The Winning Formula for Distributed Order Management in Retail and Beyond

1. The Winning Formula for Distributed Order
Management in Retail and Beyond

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3. Dan Gilmore
CMO, Softeon
Satish Kumar
VP Client Services, Softeon
Chris Teufel
CIO & VP Supply Chain and Logistics,
Duluth Trading Company
Today’s Presenters
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4. Softeon: Broad Supply Chain Software Suite Across Integrated SOA Platform
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5. New Little Book of
Distributed Order Management
Get Your FREE Copy at
Softeon Booth #3942
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6. Introduction
 DOM is New Kind of Software, with a
Big Impact but not well understood
 Started in Late 1990s to Connect New
e-tailers with Suppliers
 Key to Omnichannel Success for
Retailers and Others
 Many Applications Outside of
Omnichannel
CSCMP Supply Chain Quarterly
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7. What is Distributed Order Management?
DOM provides integrated order planning and execution
across multi-echelon, multi-node, multi-partner and
multi-channel supply chain networks.
Simple Definition:
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8. What is Distributed Order Management?
A Distributed Order Management system serves as a
powerful hub that enables Omnichannel commerce,
integrates the extended supply chain, optimizes
inbound and outbound order routing, provides real-time
network inventory visibility, allocation and
management, automates complex channel and
customer requirements and maximizes profitability
while meeting customer service commitments.
DOM is, in fact, something of a Swiss Army knife of
capabilities and becoming the central force of the
supply chain execution ecosystem.
More Complete Definition
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9. DOM Fundamentals
 Real-time visibility to inventory, order execution capacities and constraints across an extended
network
 “Orchestration” of order fulfillment. What does this really mean? Orchestration involves
applying an automated set of dynamic rules to each order so that it is executed precisely
according to the desired business logic.
 A rules engine foundation that executes configured business strategies based on order
fulfillment policies
 Connectivity to other internal and external systems
 Automation of order handling processes
 Flexibility to fulfill orders based on that real-time visibility
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10. DOM Use Cases
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11. DOM Use Cases – Optimal Order Sourcing
 Sourcing
1. Postal Code (3-digit) or State Code or User defined
2. 100% inventory availability at the selected node
3. Check the next best location for 100% inventory availability
4. Inventory (100%) not available at any of the node - Split the Order
5. Back Order Management based on Retailer
6. Freight Cost based sourcing
7. DC Capacity
 Omnichannel
1. Store sourcing based on BOPIS or SFS or STZ enabled
 Exception Handling
1. Ship Method (Pickup from Store) only processed from DC A if Store doesn’t have the inventory
2. Gift Orders can’t be split
3. Kit Orders can’t be split
Fulfillment Nodes
ERP
DOMS
Stores
(East)
Drop Ship
Stores
(West)
Outlet
Stores
Company
DC (South)
3PL DC
(East)
Pop-Up DC
3PL DC
(West)
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12.  Omnichannel process enablement without cost/ effort of modifying existing
systems
• Greatly accelerating the “idea to enablement cycle” as well as strategy/policy
changes over time
• Faster time to market with new channels/services and sourcing options
 Profit optimization though lowest cost fulfillment within defined constraints
 Multi-channel inventory visibility and control
 Automation of many manual processes and decision-making
 Increased sales by making all network inventory available for order
allocation/right inventory right place
 Enhanced customer experience
Benefits of First Two Use Cases
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