future Hold
2
![Page 3: Managing Growth in an Omni-Channel World - …...2015/10/03 · Supply Chain Management Inventory Procurement Order Management Wholesale to Small Boutiques Wholesale to Large Retail](https://reader033.vdocuments.mx/reader033/viewer/2022042414/5f2f2aa83097ae4811139341/html5/thumbnails/3.jpg)
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
3
![Page 4: Managing Growth in an Omni-Channel World - …...2015/10/03 · Supply Chain Management Inventory Procurement Order Management Wholesale to Small Boutiques Wholesale to Large Retail](https://reader033.vdocuments.mx/reader033/viewer/2022042414/5f2f2aa83097ae4811139341/html5/thumbnails/4.jpg)
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
4
![Page 5: Managing Growth in an Omni-Channel World - …...2015/10/03 · Supply Chain Management Inventory Procurement Order Management Wholesale to Small Boutiques Wholesale to Large Retail](https://reader033.vdocuments.mx/reader033/viewer/2022042414/5f2f2aa83097ae4811139341/html5/thumbnails/5.jpg)
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.
5
![Page 6: Managing Growth in an Omni-Channel World - …...2015/10/03 · Supply Chain Management Inventory Procurement Order Management Wholesale to Small Boutiques Wholesale to Large Retail](https://reader033.vdocuments.mx/reader033/viewer/2022042414/5f2f2aa83097ae4811139341/html5/thumbnails/6.jpg)
What is Omni-Channel
• Customer Centricity
• Customer is dictating route they take to transact
• Systems & process within retail simply facilitate the customer journey to transact and be served
6
![Page 7: Managing Growth in an Omni-Channel World - …...2015/10/03 · Supply Chain Management Inventory Procurement Order Management Wholesale to Small Boutiques Wholesale to Large Retail](https://reader033.vdocuments.mx/reader033/viewer/2022042414/5f2f2aa83097ae4811139341/html5/thumbnails/7.jpg)
7
What is Omni-Channel
![Page 8: Managing Growth in an Omni-Channel World - …...2015/10/03 · Supply Chain Management Inventory Procurement Order Management Wholesale to Small Boutiques Wholesale to Large Retail](https://reader033.vdocuments.mx/reader033/viewer/2022042414/5f2f2aa83097ae4811139341/html5/thumbnails/8.jpg)
What is Omni-Channel
8
Linear Retail Supply Chain Model
![Page 9: Managing Growth in an Omni-Channel World - …...2015/10/03 · Supply Chain Management Inventory Procurement Order Management Wholesale to Small Boutiques Wholesale to Large Retail](https://reader033.vdocuments.mx/reader033/viewer/2022042414/5f2f2aa83097ae4811139341/html5/thumbnails/9.jpg)
What is Omni-Channel
9
Linear e-Commerce Supply Chain Model
![Page 10: Managing Growth in an Omni-Channel World - …...2015/10/03 · Supply Chain Management Inventory Procurement Order Management Wholesale to Small Boutiques Wholesale to Large Retail](https://reader033.vdocuments.mx/reader033/viewer/2022042414/5f2f2aa83097ae4811139341/html5/thumbnails/10.jpg)
What is Omni-Channel
10
![Page 11: Managing Growth in an Omni-Channel World - …...2015/10/03 · Supply Chain Management Inventory Procurement Order Management Wholesale to Small Boutiques Wholesale to Large Retail](https://reader033.vdocuments.mx/reader033/viewer/2022042414/5f2f2aa83097ae4811139341/html5/thumbnails/11.jpg)
What is Omni-Channel
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
11
![Page 12: Managing Growth in an Omni-Channel World - …...2015/10/03 · Supply Chain Management Inventory Procurement Order Management Wholesale to Small Boutiques Wholesale to Large Retail](https://reader033.vdocuments.mx/reader033/viewer/2022042414/5f2f2aa83097ae4811139341/html5/thumbnails/12.jpg)
12
What is Omni-Channel
![Page 13: Managing Growth in an Omni-Channel World - …...2015/10/03 · Supply Chain Management Inventory Procurement Order Management Wholesale to Small Boutiques Wholesale to Large Retail](https://reader033.vdocuments.mx/reader033/viewer/2022042414/5f2f2aa83097ae4811139341/html5/thumbnails/13.jpg)
13
What is Omni-Channel
![Page 14: Managing Growth in an Omni-Channel World - …...2015/10/03 · Supply Chain Management Inventory Procurement Order Management Wholesale to Small Boutiques Wholesale to Large Retail](https://reader033.vdocuments.mx/reader033/viewer/2022042414/5f2f2aa83097ae4811139341/html5/thumbnails/14.jpg)
Inventory
Wholesale to
Small Boutiques
Wholesale to Large Retail
B2C
14
Social
What is Omni-Channel
Managing Multiple Channels as a Supplier
![Page 15: Managing Growth in an Omni-Channel World - …...2015/10/03 · Supply Chain Management Inventory Procurement Order Management Wholesale to Small Boutiques Wholesale to Large Retail](https://reader033.vdocuments.mx/reader033/viewer/2022042414/5f2f2aa83097ae4811139341/html5/thumbnails/15.jpg)
• 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
15
What is Omni-Channel
![Page 16: Managing Growth in an Omni-Channel World - …...2015/10/03 · Supply Chain Management Inventory Procurement Order Management Wholesale to Small Boutiques Wholesale to Large Retail](https://reader033.vdocuments.mx/reader033/viewer/2022042414/5f2f2aa83097ae4811139341/html5/thumbnails/16.jpg)
• 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?”
