Store Inventory Management Market Outlook & Product Overview

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1 Store Inventory Management Market Outlook & Product Overview Jeanette Ringwelski, Product Strategy Manager

2 THE FOLLOWING IS INTENDED TO OUTLINE OUR GENERAL PRODUCT DIRECTION. IT IS INTENDED FOR INFORMATIONAL PURPOSES ONLY, AND MAY NOT BE INCORPORATED INTO ANY CONTRACT. IT IS NOT A COMMITMENT TO DELIVER ANY MATERIAL, CODE, OR FUNCTIONALITY, AND SHOULD NOT BE RELIED UPON IN MAKING PURCHASING DECISION. THE DEVELOPMENT, RELEASE, AND TIMING OF ANY FEATURES OR FUNCTIONALITY DESCRIBED FOR ORACLE S PRODUCTS REMAINS AT THE SOLE DISCRETION OF ORACLE.

3 Agenda Key Market Challenges Oracle Retail Solutions Store Inventory Management Product Review Vision for Future

4 Key Market Challenge: Out-of-Stock/Over-stock Description Sales and customers are lost when product is not in the store, or in the wrong location Too much stock reduces turnover rates and potentially increases markdowns If product is unavailable, 30% of the time, customers leave the store without making any purchase (AMR Research) Why This Is Important? Excess inventory costs retailers millions of dollars a year in handling and markdown costs Retailer out-of-stock averages 8%. So, they could be sending 8% of their customers to a competitor. When store associates spend time chasing down stock instead of selling, customer service degrades and other potential sales may be lost Market Evidence Recent customers: Bombay, Gymboree

5 Key Market Challenge: Effective Store Operations Description Store managers report having more work to do with decreased labor budgets Store managers spend between hours/week on the sales floor Why This Is Important? Technology can assist store managers to react quickly to market shifts Backroom PC s Inventory Management applications Wireless hand held devices Key takeaway - Data needs to be accessible & usable

6 Key Market Challenge: Customer Retention Description Multichannel retailing has trained customers to expect more from the retail experience and bring those demands to the store. Customers want access to detailed product information, transparent channels, and being known. Retailers are at a high risk of losing customers when sales associates leave a customer to check on stock. Customers don t have this experience online. Why This Is Important? Losing customers = lost sales Price is no longer a differentiator Stores require the flexibility to be innovative Market Evidence Retailers with high levels of mature store operations yield: 10-15% increase in market baskets 20% reductions in out-of-stocks 10-20% improvement in employee productivity Source: Forrester Research Inc., Nikki Baird, Keeping Stores Innovative, October 3, 2005 AMR Research, Scott Langdoc, Better Demand Data & Store Execution Create a Superior Shopping Experience, September 17, 2005

7 Retailing in the Future: The Empowered Customer Trends Better informed Multi-channel shopper Technology savvy Time starved Know competitor s prices Want tailored promotions Consumer Expectations Expect knowledgeable employees Consistent experience across channels Self-service access to service and information Fast & easy service and checkout

8 Improving the Customer Experience With over 450 retail outlets plus catalog and internet sales, The Bombay Company designs, sources and markets a line of home furnishings, which include large furniture, occasional furniture, wall decor and decorative accessories. CHALLENGE SOLUTION BENEFIT Legacy store systems environment Oracle Retail Store Inventory Improved guest transaction times by limited leveraging broadband infrastructure ability to serve the customer Management efficiently Oracle Retail Point-of-Sale Reduced credit card processing Unable times by 2-3 minutes to achieve a sub- to support prepayment of 472 stores, 2 registers per store, 944 merchandise, increasing inventory 3 second response clients carrying costs for high-ticket furniture Environment Centralized customer and inventory purchases information to provide a more Client O/S: Microsoft Windows XPe personalized shopping experience for Long transaction times due to slow Store server O/S: IBM Linux the customer credit card processing Store server H/W: IBM NetVista PCs Enabled real-time visibility into store Lost add-on sales due to inability to Client H/W: IBM SurePOS 4610 level data including item look-up, stock suspend transactions at the POS Enterprise H/W: IBM iseries counts Lack of visibility into store perpetual Implemented and rolled out entire Improved in-store efficiency and inventory This presentation is for informational purposes only, and system may not in be 8 incorporated months, in into time any for contract. holidays The development, product release, sell-through and timing of any features or

