Branded manufacturers can take advantage of the unprecedented omnichannel opportunity to get closer to the consumer, if they manage to acquire the requisite fulfilment and supply chain capabilities. European Business Review
Is Your Supply Chain Ready for Omnichannel Revolution Michael Hu
Online retail sales are expected to grow exponentially between now and 2025. Winning in this arena will require a supply chain that increases product availability with flexible delivery options at a lower cost.
Although CPG companies have not historically operated at the forefront of digital change, the intense and competing demands they face today require exactly the type of game-changing approaches that digital can deliver.
In today’s omnichannel world, the distinction between brands and retailers is of little interest to consumers. They will buy from whoever is best able to “deliver the goods.” Branded manufacturers can take advantage of this unprecedented opportunity to get closer to the consumer, if they manage to acquire the requisite fulfillment and supply chain capabilities.
Global Trends Shaping Future Omnichannel Supply ChainMichael Hu
Omnichannel retail sales have consistently doubled every 4-5 years since 2001 and is expected to become a $1.8 trillion dollar market by 2016 and then quickly grow to $7 trillion by 2025. Part of the growth is driven by consumers take their shopping online and mobile. However this is just one side of the equation. The other enabler is the continued increase in supply chain innovation as retailers seek to make more products available with faster and more flexible delivery options at lower cost. Going forward, we see six global trends that will shape future winning omnichannel supply chains
2016 the tipping point for retail e commerce in mexicoJaume Sués Caula
With more Mexican consumers using the Internet
and smartphone costs dropping, the time has come
to bring the online shopping experience up to
international standards. Retailers that succeed
could see enormous sales.
In this presentation, we summarize the key highlights of our paper, which (1) Debunk the myth that Mexico’s E-Commerce growth is limited due to poor logistics/internet infrastructure and low credit card penetration, and (2) Identify the real challenges for E-Commerce in Mexico and present some of the opportunities for retailers in Mexico.
Winning Supply Chain in Omnichannel - Trends and ImplicationsMichael Hu
I gave a talk at Professor Chopra's class at Kellogg on emerging trends in omnichannel retailing and the need for new supply chain and fulfillment models.
Enabling the Omni-channel Customer ExperienceDemandware
This document discusses enabling an omni-channel customer experience where customers can buy, pay for, and receive products and customer service from any sales channel. It addresses key aspects of an omni-channel strategy including enabling customers to buy from any channel, accommodating various payment methods, optimizing order fulfillment across channels, and providing customer service throughout the customer lifecycle. The document also examines how an omni-channel approach requires changes to how different organizational roles function and ensuring systems can support this new way of doing business.
The document is a report that ranks the top 100 retailers based on their omnichannel capabilities. It analyzes retailers based on 7 criteria related to online and in-store integration. DSW ranks first by scoring the highest across all criteria, including buy online pick up in store, shared carts, and consistent pricing. The report aims to help retailers benchmark themselves and identify opportunities to improve their omnichannel offerings.
Is Your Supply Chain Ready for Omnichannel Revolution Michael Hu
Online retail sales are expected to grow exponentially between now and 2025. Winning in this arena will require a supply chain that increases product availability with flexible delivery options at a lower cost.
Although CPG companies have not historically operated at the forefront of digital change, the intense and competing demands they face today require exactly the type of game-changing approaches that digital can deliver.
In today’s omnichannel world, the distinction between brands and retailers is of little interest to consumers. They will buy from whoever is best able to “deliver the goods.” Branded manufacturers can take advantage of this unprecedented opportunity to get closer to the consumer, if they manage to acquire the requisite fulfillment and supply chain capabilities.
Global Trends Shaping Future Omnichannel Supply ChainMichael Hu
Omnichannel retail sales have consistently doubled every 4-5 years since 2001 and is expected to become a $1.8 trillion dollar market by 2016 and then quickly grow to $7 trillion by 2025. Part of the growth is driven by consumers take their shopping online and mobile. However this is just one side of the equation. The other enabler is the continued increase in supply chain innovation as retailers seek to make more products available with faster and more flexible delivery options at lower cost. Going forward, we see six global trends that will shape future winning omnichannel supply chains
2016 the tipping point for retail e commerce in mexicoJaume Sués Caula
With more Mexican consumers using the Internet
and smartphone costs dropping, the time has come
to bring the online shopping experience up to
international standards. Retailers that succeed
could see enormous sales.
In this presentation, we summarize the key highlights of our paper, which (1) Debunk the myth that Mexico’s E-Commerce growth is limited due to poor logistics/internet infrastructure and low credit card penetration, and (2) Identify the real challenges for E-Commerce in Mexico and present some of the opportunities for retailers in Mexico.
Winning Supply Chain in Omnichannel - Trends and ImplicationsMichael Hu
I gave a talk at Professor Chopra's class at Kellogg on emerging trends in omnichannel retailing and the need for new supply chain and fulfillment models.
Enabling the Omni-channel Customer ExperienceDemandware
This document discusses enabling an omni-channel customer experience where customers can buy, pay for, and receive products and customer service from any sales channel. It addresses key aspects of an omni-channel strategy including enabling customers to buy from any channel, accommodating various payment methods, optimizing order fulfillment across channels, and providing customer service throughout the customer lifecycle. The document also examines how an omni-channel approach requires changes to how different organizational roles function and ensuring systems can support this new way of doing business.
The document is a report that ranks the top 100 retailers based on their omnichannel capabilities. It analyzes retailers based on 7 criteria related to online and in-store integration. DSW ranks first by scoring the highest across all criteria, including buy online pick up in store, shared carts, and consistent pricing. The report aims to help retailers benchmark themselves and identify opportunities to improve their omnichannel offerings.
