CEO Viewpoint:
Supply Chain’s Critical Role in an All-Channel World
Final Presentation
2014
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Presentation Overview
Presenting the highlights of the CEO Survey a...
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Key Takeaways
INSIGHTS FINDINGS
 Transformation to omni-channel is...
Approach and Respondent Profile
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Our Approach and Respondent
Profile
The aim of this study was to pr...
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Some Big Name Participants
Highlighting the global reach of the stu...
Challenges and Priorities for Growth
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIALCopyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
‘Soaring ener...
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Technology, diversification, and maintaining status quo are all bei...
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
“Keep on the same path we
are on and 'hopefully' ride
any unexpecte...
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Technology, diversification, and maintaining status quo are all bei...
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIALCopyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Internal Chal...
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Investing in employees and their development is a common theme in t...
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Opportunities to prepare for the
internal challenges
To make sure w...
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Opportunities to prepare for the
internal challenges
“Our opportuni...
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIALCopyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Business prio...
Evolution of the Retail Operating Model
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIALCopyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
It dilutes at...
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIALCopyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Supply chain ...
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIALCopyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Leveraging su...
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIALCopyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
The role of s...
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Areas supporting multi-channel
operations
45% of respondents consid...
Innovations in the Retail Operating Model
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIALCopyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Maximizing pr...
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Capability of organizations to
currently deliver
„Maximizing produc...
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIALCopyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Retailing in ...
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Opportunities to prepare for the
future state of retailing
“Get sma...
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Opportunities to prepare for the
future state of retailing
“These c...
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Using shopper/customer data and investing in technology are key way...
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
CEOs anticipate by 2020 the shoppers and the shopping experience wi...
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Technology, diversification, and maintaining status quo are all bei...
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Technology, diversification, and maintaining status quo are all bei...
Thank you
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Profiling the retailers
Views were provided by more than 400 CEOs o...
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
0
10
20
30
40
50
Sub-sector breakdown
Category Specialists represen...
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Revenue profile (USD)
Nearly one fifth of responding retailers had ...
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Retailer‟s years in business
Q17: How long has your organization be...
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Confidence in revenue growth
Q1: How confident are you about your o...
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Reporting structures
Q11.1: Within your corporate structure, who do...
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CEO ViewPoint: Supply Chain's Critical Role in an All-Channel World

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Presenting the highlights of the CEO Survey assessing ‘Supply Chain’s Critical Role in an All-Channel World’.

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  • Transcript of "CEO ViewPoint: Supply Chain's Critical Role in an All-Channel World"

    1. 1. CEO Viewpoint: Supply Chain’s Critical Role in an All-Channel World Final Presentation 2014
    2. 2. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Presentation Overview Presenting the highlights of the CEO Survey assessing ‘Supply Chain’s Critical Role in an All-Channel World’. Approach and Respondent Profile1 Challenges & Priorities for Growth 2 Evolution of the Retail Operating Model3 Innovations in the Retail Operating Model 4
