eFashion12 - Ronald Teijken - IBM

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  • 1. Ronald TeijkenIBM Smarter Commerce expert EMEALogistiek achter de verkoopConnecting the dots.... © 2012 IBM Corporation
  • 2. Wat wil de consument? e © 2012 IBM Corporation
  • 3. Meerdere kanalen om zijn/haar product te kopen(winkel, online, call center, smartphone, kiosk, tablet, .....) Seamless Cross-Channel shopping © 2012 IBM Corporation
  • 4. Bepalen waar een pakje wordt bezorgd (Thuis, Buren, ServicePoint, Lockerpoint, afhalen webwinkel outlet, ander adres) © 2012 IBM Corporation
  • 5. Bepalen wanneer een pakje wordt bezorgd (Ochtend, Middag, Avond, Zaterdag, tijdvenster, datum) © 2012 IBM Corporation
  • 6. Weten wat de status van zijn pakje is. Real-time Track & Trace © 2012 IBM Corporation
  • 7. Zekerheid © 2012 IBM Corporation
  • 8. Verwachten een eenvoudig en gratis retour mogelijkheid © 2012 IBM Corporation
  • 9. Retouren in online warenhuizen 58%9 © 2012 IBM Corporation
  • 10. Thuisbezorgen 96%-> 84%10 © 2012 IBM Corporation
  • 11. Retourneren per post geniet de voorkeur, maar kan Logistiek Nederland dit aan? 52%11 © 2012 IBM Corporation
  • 12. Verwachting consumenten voor retourneren: gratis 88%12 © 2012 IBM Corporation
  • 13. Cross-channel commerce addresses some of the most exciting retail opportunities… Lost sales due to stock-outs Expand assortment without expanding physical store footprint Deliver on customer expectation for seamless cross-channel experience Expand fulfillment options and sell higher-margin services Increase inventory turns and reduce markdowns13 © 2012 IBM Corporation
  • 14. Consumer’s Expect a Seamless Cross-Channel Experience Research Schedule Check Status Initiate/Track Store Create Order Change Delivery Cancel Order Pickup Product Return Order Research Schedule Check Status Schedule Initiate/Track Call Create Order Change Delivery or Cancel Order Product Store Pickup Return Center Order Pickup Research Schedule Check Status Schedule Initiate/Track Web Product Create Order Change Delivery or Cancel Order Store Pickup Return Order Pickup Research Schedule Check Status Schedule Initiate/Track Mobile Product Create Order Change Delivery or Cancel Order Store Pickup Return Order Pickup85% of consumers “expect a seamless experience across allchannels for a retailer”1Multi-channel shoppers spend 30% to 50% more than their single-channel counterparts, forcing traditional merchandising activities todeliver a truly transparent connection between all customertouchpoints. 1 Source: “Cross-Channel Brand Interaction: 2010 Consumer Preferences,” Sterling Commerce, 14 © 2012 IBM Corporation 2 Source: Gartner, The 2010 Retail Handbook for Becoming Demand Driven
  • 15. 71% of consumers engage in cross-channel shopping with mobility assisting both shoppers and sales associates Consumer Mobility  56% of holiday shoppers planned to check / compare prices via their mobile phone while in the store  43% of consumers would like to use mobile apps to create shopping lists and find products in the store  38% would like to use a retailer’s store WiFi network to search for product information  61% of shoppers believe they were better connected to consumer information, competitive pricing and product availability than store associates  41% of shoppers were not satisfied with their ability to receive in- store stock availability Store Associate Mobility  75% of store personnel say they provide a better in-store shopper experience when equipped with mobile device  67% of shoppers cited a better in-store experience when in-store personnel had mobile devices  68% of shoppers would have purchased an out-of-stock item if an associate was able to order the item and deliver it to their homeSource: Deloitte Consulting; Motorola © 2012 IBM Corporation
  • 16. Tremendous complexityi.e. 10m customers, 5 channels, 100 products/offers = 247 combinations! Customers Channels Offers Timing (millions) (multiple) (hundreds) (any day/time) 1: Tue 1/4 am 2: Wed 9/4 pm 3: Tue 15/4 am 4: Mon 21/4 am 5: Fri 25/4 pm16 © 2012 IBM Corporation
