Dario Ambrosini - Supply Chain & Inventory Gamification: The Travel Case Study

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Multi-source inventory management has become an increasingly popular way for companies to reduce costs. Switchfly, a B2B2C SaaS platform in the travel and loyalty industry, saves tens of millions of dollars for its clients each year by using gamification in its inventory management system. The company will share its strategy for maximizing savings from 90 inventory suppliers that are responsible for over $1 billion in annual travel bookings.

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Dario Ambrosini - Supply Chain & Inventory Gamification: The Travel Case Study

  1. 1. Copyright © 2013. All rights reserved.Supply Chain &Inventory Gamification:The Travel Case StudyDario Ambrosinidambrosini@switchfly.com
  2. 2. 2Our Technology in Action
  3. 3. 3The B2B2C Supply ChainMulti-sourceaccess to 100+supplier APIsConfigurablebusiness rulesfor individualizedimplementations100% clientbrandedweb sites$1 billion inannual grosstravel bookings
  4. 4. 4Problem with Transaction-BasedB2B2C Model
  5. 5. 5Multisource Value Prop is Clear20 destinations – 3 sets of dates – 3 night hotel stay$350$400$450$500$550OTA 1 W 1 W 2 W3 OTA 2 RW 116% AverageSavingsCumulativeAverage Price
  6. 6. 6Gamification provides a simple wayto overcome resistanceBut Hesitation Across the SupplyChain Comes in Many FormsLack ofexperienceDesire to seeproof pointsOver-analyzingdataFear of change Inability torelinquish controlStuck inold ways
  7. 7. 7Suppliers –Network Volume Share98%2%Before Share Disclosed90%10%After Share DisclosedSupplier: 450% increase in volumeNetwork: 5% increase in revenue
  8. 8. 8• Keep it simple• Use anonymous data• Aggregate network data works bestKey Takeaways
  9. 9. 9B2B Clients –Network Conversion Rates1 2 3 4 5 6 7 8 9 10 11 12RelativeConversionRateNetworkAverage = 100Client = 100%increase over6 monthsNetworkaverage sharedwith Client
  10. 10. 10• Relative performance is better than simple rank• Benchmarks influence behavior even whentargets exceed them• Indexed benchmarks constantly raise theperformance barKey Takeaways
  11. 11. 11End Users –Sense of Urgency
  12. 12. 12End Users –Exclusive Opportunity35% of all hotelsdisplayed have apackage savingsamount…which result in95% of totalbookingsEven limited savings increases conversion rates
  13. 13. 13• Don’t forget consumer marketing bestpractices – many rely on gamification• A/B test gamification techniques just likeany other marketing toolKey Takeaways
  14. 14. Copyright © 2013. All rights reserved.Thank You

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