…real time CRM
Supply chain optimisation
© Invite CRM, Ltd, 02/2011
27.11.2016 Supply chain optimisation, © Invite CRM, Ltd, 02/2011 2
Reasons for broaden cooperation. Why now?
• Market
– Increased diversity of customers
– Understanding shopping behaviour – segmentation
– Tracking trends
– Increased margin pressures – need for higher effectiveness
• Supply chain optimisation
– Electronic data exchange
– Assortment optimisation
– Logistics optimisation
– Forecasting and replenishment
– Campaign management
Optimisation run since
80s in food retail –
Wal-Mart and P&G,
Tesco and ClubCard,
non-food is falling
back for now, but…
27.11.2016 Supply chain optimisation, © Invite CRM, Ltd, 02/2011 3
Levels of cooperation – benefits for supplier
Supply chain optimisation
De/listing
Document management
Stock management
Deal clearing
Market data exchange
Basic sales data – categories, SKUs
Sales data combined with customer (data from loyalty program)
Complex data – substitutes, associations (transaction and market data)
Joint planning and management
Assortment management
ATL and BTL campaigns management
Event management
27.11.2016 Supply chain optimisation, © Invite CRM, Ltd, 02/2011 4
Supply chain optimisation – detail
• Interface connects product catalogue with
POS, stock and accounting system on
both sides
• Supplier inputs its products in predefined
structure, consequently confirmed by
retailer – both sides view the same, actual
data – no duplicates, errors etc.
• Optimisation run in following areas
– De/listing
– Ordering
– Acceptance protocol
– Goods transfer – stores, DC
– Invoicing
– Goods sold in commission
– Possibility to connect to current EDI
Benefits:
• Single view at catalogue for
both sides – less errors
• Faster product list inputs –
de/listing process
• reduction in transaction costs
with key accounts with high level
of automation
• Reduction of cash levels bind in
slow moving stock
• More precise invoicing reflecting
in lower number of dispute items
and transaction costs
Transaction costs reduction (upto 80%)
Dispute invoice items reduction (upto 90%)
Manual process errors reduction (upto 80-90% according to level of automation)
27.11.2016 Supply chain optimisation, © Invite CRM, Ltd, 02/2011 5
Effective supply chain model
purchasingportal
productcatalogue
supplier retailer
de/listing
pricing
clearing
campaignmanagement
ERP
distribution
sales
promotions
cash register
e-shop
warehouse
27.11.2016 Supply chain optimisation, © Invite CRM, Ltd, 02/2011 6
Effective supply chain data flows
27.11.2016 Supply chain optimisation, © Invite CRM, Ltd, 02/2011 7
Listing and maintenance process
27.11.2016 Supply chain optimisation, © Invite CRM, Ltd, 02/2011 8
Market data exchange – detail
• Data exchange runs on 3 levels using the
same data interface as purchasing, only
extended by further data (content)
• Content is graduated according to
richness with adequate fee structure
• Basic rough data can be extended by
trends, basket data, data mining, decision
trees, cognitive maps etc.
• Thanks to Memrb participation data
interpretation, ad hoc projects is possible
Benefits:
• Supplier gets online view on
sales in required structure or
structure agreed with retailer
• Promo and campaign data are
available too
• Historical data are included,
later extended by predictions –
assortment and stock forecasting
• Sales data are combined with
customer perspective to optimise
marketing strategy
• As result achieving more
effective sales and brand building
• We expect full toy market
representation as other toy chains
will enter the panel
Data interpretation – VAS and ad hoc services
Complex data – substitutes, associations
(transaction and market data)
Sales data combined with customer (loyalty
program, promo reactions)
Basic sales data – categories, SKUs
27.11.2016 Supply chain optimisation, © Invite CRM, Ltd, 02/2011 927.11.2016 9
Data sources
Consolidated DB
Transactional data
Cash registers
E-shop
E-procurement
Research data
Primarily market data
Qualitative
Quantitative
Online behaviour
Corporate web
Community web
Public web
Market data
Sector data
Promo analyses
27.11.2016 Supply chain optimisation, © Invite CRM, Ltd, 02/2011 10
What data will be available – examples
Over 100 types of analyses identified for more effective purchase and sales
• Social-demographic characteristics
• Interest profile
• Visit frequency
• Purchase value
• Basket structure – in different periods, occasions – Xmas, birthday, other
• What is purchased together – associations
• Relationship between age and toy preferences
• Purchase trajectory through store – reactions to display
• Main (destination) and supplementary items
• Substitute items (brands)
• Price sensitivity measurements
• Campaign reactions
• Event participation
• Responses to questionnaires – evaluation of brands, heroes, products etc.