16
What is Omni-Channel
![Page 17: Managing Growth in an Omni-Channel World - …...2015/10/03 · Supply Chain Management Inventory Procurement Order Management Wholesale to Small Boutiques Wholesale to Large Retail](https://reader033.vdocuments.mx/reader033/viewer/2022042414/5f2f2aa83097ae4811139341/html5/thumbnails/17.jpg)
Lesson #1:
You cannot be Omni-channel without being Customer Centric
17
What is Omni-Channel
![Page 18: Managing Growth in an Omni-Channel World - …...2015/10/03 · Supply Chain Management Inventory Procurement Order Management Wholesale to Small Boutiques Wholesale to Large Retail](https://reader033.vdocuments.mx/reader033/viewer/2022042414/5f2f2aa83097ae4811139341/html5/thumbnails/18.jpg)
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”
18
![Page 19: Managing Growth in an Omni-Channel World - …...2015/10/03 · Supply Chain Management Inventory Procurement Order Management Wholesale to Small Boutiques Wholesale to Large Retail](https://reader033.vdocuments.mx/reader033/viewer/2022042414/5f2f2aa83097ae4811139341/html5/thumbnails/19.jpg)
Market Challenges
19
![Page 20: Managing Growth in an Omni-Channel World - …...2015/10/03 · Supply Chain Management Inventory Procurement Order Management Wholesale to Small Boutiques Wholesale to Large Retail](https://reader033.vdocuments.mx/reader033/viewer/2022042414/5f2f2aa83097ae4811139341/html5/thumbnails/20.jpg)
Market Challenges
• Marketers scramble for better ways to communicate with this new customer
• Now have to deal with volume of frequent transactions being optimized
20
![Page 21: Managing Growth in an Omni-Channel World - …...2015/10/03 · Supply Chain Management Inventory Procurement Order Management Wholesale to Small Boutiques Wholesale to Large Retail](https://reader033.vdocuments.mx/reader033/viewer/2022042414/5f2f2aa83097ae4811139341/html5/thumbnails/21.jpg)
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
21
![Page 22: Managing Growth in an Omni-Channel World - …...2015/10/03 · Supply Chain Management Inventory Procurement Order Management Wholesale to Small Boutiques Wholesale to Large Retail](https://reader033.vdocuments.mx/reader033/viewer/2022042414/5f2f2aa83097ae4811139341/html5/thumbnails/22.jpg)
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
22
![Page 23: Managing Growth in an Omni-Channel World - …...2015/10/03 · Supply Chain Management Inventory Procurement Order Management Wholesale to Small Boutiques Wholesale to Large Retail](https://reader033.vdocuments.mx/reader033/viewer/2022042414/5f2f2aa83097ae4811139341/html5/thumbnails/23.jpg)
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
23
![Page 24: Managing Growth in an Omni-Channel World - …...2015/10/03 · Supply Chain Management Inventory Procurement Order Management Wholesale to Small Boutiques Wholesale to Large Retail](https://reader033.vdocuments.mx/reader033/viewer/2022042414/5f2f2aa83097ae4811139341/html5/thumbnails/24.jpg)
Market Challenges
24
![Page 25: Managing Growth in an Omni-Channel World - …...2015/10/03 · Supply Chain Management Inventory Procurement Order Management Wholesale to Small Boutiques Wholesale to Large Retail](https://reader033.vdocuments.mx/reader033/viewer/2022042414/5f2f2aa83097ae4811139341/html5/thumbnails/25.jpg)
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)
25
![Page 26: Managing Growth in an Omni-Channel World - …...2015/10/03 · Supply Chain Management Inventory Procurement Order Management Wholesale to Small Boutiques Wholesale to Large Retail](https://reader033.vdocuments.mx/reader033/viewer/2022042414/5f2f2aa83097ae4811139341/html5/thumbnails/26.jpg)
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!
