The document discusses omnichannel fulfillment and the role of distributed order management (DOM) systems. It notes that retailers are trying to reduce fulfillment costs while meeting customer experience goals. DOM systems provide visibility across supply chain networks and optimize order routing and fulfillment. They integrate planning and execution functions. The document also discusses how DOM can enhance decision-making and customer experiences. It provides an example of how DOM can balance inventory across channels.

1. Omnichannel Fulfillment Excellence
- By Design

2. Sponsor logo

3. Today’s Presenters
• Dinesh Dongre
VP Product Strategy, Softeon
• Dan Gilmore
Founder/Editor, Supply Chain Digest

4. 2018 Retail Business Environment
• ”Good Enough” Is Simply No Longer Good Enough
• Brick And Mortar Retail Isn’t Going Away – but Some
Brick And Mortar Retailers Are
• Technology Really Matters
– IT Can Either Support a Given Omnichannel Process
or It Can’t
– Flexible or Inflexible Systems
• The Goal: a Retail IT Platform that Meets Most Pressing
Needs but Provides Agility/Extension Over Time
• Strategic IT Design is Critical

5. But There are Issues
• Many New Functionalities Required
• Can Existing Applications Best be Leveraged?
• How Can Brick and Mortar Assets Be Fully
Enabled?
• Does a Single Integrated Platform Really
Exist?
• What are the Solution and Integration Costs?

6. Dispelling the Myths
• Most so-called Supply Chain Platforms Really
have a Common Architecture and are Fully
Integrated
• Integration to Internal and External System is
Very Hard
• DOM is just about Order Sourcing
• WMS is Fully Mature
• To get There Costs Many $Millions

7. Desired Platform Attributes
• The Right Capabilities to Meet Current
and Future Functionality Requirements
• Easily Leverage Existing IT
Assets/Applications
• Minimize IT Deployment and Maintenance
Costs
• Allow for Easy and Strategic Extension over
Time

8. Softeon SOA Fully Cloud Enabled Platform
Integration
Integration
DOM
Internal Systems Partner Systems
ERP/OMS
Demand
Planning
WMS
TMS
DRP
Demand
Planning
ERP/OMS
Demand
Planning
WMS
TMS
DRP
Procurement
WMS TMSLMS
Demand
Planning
DRP/
Inventory
VMI
OMS Procurement
Demand
Planning
Flexible Platform Connects and Supports Agility

9. Softeon SOA Fully Cloud Enabled Platform
Integration
Integration
DOM
Internal Systems Partner Systems
ERP/OMS
Demand
Planning
WMS
TMS
DRP
Demand
Planning
ERP/OMS
Demand
Planning
WMS
TMS
DRP
Procurement
WMS TMSLMS
Demand
Planning
DRP/
Inventory
VMI
OMS Procurement
Demand
Planning
Flexible Platform Connects and Supports Agility

10. Softeon SOA Fully Cloud Enabled Platform
Integration
Integration
DOM
Internal Systems Partner Systems
ERP/OMS
Demand
Planning
WMS
TMS
DRP
Demand
Planning
ERP/OMS
Demand
Planning
WMS
TMS
DRP
Procurement
WMS TMSLMS
Demand
Planning
DRP/
Inventory
VMI
OMS Procurement
Demand
Planning
Flexible Platform Connects and Supports Agility

11. • Reduce Total Delivered and Fulfillment Costs
While Meeting Customer Experience
Goals/Commitments
– DOM
– WMS
What are Omnichannel Retailers Really Trying to Achieve

12. Short Definition: Distributed Order Manager delivers integrated Planning
and Execution across multi-echelon, multi-partner and multi-channel
supply chain networks.
Distributed Order Management –
the Heart of Order Fulfillment

13. Full Definition: A Distributed Order Management system
serves as a powerful hub that enables Omnichannel
commerce, integrates the extended supply chain,
optimizes inbound and outbound order routing, provides
real-time network inventory visibility, allocation
and management, automates complex channel and
customer requirements and maximizes profitability while
meeting customer service commitments.
Distributed Order Management –
the Heart of Order Fulfillment

14. DOM Components
DOM Controller Layer
Components
Order Allocation
Order Sourcing
Self Service, KPI’s
Event Management
Inventory Allocation
Subscription/Auto-Ship
Management
Back Order Management
Order Pool Optimization
Workflow Services
Business Rule Configurator and Processor
Inventory Processor
Integration and
Orchestration
Integration &
Orchestration

15. Rules Engine Key to Optimal Sourcing Logic

16. • Sourcing
1. Postal Code (3-digit)
2. 100% inventory availability at the selected node
3. Check the next best location for 100% inventory
availability
4. Inventory (100%) not available - Split the Order
5. Ship Once as BO is managed in Ecometry
6. Freight Cost based sourcing
7. DC Capacity Rules
• Carrier Assignment
• If no Ship Method defined, best Ship method will be
assigned
• Exception Handling
1. Ship Method (Pickup from Store) only processed from
DC A if Store doesn’t have the inventory
2. All Ship Methods are not processed at a given DC
3. Gift Orders can’t be split
4. Kit Orders can’t be split
DOM Sourcing Rules - Sample
ERP
Region DC Region 2
DOM
Store Store Store Store