    3. 3. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Key Takeaways INSIGHTS FINDINGS  Transformation to omni-channel is a major challenge for CEOs  Top priorities for growth: Expansion into new markets & regions, opening more stores, and expanding through M&As  Top risks that keep CEOs awake at night:  Increasing competitive threats  Margin erosion and cost reduction  Attracting and retaining customers  50% of CEOs say supply chain is a strategic differentiator. However, on average, CEOs ranked supply chain investment at the bottom of the stack  Germany is the most confident of regions followed by South Africa and USA  65% of retail execs who consider supply chain a top priority are very confident about revenue growth over the next 3 years
    4. 4. Approach and Respondent Profile
    5. 5. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Our Approach and Respondent Profile The aim of this study was to provide key insights from CEOs on their business priorities and the role supply chain plays in evolving businesses to be nimble, flexible and agile to address market realities and the Millennial generation of shoppers. of CEOs who are very confident of revenue growth over the next 3 years. This is 52% for EMEA, 56% for Asia and 54% for the Americas. 54% of participants were from top 1000 retailers including 27 of the top 250 53% responses were achieved in PwC‟s global retail CEO study. 409 CEOs from targeted via an online panel. 8 markets retail executives were interviewed by Forbes Insights. 18 Russia 28 USA 155 China 56 Canada 23 UK 68 Germany 47 South Africa 11 Australia 21
    6. 6. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Some Big Name Participants Highlighting the global reach of the study with some of the known big name retailers who participated in this study. USA  Food Lion  Mary Kay, Inc.  Levi Strauss  Target Corporation  Macy‟s  Defence Commissary Agency  UPS Store Canada  The Medicine Shoppe  Mainly Mac  PM Industries UK  ASOS  Lauren Conrad  Topshop  Mace China  Walmart  Carrefour  Swarovski Australia  Rainfresh  Nilfisk Alto
    7. 7. Challenges and Priorities for Growth
    8. 8. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIALCopyright 2014 JDA Software Group, Inc. - CONFIDENTIAL ‘Soaring energy or raw materials’ was sighted as being extremely likely to occur at 57%. However, organizations believe this will affect their organizations to a less extent. Natural disaster disrupting a major trading – manufacturing hub Lack of stability in capital markets Exchange rate volatility Reputational damage to our brand The rise of the multiple channel environment (multi/omni/all) Increases in unexpected regulatory requirements Likelinesstooccur 57% 34% 25% 14% 43% 53% 41% Soaring energy or raw material costs 57% Increasing competitiveness with emerging markets 56% Military tensions affecting access to natural resources 28% Business continuity issues with trading partners 27% Q2.1 : In your opinion, how likely do you think the following external threats are to occur? Base range: 399-405 Extentofaffectonorganization Increases in unexpected regulatory requirements Increasing competitiveness with emerging markets Natural disaster disrupting a major trading – manufacturing hub Military tensions affecting access to natural resources Lack of stability in capital markets Exchange rate volatility Reputational damage to our brand The rise of the multiple channel environment (multi/omni/all) Soaring energy or raw material costs Business continuity issues with trading partners 29% 22% 21% 32% 34% 31% 36% 35% 27% 26% Q2.2: In your opinion, if the following external threats happened in the next 12 months, to what extent would your organization be affected? Base range: 333 to 387 37% of the top 250 see the rise of the multiple channel environment as likely to occur External Threats
    9. 9. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Technology, diversification, and maintaining status quo are all being explored to mitigate potential external threats and will affect their organizations to a less extent. Opportunities to prepare for the external threats “Multi-channel is more disruptive but improving our use of technology will help prepare for the challenge.” Canada, NA Q2.3: Please share your thoughts about what you consider are the best opportunities for your organization to prepare for these external threats. Base: 348– only asked to those who indicated the thread was „likely to occur‟ “Produce more goods in the USA vs. other countries.” USA, Top 251-1000 “Specialized departments with experienced individuals will mitigate our risk, such as our supply chain.” USA, Top 251-1000
    10. 10. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL “Keep on the same path we are on and 'hopefully' ride any unexpected outcomes. Situation too unpredictable to forecast.” UK, Outside Top 1000 Technology, diversification, and maintaining status quo are all being explored to mitigate potential external threats and will affect their organizations to a less extent. Opportunities to prepare for the external threats “We will seek local talent in specific markets. We have invested heavily in systems that facilitate cross-channel deployment and execution.” USA, Top 251-1000 Q2.3: Please share your thoughts about what you consider are the best opportunities for your organization to prepare for these external threats. Base: 348– only asked to those who indicated the thread was „likely to occur‟ “We should look at diversifying our labour base and outsource some of our processes to cheaper options abroad.” South Africa, Outside Top 1000