• …
27.11.2016 Supply chain optimisation, © Invite CRM, Ltd, 02/2011 11
Joint planning and management – detail
• Assortment management
– Aligning view at categories – as new
customer perspective
– Reflected upto store level
– More targeted positioning (why) of chain,
categories and correct understanding of
their roles
• ATL and BTL campaigns management
– Joint campaign planning based on
purchase decision knowledge and segment
expectations (obtained thanks to data
exchange)
– More targeted „value proposition“, higher
response rate, more effective retailer and
supplier brand building
• Event management
– Exploiting store floor space – entertainment
shopping, brand experience, active brand
building with target group participation
– Brand experience extension outside store –
loyalty program, customer portal
Benefits:
• Joint definition of „customer
value“ – what different customer
groups expect, how to present it,
how to communicate with them –
segmented approach
• Feedback on supplier marketing
strategy impact – target group x
marketing message x customer
reaction
• Better assortment planning,
campaign and results prediction –
lower stock, higher turnover
• More effective brand building –
involving all channels, including
point of sale events – „brand
experience“ concept coming alive
27.11.2016 Supply chain optimisation, © Invite CRM, Ltd, 02/2011 12
Different views at categories…
Purchase perspective
• Toys
• Cars
• RCM
• Textile
• Jackets
• …
• Baby goods
• Nannies
• …
Reporting perspective
• Material
• Plastic
• Metal
• Wood
• SW
• Deal type
• Commission
• Direct sale
• …
• Topic
• Thomas
• Spiderman
• Barbie
• Lego City
• Lego Atlantis
Customer perspective
• Plush
• Pets
• Training
• Gifts
• Heroes
• …
• Family
• Social
• Games (Wii)
• …

SupplyChainMntIntro_EN

  • 1.
    …real time CRM Supplychain optimisation © Invite CRM, Ltd, 02/2011
  • 2.
    27.11.2016 Supply chainoptimisation, © Invite CRM, Ltd, 02/2011 2 Reasons for broaden cooperation. Why now? • Market – Increased diversity of customers – Understanding shopping behaviour – segmentation – Tracking trends – Increased margin pressures – need for higher effectiveness • Supply chain optimisation – Electronic data exchange – Assortment optimisation – Logistics optimisation – Forecasting and replenishment – Campaign management Optimisation run since 80s in food retail – Wal-Mart and P&G, Tesco and ClubCard, non-food is falling back for now, but…
  • 3.
    27.11.2016 Supply chainoptimisation, © Invite CRM, Ltd, 02/2011 3 Levels of cooperation – benefits for supplier Supply chain optimisation De/listing Document management Stock management Deal clearing Market data exchange Basic sales data – categories, SKUs Sales data combined with customer (data from loyalty program) Complex data – substitutes, associations (transaction and market data) Joint planning and management Assortment management ATL and BTL campaigns management Event management
  • 4.
    27.11.2016 Supply chainoptimisation, © Invite CRM, Ltd, 02/2011 4 Supply chain optimisation – detail • Interface connects product catalogue with POS, stock and accounting system on both sides • Supplier inputs its products in predefined structure, consequently confirmed by retailer – both sides view the same, actual data – no duplicates, errors etc. • Optimisation run in following areas – De/listing – Ordering – Acceptance protocol – Goods transfer – stores, DC – Invoicing – Goods sold in commission – Possibility to connect to current EDI Benefits: • Single view at catalogue for both sides – less errors • Faster product list inputs – de/listing process • reduction in transaction costs with key accounts with high level of automation • Reduction of cash levels bind in slow moving stock • More precise invoicing reflecting in lower number of dispute items and transaction costs Transaction costs reduction (upto 80%) Dispute invoice items reduction (upto 90%) Manual process errors reduction (upto 80-90% according to level of automation)
  • 5.
