magento + retail order management: optimizing omnichannel...

MAGENTO + RETAIL ORDER MANAGEMENT: OPTIMIZING OMNICHANNEL FOR THE NEXT GENERATION CUSTOMER EXPERIENCE

PROPRIETARY & CONFIDENTIAL

AGENDA

• Understanding the Importance of Order Management

• Examining Retail Order Management Key Capabilities

• Combining Magento with Retail Order Management

• Benefiting from Magento + Retail Order Management

• Determining the Ideal Merchant

• Demonstration

• Getting More Information

2


UNDERSTANDING THE IMPORTANCE OF ORDER MANAGEMENT


EBAY ENTERPRISE OMNICHANNEL SOLUTIONS FOR EVERY STAGE OF THE CUSTOMER EXPERIENCE

4


EBAY ENTERPRISE OMNICHANNEL SOLUTIONS FOR EVERY STAGE OF THE CUSTOMER EXPERIENCE

5


OMS IS SYNONYMOUS WITH OMNICHANNEL

6


OMS IS SYNONYMOUS WITH OMNICHANNEL

7

63% of retailers surveyed cited a preference for software as a service (SaaS) or cloud-based OMS solutions

63%


MERCHANTS ARE FOCUSED ON ORDER MANAGEMENT

8


THE MARKET IS CONSOLIDATING

9

August 2010

August 2011

May 2013

June 2013

January 2014


EXAMINING RETAIL ORDER MANAGEMENT KEY CAPABILITIES


EBAY ENTERPRISE

11

HAS

DECOUPLED, MODULAR, EXTENSIBLE HIGHLY SCALABLE RETAIL ORDER MANAGEMENT PLATFORM AS A SERVICE, DESIGNED SPECIFICALLY TO

RETAILERS.

A BUILT

AND

MEET THE NEEDS OF


OUR MODULAR RETAIL ORDER MANAGEMENT SOLUTION

12

DISTRIBUTED ORDER MANAGEMENT

OMNICHANNEL INVENTORY MANAGEMENT

STORE-BASED FULFILLMENT

DROPSHIP MANAGEMENT

REPORTING


WE THEN BUILT A RETAIL-OPTIMIZED PLATFORM

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Retail Optimized Integration Linking OMS to the omnichannel retail value chain

Eliminated Unnecessary Complexities Masked non-retail relevant capabilities, configurations and complexities

Unique Capabilities Omnichannel retail required functionality not in standard Sterling

STERLING COMMERCE DISTRIBUTED ORDER MANAGEMENT


WE STARTED WITH A GOOD FOUNDATION BEGAN THE JOURNEY WITH STERLING THEN SIGNIFICANTLY ENHANCED IT


OUR MODULAR RETAIL ORDER MANAGEMENT SOLUTION

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DROPSHIP MANAGEMENT

REPORTING


OMNICHANNEL INVENTORY MANAGEMENT Foundation for Omnichannel Single source of truth for inventory across the enterprise:

–  Know where your inventory is (and is going to be - ATP) across the entire supply chain is a pre-requisite for omnichannel fulfillment

–  Enables exposure of that inventory for sale on demand channels

–  Key considerations:

•  Safety stock at global, category or SKU level

•  Learning inventory discrepancies

•  In flight orders

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Distribution Centers

Omnichannel Inventory

Management

Dropship Vendors

In-Transit Inventory Stores


INTELLIGENT ORDER ROUTING

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Order Routing


INTELLIGENT ORDER ROUTING DISTRIBUTION CENTERS AND STORES WORK IN CONCERT

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Order Routing

•  Profitability •  Proximity •  Transit time •  Inventory burn •  SKU specific

routing •  Split orders

•  Store & item eligibility

•  Max orders •  Days of week •  VAS (gift wrapping,

etc.) •  Store preference


INTELLIGENT ORDER ROUTING

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Routing •  Store & item eligibility