    11. 11. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Technology, diversification, and maintaining status quo are all being explored to mitigate potential external threats and will affect their organizations to a less extent. Opportunities to prepare for the external threats “We are delaying any new expenditures with more than 3 year payback and looking for acquisition opportunities.” USA, Outside Top 1000 Q2.3: Please share your thoughts about what you consider are the best opportunities for your organization to prepare for these external threats. Base: 348– only asked to those who indicated the thread was „likely to occur‟ “Stay private and re-invest in the company.” USA, NA “Leverage future alternative resource providers, self capitalization, and diversification.” USA, Top 251-1000
    12. 12. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIALCopyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Internal Challenges ‘Declining customer base – losing market share’ has been identified as having the greatest effect on organizations, however, they are less likely to occur compared to other challenges. Lagging research and development and innovation Declining customer base – Losing market share Data security threats Inability to finance growth Operational capacity Human capital strategy – Workforce management - Talent shortages 57% 21% 18% 17% 24% 25% 23% Competitive Threats 41% Cost reduction – margin control 39% Failing to keep pace with technological advancements 20% Failing to meet customer expectations across all channels (multi/omni/all) 19% Q3.1: In your opinion, how likely do you think the following internal challenges are to occur in your organization? Base range: 400 to 407 Data security threats Lagging research and development and innovation Operational capacity Human capital strategy – Workforce management - Talent shortages Declining customer base – Losing market share Cost reduction – margin control Inability to finance growth Failing to keep pace with technological advancements Competitive Threats Failing to meet customer expectations across all channels (multi/omni/all) 27% 25% 25% 29% 32% 28% 37% 32% 27% 26% Q3.2 In your opinion, if the following internal challenges occurred in the next 12 months, to what extent would your organization be Affected? Base range: 401 to 405 41% of the top 250 retailers see data security threats greatly affecting their organization 11% of the top 250 retailers see human capital strategy – workforce management - talent shortages as greatly affecting their organization Likelinesstooccur Extentofaffectonorganization
    13. 13. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Investing in employees and their development is a common theme in tackling potential internal challenges. Opportunities to prepare for the internal challenges “Increase automation and invest in other efficiency improvement areas.” USA, Outside Top 1000 Q3.3 Please share your thoughts about what you consider are the best opportunities for your organization to prepare for these challenges. Base: 278– only asked to those who indicated the thread was „likely to occur‟. “Increase minimum wage; optimize health care benefits focusing on preventative care.” USA, Top 251-1000 “Competition is probably going to happen but keeping up and exceeding expectations of our ranks of customers will keep us in the lead.” USA, Outside Top 1000
    14. 14. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Opportunities to prepare for the internal challenges To make sure we are currently investing in those employees working for us today and tapping into their passions, their talents and performance.” USA, Outside Top 1000 “We continue to engage government to be able to import specialised talent where required.” South Africa, Outside Top 1000 “Our industry is changing rapidly. Continuous improvement in sourcing and technology is on-going.” Canada, NA Investing in employees and their development is a common theme in tackling potential internal challenges. :Q3.3 Please share your thoughts about what you consider are the best opportunities for your organization to prepare for these challenges. Base: 278– only asked to those who indicated the thread was „likely to occur‟.
    15. 15. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Opportunities to prepare for the internal challenges “Our opportunity to prepare is directly related to our ability to control and reduce our cost of operation.” USA, Outside Top 1000 “In-house training and development strategy, strengthening, internal career path mapping and development.” UK, NA “Keeping pricing competitive in the open market of our products to mitigate threats.” Canada, Outside Top 1000 Investing in employees and their development is a common theme in tackling potential internal challenges. Q3.3 Please share your thoughts about what you consider are the best opportunities for your organization to prepare for these challenges. Base: 278– only asked to those who indicated the thread was „likely to occur‟
    16. 16. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIALCopyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Business priorities and capability improvements „Expansion into new regions/markets‟ came out top in terms of the Top Rank. Timescales 48% 52% 39% 41% 32% 46% 47% 41% 51% 42% 43% 39% 27% 28% 45% 35% 33% 39% 12 Months 3 Years Q4.1: Please consider the business priorities for your organization and rank the top 3 from the following list. Base: range: 58-209 Q4.2: Where are you prioritizing capability improvements for your organization (a) in the next 12 months and (b) in the next 3 years? Base range: 108 to 200 65% of Top 250 retailers are prioritizing expansion into new markets in the next 12 months Expansion into new regions / markets Expansion by opening new stores Expansion through mergers and acquisition, joint ventures or strategic alliances Investing in new product technology Up skilling your employees /Attracting and retaining talent Spending capital on creating new customer experiences Decrease our market footprint to focus on core offerings Accelerating time to market and responsiveness Build manufacturing and distribution capacity / supply chain 99 60 57 54 42 34 24 22 11