Retailers need to understand how to target customers in the right way and customers need retailers to understand them and offer them something at value all the time. OmniChannel retailing is the ultimate solution for retailer to connect with their customers and provide them with outstanding customized experience.
Join our Social Learning Network:
http://www.openthinking.ae
Op 8 oktober 2015 organiseerde DRV Accountants & Adviseurs en Moore Stephens Belgium het kenniscongres E-commerce in het Belgische Brasschaat. Keynote speaker was Gino van Ossel. Hij gaf zijn visie op e-commerce business modellen.
How Data Will Replace Discounting: Lessons From Uber, Point 93 and Orchard MileNational Retail Federation
Presentation from Retail’s BIG Show, January 15-17, 2017.
JENNIE BAIK, CEO and Co-Founder, Orchard Mile
SAMANTHA ZIRKIN, CEO, Point 93
GARRETT VAN RYZIN, Head of Marketplace Optimization Advanced Development, Uber
Master Class - Digitally Native Vertical Brands with Hassan Yassine, GAIACollective Academy
Hassan Yassine, Co-founder and CMO of GAIA Design, shares some characteristics of Digitally Native Vertical Brands and his experience building one in an Emerging Market such as Mexico.
Swarovski Digital Transformation - Store GuideJaco Aucamp
The document discusses Swarovski's digital transformation strategy. It outlines why digital transformation is important given trends in the Middle Eastern market. It describes Swarovski's approach to transforming stores into more digital experiences. Finally, it explains how Swarovski will empower employees, engage customers, and transform products and operations to deliver personalized omnichannel experiences across websites, mobile, stores, and social media.
The Global Challenge to Reinvent the Last Mile in Retail: Insights From Sains...National Retail Federation
The document discusses challenges and opportunities in reinventing last-mile retail delivery. It notes that e-commerce has grown much faster than physical stores. Consumer expectations for delivery speed and convenience are rising, especially among younger generations. Fulfilling online orders comes with higher costs that compress margins for retailers. Winners will raise the customer experience bar while improving economics through measures like common delivery platforms and optimized operations. The case of Sainsbury's Argos transitioning to a digital retailer focused on omnichannel delivery is also discussed.
The document analyzes shopping trends from Q4 2013 to Q4 2014 based on activity from over 100 million shoppers across various digital commerce sites. It finds that the two main drivers of digital commerce growth are an increase in the number of shoppers and their visit frequency. Cross-device shopping increased significantly, with over 1 in 5 multi-visit shoppers using multiple devices. Shoppers are also visiting and adding items to their carts more often but spending less time per visit, especially on smartphones.
Converging the customer experience across channels has never been more important. In fact, in a recent Retail Systems Research (RSR) study, more retailers report that they operate online/e-Commerce channels (92%) compared to traditional stores (89%). And, 100% of retailers surveyed consider “a single brand identity across channels” as important.
In order to move forward on the road toward a successful omnichannel experience, retailers need to take a step back and consider their current strategies, as well as hardware and software capabilities.
In this upcoming webinar, Nikki Baird from RSR will share insights from the June 2012 survey titled: Omni-Channel 2012: Cross-Channel Comes Of Age. Some of the topics she will cover include:
The new rules of cross-channel retail
The value of cross-channel shoppers
The Digital-Physical connection
The role of Marketing in the strategy mix
NCR will join the discussion by outlining the steps toward cross-channel success, illuminated through real-world case studies. Once merchants commit to a compelling and consistent cross-channel experience, they must follow through with superior data analysis and promotion optimization, facilitated with best-in-class point of sale (POS) solutions. With all the proper components in place, retailers will improve loyalty and profits by delighting customers, no matter which channel they choose.
The document discusses trends in the retail industry in 2017, including retailers needing to reshape their businesses to focus on providing excellent customer experiences through convenience, choice, personalization, and profit. It highlights how retailers are blurring online and offline channels through initiatives like click-and-collect in order to better meet customer demands. The document also examines how pure e-commerce retailers are opening physical stores to enhance the customer experience, and how retailers are transforming physical spaces into destinations to attract customers.
A merchant's guide to ecommerce terms that define revenue, profit and productivity. This is a great tool for new hires such as Assistant Buyers and Business Analysts.
Mech/ Merchandise /Revenue/Gross Profit/Margin/Dollars/Data/Ecommerce/Omnichannel/Retail
As specialist advisers to the marketing communications and technologies industry, we are uniquely positioned to ensure that we are continually on top of key trends in this rapidly evolving landscape.
Enhancing the Retail Omnichannel Customer ExperienceSPS Commerce
Our recent webinar slides, featuring Todd Kozan, ebusiness and channel strategy consultant with Forrester, and Pete Zaballos, vice president of marketing at SPS Commerce, on Enhancing the Retail Omnichannel Customer Experience, reported on findings from Forrester’s study of consumers and retailers about omnichannel.
SDNC13 -DAY2- Is the Future Omni-Channel by Jonathan Blakeney & Erdem DemirService Design Network
The document discusses designing omni-channel customer experiences. It emphasizes creating complementary experiences across channels by blending digital and physical experiences, responding to customer mobility, and synchronizing information. It also stresses promoting consistency by providing consistent structures, honoring device-specific needs, and harmonizing visual qualities. Additionally, the document recommends matching offers to customer context by tying activities to appropriate devices and providing contextual offers.
