Innovative Logistics Strategies for Omnichannel Fulfillment

© 2016 Openbravo Inc. All Rights Reserved. 1
Innovative Logistics Strategies for Omnichannel
Fulfillment
September 15th, 2016

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Today’s Presenter
Geoff Nairn
Enterprise Solutions Specialist
@ Openbravo

 Introduction
 New supply chain
challenges for retailers
 How Openbravo can help
 Takeaways
 QnAs
Agenda

 SKU proliferation
 Lengthening supply chains
 Handling returns
 Inventory accuracy
 Carrier costs
 End-to-end visibility
 Multiple channels
 New fulfillment options
Supply Chain Challenges for Retailers

Omnichannel Brings More Challenges
Managing inventory
across multiple
locations and
channels is difficult.
More warehousing
staff and smarter
technology needed
to pick online orders.
Bigger warehouses
needed to offer the
“endless aisle” DCs
need to be closer to
customer.
Returns become
more of a problem
as more consumers
buy online.

• Amazon Prime’s same-day delivery is
available in 30 US cities nationwide,
more than double the locations
available two years ago.
• One in four shoppers say they would
consider abandoning online
shopping if same-day delivery is not
an option.
Source: Business Insideer
The Need for Speed in Fulfillment

How Home Depot Solved the Last-mile Problem
 42% of Home Depot’s
online orders handled by
stores
 90% of its online returns
handled by its stores

Ecommerce Boom Continues
R
% change
% of total retail sales
Retail E-commerce Sales Worldwide
Source: emarketeer
Trillions dollars

Amazon Revolutionizes Fulfillment

53%
25%
12%
62%
17%
9%
46%
21%
10%
55%
17%
8%
in store PC mobile device
Preferred Purchase Method
Apparel & footwear
Furniture & homeware
Sports equipment
DIY
The Continuing Importance of the Physical Store
Source: PwC

Need for Better Returns Management
4% to 6% of all retail
purchases are
returned.. But
online its much
higher
0% 10% 20% 30%
Fashion
Sports
Health
Furniture
Homeware
Electrical
Online Returns
Source: KPMG

Get Closer to Customer for Faster Fulfillment
Source: McKinsey Number of distribution centers needed
Percentageofordersfulfiilledontime

Home Depot has remodeled its supply chain,
building the foundation for a new type of
fulfillment center intended to blend online and in-
store shopping
Blending Fulfillment for Omnichannel Customers

• You need scale
• Integrate online and retail operations
• Consider store-based fulfillment
• Share inventory across channels
• You need business rules to handle
supply chain complexity
How to Revolutionize your Supply Chain

Do Online-only Offers Make Sense?

Ship-from-Store Benefits
Source:Teradata
For the Customer
 Expanded product assortment
 Fewer out of stock / back order scenarios
 Fast delivery (expectation of 80% within 1
day; 96% within 2 days)
 Products “always available” when
desired
For the Retailer
 10-40% incremental e-commerce
revenue
 Increase inventory sell through
 Decrease markdowns
 Optimize store assets and labor
10-20%
Revenue
uplift

Buy-Online-Pickup-in-Store Benefits
Source:Teradata
For the Customer
 Convenience of online shopping
 Same day pickup
 No shipping costs
For the Retailer
 37% purchase additional products while
picking up in-store
 Leverage store assets
 Increase foot traffic and upsell opportunity
 Demonstrate unique and differentiated
guest experience
37%
Purchase
additional
products

63%
25%
Percentage of retailers with access to
inventory across all channels
Winners
Laggards
Source: RSR Research
 Enterprise-wide inventory visibility separates the leaders
from the laggards in successful omnichannel execution
Inventory Visibility is Key to Omnichannel Success

Real-time Inventory Visibility with Openbravo
■ Centralized real-time tracking of goods
movements, inventory status and quantities
across all channels and locations - physical
stores, headquarters or distribution centers.
■ Set up different warehouse rules and easy
management of goods transfers, picking and
packing activities and reservations.

Leverage New Technologies with Openbravo
■ Mobile warehouse functionality for inventory
count, goods movements and picking lists for a
more convenient and accurate capture of data.
■ Ability to integrate RFID in sales and inventory
processes for faster data capture and accuracy.

Key Takeaways
 Today’s customers demand higher speed,
convenience and personalization.
 To compete better, retailers need to offer new
fulfillment capabilities such as Buy Online, Pick up
in-Store or In-store Fulfillment.
 Supply chains need to be redesigned to offer
greater flexibility and agility.
 Distribution centers need to be integrated to
handle online and store orders.
 You need a technological solution that provides
real-time inventory visibility across all channels.

Any Questions?
You can submit additional questions or
comments after the webinar on Twitter.
Hashtag: #obravowebinar
#obravowebinar

Web: www.openbravo.com/contact
Email: info@openbravo.com
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France Office: +33 (0)1 70 08 73 62
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Thank you very much
for your attention

Innovative Logistics Strategies for Omnichannel Fulfillment

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