  • 17. We have entered the age of the empowered customer Customers now have Social networking and Customer This is changing unlimited access to mobile commerce expectations of the entire way information and can have dramatically service, price and products are instantly share it changed the dynamic delivery are soaring sourced, manufactur with the world between buyer and ed and distributed— seller and making business more complex than ever 250 million 75% $93 billion Number of tweets sent Percentage of people who Amount in sales missed due via Twitter each day believe companies don’t tell to out of stock inventory the truth in advertisements17 © 2012 IBM Corporation Sources:, Techcrunch Oct 2011, Yankelovich, Evolution of Advertising and Media, 5th Annual Store Systems Study, IHL Group and RIS News, 2008
  • 18. And they are reshaping businesses SOCIAL RATINGS MOBILE e REVIEWS GLOBAL TRUST LOCAL LOYALTY PUSH LIKE PULL CROWD SOURCING18 © 2012 IBM Corporation
  • 19. Placing the customer at the center of your business and synchronizeyour business processes Buy Market Targeted and Adaptive personalized procurement marketing and optimized Buy Market across all supply chain channels Service Sell Anticipate behavior and Service Sell Seamless cross-channel deliver flawless customer customer experience service19 © 2012 IBM Corporation
  • 20. Bringing it all together …  Good marketing is service  Service feedback drives better marketing  Marketing displays relevant ads  Excess inventory influences marketing  eCommerce provides marketing campaigns and mark-down pricing with real-time shopping behavior  Campaign results impact inventory plans Buy Market Sell Service  Consumer demand shapes decisions on  Good service drives cross, up-sell and supplier sourcing, inventory repeat sales  Inventory and logistics drive fulfillment  Service options offered to customers during the selling process20 © 2012 IBM Corporation
  • 21. Begin with these questions for your Smarter Commerce journey Can your Can you deliver the customer and perfect order? suppliers see into your supply chain? Can you reduce stock-outs, improve customer satisfaction and still make your Could your supply margins? chain interrupt service to your Do you deliver customers? exceptional customer experience across all touch points?21 © 2012 IBM Corporation
  • 22. As a Result, the List of Requirements to Create the Perfect Order Has Grown1. Support multiple channels. 11. Identify final locations.2. Enable stakeholder centricity. Customers, 12. Suggest packaging options and suppliers, partners, and employees must requirements be able to access the system 13. Include documentation3. Deliver a consistent brand experience. 14. Determine order frequency4. Provide both product and service selection. 15. Present accurate and timely invoicing.5. Propose configuration and quantity 16. Facilitate returns6. Guarantee quality 17. Allow warranty claims7. Enforce pricing policy 18. Manage service agreements8. Recommend sourcing options 19. Address repairs9. Offer delivery and/or installation options 20. Finalize settlement processes.10. Incorporate a period of time (On time delivery) Source: Re-Staple Yourself to an Order: Next Generation Order Management is Critical for Supply Chain Success, Supply Chain Digest white paper, April 2010. © 2012 IBM Corporation
  • 23. Providing a unified cross-channel customer experience can be costly and difficult to execute across multiple systems and organizations  Difficult to obtain a holistic view of supply and demand  Lack of visibility into inventory across systems and partners  Poor insight into profitable customers  Manual processes are needed to fulfill an order  Difficult to change order processes when needed  High transportation costs due to poor route and load planning  No process to capture customer sentiment or social media © 2012 IBM Corporation23
  • 24. 4 ways to get started by optimizing Order Management andFulfillment processes Is customer Optimize Provide a information Provide a Automate inventory seamless and driving your personalized transportation utilization business?unified cross- customer processes to channel experience optimize order customer with advanced fulfillment experience analytics24 © 2012 IBM Corporation
  • 25.  Balance supply and demand with better visibility across the supply chain Optimize  Efficiently utilize inventory across Inventory all locations Utilization  Sell virtual inventory that is drop- shipped from partners  Utilize event-driven monitoring of inventory levels to automatically trigger replenishment25 © 2012 IBM Corporation