7-Step D2C Distribution Takeover Approach | FlowprimeFlowprime
Find out how to take over your direct-2-customer distribution and stop being dependent on 3PLs. Flowprime has developed a 7-step strategy for D2C-proof warehouses:
1. Increase picking efficiency by selecting an optimal method for each process.
2. Enable continuous delivery creation.
3. Group orders that should be processed alike.
4. Build a fast lane through your warehouse.
5. Allow real flexibility & transparency for customers.
6. Accelerate the outflow with a pack-and-go process.
7. Build a complete returns process in the warehouse.
Contact us now and we will give you one free consultation:
ARNULF HORNBACH
+49 152 536 742 54
info@flowprime.de
www.flowprime.de
Gap fashion and babywear case study jaco aucamp v5Jaco Aucamp
The document provides guidance on developing an ecommerce strategy for a fashion and babywear brand in the UAE market. It discusses key pillars of discovery, visualization, and engagement. It also outlines a 6 month 3 phase plan including planning, developing/integrating, and executing phases. An organizational structure is proposed, along with addressing business concerns regarding buying, merchandising, stores, sales recording, and cross-channel KPIs. Ways to leverage the principle brand and current customer data are also discussed.
Supermercado Now is Brazil's leading online grocery marketplace that allows customers to purchase from their favorite supermarkets and receive deliveries within 2 hours. It has experienced strong growth, with GMV increasing 8x from 2016 to 2017 and another 4x in the first half of 2018 alone. The company is seeking a $15 million funding round to consolidate its leadership position in Brazil and capitalize on the large untapped online grocery market, which is estimated at $353 billion but currently has only a 0.3% online penetration. Supermercado Now has proven unit economics, with an LTV/CAC ratio of 6.5x and contribution margins of 17%. The new funding will be used for marketing, technology development,
This document provides an overview and analysis of e-commerce agility across 82 brands. It examines how quickly brands are adapting to changes in the retail landscape based on the type of e-commerce platform they use. Key findings show that while the platform is important, it must be considered together with a brand's existing resources and growth plans. The study defines e-commerce agility and measures it based on dynamic content creation, integration of new technologies, and ease of entering new markets. It finds that cloud-based platforms generally support higher agility, though customized on-premise solutions can also be successful depending on a brand's focus and finances. Financial performance is also correlated with platform choice and agility.
The Demandware Shopping Index analyzes shopping activity of over 200 million shoppers worldwide to measure digital commerce growth. Key findings from Q1 2015 include:
- Shopping attraction, measured as the change in number of shoppers visiting sites, contributed 83% of digital commerce growth. Shopper spend, measured as frequency, conversion, and average order value, contributed 17%.
- Visits per shopper were up 9% thanks to cross-device shopping, with 21% of shoppers using multiple devices, up from 18% in Q1 2014.
- Time on site decreased 31% to an average of 8.9 minutes across all devices, with phone visits down 43% to 8.4 minutes, indicating shop
Omninomics Creating a more connected value chainFrank Smith
The document discusses how the fashion industry is adapting to meet the demands of omni-channel retail and empowered consumers. It introduces the concept of "omninomics" - how the fashion value chain has evolved into an interconnected network to collaborate and provide seamless shopping experiences across channels. It provides examples of how companies like Bonobos are personalizing experiences through both physical stores and digital channels to better understand customers, create improved products, and drive higher online conversions. The key is for all partners across the value chain to work together using shared data to quickly get the right products to consumers through their preferred channels.
Rise of Omni-commerce and Its Reflections on Supply Chain ManagementLA Software Group
The evolution of retail from a channels point of view can be examined in 4 different groups. These groups represent the variety of channels and also how channels are treated as a whole. These groups are Single Channel, Multi-Channel, Cross-Channel and Omni-Channel.
Retailers need to understand how to target customers in the right way and customers need retailers to understand them and offer them something at value all the time. OmniChannel retailing is the ultimate solution for retailer to connect with their customers and provide them with outstanding customized experience.
Join our Social Learning Network:
http://www.openthinking.ae
Op 8 oktober 2015 organiseerde DRV Accountants & Adviseurs en Moore Stephens Belgium het kenniscongres E-commerce in het Belgische Brasschaat. Keynote speaker was Gino van Ossel. Hij gaf zijn visie op e-commerce business modellen.
How Data Will Replace Discounting: Lessons From Uber, Point 93 and Orchard MileNational Retail Federation
Presentation from Retail’s BIG Show, January 15-17, 2017.
JENNIE BAIK, CEO and Co-Founder, Orchard Mile
SAMANTHA ZIRKIN, CEO, Point 93
GARRETT VAN RYZIN, Head of Marketplace Optimization Advanced Development, Uber
Master Class - Digitally Native Vertical Brands with Hassan Yassine, GAIACollective Academy
Hassan Yassine, Co-founder and CMO of GAIA Design, shares some characteristics of Digitally Native Vertical Brands and his experience building one in an Emerging Market such as Mexico.
Swarovski Digital Transformation - Store GuideJaco Aucamp
The document discusses Swarovski's digital transformation strategy. It outlines why digital transformation is important given trends in the Middle Eastern market. It describes Swarovski's approach to transforming stores into more digital experiences. Finally, it explains how Swarovski will empower employees, engage customers, and transform products and operations to deliver personalized omnichannel experiences across websites, mobile, stores, and social media.
The Global Challenge to Reinvent the Last Mile in Retail: Insights From Sains...National Retail Federation
The document discusses challenges and opportunities in reinventing last-mile retail delivery. It notes that e-commerce has grown much faster than physical stores. Consumer expectations for delivery speed and convenience are rising, especially among younger generations. Fulfilling online orders comes with higher costs that compress margins for retailers. Winners will raise the customer experience bar while improving economics through measures like common delivery platforms and optimized operations. The case of Sainsbury's Argos transitioning to a digital retailer focused on omnichannel delivery is also discussed.
