What Omnichannel Really Means - Forrester Webinar

1. Going Beyond the Buzz: What Omnichannel Really Means Sucharita Mulpuru-Kodali, VP & Principal Analyst, Forrester Scott Todaro, CMO & EVP, Freestyle Solutions May, 19 2016

2. • The presentation is approximately 35 minutes in duration • Please use the Go-To-Webinar chat window to ask questions • Questions will be answered at the end Webinar Logistics

3. Agenda • About the speakers & Freestyle Solutions Overview • Setting realistic goals and expectations • Building out manageable, phased plan • Deploying best practices while managing to a budget • Leveraging an OMS to pull the strategy together • Q & A

4. About the Speakers Sucharita Mulpuru-Kodali, Vice President, Forrester • 11 years at Forrester covering eCommerce forecasting and trends, merchandising best practices • Saks, Toys R Us, Disney • RIS New Most Influential Person in Retail - 2016 Scott Todaro, CMO & EVP, Freestyle Solutions • 16 years in eCommerce and retail • Leadership positions ecommerce leaders: ATG, Demandware, AisleBuyer, DMI • Guest lecturer at industry events

5. About Freestyle Freestyle Solutions Company Overview • Formerly Dydacomp, a company started by retailers for retailers • 30 years experience building order and inventory management • Invented Order Management as a software category in 1985 • Over 2,000 live customers in retail and consumer brands • Largest OMS feature set offered for mid-market (over 1,100 features) Freestyle Solutions Top 20 Most Promising Tech Solution Providers for Apparel & Textile Industry 2015 Innovation & Excellence Award Most Innovative Management Solutions Company USA

6. Partial List of Over 2,000 Freestyle Solutions Customers

7. Only OMS Provider Multiple Delivery Models On-Premise Freestyle Omnichannel Management Service (O.M.S.) is a cloud-based order and inventory management system developed specifically for mid-market B2C companies Freestyle Multichannel Order Manager (M.O.M.) is the most comprehensive on- premise order management system designed for mid-market B2B and B2C companies SaaS

8. Beyond the Buzz: What Omnichannel Really Means Sucharita Mulpuru, VP & Principal Analyst May 19, 2016

9. © 2016 Forrester Research, Inc. Reproduction Prohibited 10 Retail is Increasingly Competitive 5.96% 4.97% 1.62% 1.97% 11.49% 6.08% 7.09% 3.18% 27.08% 22.13% 19.46% 21.59% 1.91% -2.56% -5.21% -2.68%0.88% -3.10% -13.70% -4.88% -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% Year-over-year total revenue growth Walmart Costco Amazon Staples Best Buy 2011-2012 2012-2013 2013-2014 2014-2015

10. © 2016 Forrester Research, Inc. Reproduction Prohibited 11 Omnichannel is a Growing Retail Priority 2013 2014 2015 Mobile #2 #1 #1 Omnichannel #5 #4 #2 Marketing #7 #3 #3 Site merchandising #1 #2 #4 International expansion #4 #7 #5 Site replatform #9 #5 #6 Rank of priorities for online merchants Source: State of Retailing Online 2015 (Forrester/Shop.org)

12. © 2016 Forrester Research, Inc. Reproduction Prohibited 13 Omnichannel Fulfillment Common Problems What’s next Endless aisle • Not exposing much of store inventory (i.e. too many “onesies”) • Inability to find the inventory easily (especially in big box or apparel stores) RFID In-store pickup • Low traction because a small percent of inventory is available for this option • High cancel rates Ship to store or other address option Ship from store • Splitting orders • Inventory too varied by store to generate efficiency Better store associate training and monitoring Cross-channel returns • Long-tail items can’t be easily reintegrated without markdowns Improved ship from store; selective marketplace offerings; RTV and RMAs Same day delivery • Very limited inventory • Dependent on VC funded startups More retail showrooms with IKEA-like models where relevant; owned retailer distribution; new technology Omnichannel Today

22. Thank you forrester.com Sucharita Mulpuru smulpuru@forrester.com @smulpuru

23. Leveraging OMS to pull it all together

24. • Merchandising systems • WMS • POS • CRM • eCommerce platform • ERP • Order Management • AS400 Where Does Retail Information Reside? Retail has been around a long time, and there are many systems in place that were purchased at different times for a multitude of reasons

25. • Hire a systems integrator to stich everything together • Start a 7 year plan to slowly change over all your systems • Set up manual processes to overcome technical shortfalls Options to date: It’s Just Too Expensive to Buy All New Systems Changing all your systems at once is not an option

26. OMS is System of record for orders and inventory, but not transactions OMS Today Website Mobile Call Center OMS WMS

27. The OMS can be the system of record for most major retail data types In the Future the OMS Will Be The Information Repository Omnichannel Management Orders Inventory Product Customers

28. The Future System All customer and employee facing systems pull from a central repository of retail data

29. Thank You! Scott Todaro CMO & EVP Freestyle Solutions (M) 617-823-2962 Scott.Todaro@Freestylesolutions.com Freestylesolutions.com

30. Question & Answers