  • 26. Crocs has improved fill rates to nearly 100% Challenge • Heavily customized ERP system that required manual processes • Poor order accuracy in the wholesale channel • No comprehensive view of inventory across internet, retail, and wholesale channels Solution “Sterling Order Management is doing exactly what Crocs needed it to do, with an expected Order Management system that provides an return on investment within 12 months of accurate and near real time available-to-promise implementation. picture and robust sourcing and scheduling capabilities Brian Horsman, Crocs, Inc. Results Customer Profile Crocs, Inc. designs, develops, and• Fill rates on internet orders is nearly 100%, an manufactures footwear for improvement of 10-13% men, women, and children worldwide• All inventory is now planned and reserved by channel from specialty resins. Operates manufacturing facilities in• Accurate real-time available-to-promise number for all Mexico, Italy, and China, with channels distribution centers worldwide $645 Million in annual sales26 © 2012 IBM Corporation
  • 27.  Source complex orders across a network of internal and external locations  Provide flexible fulfillment Provide a methods to the customer – order seamless and online, modify via call center, pick unified cross- up in store channel customer  Deliver a uniform face to experience customers by providing a single version of the truth for all customer fulfillment issues  Efficiently coordinate complex fulfillment processes in a single environment27 © 2012 IBM Corporation
  • 28. Debenhams at a Glance UK’s second largest department store Growing multi channel and international presence Strong sales, profitability and cash flow generation IBM WebSphere Commerce and Sterling Order Management customer since 2006 © 2012 IBM Corporation
  • 29. Focus & Strategy © 2012 IBM Corporation
  • 30. Focus & Strategy © 2012 IBM Corporation
  • 31. Focus & Strategy © 2012 IBM Corporation
  • 32.  Gain better customer insight into ordering habits Provide a  Provide up-sell and cross sell offers personalized based on the ordered product and customer past behavior experience with  Gain insight into supply chain advanced analytics performance and on-time delivery  Anticipate demand based on past history and up-coming events32 © 2012 IBM Corporation
  • 33. Neck and Neck leverages real-time analysis of their customers to deliver morepersonalized offers Challenge • Lacked the integrated tools needed to build, maintain and expand customer loyalty. Solution By deploying a comprehensive data mining solution using “This is an enormous increase in profitability IBM SPSS Modeler, the company improved market when taking into consideration that the average customer purchase is between €100 segmentation modeling and gained decision-making tools for and €120 across 90,000 affected customers.” better customer management. - Neck and Neck Results Customer Profile • Increased campaign response rates by more than 25% Dedicated to the design and distribution of • Boosted sales by 15% in one year children’s fashion. Based in Madrid, the firm • Reduced the number of catalogs and promotional mailings was established in 1993, and has expanded while increasing consumer outreach success to 200 stores, 1,867 employees, along with a • Quickly achieved payback: the increase in sales in just one commercial network of 211 points of sale – campaign recovered the amount invested in the solution making the company a leader in its sector.33 © 2012 IBM Corporation
  • 34.  Optimize shipment & route planning Automate  Deliver better customer service transportation through shipment monitoring and processes to pre-emptive issue resolution optimize order  Interface to 10,000+ carriers to find fulfillment the optimal space for your freight  Automate transportation invoicing processes  Automate the monitoring of contractrate compliance34 © 2012 IBM Corporation
  • 35. 35 © 2012 IBM Corporation
  • 36. Hide the cross-channel complexities while enabling a unified customer experience !Cross-channel visibility and automatedprocesses that help enable the utilization ofmultiple fulfillment strategiesSingle source of customer order andinventory visibility helps ensure aseamless experience for the customers,partners, and suppliersSynchronized multi-tiered orderorchestration and fulfillment optimizesinventory and reduces supply chain costsbeyond your enterprisePredictive analytics, reports, and dashboards,allowing employees to make more informeddecisions and automatically improvingbusiness processes © 2012 IBM Corporation
  • 37. ronald_teijken@nl.ibm.com @SCM_Ronald 003161324674737 © 2012 IBM Corporation