•  Max orders •  Days of week •  VAS (gift wrapping,

etc.) •  Store preference


STORE-BASED FULFILLMENT TOOLS

In-store fulfillment functionality tailored for store associates

• Mobile app and mobile optimized mobile web

• API’s to integrate with other or existing store systems

–  POS, eBay Retail Associate Platform

• Fully integrated with carriers and eBay Local

• Standardized order reporting

• Administrative dashboard

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COMBINING MAGENTO WITH RETAIL ORDER MANAGEMENT


OMS INTEGRATION IS CRITICAL

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54% of retailers surveyed cited they were worried or very worried about the complexities of integrating an OMS platform into their existing back-end systems

54%


ROM INTEGRATION FRAMEWORK

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Extended Supply Chain

eBay Payment, Tax Fraud Management

Commerce Platforms

Client Systems


THE INTEGRATION FRAMEWORK

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ECP


• Enable Maximum Capability –  Core products of Magento and eBay enterprise

with minimal customization or compromise

• Retain Magento’s Flexibility –  Enable third party extensions to operate as

designed; integrated into the experience

• Minimize Seams in Integration –  Pre-configure component integrations and make

available functions traditionally complex to incorporate

–  Make it as simple and repeatable as possible for each new store / Website

• Maintain Backward Compatibility –  Provide for site stability with updates to

front-end or back end platforms to be independent and without impact or necessary modifications for clients

Storefront implementation

Back-office implementation

Typical Magento Implementation

Integration Component

Typical Exchange Platform

Implementation

Target Cheetah Implementation

Time / C

ost

GOALS OF THE MAGENTO + ROM PLATFORM INTEGRATION

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PROPRIETARY & CONFIDENTIAL 25

Standard extension to Magento Enterprise Edition Linking to ROM Platform

• Simple to install and minimal to configure

•  Incorporation from standard Magento methods to leverage ROMS Platform real-time checkout flow functions

• Automation and consistent data allowing extraction of ebay enterprise item data to the Magento catalog

• Modification and certification of Magento payment bridge to support ebay enterprise payments gateway and PCI DSS compliance

•  Integration of order events and status into Magento order records

•  Image metadata from Magento to exchange platform for shared usage

WHAT WE CREATED


OMS Features Order Processing & Cancellation ✔ ✔

Order Lookup & Order History Detail ✔ ✔

Buyer’s Remorse Period Management ✔

Online Inventory Management ✔ ✔

CSR Tools for Advanced, Large-scale Order Management ✔ ✔

Omnichannel Inventory Visibility ✔

Omni-source Visibility (WMS, Store, Dropship, etc.) ✔

Complex Order Routing & Brokering ✔

Estimated Ship Date Calculation ✔

Payment Processing and Gateway ✔ ✔

Extensive & Customizable Product & Financial Reporting ✔

Prebuilt connection to eBay’s omnichannel capabilities ✔

Pre-Built connections to Best-of-Breed WMS systems ✔

Pre-built connections to Best-of-Breed eMail Marketing Solution ✔ ✔

COMBINING MAGENTO WITH ROM

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Retail Order Management


Development / Deployment

Platform Hosting

DEVELOPMENT, DEPLOYMENT AND PLATFORM HOSTING OPTIONS

Magento Enterprise Edition

ROMS components

Hosted Anywhere (on premise, hosting

partner, system integrator)

SaaS Solution Hosted by eBay

Scalable, secure, reliable

Pre Integrated connection

System Integrator/Magento

Developers

eBay Enterprise Client Services

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BENEFITING FROM THE COMBINED SOLUTION


1.  Connections and interfaces between Magento and Retail Order Management Platform are preconfigured and prebuilt. No coding to API’s needed.

2

2.  Product data formatting / reformatting is cut down with a single feed set populating both the front and back-end systems.

–  No need to build import / export processes or reformatting.

