IG&H Consulting & Interim supported wehkamp.nl to determine the strategic outline, detailed process design and supplier tender selection for its ~ € 70M investment in a new fully automated fulfilment centre. Learn more about our approach to "Make Strategy Work" at wehkamp.nl.

1. Utrecht, November 2013
IG&H supports wehkamp.nl with realisation of largest
automated e-commerce DC in the world
© IG&H Consulting & Interim, Utrecht 2013

2. IG&H outlook: ongoing transition to online sales
creates huge potential in selected markets
Expected online sales in selected markets in the Netherlands
€ 25
80%
Expected online sales (€ bn)
€ 20
60%
50%
€ 15
40%
€ 10
30%
20%
€5
Expected online share (% total)
70%
10%
€0
0%
2013
2015
2017
2019
2021
2023
2025
2027
Fashion
Electronics (1)
Food
Fashion share
Electronics share
2029
Food share
© IG&H Consulting & Interim, Utrecht 2013
Source: IG&H analyse
(1) Excluding telecom
IG&H supports wehkamp.nl with realisation of largest automated e-commerce DC in the world
2

3. Challenge: increased online competition demands
further differentiation in customer proposition
Entrants





Niche start-ups
Cross-channel retailers
Foreign entrants
Cross border shipments
Market comparison sites
Suppliers




Customers
Direct factory deliveries
Direct sales platforms
Multi- / omni-channel
Consolidation





Increased
online
competition
Price transparency
Decreasing brand loyalty
Limited patience
First time right
High service demands
Substitutes




© IG&H Consulting & Interim, Utrecht 2013
Trade / bartering sites
Lending and sharing
2e hand sales
Re-use / cradle-to-cradle
IG&H supports wehkamp.nl with realisation of largest automated e-commerce DC in the world
3

4. Transition: shift from “front-end” to “back-end” for
reinforcement of customer proposition
“Front-end”
“Back-end”
 Access everywhere
 Late ordering
 Easy orientation
 Fast deliveries
 Broad product assortment
 No waiting
 Hurdle free buying process
 Error free and undamaged
 Personalised content
 Convenient returns
 Customer choice
 Direct returns crediting
 No dissatisfiers
 Low costs
Promise…
© IG&H Consulting & Interim, Utrecht 2013
…fulfilled!
IG&H supports wehkamp.nl with realisation of largest automated e-commerce DC in the world
4

5. Design: four drivers key for effective “back-end”
Simplicity
Efficiency
 Number of steps / touch points
 High productivities
 Low technology complexity
 Task specialisation
 Process step independence
 Process control
 Flow
 Error prevention
Low risk
Flexibility
 No single points of failure
 Changing client order profile
 Proven technology
 Scalability with demand
 Redundancy in capacity
 Scalability with growth
 Back-ups in processes
 Process sequencing
© IG&H Consulting & Interim, Utrecht 2013
IG&H supports wehkamp.nl with realisation of largest automated e-commerce DC in the world
5

6. IG&H approach: solution centred on value creation,
seamless process and smooth decision making
Supplier
benefits
 Secured project support
 Clear requirements
Project success
factors
Customer
benefits
1. Clear strategic framework
 Internal alignment
2. Alignment logistics vs. business
 Focused solution design
 Focus on value creation
 Objective assessment
3. Transparent selection criteria
 Expert input in sessions
 Structured / efficient route
4. Detailed milestone planning
 Commercial contact
 Show case presentation
5. Multi-level stakeholder management
6. Reference visits and interviews
 Smooth decision making
 Tangible evidence
 No uncertainty / unclarity
7. Clear reporting and communication
 Profound reference docs.
 Less work
8. Use of effective templates
 High comparability
 Continuous improvement
9. On-going feedback
 Maximum result
© IG&H Consulting & Interim, Utrecht 2013
IG&H supports wehkamp.nl with realisation of largest automated e-commerce DC in the world
6

7. Self-test (r)etail: key questions for determining
competitive e-fulfilment proposition
 Are we attaining the maximum
value creation from fulfilment?
 Is there a clear strategic
rationale for e-commerce?
 Is there a business case for
operational investments?
 Do we have the right business /
outsourcing model?
 Is our fulfilment proposition
currently competitive?
 Are the right capabilities
currently fulfilled in-house?
 Does the current automation
level lead to lowest cost / order?
 Have we selected the right
business partners?
© IG&H Consulting & Interim, Utrecht 2013
Strategic
Tactical
Operational
 Does our sourcing / replenish
cycle result in high stock turns?
 Does the current process /
location fit our proposition?
 Do we meet all service requirements with the current set-up?
IG&H supports wehkamp.nl with realisation of largest automated e-commerce DC in the world
7

8. Contact details: questions and further information
Mirjam Karmiggelt
Thomas Bloemarts
IG&H Director
IG&H Consultant
@: m.karmiggelt@igh.nl
@: t.bloemarts@igh.nl
IG&H Consulting & Interim
Hondiuslaan 102
Postbus 572
3528 AC Utrecht
www.igh.nl
© IG&H Consulting & Interim, Utrecht 2013
IG&H supports wehkamp.nl with realisation of largest automated e-commerce DC in the world
8

9. Utrecht, November 2013
IG&H supports wehkamp.nl with realisation of largest
automated e-commerce DC in the world
© IG&H Consulting & Interim, Utrecht 2013

10. IG&H: 25 years in professional services
 Professional services since 1988 –
based in the Netherlands
 Consulting
 Interim Management
 Ca. 150 professionals
 “Make strategy work” - bringing strategy
to execution with measurable results
 Sector expertise and experience
 Retail, E-commerce, Wholesale, Logistics
 Financial Services
 Health
 Distinct DNA





© IG&H Consulting & Interim, Utrecht 2013
Pragmatic
Committed
Challenging
Respectful
Independent
IG&H supports wehkamp.nl with realisation of largest automated e-commerce DC in the world
10