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


Information

Education Entertainment

Communication E commerce


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


…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


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


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


Percentage

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

Source: Forrester Consulting

Dissatisfied Abandoned Transaction


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

Source: Forrester Consulting

Percentage

Dissatisfied Abandoned Transaction


LOGISTICSIS KEY TO SUSTAINABLE

E-COMMERCE


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


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

Value added

services

Value added

services


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


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


Total Supply Chain Reporting

Delivery Priority, Partner Management

Exception Management

To Customers, Trucking Partners, Schenker Operations

Key Success Factors

MonitorMonitor

VisibilityVisibility

ReportReport

ManageManage


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


Case Study

E2E Multi Channel Model


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


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”.


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.


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.


Reverse Logistics Solution

Customerreturns

Productreturns

Send for repair,

refurbish, scrap

Consumers Service CentreReverse Log

Hub Repairers

Recyclers

Refurbishers

Manufacturers



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


Hub Repairers

Recyclers

Refurbishers

Manufacturers



Customerreturns

Productreturns

Send for repair,

refurbish, scrap


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



Customerreturns

Productreturns

Send for repair,

refurbish, scrap


Hub Repairers

Recyclers

Refurbishers

Manufacturers

Repairs, remanufacture, refurbishment & scrapping

Process faulty products

Replenish good products or parts to the reverse logistics hub

Replenishment


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


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!

online retail conference 2012 ron koehler

Business

customer customer delivery

delivery priority

willyour delivery

schenker australia

day of delivery carrier

customer experience

sms delivery address

commissioned study