    17. 17. Evolution of the Retail Operating Model
    18. 18. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIALCopyright 2014 JDA Software Group, Inc. - CONFIDENTIAL It dilutes attention from shareholder metrics and shareholder concerns 6% Priority of supply chain management 40 20 60 80 100 % 23% top priority 51% high priority, but not the top priority 19% medium priority 6% low priority Over half of respondents believe Supply Chain Management is a high priority, but not the top priority for their organization. The main reason for this is that 30% indicated „it is in better shape than other areas of the business‟. Not a top priority because… *3% Otherr *3% Unsure *2% Preferred not to respond 30% of Top 250 see it as a top priority It‟s in better shape than other areas of our business 30% It would require too much change across our business i.e. retraining staff, upgrading our technology 19% Lack of financial resources available to invest in this area 10% Behaviour / attitude / lack of board sponsorship 13% It is too tactical 14%
    19. 19. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIALCopyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Supply chain maturity levels Three-fifths of participating retailers describe their organization as being a level one or two for supply chain maturity. Level 1. Functional Focus Retailer has discrete supply chain processes and data flows. Resources are managed at department level and performance managed at functional level. Retailer has a companywide process and data model which is continuously measured at the company, process and diagnostic levels. Level 2. Internal Integration Retailer has strategic partners throughout the global supply chain who collaborate to an action plan, enforce common process and data sharing and manage performance. Level 3. External Integration Retailer has technology-enabled solutions that support a collaborative supply chain strategy resulting in real-time planning, decision- making and execution of their supply chain that responds to customer needs. Level 4. Cross-enterprise collaboration and optimization Top 250: 15% Top 251 to 1000: 25% Outside top 1000: 24% Top 250: 33% Top 251 to 1000: 46% Outside top 1000: 29% Top 250: 7% Top 251 to 1000: 8% Outside top 1000: 19% Top 250: 33% Top 251 to 1000: 18% Outside top 1000: 15% Q7: Which of the following best describes your organization in relation to its supply chain management today? Base: 404, Note: „Unsure‟ and „Prefer not to respond‟ was 10% 17%23% 37% 13%
    20. 20. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIALCopyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Leveraging supply chain operations Half of retailers believe supply chain is a strategic capability to be a low-cost provider, is a competitive advantage in sourcing products, and is a strategic capability to drive customer service. Top 250: 38% Top 251 to 1000: 58% Outside top 1000: 44% Top 250: 38% Top 251 to 1000: 58% Outside top 1000: 45% Top 250: 63% Top 251 to 1000: 55% Outside top 1000: 41% Top 250: 42% Top 251 to 1000: 37% Outside top 1000: 32% Q8: How do you leverage supply chain operations across your organization? Base: 117 to 189 50% It is a strategic capability to be a low-cost provider Top 250: 33% Top 251 to 1000: 34% Outside top 1000: 30% 80% of Chinese retailers 50% It is a competitive advantage in sourcing required products 50% It is a strategic capability to drive customer service 34% It is a strategic and competitive differentiator for flexibility 31% It drives product quality 61% of Cross Enterprise Collaboration and Optimization retailers
    21. 21. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIALCopyright 2014 JDA Software Group, Inc. - CONFIDENTIAL The role of supply chain Only 15% of retailers strongly agree that their supply chain is sufficiently resilient to any possible external threat. Top 250: 22% Top 251 to 1000: 19% Outside top 1000: 12% Top 250: 22% Top 251 to 1000: 30% Outside top 1000: 20% Top 250: 33% Top 251 to 1000: 29% Outside top 1000: 25% Top 250: 22% Top 251 to 1000: 35% Outside top 1000: 13% Q10.1 Please consider each of the following statements and indicate your personnel level of agreement with each one Note: Results presented are those retailers who selected „strongly agree‟ Base: 407 to 409 Increasing product breadth and assortment is critical for continued revenue growth Our supply chain is sufficiently resilient to any possible external disruptions Our supply chain operation is a competitive differentiator in the market for our company Investing heavily in supply chain management solutions is a critical area of our financial investment for the next five years 15% 25% 26% 24%
    22. 22. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Areas supporting multi-channel operations 45% of respondents consider ‘Planning’ to greatly support their multiple-channel operations…and will affect their organizations to a less extent. Production 43% 30% Manufacturing 38% 29% Planning 42% 45% Sourcing 43% 39% Merchandising 41% 37% Logistics 37% 43% Store Operations 39% 32% Some extent Great extent Levelofextent 68% of Chinese retailers believe Merchandising supports supply chain to a great extent 54% of Chinese retailers believe Store Operations supports supply chain to a great extent Q9: To what extent, if at all, do each of the following areas support your multiple-channel (multi/omni/all) operations? Base range: 403-406
