IoT Adaptive Retail Solution

Know … Now !
SkandSoft Adaptive Retail Solution
on
SETUTM

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SetuTM Adaptive Retail Solution
Industry Overview largest
private
World
• World’s largest private industry.
• US$ 6.6 trillion sales annually.
India
• Largest employer after agriculture - 8%1 of population.
• Highest outlet density in world.
• Around 12 million outlets.
• Still evolving as an industry.
1 www.etretailbiz.com/dec2002

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Wal-Mart2
• Topmost global Fortune 500 company (3 Consecutive Years).
• Annual Sales of over US$ 250 Billion .
• India’s two largest retail player turnover around US$ 158 Mn (Bata) and US$ 102 Mn
(Shoppers Stop) .
Fortune 1002
• 9 Retailers.
• Wal-Mart, Carrefour, Ahold, Home Depot, Kroger, Metro, Kmart-Sears, Target,
Albertsons.
2 Fortune List of world’s top companies

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Generic Retail Environment
Suppliers 3PL
Central
Warehouse
RW1
RW2
RW3
Central Administration Functions
Collection Distribution
RW Regional Warehouse
Internal Warehouse
Counters
Check Out
Shelves
Retail Outlet

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Retail environment overview
 Retails industry is impacted and to an extent also
dependent on a host of stakeholders
 Multi location operations
 Dynamic influences of impact
 Large retailers globally, looking for automating many
processes to help cope with the scale, complexity and the
speed required for larger margins and customer loyalty.

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Current Scenario
Information for
Production
Customized Attention
Required
Manufacturer
Inventory planning
Distributor
Retailer
Out of stocks
Inventory
planning
Theft
Return
Fraud
Employee
Tracking
Payment
Systems
Payment
Systems
Store
visibility
Consumer
Products
Unavailable
Product
Returns
Product Recalls

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Areas Of Concern / Focus
1. Data Transparency across the Chain
 EPC Info Exchange and other protocols
 Adoption of GTIN and other standards
 In transit Visibility during collection and distribution
 Pallet / case / item level tracking
 Seamless Information exchange between the stakeholders
2. Real time Information across the chain
 Single point data access
 Multi Stores Visibility
 Monitor Perishable goods

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3. Extension of Value of Info / Data generated
 Extend and collaborate information with various stakeholders and retail
 Business components
 Collaborate with other forecasting, analytical systems for extended benefit (CPFR
(Collaborative Planning, Forecasting and Replenishment) and SCOR (Supply Chain
Operational Reference))
 Improved forecasting for
• Demographics
• Dynamic pricing
• Localized pricing
• Proper isle placement
• Buying patterns
• Region wise
• Season wise (Festive or Climatic)
 Identifying Quick Response merchandising and merchandise mix modelling
 Pricing of Shelf space based on effectiveness
 Product wise sequential analysis (product path tracking, life-cycle tracking etc., for a given
SKU/Item)
 Supplier performance rating - delivering goods on-time, supplier returns history

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4. Collaboration of Relevant data between stake holders
 Improved delivery receipt & reconciliation
 Better cross docking
 Less product returns
 Reduction in reverse logistics
 B2B Integration (Retailer can place order to manufacturer in Real time)
 Provide vendors/manufacturers with valuable customer information for use in fine-tuning
their marketing efforts
5. Inventory & Replenishment
 Efficiency in key business ratios
 Out of stocks
 Inventory Obsolesce/ Shrink
 Automatic Inventory Counts
 Reduce Safety Stocks (Margins)
 Demand planning reduce unshakeable and out-of-stocks
 Inventory Rotation

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6. Flexibility to dynamically adapt to new Biz Rules
 Adapt to new Mandates
 Adapt to a changing Market needs and fluctuations
7. Financial Efficiency / Security
 Accurate billings
 Efficient utilization of human resources
 Paperless audit trails
 Financial reporting accuracy across the chain
 Lean operations
 Increased invoice accuracy across the chain
 Enhanced security
• Theft
• Tracking of individual items
• Access control
• Data encryption
 Counterfeiting of Goods
 Product Recalls

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Proposed Scenario
SETU Enabled Network
Manufacturer
Better Inventory planning
Better Information for
Production
Distributor
Retailer
Stock outs
minimized
Better Inventory
planning
Reduced
Theft
Minimum
Fraud
Employee
Tracking
Greater
Store
visibility
Consumer Products
needed
Available
Easy Product
Returns
Customized
Attention
Product Recalls
Timely
Payment
Elegant
Payment
Systems

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Data transparency across the Chain
 EPC Info Exchange and other protocols
 Adoption of GTIN and other standards
 In transit Visibility during collection and
distribution
 Pallet / case / item level tracking
 Seamless Information exchange between the
stakeholders
SETU facilitates a solution environment that
is Independent of data acquisition
technologies, data formats, data interchange
protocols/standards. Thus enabling the
entire chain to be covered by a host of
relevant data collection technologies and
enhance transparency levels across the
chain.
SETU is designed to accommodate data from
an entire spectrum of data capture
technologies right from manual data feeds to
bar codes to RFID, ZigBee, ICS like SCADA,
PLC’s, etc…
SETU is also agnostic to multiple data
formats, protocols by migrating all disparate
data to a common data format at the data
collection edge itself.
1.

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Real time Information across the chain
 Single point data access
 Multi Stores Visibility
 Monitor Perishable goods
Solutions on SETU have an inherent
advantage of scanning out across physical
business locations due to its distributed
computing architecture.
SETU is designed and engineered to handle
large mega volume transactions and hence
provides a single or multiple point access to
real time data collected from multiple data
points.
Due to the multiple data collecting ability of
SETU the platform supports collecting of real
time data across various parameters like
humidity, temperature, chemicals etc. to help
real time monitoring go perishables and
other specialty goods.
2.