26
![Page 27: Managing Growth in an Omni-Channel World - …...2015/10/03 · Supply Chain Management Inventory Procurement Order Management Wholesale to Small Boutiques Wholesale to Large Retail](https://reader033.vdocuments.mx/reader033/viewer/2022042414/5f2f2aa83097ae4811139341/html5/thumbnails/27.jpg)
27
Save the Sale
Lesson #2:
Cross-Channel Inventory Visibility is Essential
![Page 28: Managing Growth in an Omni-Channel World - …...2015/10/03 · Supply Chain Management Inventory Procurement Order Management Wholesale to Small Boutiques Wholesale to Large Retail](https://reader033.vdocuments.mx/reader033/viewer/2022042414/5f2f2aa83097ae4811139341/html5/thumbnails/28.jpg)
Turning to the Supply Chain
28
Global Retail & Consumer Goods CEO Survey: The Omni-Channel Fulfillment Imperative, JDA, 2015
![Page 29: Managing Growth in an Omni-Channel World - …...2015/10/03 · Supply Chain Management Inventory Procurement Order Management Wholesale to Small Boutiques Wholesale to Large Retail](https://reader033.vdocuments.mx/reader033/viewer/2022042414/5f2f2aa83097ae4811139341/html5/thumbnails/29.jpg)
29
What is Omni-Channel
Global Retail & Consumer Goods CEO Survey: The Omni-Channel Fulfillment Imperative, JDA, 2015
![Page 30: Managing Growth in an Omni-Channel World - …...2015/10/03 · Supply Chain Management Inventory Procurement Order Management Wholesale to Small Boutiques Wholesale to Large Retail](https://reader033.vdocuments.mx/reader033/viewer/2022042414/5f2f2aa83097ae4811139341/html5/thumbnails/30.jpg)
• 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
30
Turning to the Supply Chain
![Page 31: Managing Growth in an Omni-Channel World - …...2015/10/03 · Supply Chain Management Inventory Procurement Order Management Wholesale to Small Boutiques Wholesale to Large Retail](https://reader033.vdocuments.mx/reader033/viewer/2022042414/5f2f2aa83097ae4811139341/html5/thumbnails/31.jpg)
Turning to the Supply Chain
• Next Step:
– Speed of fulfillment
– The need to access and sell all inventory, no matter where it happens to be located
31
![Page 32: Managing Growth in an Omni-Channel World - …...2015/10/03 · Supply Chain Management Inventory Procurement Order Management Wholesale to Small Boutiques Wholesale to Large Retail](https://reader033.vdocuments.mx/reader033/viewer/2022042414/5f2f2aa83097ae4811139341/html5/thumbnails/32.jpg)
Turning to the Supply Chain
• Issues to Address
– What if Store is Out of Stock?
– Where; When; How; How Fast?
– Can Ship From be Best Optimized?
• When / Where / Cost
32
![Page 33: Managing Growth in an Omni-Channel World - …...2015/10/03 · Supply Chain Management Inventory Procurement Order Management Wholesale to Small Boutiques Wholesale to Large Retail](https://reader033.vdocuments.mx/reader033/viewer/2022042414/5f2f2aa83097ae4811139341/html5/thumbnails/33.jpg)
Turning to the Supply Chain
• 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?
33
![Page 34: Managing Growth in an Omni-Channel World - …...2015/10/03 · Supply Chain Management Inventory Procurement Order Management Wholesale to Small Boutiques Wholesale to Large Retail](https://reader033.vdocuments.mx/reader033/viewer/2022042414/5f2f2aa83097ae4811139341/html5/thumbnails/34.jpg)
Turning to the Supply Chain
• 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
34
![Page 35: Managing Growth in an Omni-Channel World - …...2015/10/03 · Supply Chain Management Inventory Procurement Order Management Wholesale to Small Boutiques Wholesale to Large Retail](https://reader033.vdocuments.mx/reader033/viewer/2022042414/5f2f2aa83097ae4811139341/html5/thumbnails/35.jpg)
What Does the Future Hold
• RFID will play important role
• Suppliers will become part of Visibility Ecosystem
• ERP-to-ERP Integration
35
![Page 36: Managing Growth in an Omni-Channel World - …...2015/10/03 · Supply Chain Management Inventory Procurement Order Management Wholesale to Small Boutiques Wholesale to Large Retail](https://reader033.vdocuments.mx/reader033/viewer/2022042414/5f2f2aa83097ae4811139341/html5/thumbnails/36.jpg)
Customers Drive Journey
Customer Centricity is Essential
Inventory Visibility is Key
Don’t Get Left Behind
36
Conclusion
![Page 37: Managing Growth in an Omni-Channel World - …...2015/10/03 · Supply Chain Management Inventory Procurement Order Management Wholesale to Small Boutiques Wholesale to Large Retail](https://reader033.vdocuments.mx/reader033/viewer/2022042414/5f2f2aa83097ae4811139341/html5/thumbnails/37.jpg)
Thank you!
37
Questions