1

2

2

SIMPLIFY QA, LOWER RISK, DECREASE TIME-TO-MARKET


LEVERAGE BEST PRACTICES FROM THE STORE-BASED FULFILLMENT LEADER

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First deployment of Ship-From-Store – Nine West in 2008

0

1,000

2,000

3,000

4,000

5,000

6,000

2008 2009 2010 2011 2012 2013 2014

Stores

0 5

10 15 20 25 30 35 40 45 50

2008 2009 2010 2011 2012 2013 2014

Retailers Countries

0 10,000,000 20,000,000

2008 2009 2010 2011 2012 2013 2014

Orders

P P

14 countries now with TRU China 24 clients and ~ 40 brands

3,407 stores and growing

Processed nearly 3M orders in 1Q 14

P


POSITIVELY INFLUENCE KEY METRICS WITH STORE-BASED FULFILLMENT RESULTS

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20-40% Average increase

in incremental ecommerce revenue

33% Average percent of items shipped

are inactive

30%+ Margin increase

on items nearing markdown

80%+ 1 day

transit time, 96% 2 day


RETAIL OMS CORE


OMNICHANNEL INVENTORY

STORE, FINANCIAL & OPERATIONAL REPORTING

OMNICHANNEL SERVICES

SHIP FROM STORE SHIP TO STORE

BUY ONLINEPICKUP IN STORE DROP SHIP

eE WMS TRANSPORTATION

ORDER ROUTING OPTOMIZATION

RETAIL OMS SERVICES

PAYMENTS &COMPLIANCE

ADDRESS VALIDATION

EMAIL

RISK/FRAUDMANAGEMENT

ORDER LOGIC

TAXES & DUTIES

RETURN LABEL

IVR

ORDERPROCESSING

CART &CHECKOUT

INVENTORYAVAILABILITY

INT'L SHIPMENTS

ORDER ROUTING OPTIMIZATION

Faster Time To Profitability

Significantly Reduced Costs

Significantly Reduced Risk

Innovate & Differentiate

Faster Time To Profitability

Ready on “Day 1”

Streamlined client on-boarding

Pre-defined order handling template processes

Configuration-based enhancement framework

Fast & easy customization

Significantly Reduced Costs

No initial infrastructure build-out costs No R&D, support & maintenance costs Innovate at lower cost No security compliance costs Adapt to new integrations more easily

Significantly Reduced Risk

Reduce risk of managing complex licensed software implementations Reduce FTE Management exposure Reduce operational risks Leverage best practices from market-leading retail OMS service provider

Innovate & Differentiate

Access to market-leading Retail OMS capabilities

Access to Real-time, event-driven services

Pre-integrated commerce-enabling services

Pre-built 3rd party integrations

Future-proof

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RETAIL ORDER MANAGEMENT IS THE DIFFERENTIATOR NOT A COMMODITY


DETERMINING THE IDEAL MERCHANT


MERCHANTS WITH THE FOLLOWING CHARACTERISTICS & NEEDS WILL BENEFIT MOST

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Brand Goals & Revenue •  Established brand with revenue > $10m online •  Sustainable, Long-‐term Bus. & Sourcing Models •  Focus on growth plan ~10% Year-‐over-‐Year

Annual Target •  Retailers: pure play, mulK channel, B2C

General •  Seeking operaKonal efficiencies through fully

integrated, scalable, modular PaaS OMS – preconfigured, retail opKmized soluKon

•  Open to an OpEx cost model

Order Management Requirements •  Distributed Order Management & Omnichannel

Inventory Management Needs: •  Omnichannel Fulfillment: Stores, Drop Shippers,

mulKple DCs, 3PLs •  Difficulty processing increasing order volumes •  Omnichannel selling: accept/orchestrate orders

from mulKple touch points •  Support pre-‐sale and backorder •  Support customer service scenarios more

effecKvely •  DOM + OIM + Payments + Fraud •  Support growing payment types and robust fraud

screening

Opera8ons & Marke8ng (Op8ons) •  PotenKal Interest in outsourced DC Fulfillment

leveraging eBay freight rates •  No perishables (special condiKons discussed) •  Ideally limit large item inventory •  PotenKal interest in drop ship management

•  50k to 100k annual order volume •  PotenKal interest in outsourced customer service

•  100,000 call center interacKons annually In Store Fulfillment

•  300M total chain revenue •  50+ store across chain

•  PotenKal interest in affiliate, display, email, search, analyKcs, creaKve, strategy


DEMONSTRATION


GETTING MORE INFORMATION: WHO TO CONTACT


WHO TO CONTACT

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John Huntington – Director, Strategic Alliances

[email protected]

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