The document analyzes shopping trends from Q4 2013 to Q4 2014 based on activity from over 100 million shoppers across various digital commerce sites. It finds that the two main drivers of digital commerce growth are an increase in the number of shoppers and their visit frequency. Cross-device shopping increased significantly, with over 1 in 5 multi-visit shoppers using multiple devices. Shoppers are also visiting and adding items to their carts more often but spending less time per visit, especially on smartphones.
Converging the customer experience across channels has never been more important. In fact, in a recent Retail Systems Research (RSR) study, more retailers report that they operate online/e-Commerce channels (92%) compared to traditional stores (89%). And, 100% of retailers surveyed consider “a single brand identity across channels” as important.
In order to move forward on the road toward a successful omnichannel experience, retailers need to take a step back and consider their current strategies, as well as hardware and software capabilities.
In this upcoming webinar, Nikki Baird from RSR will share insights from the June 2012 survey titled: Omni-Channel 2012: Cross-Channel Comes Of Age. Some of the topics she will cover include:
The new rules of cross-channel retail
The value of cross-channel shoppers
The Digital-Physical connection
The role of Marketing in the strategy mix
NCR will join the discussion by outlining the steps toward cross-channel success, illuminated through real-world case studies. Once merchants commit to a compelling and consistent cross-channel experience, they must follow through with superior data analysis and promotion optimization, facilitated with best-in-class point of sale (POS) solutions. With all the proper components in place, retailers will improve loyalty and profits by delighting customers, no matter which channel they choose.
The document discusses trends in the retail industry in 2017, including retailers needing to reshape their businesses to focus on providing excellent customer experiences through convenience, choice, personalization, and profit. It highlights how retailers are blurring online and offline channels through initiatives like click-and-collect in order to better meet customer demands. The document also examines how pure e-commerce retailers are opening physical stores to enhance the customer experience, and how retailers are transforming physical spaces into destinations to attract customers.
A merchant's guide to ecommerce terms that define revenue, profit and productivity. This is a great tool for new hires such as Assistant Buyers and Business Analysts.
Mech/ Merchandise /Revenue/Gross Profit/Margin/Dollars/Data/Ecommerce/Omnichannel/Retail
As specialist advisers to the marketing communications and technologies industry, we are uniquely positioned to ensure that we are continually on top of key trends in this rapidly evolving landscape.
Enhancing the Retail Omnichannel Customer ExperienceSPS Commerce
Our recent webinar slides, featuring Todd Kozan, ebusiness and channel strategy consultant with Forrester, and Pete Zaballos, vice president of marketing at SPS Commerce, on Enhancing the Retail Omnichannel Customer Experience, reported on findings from Forrester’s study of consumers and retailers about omnichannel.
SDNC13 -DAY2- Is the Future Omni-Channel by Jonathan Blakeney & Erdem DemirService Design Network
The document discusses designing omni-channel customer experiences. It emphasizes creating complementary experiences across channels by blending digital and physical experiences, responding to customer mobility, and synchronizing information. It also stresses promoting consistency by providing consistent structures, honoring device-specific needs, and harmonizing visual qualities. Additionally, the document recommends matching offers to customer context by tying activities to appropriate devices and providing contextual offers.
7-Step D2C Distribution Takeover Approach | FlowprimeFlowprime
Find out how to take over your direct-2-customer distribution and stop being dependent on 3PLs. Flowprime has developed a 7-step strategy for D2C-proof warehouses:
1. Increase picking efficiency by selecting an optimal method for each process.
2. Enable continuous delivery creation.
3. Group orders that should be processed alike.
4. Build a fast lane through your warehouse.
5. Allow real flexibility & transparency for customers.
6. Accelerate the outflow with a pack-and-go process.
7. Build a complete returns process in the warehouse.
Contact us now and we will give you one free consultation:
ARNULF HORNBACH
+49 152 536 742 54
info@flowprime.de
www.flowprime.de
Gap fashion and babywear case study jaco aucamp v5Jaco Aucamp
The document provides guidance on developing an ecommerce strategy for a fashion and babywear brand in the UAE market. It discusses key pillars of discovery, visualization, and engagement. It also outlines a 6 month 3 phase plan including planning, developing/integrating, and executing phases. An organizational structure is proposed, along with addressing business concerns regarding buying, merchandising, stores, sales recording, and cross-channel KPIs. Ways to leverage the principle brand and current customer data are also discussed.
Supermercado Now is Brazil's leading online grocery marketplace that allows customers to purchase from their favorite supermarkets and receive deliveries within 2 hours. It has experienced strong growth, with GMV increasing 8x from 2016 to 2017 and another 4x in the first half of 2018 alone. The company is seeking a $15 million funding round to consolidate its leadership position in Brazil and capitalize on the large untapped online grocery market, which is estimated at $353 billion but currently has only a 0.3% online penetration. Supermercado Now has proven unit economics, with an LTV/CAC ratio of 6.5x and contribution margins of 17%. The new funding will be used for marketing, technology development,
This document provides an overview and analysis of e-commerce agility across 82 brands. It examines how quickly brands are adapting to changes in the retail landscape based on the type of e-commerce platform they use. Key findings show that while the platform is important, it must be considered together with a brand's existing resources and growth plans. The study defines e-commerce agility and measures it based on dynamic content creation, integration of new technologies, and ease of entering new markets. It finds that cloud-based platforms generally support higher agility, though customized on-premise solutions can also be successful depending on a brand's focus and finances. Financial performance is also correlated with platform choice and agility.
The Demandware Shopping Index analyzes shopping activity of over 200 million shoppers worldwide to measure digital commerce growth. Key findings from Q1 2015 include:
- Shopping attraction, measured as the change in number of shoppers visiting sites, contributed 83% of digital commerce growth. Shopper spend, measured as frequency, conversion, and average order value, contributed 17%.