    27.11.2016 Supply chainoptimisation, © Invite CRM, Ltd, 02/2011 5 Effective supply chain model purchasingportal productcatalogue supplier retailer de/listing pricing clearing campaignmanagement ERP distribution sales promotions cash register e-shop warehouse
  • 6.
    27.11.2016 Supply chainoptimisation, © Invite CRM, Ltd, 02/2011 6 Effective supply chain data flows
  • 7.
    27.11.2016 Supply chainoptimisation, © Invite CRM, Ltd, 02/2011 7 Listing and maintenance process
  • 8.
    27.11.2016 Supply chainoptimisation, © Invite CRM, Ltd, 02/2011 8 Market data exchange – detail • Data exchange runs on 3 levels using the same data interface as purchasing, only extended by further data (content) • Content is graduated according to richness with adequate fee structure • Basic rough data can be extended by trends, basket data, data mining, decision trees, cognitive maps etc. • Thanks to Memrb participation data interpretation, ad hoc projects is possible Benefits: • Supplier gets online view on sales in required structure or structure agreed with retailer • Promo and campaign data are available too • Historical data are included, later extended by predictions – assortment and stock forecasting • Sales data are combined with customer perspective to optimise marketing strategy • As result achieving more effective sales and brand building • We expect full toy market representation as other toy chains will enter the panel Data interpretation – VAS and ad hoc services Complex data – substitutes, associations (transaction and market data) Sales data combined with customer (loyalty program, promo reactions) Basic sales data – categories, SKUs
  • 9.
    27.11.2016 Supply chainoptimisation, © Invite CRM, Ltd, 02/2011 927.11.2016 9 Data sources Consolidated DB Transactional data Cash registers E-shop E-procurement Research data Primarily market data Qualitative Quantitative Online behaviour Corporate web Community web Public web Market data Sector data Promo analyses
  • 10.
    27.11.2016 Supply chainoptimisation, © Invite CRM, Ltd, 02/2011 10 What data will be available – examples Over 100 types of analyses identified for more effective purchase and sales • Social-demographic characteristics • Interest profile • Visit frequency • Purchase value • Basket structure – in different periods, occasions – Xmas, birthday, other • What is purchased together – associations • Relationship between age and toy preferences • Purchase trajectory through store – reactions to display • Main (destination) and supplementary items • Substitute items (brands) • Price sensitivity measurements • Campaign reactions • Event participation • Responses to questionnaires – evaluation of brands, heroes, products etc. • …
  • 11.
    27.11.2016 Supply chainoptimisation, © Invite CRM, Ltd, 02/2011 11 Joint planning and management – detail • Assortment management – Aligning view at categories – as new customer perspective – Reflected upto store level – More targeted positioning (why) of chain, categories and correct understanding of their roles • ATL and BTL campaigns management – Joint campaign planning based on purchase decision knowledge and segment expectations (obtained thanks to data exchange) – More targeted „value proposition“, higher response rate, more effective retailer and supplier brand building • Event management – Exploiting store floor space – entertainment shopping, brand experience, active brand building with target group participation – Brand experience extension outside store – loyalty program, customer portal Benefits: • Joint definition of „customer value“ – what different customer groups expect, how to present it, how to communicate with them – segmented approach • Feedback on supplier marketing strategy impact – target group x marketing message x customer reaction • Better assortment planning, campaign and results prediction – lower stock, higher turnover • More effective brand building – involving all channels, including point of sale events – „brand experience“ concept coming alive
  • 12.
    27.11.2016 Supply chainoptimisation, © Invite CRM, Ltd, 02/2011 12 Different views at categories… Purchase perspective • Toys • Cars • RCM • Textile • Jackets • … • Baby goods • Nannies • … Reporting perspective • Material • Plastic • Metal • Wood • SW • Deal type • Commission • Direct sale • … • Topic • Thomas • Spiderman • Barbie • Lego City • Lego Atlantis Customer perspective • Plush • Pets • Training • Gifts • Heroes • … • Family • Social • Games (Wii) • …