    23. 23. Innovations in the Retail Operating Model
    24. 24. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIALCopyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Maximizing product availability came out top in terms of the Top Rank, as well as through the composite scoring. Q12.1: Please consider the business priorities for your organization and rank the top 3 from the following list. Base range: 168-261 Improving how we use merchandising, positioning Increasing consumer choice through combined in-store and online selling Offering different prices to different customer segments Effectively leverage promotions to maximize margins Ability to customize and personalize the shopping experience 114 103 86 43 29 28 Most important actions to gain a competitive advantage
    25. 25. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Capability of organizations to currently deliver „Maximizing product availability, range and assortment across all channels‟ scores well with 29% of respondents ‘strongly agreeing’ that they have the capabilities to deliver this. Q9: To what extent, if at all, do each of the following areas support your multiple-channel (multi/omni/all) operations? Base range: 403-406 4 6 5 13 7 7 1 1 1 1 20 19 21 17 20 18 43 42 39 49 45 45 24 26 21 24 23 28 Ability to customize and personalize the shopping experience Effectively leverage promotions to maximise margins Offer different prices to different consumer segments Increasing consumer choice through combined in-store and online selling Improving how we use merchandising, etc. to offer the ultimate in store experience Maximising product availability, range and assortment across all channels Disagree Strongly Disagree Neither agree nor disagree Agree Strongly agree 1 Unsure Prefer not to respond 2 3 2 2 2 2 3 2 2 3 2 2
    26. 26. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIALCopyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Retailing in 2020 Respondents believe ‘The use of ‘Big Data’ is extremely likely to occur by 2020 and that this will have a great impact on their organization. The pressure for cash flow, combined with the need for speed, will cause many retailers to consider on-shoring versus off-shoring to fulfil customer expectations) Shoppers will aggregate buying power into buying groups, and retailers will respond with teams dedicated to managing them and be able to employ short-term promotions for purchase advantage or resale Benchmarks of global formats will spread more rapidly, and retailers will adapt global best practices swiftly to meet the needs of their markets Technology-enabled transparency will provide shoppers with understanding of everything from product origin to brand legitimacy Technology-enabled, customer-centric transparency will allow seamless checkout Retailers will enter into pricing dialogues with customers in the future Shoppers will experience retailers as a single brand consistently across all points of contact 57% 40% 39% 37% 45% 48% 49% 44% The use of „Big Data‟ mining will mean that retailers will be better prepared to have pricing dialogues with their best shoppers 52% The pressure for cash flow, combined with the need for speed, will cause many retailers to consider on-shoring versus off-shoring to fulfil customer expectations) Shoppers will aggregate buying power into buying groups, and retailers will respond with teams dedicated to managing them and be able to employ short-term promotions for Purchase advantage or resale Benchmarks of global formats will spread more rapidly, and retailers will adapt global best practices swiftly to meet the needs of their markets Technology-enabled transparency will provide shoppers with understanding of everything from product origin to brand legitimacy Technology-enabled, customer-centric transparency will allow seamless checkout Retailers will enter into pricing dialogues with customers in the future Shoppers will experience retailers as a single brand consistently across all points of contact 57% 30% 26% 25% 26% 29% 31% 26% The use of „Big Data‟ mining will mean that retailers will be better prepared to have pricing dialogues with their best shoppers 32% Q14.2: In your opinion, if the following occurred by 2020, to what extent would your organization be affected? Base range: 325-339 Q14.1: Please consider each of the following statements about the potential future state of retailing, indicating your view on how likely each are to occur by 2020. Base range: 401 to 406 Likelinesstooccur Extentofaffectonorganization
    27. 27. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Opportunities to prepare for the future state of retailing “Get smart on Big Data and what it can do to give customers the appearance of customization without actually doing it.” USA, Top 250 Q14.3: Please share your thoughts about what you consider are the best opportunities for your organization to prepare for these future opportunities. Base: 322– only asked to those who indicated the thread was „likely to occur‟ “Tracking customer purchases through data mining.” USA, Outside Top 1000 “Better educate employees, understanding policies.” USA, Outside Top 1000 Using shopper/customer data and investing in technology are key ways to prepare organizations for the future.