- Visits per shopper were up 9% thanks to cross-device shopping, with 21% of shoppers using multiple devices, up from 18% in Q1 2014.
- Time on site decreased 31% to an average of 8.9 minutes across all devices, with phone visits down 43% to 8.4 minutes, indicating shop
Omninomics Creating a more connected value chainFrank Smith
The document discusses how the fashion industry is adapting to meet the demands of omni-channel retail and empowered consumers. It introduces the concept of "omninomics" - how the fashion value chain has evolved into an interconnected network to collaborate and provide seamless shopping experiences across channels. It provides examples of how companies like Bonobos are personalizing experiences through both physical stores and digital channels to better understand customers, create improved products, and drive higher online conversions. The key is for all partners across the value chain to work together using shared data to quickly get the right products to consumers through their preferred channels.
Rise of Omni-commerce and Its Reflections on Supply Chain ManagementLA Software Group
The evolution of retail from a channels point of view can be examined in 4 different groups. These groups represent the variety of channels and also how channels are treated as a whole. These groups are Single Channel, Multi-Channel, Cross-Channel and Omni-Channel.
The retail industry is undergoing a massive transformation driven by consumers' adoption of new digital technologies. By 2020, brick-and-mortar retailers will need to fundamentally change how they do business to survive. Seven key trends will impact brick-and-mortar stores: leveraging social media data; embracing "showrooming"; tailoring store inventories; rationalizing store sizes; using mobile technologies; fulfilling online orders from stores; and developing "dark stores" for online order fulfillment. To adapt, retailers must implement an integrated online and in-store shopping experience, understand demand across all channels, customize product assortments for each customer, and enable flexible, real-time supply chains.
Some important notes about retail industry such as:
Strategic Levers of Retailing,
Functions Performed by Retailers,
Types of Retailers,
Customers Perception and Buying Behavior,
Merchandise Management,
Issues with Merchandise Management.
The need for quality environments
and fixture programs has never been greater for the
outlet channel. Meeting the customers’ expectations
relies on understanding the influencers and trends in this
evolving market. Here are four trends in the evolution
of the outlet retail environment, as well as, six areas of
focus that will drive success for branded retail in the
outlet channel
Strategic Inventory Management in an Omnichannel EnvironmentManik Aryapadi
In 2016, e-commerce sales accounted for roughly 8% of total retail sales, growing from a measly 0.6% in 1999. It is estimated that by 2020, U.S. e-commerce sales will approach $500 billion dollars, growing at a 5-year
compound annual growth rate (CAGR) of 10%. Given the lower barriers to entry and execution in e-commerce, a number of
industries are being disrupted and reinvented as a result. As retailers and consumer goods companies grapple with these
changes, they are shifting their focus to growing their digital offerings, while balancing the deployment of inventory across all
their channels—wholesale, owned brick-and-mortar retail, and e-commerce. Here we will discuss how to successfully deploy
inventory in an omnichannel environment to maximize profit and improve customer service.
Introduction to Modern Retailers and ConsumersNupur Samaddar
This document provides an overview of modern retailers and consumer behavior. It discusses different types of retailers like department stores, chain stores, franchises, and discount houses. It also looks at non-store retailing models and trends like warehouse style stores and second-hand retailers. The document then examines different retail archetypes for the future like lowest cost, convenience-location, and platform operator models. It analyzes consumer spending trends and preferences, like most shoppers still spending the majority in brick-and-mortar stores and valuing an in-store experience. Finally, it reviews characteristics of different consumer demographics like millennials' preference for digital engagement.
A Guide to Crafting an Effective Omnichannel Strategy (1).pdfchristiemarie4
Omnichannel is a marketing approach that offers an integrated shopping experience to the customers. Keep reading to know more about this omnichannel strategy.
A Guide to Crafting an Effective Omnichannel Strategy.pdfLaura Miller
Omnichannel is a marketing approach that offers an integrated shopping experience to the customers. Keep reading to know more about this marketing strategy.
The document provides 6 steps for retailers to build an omnichannel retail strategy: 1) create a unified shopping experience across channels, 2) align in-store and digital channels, 3) empower sales staff with real-time access to inventory and customer data, 4) establish an online presence and social proof, 5) integrate modern payment solutions across channels, and 6) use business intelligence to gain actionable insights. Following these steps can help retailers engage customers seamlessly across channels to improve sales and customer experience.
This document provides tips on visual merchandising for e-commerce retailers. It discusses five tips: 1) ensuring the site is optimized for mobile, as many consumers shop on mobile; 2) providing clear and interactive tools to aid customer decisions and improve search functions; 3) keeping the checkout process short and simple; 4) using data analytics to inform merchandising decisions; and 5) monitoring competitors to identify gaps in inventory. It then discusses retail store layout, including defining store design and customer flow. Key aspects of store layout planning are identifying customer flow patterns, avoiding clutter in the entrance "decompression zone", and leveraging tendencies for customers to navigate stores in a clockwise direction.
Omnichannel CE Index 2016 - Retailers Are You Leading Or LaggingJennifer T. Lee
The document discusses findings from the Deloitte Omnichannel Customer Experience Index 2016, which evaluated the omnichannel capabilities of retailers across Canada and the US. It finds that US retailers generally offer more developed omnichannel experiences than their Canadian counterparts. Retail categories like home improvement, department stores, and mass merchants/warehouses led in omnichannel capabilities, while grocery, jewelry, and pharmacies lagged behind. The document also analyzes omnichannel strengths and weaknesses within different retail categories in Canada.