17. Advances in WMS Technology
• Order Profiles – Driven by eCommerce and More – Continue to
Evolve to Higher Levels of “Piece Picking”
• To Address Rising Distribution Costs from this Shift, Companies
have Invested or Considered a Range of Technologies:
• Voice Picking, Pick Carts, Put Walls, Pick-to-Light, etc.
• The Problems:
• Proprietary, Expensive Hardware
• Costly 3RD Party Software that Must Integrate with WMS
• Lack of Optimization Opportunities and Inflexibility

18. Current Scenario
WMS
Pick Carts
with Light
Pick Cart
Control System
Order Release
Logic
Put Wall
Voice Terminals
Voice Server
Order Release
Logic
Confirmations
OrderBatches
2 2 2
2 2 2
2 2 2
2 2 2
Lights API
Proprietary Voice
Software on Phone
Put Wall
Control System
Order Release
Logic
2
1
Lights API
Voice
Server
Expensive +
Interfaces +
No Real-Time Optimization

19. • Direct, Real-Time Management of Hardware and Voice
Systems from the Softeon WMS
• Seamless, End-to-End
• Use of Commodity Hardware, Standard Smart Phones
for Voice, Tablets for Visual Picking
• Real-Time, Advanced Order Release to Maximize
Productivity and Service Flexibility
Softeon’s Better WMS Solution

20. Softeon
WMs
▪ Advanced
Order Release
Pick Carts
with Light
Put Wall
2 2 2
2 2 2
2 2 2
2 2 2
Lights API
Voice Software
Already on Phone
2
1
Lights API
Voice Server
Real-Time
Integration
Tablet Smart Phone
Graphical
View for Tablets
Voice Software
Already on Phone
Real-Time
Integration
Graphical
View for Tablets
Low Cost Commodity
Hardware +
No Interfaces +
Advanced Real-Time
Optimization
Softeon’s Better WMS Solution (Con’t.)

21. Softeon’s Better WMS Solution (Con’t.)

22. Substantial Benefits
• Use of Commodity Hardware for Carts, Walls and Lights Reduces Costs by as
Much as 70%
• Put in your pocket, or add more carts/walls/light systems
• Use of Smart Phones with No Additional Software Required Saves Thousands
of Dollars Per Unit
• Advanced Order Planning and Dynamic Release Drives Double Digit
Productivity Gains
• Elimination of Interfaces to 3rd Party Software Simplifies Implementation and
On-Going Maintenance, Reduces Costs
• Integrated Picking and Packing System Provides Operational Flexibility
• Customer Can Leverage what They Have, Add-On with Complete Modularity

23. Other Drivers of Lower Fulfillment Costs
• DC Labor Management
• In-Store Fulfillment Solution
• Vendor Portal
• More

24. What are Omnichannel Retailers Really Trying to Achieve
• Reduce Total Delivered and Fulfillment Costs
While Meeting Customer Experience
Goals/Commitments
• Meet and Exceed Expectations for the
Customer Experience

25. Enabling POIs, POFs and PORs with DOM

26. Intelligent Order Orchestration
Orders
from
Multiple
Channels
Manage
Order
Repository
Manage
Inventory
Manage
Demand
Manage
Order
Release
• Global Network Visibility
• Real-time inventory for nodes
• Available and potential (in-transit)
• Provide visibility to actionable
events
• Processing Lead time
• Transportations lead
times
• Priority, Capacity and
Promised delivery date
• Process Orders to
fulfilment locations
Source from multiple supply chain
network nodes
• DCs, Cross Dock, Stores or
Vendor-Sourced
• Channel Network Commitments
• Fulfilment Cost Optimization
DOM
Visibility &
Intelligence
• Order Segmentation
• Global order pool visibility
• Order prioritization
• Captures and Aggregate Orders from
multiple Channels
• Validation rules by Channel, Customer, Type,
etc.,

27. Enabling Other Aspects of the Customer Experience
• Substitutions
• Subscription Programs
• Vendor Drop Ship
• Customer Service
• Back-Order Management
• Event-Based Customer Communications
• and More…

28. • Reduce Total Delivered and Fulfillment Costs
While Meeting Customer Experience
Goals/Commitments
• Meet and Exceed Expectations for the
Customer Experience
• Enhance/Automate Decision-Making
– Move from Reactive to Proactive
What are Omnichannel Retailers Really Trying to Achieve

29. Omnichannel Inventory Balancing Using DOM

30. Integrated Forecasting, Inventory Planning and Procurement

31. Planning for New Product Introductions

32. Planning for Catalog Products
In addition to the baseline forecast, Softeon P2F can incorporate incremental demand for short-term events.
- (1) The client and planner can create promotional / event forecasts that drive an increase in the baseline
demand over a defined period.
- (2) P2F aggregates the baseline and event sales for calculating suggested orders
Key
Catalog

33. Summing It Up
• In a Most Dynamic and Challenging Environment, Retailers Must Have
a Technology Platform that Maximizes Capabilities and Flexibility
while Minimizing Costs
- Connect/Enable
- Manage
- Extend
• DOM Systems are at the Heart if Optimized Fulfillment, but Can Do
Much More Beyond Lowest Cost Order Sourcing
• While Some WMS Vendors have Stayed Largely Pat with their
Solutions, Exciting Innovations by Some are Happening
• Integrated Planning-Execution is the New Paradigm

34. Questions?
dgilmore@scdigest.comddongre@softeon.com
Learn More at Softeon Booth 4058