    28. 28. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Opportunities to prepare for the future state of retailing “These changes are inevitable in Retail and those who embrace the changes forthcoming, as our company is, are positioned to thrive.” USA, Outside Top 1000 “Having a powerful brand. Ensuring our brand message is consistent across omni- channels.” USA, Top 251-1000 “We have to expose ourselves to overseas competitors.” USA, Top 250 Using shopper/customer data and investing in technology are key ways to prepare organizations for the future. Q14.3: Please share your thoughts about what you consider are the best opportunities for your organization to prepare for these future opportunities. Base: 322– only asked to those who indicated the thread was „likely to occur‟
    29. 29. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Using shopper/customer data and investing in technology are key ways to prepare organizations for the future. Opportunities to prepare for the future state of retailing “Technology and Big Data analytics will play a huge part of our business strategy.” USA, Top 251-1000 “We must be willing to invest in the cutting-edge technology that will allow us to deliver the best possible shopping experience.” USA, Top 251-1000 “Continued quest for new and appropriate interactions with clients.” USA, Outside Top 1000 Q14.3: Please share your thoughts about what you consider are the best opportunities for your organization to prepare for these future opportunities. Base: 322– only asked to those who indicated the thread was „likely to occur‟
    30. 30. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL CEOs anticipate by 2020 the shoppers and the shopping experience will be... Shopper expectations in 2020 “The shopping experience will be totally transparent.” USA, Outside Top 1000 “Demand for higher quality at a lower price point, available from whichever platform they choose to make use of.” Australia, Outside Top 1000 “Speed to market will dominate.” Australia, NA Q15.1: How do you expect that shopper expectations will change for your business by 2020? Q15.2: What role will retail operations play in supporting that? Base: 352 - 357
    31. 31. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Technology, diversification, and maintaining status quo are all being explored to mitigate potential external threats and will affect their organizations to a less extent. Shopper expectations in 2020 “Synchronize sales between online and offline. Innovative payment methods and one-stop shopping” China, Top 251-1000 “Retail sales staff will become highly educated in not only the product, but also best practices in counselling their customers.” USA, Outside Top 1000 “Be able to adjust quickly.” USA, Outside Top 1000 Q15.1: How do you expect that shopper expectations will change for your business by 2020? Q15.2: What role will retail operations play in supporting that? Base: 352 - 357
    32. 32. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Technology, diversification, and maintaining status quo are all being explored to mitigate potential external threats and will affect their organizations to a less extent. Shopper expectations in 2020 “The shopper will expect more service.” USA, Top 251-1000 “Quick online shopping, brick-and-mortar pickup, in-store mobile check out.” USA, NA “Consumers will have the ultimate power.” USA, Top 251-1000 Q15.1: How do you expect that shopper expectations will change for your business by 2020? Q15.2: What role will retail operations play in supporting that? Base: 352 - 357
    33. 33. Thank you
    34. 34. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Profiling the retailers Views were provided by more than 400 CEOs of large retail organizations across 8 countries. Australia Canada China Germany Russia South Africa UK US TOTAL Total Responses 21 23 56 47 28 11 68 155 409 Retail Sub-sector: Apparel 0 0 0 3 1 1 4 11 20 Category Specialist 4 7 4 8 4 3 27 29 86 Clubs 1 1 1 1 1 0 1 6 12 Convenience 2 1 0 0 1 2 3 7 16 Department 1 0 32 1 1 0 3 9 47 Discounter 1 0 0 2 1 0 0 6 10 Drug 0 1 0 1 0 0 1 1 4 Mass 2 1 2 14 5 0 3 14 41 Non-Store Retail 3 8 2 6 10 0 10 14 53 Supercenter 0 1 10 2 3 0 2 11 29 Supermarket 1 1 5 1 0 4 3 10 25 Other 5 2 0 6 0 1 0 22 36 Q18: Please select which of the following best describes your business. Base: 409 Note: ‘Unsure’, ‘Prefer not to respond’ and ‘Not answered’ – 30.