E-tailing refers to the selling of retail goods online. It allows companies to sell products to customers virtually without needing a physical storefront. E-tailing has grown significantly in recent years and enabled the development of software tools to help companies create online catalogs and manage the online sales process. Some benefits of e-tailing include reducing business costs and space needs while increasing accessibility of products to customers. However, e-tailing also lacks some of the experiential and sensory aspects of in-person shopping.
the new retail ecosystem From disrupted to disruptor - startup Ian Beckett
This document discusses strategies that retailers can use to adapt to disruption from companies like Amazon. It summarizes 6 key strategies: pricing, fulfillment, loyalty, assortment, innovation, and platform. For pricing, it discusses how retailers like Walmart are using dynamic pricing tools. For fulfillment, it emphasizes the importance of speedy delivery options like in-store pickup. For loyalty, it highlights how Amazon and Starbucks cultivate loyal customers. The document advocates for retailers to utilize physical stores not just as showrooms but as distribution centers to enable faster shipping.
Evolution of luxury retailers in disruptive Omni-channel worldesiml
1) The document discusses the evolution of luxury retailers in an omni-channel world. It explores strategies and implications of this trend for customer-centric retailers.
2) Luxury retailers have been slow to adopt omni-channel strategies compared to mass retailers. However, they are recognizing the need to engage with new generations of luxury customers who are digital natives and conduct significant online research.
3) True omni-channel integration across online and offline channels is needed to provide a seamless customer experience and maximize opportunities to build relationships at each touchpoint of the consumer decision journey.
Wal-Mart uses an efficient direct distribution channel system to supply its stores. It operates several regional distribution centers that can deliver goods to stores within one day using advanced logistics techniques. This saturation strategy allows Wal-Mart to consolidate orders and take advantage of bulk purchasing discounts. The company's satellite network and focus on lowering supply chain costs have been key to its competitive advantage and success.
Wal-Mart uses an efficient distribution system to supply its stores. It operates distribution centers that are strategically located within a day's drive of the stores they supply. Using cross-docking and other techniques, the distribution centers are able to quickly receive and ship goods to stores. This just-in-time system, supported by Wal-Mart's transportation fleet and technology infrastructure, allows it to keep prices low by reducing costs. Wal-Mart's Remix initiative further streamlines this supply chain by consolidating vendors' shipments into full truckloads for more efficient transport. This program changes vendors' logistics responsibilities and requires coordination with third-party providers.
Providing the foundation for an omnichannel customer experience with IBM Store Enablement.
Throughout the retail community, the store has now become a critical component of maintaining customer satisfaction. Satisfying the customer’s needs for finding inventory in the store or elsewhere in the enterprise, and monitoring the fulfillment of those items to keep the promise, whether through pickup or delivery, that the store has made to the customer.
Similar to Creating an Omnichannel Supply Chain for Brands (20)
From Alexa and Siri to factory robots and financial chatbots, intelligent systems are reshaping industries. But the biggest changes are still to come, giving companies time to create winning AI strategies
3D Printing - A Manufacturing RevolutionMichael Hu
The question is not if but when companies need to consider 3D printing. A.T. Kearney is helping forward-thinking players overcome the challenges and take advantage of powerful opportunities in this next generation of manufacturing.
The Future of Big Box Last Mile DeliveryMichael Hu
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Creating an Omnichannel Supply Chain for Brands
1. 24 The European Business Review March - April 2017
In today’s omnichannel world, the distinc-
tion between brands and retailers is of little
interest to consumers. They will buy from
whoever is best able to “deliver the goods.”
Branded manufacturers can take advantage
of this unprecedented opportunity to get
closer to the consumer, if they manage to
acquire the requisite fulfillment and supply
chain capabilities.
TheUntappedPotentialofBrandedManufacturers
Consumers today are spoiled for choice. No
matter where they live they have at their finger-
tips a vast assortment of products, a stunning
array of delivery options, and a never-ending
parade of novelties, exclusive products,
and special offers. The consumer journey is
becoming truly frictionless, thanks to advances
in digital commerce technologies and disrup-
tive innovations from the likes of Amazon and
Alibaba, which continue to push the frontier to
enable consumers to buy what they want, how
they want it.
What’s more, consumers don’t care who gives
them what they’re looking for. Can a retailer
deliver the goods? Fine. Is it easier to find and
Creating an Omnichannel Supply
Chain for Branded Manufacturers:
The Untapped Potential for Growth
Supply Chain
BY MICHAEL HU & SUNIL CHOPRA
buy what they want from a branded manufac-
turer? That’s fine too. And, in fact, the lines
between retailers and brands are becoming
increasingly blurred. Retailers are mimicking
branded manufacturers, offering exclusive SKUs
and innovative products under their own brand.
Amazon, IKEA, and Sainsbury, for example, are
investing significantly to expand their private
label business. In contraposition, brands are
establishing frictionless direct-to-consumer
fulfillment options. In many countries across
Europe and Asia, online Samsung stores offer
products for direct home delivery. Direct-to-
consumer is the fastest growing sales channel at
L’Oréal and other traditional beauty manufac-
turers. In the past, retailers tried to discourage
– and even thwart – direct sales by branded
manufacturers. Today, however, some retailers
are actually renting out space where brands can
set up a showroom to feature their long-tail
SKUs. This tactic, besides allowing retailers to
take advantage of surplus space on the sales
floor, also enables them to benefit from the
brands’ halo effect.
Presently, branded manufacturers’
omnichannel sales – that is, sales fulfilled by
The consumer journey is becoming truly frictionless, thanks to advances in
digital commerce technologies and disruptive innovations which continue to
push the frontier to enable consumers to buy what they want, how they want it.