9 The Broadest Suite of Solutions for Retailers Merchandise Financial Planning Category Mgmt Trade Mgmt Invoice Match Item Planning Space Opt Merchandising System Assortment Execution Allocation Price Mgmt Sales Audit Price Optimization Promotion Opt Design WebTrack Merchandise Planning & Optimization Merchandise Operations Mgmt Demand Forecasting Strategic Network Opt Transportation Mgmt PLM Supply Chain Opt Adv. Inventory Planning Warehouse Mgmt Sourcing Supply Chain Planning & Optimization Value Chain Collaboration Home Delivery Supply Chain Execution isupplier Returns Mgmt Central Office Workforce Mgmt Field Service Marketing/Seg Store Inventory Mgmt Order Mgmt Call Center Point-of-Sale Back Office Integrated Store Operations Labeling/Tagging Web Store Sales Loyalty Customer Relationship Mgmt Business Analytics BI Accelerator Real Estate Project Mgmt Retail Data Warehouse Business Intelligence Scorecard Financials Human Resources Corporate Administration

10 Benefits from Oracle Retail Store Solutions Improve the Shopping Experience - ROI Opportunities - Multi-channel sales & returns - Save the sale capabilities - Marketing and promotions - Added customer convenience - Real time customer - Accurate inventory information - Increase Intimacy - Return policies that treat customer s fairly Increase Operational Efficiency - ROI Opportunities - Reduce employee training - Improved efficiency at the check out - Reduce credit disputes - Reduce Fraudulent Returns - Right inventory levels - Consistent enforcement of policies - Automate decisions - Identify exception behavior - Right coverage level by best skilled associates

11 Store Inventory Management Product Overview

12 Benefits from Store Inventory Management In-store location level tracking to prevent stock-outs and over-stocks Real-time, cross-store inventory lookup to help save-the-sale Warehouse and DSD receiving, transfers, return-to-vendor, shelf replenishment, and stock counts on a PC and wireless device to improve productivity More customer service features than any other comparable inventory management solution.

13 Store Inventory Management Integrated Workflow Publish Subscribe Integration Bus Collaboration Workflow Visibility Collaboration Receiving Store Inbound Transfers Receipts POs/ASNs Inbound Cartons / Pallets Inventory Management Adjustments Merchandise Requests Shipments Inventory Availability Stock Counts Pricing Shelf Replenishment Store Orders Real-Time Store Outbound Store-to-Store Transfers Returns Dispatch Shipping Store

14 Managing Inventory Moving into the Store Review incoming deliveries Vehicle arrives at loading dock Identify delivery to be received Receive inventory at appropriate level Confirm receipt of delivery Send out of stock and low stock lines to the shop-floor. Put remaining stock away in warehouse Record damages, missing, over and unders Update inventory Return to warehouse/supplier Print delivery documentation

15 Managing Inventory in the Store Identify item, quantity and reason for inventory adjustment Record item, quantity and reason for inventory adjustment Update stock on hand

16 Moving Inventory from the Backroom to Selling Floor Identify out of stocks and low stocks on the shop-floor Create pick list Pick stock from the store warehouse Replenish stock on the shop-floor Update inventory

17 Managing Inventory Moving Out of the Store Agreement/notification of stock to be transferred/returned Identify, assemble and record stock to be moved Vehicle arrives at the loading dock Print documentation Despatch delivery Make stock unavailable for sale Update inventory

18 SIM 11.1 Released August 2006 Feature Functionality Business Benefit Integration Admin Settings Stock Counts Warehouse Receiving Automated Installer Compatible to Oracle Retail Merchandising System (ORMS) version 10.0 & Choose whether the long or short item description is displayed. Unguided unit and ad hoc counts Ability to quick scan shipping containers as they are unloaded without having to choose an ASN. Java installation tool to install SIM on UNIX environments. Customers do not have to upgrade their ORMS version 10.0 or 11.0 to integrate with SIM. Allows a retailer to choose how much item information is displayed to users. Reduces the time required to conduct unit or ad hoc stock counts. Allows users to scan, confirm, and reconcile a shipment quickly, which reduces processing time. Automates the following items: Creation of the SIM database schema Placement of application server files Configuration of the SIM application server and client. Performance Purging & Batch Programs redesigned in PL/SQL Improves system performance

19 Roadmap & Direction Solution Current Planned Roadmap 12-month horizon Potential Future Direction Store Operations Integration to Oracle Applications Internationalization & Translation Platform enhancements Additional deployment flexibility Architectural enhancements Continued Standards Updates Enhanced configurability Simplified installation / deployment Improved monitoring & alerting Improved Software distribution Enhanced promotions Enhanced loyalty & CRM Additional workforce management Store Inventory Management Enhanced Stock Counts Enhanced ASN receiving Performance improvements Architectural enhancements Platform upgrade Internationalization Translation Additional connectivity functionality Enhanced integration Enhanced sequencing Enhanced configurability Store managed orders enhancements Improved direct store delivery Enhanced upgradeability Enhanced off line capability

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