    35. 35. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL 0 10 20 30 40 50 Sub-sector breakdown Category Specialists represent more than one fifth of all responding retailers. % Sub-sector Q18: Please select which of the following best describes your business. Base: 409 2% Wholesalers 1% Car dealerships 1% Cosmetics 1% Hardware 1% Footwear 21 13 11 10 7 6 5 4 3 3 1 2 7 7
    36. 36. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Revenue profile (USD) Nearly one fifth of responding retailers had revenues exceeding $1 billion. Q20: Which of the following best describes the annual worldwide revenue of your entire organization in US Dollars? Base: 409 Australia Canada China Germany Russia South Africa UK US TOTAL Total Responses 21 23 56 47 28 11 68 155 409 Annual Revenue: More than $5B 0 2 1 2 3 0 3 16 27 > $1B to $5B 0 0 6 6 0 0 10 27 49 > $500M to $1B 5 2 6 1 2 0 2 15 33 > $250M to $500M 0 2 37 18 17 2 6 24 106 > $100M to $250M 4 8 3 7 3 2 13 26 66 Less than $100M 8 8 3 9 3 5 19 37 92 Note: „Prefer not to respond‟ and „Not answered‟ – 36 Top 250 7% 251-1000 46% Outside Top 1000 38% Retailer tiers… $50 million- $100 million 6% $15 million - $50 million 6% $5 million – $15 million 10% Less than $5 million 0% Note: „Prefer not to respond‟ and „Not answered‟ – 9% 22 16 26 8 12 7 More than $5 billion $1 billion -$5 billion $500 million-$1 billion $250 million- $500 million $100 million- $250 million Under $100 million
    37. 37. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Retailer‟s years in business Q17: How long has your organization been in business? Base: 405 Nearly one-quarter of the participating retailers have been in business for over 30 years. This is most prevalent with the Top 250 where two-thirds have been in business for over 30 years. Under 10 Years 23% 11 to 20 Years 35% 21-30 Years 19% 30+ Years 23% Of the Top 251- 1000 retailers 49% have been in business for 11-20 years. Of the Top 250 retailers 67% have been in business for more than 30 years.
    38. 38. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Confidence in revenue growth Q1: How confident are you about your organization‟s prospects for revenue growth…during the next 12 months? …during the next 3 years? Base range: *Canada – 23, USA – 149 to 151, UK – 66 to 68, Germany, 45 to 46, *South Africa – 10 to 11, *Russia – 28, China – 55 to 56, *Australia – 21 Retailers in Germany are the most confident of revenue growth over the next 12 months while retailers in South Africa and USA are the most confident over the next 3 years in terms of those who are ‘very confident’. of the Top 250 retailers are very confident of revenue growth over 3 years. 13%* 17%* Canada 30% 47% United Kingdom 27%* 60%* South Africa 43% 50% Russia 38% 57% Australia 12 Months 3 Years 69% 44%* 60% USA 54%* 58%* Germany 38%* 55% China
    39. 39. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Reporting structures Q11.1: Within your corporate structure, who do your organization‟s supply chain executives report to? Note: Question is please select all that apply Base: 408 Three-quarters of retailers indicated that the Supply Chain Executive reports directly to the CEO. COO Other CFO CIO 21% CEO 74% 3% CIO 13% 3% Supply Chain Executive of the Top 250 retailers are very confident of revenue growth over 3 years. 69% of German retailers report directly to the CEO 96% of the Top 250 retailers report directly to the CEO 39%
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