2. the manufacturer, regardless of whether the
customer makes the purchase at a third-party
retailer, a manufacturer-owned store, or online
– typically account for between 5 and 8 percent
of total revenue. We believe brands can increase
that percentage to between 15 and 25 percent
over the next three to five years. Such a shift will
not only improve brands’ operating margins,
but it will also create greater stickiness with end
customers and increase their market power.
Our work helping more than a dozen brands
across different sectors such as CPG, Beauty,
apparel, and consumer electronics to achieve
their full growth omnichannel potential has
taught us they must follow a systematic three-
step approach to transform their underlying
fulfillment capabilities and supply chain:
• Define a clear, segmented fulfillment promise.
• Redefine the role of the store, regardless of
whether it is an owned store or a rented space
at a retail partner.
• Evolve the right supply chain partnerships.
Define a Clear, Segmented Consumer Promise
A first step to designing a winning supply
chain is to define the consumer promise
along five dimensions of fulfillment: choice,
speed, convenience, service, and reliability.
Omnichannel leaders, particularly retailers, do
this well (see figure 1). Mass retailers that sell
commoditised products and have relatively low
basket sizes – Amazon, for example – tend to
focus on a broad assortment, convenience, and
speed. In contrast, specialty retailers such as
Sephora – where basket sizes often exceed $75
and products are differentiated – usually focus
on high customer service and a broad, person-
alised assortment, whereas speed tends to be
less important.
Following the lead set by retailers, when
brands define their consumer promise they
should consider factors such as how differenti-
ated their products are, how much information
the consumer needs to make a choice, and what
the average basket size will be. Luxury fashion or
FIGURE 1. Customer promise for e-commerce leaders
Convenience
Delivery and pickup
Delivery change
Returns
Replenishment model
Capability
Hours of operation
Service
Order tracking
Distribution centre variables
Interaction quality
IVR
Language
Personalisedservice
Ordermanagement
system
Cross selling
Reliability
On Time in Full
First contact
resolution
Choice
Assortment
Order
personalisation
Order modification
Speed
Order to delivery
Speed to answer
Omnichannel fulfillment
strategy focus
· Broad assortment
and exclusives
· Customer centric
service experience
· Free shipping
and returns
· Customer care
convenient tracking
· Order to delivery
· Replenishment
model
· Target endless
aisle assortment
·Large store footprint
for customer
convenience
· Large assortment
in marketplace
·Free shipping and
returns (700+ stores)
· Efficient customer
service
Note: IVR is intelligent voice recognition.
Source: A.T. Kearney
Customer centre care variables
A first step to
designing a winning
supply chain is to
define the consumer
promise along
five dimensions
of fulfillment:
choice, speed,
convenience, service,
and reliability.
www.europeanbusinessreview.com 25
3. 26 The European Business Review March - April 2017
beauty brands, for example, offer expen-
sive, differentiated products. Therefore,
their customers will likely be more inter-
ested in service (for example, call centers
staffed by skilled, well-trained agents)
and choice (say, an exclusive assortment,
coupled with personalised gift-wrap-
ping or engraving) than in speed and
convenience. In contrast, brands that
sell higher-volume, less differentiated
commodity products such as consum-
ables and mass consumer electronics
will probably want to excel in speed and
convenience, as shopper behaviours
have been shaped by Amazon’s offer of
fast, inexpensive delivery and hassle-free
returns.
Whatever consumer promise the
brand settles upon will largely dictate the
supply chain it needs.
some instances, personnel at fulfill-
ment hub stores may also pick,
pack, and ship orders. Mass retailers
Walmart, Debenhams, and Quelle’s
are working hard to convert their
store network into scalable fulfill-
ment nodes.
The capabilities and processes
needed to deliver a world-class
in-store consumer experience are
radically different from those required
in a fulfillment-focused store. In a
consumer experience hub, sales asso-
ciates must be knowledgeable and
consumer-oriented, technology must
be focused on facilitating the sale, and
a deep assortment must be attractively
displayed. Stores meant to provide
same-day/next-day fulfillment of
online orders, in contrast, require a
broad range of traditional warehouse
and distribution center capabili-
ties adapted to a store environment,
including efficient backroom and
shelf order picking, integrated order
management systems, assortments
skewed to fast-moving items (to
satisfy in-store pickup and local ship-
ping), and operationally savvy store
managers. It is crucial, then, to under-
stand the role of each store along the
experience-fulfillment spectrum to
ensure that the proper blend of store
operational capabilities, processes,
and incentives is in place.
Equally important is the strategy
to scale up the store network. Owned
stores are one option. Owned stores
provide a brand with nearly complete
freedom to choose locations and
design its own store concept and
space. The trade-off, however, is that
building an owned-store network is a
slow, capital-intensive process.
Another option is to partner with
retailers, taking advantage of the fact
that retailers with large, physical store
footprints are shifting their strategy. In
the future, many high-traffic locations
Owned stores provide
a brand with nearly
complete freedom to
choose locations and
design its own store
concept and space.
Redefine the Role of the Store
The second step is to redefine the role
of the store in fulfilling the consumer
promise. Roughly speaking, the store
can serve two strategic roles (see figure
2 above):
• The store can be a consumer expe-
rience hub where the brand displays
its products, lets customers touch
and feel them, and offers advice.
In the case of relatively expensive
fast-moving products for which
consumers also value speed – for
example, high-end smartphones
– consumer experience hubs also
stock inventory for sale to walk-in
customers. Apple Stores, with their
Genius Bar, are a prime example of
a consumer experience hub. So are
Bonobos Guideshops, staffed by
onsite style advisers.