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Extension of Value of Info / Data generated
 Extend and collaborate information with various
stakeholders and retail
 Business components
 Collaborate with other forecasting, analytical systems
for extended benefit
 Improved forecasting
• Demographics
• Buying patterns
• Region wise
• Season wise (Festive or Climatic)
• Dynamic pricing
• Localized pricing
• Proper isle placement
 Quick Response merchandising and mix modeling
 Pricing of Shelf space
 Sequential analysis (product path tracking, life-cycle
tracking etc., for a given SKU/Item)
 Supplier performance rating
SETU driven solutions thrive on a complex
computing curve right from masking data to
sifting them through varied layers of filters
for selection and analysis for business
relevance.
SETU can be integrated seamlessly with BI
suites providing Real-time data inputs for
such applications.
SETU allows Selective Data Treatment for
optimal use of collected data in various
applications like:
Raw Data to Business Analytics
applications.
Aggregated Data to ERP.
Statistical Treated Data to Reporting
/ BI Applications.
Correlated Data to ICS, etc.
3.

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Collaboration of Relevant data
between stake holders
 Improved delivery receipt & reconciliation
 Better cross docking
 Less product returns
 Reduction in reverse logistics
 B2B Integration (Retailer can place order to
manufacturer in Real time)
SETU facilitates internal data normalization
and formatting. It also allows data sharing
through EPC IS and industry standard
exchange formats.
SETU is B2B integration ready platform and
technology neutral, thus increasing the ROI
for previous and future IT investments.
Increased web based collaboration leads to
Real-time information access across the
enterprise and outside including internal and
external customers.
SETU features multiple integration
methodologies API’s (via - XML, API, JCO) –
for integration with existing applications like
HRMS, workflow engines, reporting modules
etc.
4.

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Inventory & Replenishment
 Efficiency in key business ratios
 Out of stocks
Inventory Obsolescence/ Shrink
 Automatic Inventory Counts
 Reduce Safety Stocks (Margins)
 Demand planning reduce unsaleables and
out-of-stocks
SETU outputs data in multiple formats –
text, CSV, XLS and XML thus enabling
various customized reports for better
forecasting relating to demand, expiry
dates, geography etc.
SETU allows specific processes to be
embedded on the network across functional
areas (inventory tracking, WMS, asset
tracking, etc.,) and allows the user to define
multiple event rules including custom rules.
The facility of being able to define custom
rules enables the customer to have user
defined alerts / actions on physical business
process rules being adhered to / deviated
from.
E.g. If the stocks of a particular item fall
below the threshold, SETU can be defined
(custom-rule) to trigger alarms (sound / pop-
ups), SMS/ emails to the respective
personnel, enabling Real-time corrective
action.
5.

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Flexibility to dynamically adapt to
new Biz Rules
 Adapt to new Mandates
 Adapt to a changing Market needs and
fluctuations
SETU is built on a modular architecture
enabling the use of only relevant modules
with respect to the existing business
scenarios.
Modules can be seamlessly added to cater to
the market dynamics – helping be prepared
for future mandates, technology (disruptions)
and business fluctuations.
ASN is a pre requisite in any collaborative
supply chain context.
SETU delivers ASN information in Real-time
6.

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Financial Efficiency / Security
 Accurate billings
 Efficient utilization of human resources
 Paperless audit trails
 Financial reporting accuracy across the chain
 Lean operations
 Increased invoice accuracy across the chain
 Enhanced security
• Theft
• Tracking of individual items
• Access control
• Data encryption
 Counterfeiting of Goods
 Product Recalls
SETU facilitates seamless integration with
external applications, analysis tools
to help arrive at business decisions when
they need to be taken.
Since SETU facilitates Real-time data inputs
to the financial packages enabling improved
TCO, lean operations, reduced errors in
billing, invoicing, etc.
The various reporting techniques of SETU
facilitate better asset management, product
recalls, thefts, counterfeiting, etc. SETU’s
ability to communicate to access control
systems etc. allow for automatic preventive
actions in instances of any un-authorized
movement of goods and people.
7.

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SkandSoft Approach
Skandsoft Partnership Program
 Understanding existing business
 Identifying areas of impact vis-à-vis ROI and ground level impact of good
technologies and ideas. E.g.1. Bar Codes are not yet dinosaurs. E.g.. 2 If the
floor level staff cannot use the solution it is NO solution
 Defining and designing blue print with relevant support documents on change,
ROI and time efficiency
 Simulating a representative pilot
 Ratifying or relevantly altering pilot specifications to evolve the final
specifications for functional and technical aspects

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WHY ?
 SkandSoft SETU delivers hi-end technology on the same platform as conventional
technologies.
 This helps larger ROI yield un-affected by dynamics of technology obsolesces and changes
over large time horizons.
 SETU is geared to handle unstructured data and helps deliver tangible value to the
enterprise, irrespective of the data technology
 SETU complements existing enterprise IT which is unable to handle granular data and
unable to enforce physical business process rules
 SETU is a pioneering platform [patent pending] in the AIDC space with unparallel
engineering and technical features to help make most of real time data for sustained
efficiency across business functions.
 Large global IT companies including IBM, Siemens, TCS, Intel, Cisco, Satyam are working
with Skandsoft and around SETU to help deliver top of the line solutions in this space.

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Thank you for your
Real-time
invested

IoT Adaptive Retail Solution

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