The Future of E-Commerce: The Latest Trends and their Impact on Web and Omni-Channel Retailing

Transcription

1 The Future of E-Commerce: The Latest Trends and their Impact on Web and Omni-Channel Retailing Kim Baudry, Market Development Director, North America, Dematic (USA)

2 The next 45 minutes!! Retailing 360 Ecommerce Trends Retail r evolution Today s customer Supply Chain - the differentiator

3 Have we come full circle?

4 Trends in ECOMMERCE

5 U.S. Ecommerce Spending 2014 Ecommerce Sales $305B 2018 Ecommerce projected $494B Still more than $10 of every $11 are spent in stores! *Sources e-marketer

6 Pure Play Ecommerce Super Store E-tailers Specialty E-tailers Flash or Subscription

7 One half of all Americans will be Amazon Prime Members by 2020

8 Amazon 3D printing in trucks

9 Amazon Dash Your order is a button push away

10 Driverless cars Remote Pick up lockers Crowd Sourcing Image Recognition Robotics Other Trends

11 The Evolution of RETAIL

12 Retailing Then & Now Early years of retailing Destination shopping In-store experience Numerous service offerings Many categories of items available More costly to operate Emergence of online shopping Retail experience to customer Value ease of navigation, cost, service Endless Aisle Less expensive to operate Increases Competition Focus on supply chain - delivery

13 Today s Consumer - Educated

14 Today s Consumer Choices Mall in the Palm of their hand $114B mobile commerce in 2014 increase of 58% from 2013* Finger strokes instead of footsteps Better product information Better price information Store-front multiplier (*Forrester Research)

15 transactions include FREE SHIPPING. Most Factors Influencing Online Buying Source: ComScore

16 Small Stores making a comeback

17 RFID & Smartphones RFID inventory tracking Smartphones sales transactions & omnichannel inventory

18 Omni-channel is retail today 87% shop online before buying in stores 80% use social networks when researching new products 70% use smart phones for shopping in store 73% choose their smart phone for a simple task over asking a store associate Customers control shopping experience Fully integrates inventory, supply chain processes & retail operations to serve customer demand Drop-ship vendors to expand assortment

19 Retailers must Change

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21 Macy s an Omni-channel success story Social Media Use Omni-Channel Practices Free Shipping & Returns RFID & Beacon Marketing Smartphones for Sales Transactions

22 Why Macy s?

23 Reaching their customer everywhere

24 Embraces Omni-channel Practices

25 The Supply Chain A key ingredient

26 Today s Supply Chain Old Supply Chain Assortment limited Cost centers Push model Predictable replenishment Predictable ship times Store only path to purchase New Supply Chain Endless Aisle Store is destination AND inventory source Anywhere/Anytime shopping & fulfillment Free & Easy Returns Inventory Real Time & Accurate

27 Impact on Distribution Centers More sku s and split case everywhere! Multiple channels & store formats Less store space = more frequent smaller deliveries Order receipt & ship time shrinking Value added services on the rise Reverse Logistics DC Utilization vs. Functional area productivity Supply Chain delivers value EVERYWHERE!

28 Order Fulfillment Options Batch pick to cart Voice or RF Discrete order picking Voice, RF, Lights Batch pick to put walls Dynamic Storage & Retrieval 28

29 Manual or Low Tech Methods Voice or RF order batch pick to cart from static storage with optional low tech conveyor takeaways Suitable for: Discrete or group orders Small orders Large number of SKUs Slower moving product Pick multiple orders simultaneously Advantages Low capital cost Low tech and simple Flexible, few barriers to operation Scalable, can add carts / labor Modular 0 Volume Orders SKU Lines Units / Line Disadvantages Lowest pick rates, high labor cost Long travel paths for multi-line orders To get density, cart grows in size Lots of Skus takes up a lot of space Lines / Order Unit Cube 29

30 Manual or Mid Tech Methods Voice, RF SKU pick to tote from static storage. Low tech conveyor takeaway & sorted manual put stations. Pulled across to pack stations & and conveyed to shipping 100 Suitable for: Dynamic order processing Slow to medium moving product High number of orders High number of SKU Advantages Simple operation Less SKU dependency Flexible, few barriers to operation Scalable, can add labor Modular, add lights, voice, RF for put 20 0 Lines Lines / Case Lines / Order SKU Unit Cube Disadvantages Throughput is labor based 3 touch process pick, put and pack Space 30

31 Mid Tech Methods Voice or RF single SKU batch pick to tote from static storage to low tech conveyor takeaway. Manual induct to unit sorter - routed to pack stations & and reintroduced for shipping Suitable for: Order assembly for batch order picking Slow to medium moving product High number of orders High number of SKU Advantages Simple batch pick to tote strategy Traditional solution for Ecommerce Efficient use of labor 0 Lines Lines / Case Lines / Order SKU Unit Cube Disadvantages High capital cost Manual piece induction, scan each SKU Works best with large batches 31

32 Dynamic Storage: High Rate Storage & Retrieval Suitable for: Store and/or ecommerce storage, replenishment, fulfillment Varying velocities of product High number of order Ranges of SKU counts Advantages High pick rates per person (less labor) Peak throughput less dependent on labor Flexible, low SKU dependency Scalable, technology drives throughput Modular, add aisles as needed Constant, predictable throughputs Disadvantages Higher up-front capital investment More dependency on technology Requires de-trash function 32

33 Dynamic Order Fulfillment Operation Active storage Total utilization vs. functional area productivity Pull vs. Push model to handle small & large stores & direct to consumer 33

34 Value in Total Solution

35 Thank you!