• Alternatively, the store can be an
inventory and fulfillment hub – a
staging area, if you will – to cover
local demand. The primary role of
such a store has been to carry inven-
tory that customers can purchase
when they walk in. These stores
can also serve as pickup locations
for click-and-collect customers and
accept returns of online orders. In
Supply Chain
4. will likely become inventory-light consumer
experience and showrooming hubs displaying
a broad assortment of items available for same
day/next day home delivery, while low-traffic
locations will either be closed or converted
into “dark-store” fulfillment centers. As
future retailer showrooms carry less inven-
tory, floor space will be freed up and retailers
may be open to establishing branded stores-
within-stores for synergistic showrooming.
For example, a shopper might be able to
walk into a Debenhams’s store, examine and
order a suit at a Hugo Boss digital showroom,
arrange for delivery to a Debenhams’s closer
to home, and have it altered by Debenhams’s
in-house tailoring staff at the time of pickup.
In the case of lower-traffic fulfillment center
stores, retailers could potentially lease them
to brands for joint use. For example, Walmart
could convert select suburban superstores
into shared warehouses to stage inventory
for local delivery, powered by an easy-to-use
order management system. Brands could then
lease the “Walmart platform” to scale up a
same-day/next-day delivery option across the
country.
Evolve the Right Supply Chain Partnerships
Omnichannel fulfillment is a complex orchestra-
tion of capabilities that span a broad spectrum:
eaches picking, warehousing, store operations,
customer service, financial services, and last-
mile delivery, to name just a few.
Fortunately for brand manufacturers, a
robust third-party omnichannel fulfillment
vendors market is available to provide them
with the capabilities they need to quickly get
started (see figure 3). Such vendors fall into two
broad categories:
• End-to-end generalists typically have expe-
rience providing the full suite of turnkey
fulfillment operations. Their capabilities are
usually best-in-class in one or more functions,
but not across the entire fulfillment spectrum.
• Best-of-breed specialists focus on a
particular subset of fulfillment services such
as distribution center fulfillment or customer
care. Nearly all best-of-breed vendors have
more scale and experience in their areas
of specialisation than their end-to-end
counterparts.
Our experience suggests that companies
should evolve their omnichannel fulfillment
along the make-versus-buy continuum – begin-
ning with end-to-end outsourcing, continuing
with best-of-breed partnerships, and ending
with in-house management – as they climb the
scale and experience curve. Yet often that is not
the case.
Some make the mistake of investing heavily
in-house from the outset and miss out on the
opportunity to learn from external vendor
capabilities. For example, a leading US retailer
built its own large online fulfillment center to
anticipate significant e-commerce growth with
a three- to four-day lead time. Because of its
limited experience with online operations, the
retailer created a high-throughput facility with
limited flexibility. When actual growth fell short
of forecast, that lack of flexibility prevented the
retailer from modifying the layout to improve its
order cycle time.
Others make the mistake of leaving their
operations outsourced for too long to a turnkey,
end-to-end vendor instead of transitioning to
best-of-breed operators. To illustrate, a well-es-
tablished US fashion brand, despite having
grown its online sales to more than $300 million,
continues to use the same end-to-end fulfillment
provider for its warehousing, store fulfillment,
Omnichannel
fulfillment is
a complex
orchestration
of capabilities
that span a
broad spectrum.
www.europeanbusinessreview.com 27
5. 28 The European Business Review March - April 2017
customer service, and integrated order manage-
ment operations. As its omnichannel business
has grown, the fashion brand has failed to
achieve the expected cost savings from increased
scale, in part because its turnkey partner lacks
the ability to provide world-class service and
efficiency in every part of its operations.
To sustain best-in-class omnichannel perfor-
mance, a brand’s omnichannel supply chain
partnership model must evolve over time. The
model must adapt to accommodate new stra-
tegic directions (such as entering a new product
category or a new geographic market) and to
reflect the brand’s own growing capabilities. In
the first instance, brands need to build a dedi-
cated omnichannel supply chain team. This team
will be the nucleus of a centralised, coordinated
function to define and sustain in-house opera-
tions and to help shape the upstream business
and commercial strategy. Eventually, brands will
want to establish strong capabilities to inter-
nally oversee the underlying order management,
inventory, and CRM systems – as these technol-
ogies are the main enablers of flexible, efficient
operations that deliver a seamless consumer
experience. In addition, brands need to periodi-
cally conduct rigorous sourcing events to ensure
they are benefiting from the latest advances in
fulfillment practices.
This is particularly important in last-mile
delivery and customer care, where technolog-
ical advances are rapidly changing the art of
the possible.
Keeping Up with the Consumer
In today’s omnichannel world, the distinction
between brands and retailers is of little interest to
consumers. They will buy from whoever is best
able to “deliver the goods.” Branded manufac-
turers can take advantage of this unprecedented
opportunity to get closer to the consumer, if
they manage to acquire the requisite fulfillment
and supply chain capabilities. The stakes have
never been greater.
About the Authors
Michael Hu is a Principal in the
Operations Practice at A.T.
Kearney. His area of expertise is
helping global consumer and retail
clients in areas of omnichannel and
eCommerce operations, supply chain transfor-
mation, and digital transformation.
Sunil Chopra is the IBM
Distinguished Professor of
Operations Management at the
Kellogg School of Management.
He has co-authored two books and
several academic articles that have appeared in
top journals. His book on Supply Chain
Management was awarded the best book of the
year by the Institute of Industrial Engineers
(IIE). His recent research has focused on risk
management and omni-channel distribution in
supply chains.
To sustain best-in-class omnichannel performance, a brand’s
omnichannel supply chain partnership model must evolve over time.
The model must adapt to accommodate new strategic directions and
to reflect the brand’s own growing capabilities.
Supply Chain