How e-commerce is Reshaping Supply Chains. Franklin B

Transcription

1 How e-commerce is Reshaping Supply Chains Franklin B

2 How E-Commerce is Reshaping Supply Chains Art Eldred Client Executive, System Engineering

3 Why the resurgence on Omnichannel? Every dollar spent online influences $5.77 spent in the store over the next 10 days Terry Lundgren, CEO Macy s

4 Evolution of the Consumer

5 Evolution of Retail & ecommerce Supplier Distribution Center DC Retail Store Supplier Distribution Center DC Retail Store Supplier Fulfillment Center FC Home Supplier Omnichannel DC Retail Store Home

6 Distribution Growth & Fulfillment Service Needs Distribution Center Growth Fulfillment Center Service Needs Source: U.S. Census Bureau Source: UPS

7 What does Omni-channel really mean to the distribution center? Definitions vary, but for purposes of this seminar, we'll use the term to refer to a retailers' efforts to integrate their store and e-commerce selling channels to work seamlessly together inside the fours walls of a single distribution center. One Inventory One Fulfillment Engine Multiple Order & Product Flows

8 Current State

9 What are the benefits of one Omnichannel DC? Speed to Market Labor Profit Infrastructure Inventory Systems Facilities Administration SPEED LIMIT AS FAST AS YOU CAN!

10 Combined Order Profile DTC Retail

11 One Inventory Information Systems Product Configurations Current Infrastructure Challenges

12 Information Systems Challenges Order Management ERP, ERP, Order ERP & Management, Order Management ecommerce ERP Warehouse Management System Intelligent Warehouse Control System LMS LMS Put to Store Put to Store WCS Item WCS Sorter Item Sorter ecommerce Retail WMS WMS WMS Pick to Light Pick to Light WCS Shipping WCS Sorter Shipping Sorter TMS TMS Intelligent WCS Order & Inventory Intelligence w/ability to Balance Work Across Both Machines and People for All Channels WORK PULLED TO AVAILABLE PEOPLE & MACHINES Label Case Pick Print Label Applicator Case Pick Print Applicator

13 Inventory Challenges Receive Store Fulfillment Ship VAS Processing

14 Storage Challenges Reserve VS Velocity Based Slotting All Active

15 Order Cut-Off Pre-Omni Order Processing Retail ORDER POOL ecommerce ORDER POOL 8AM 10PM Stores 1-6 Store 7-14 Ecom Order Ecom Order Stores Hrs- After 6PM Heaviest Shipping Cut-Off Retail Wave #5 Retail Wave #4 Retail Wave #3 ecom Expedited Wave #2 Retail Wave #1

16 Order Cut-Off Omnichannel Processing Engine Retail Orders COMMON ORDER POOL B2C Orders Store 1 Pieces 1-50 Ecom Order Ecom Order Store 2 Pieces Ecom Expedited Order Shipping Cut-Off Wave-less Continuous Processing

17 Ideal World What if we combine our ecommerce & retail fulfillment operations?

18 Reduce Capital Buildings Automation Infrastructures Reduce OPEX Inventory Labor Facilities Flexibility Real Benefits Dynamically react to product flow Higher Margins Inventory can Match the Demand

19 Omni-channel is here to Stay It works. There is real ROI in these projects. -Mark Seigel, EVP, Ann Inc. Macy s omni-channel strategy is one of three key strategies driving its success -Karen Hoguet, CFO, Macys Approximately 50 percent of our sales involve online research at some point in the shopping process. And another key fact is that almost one in every four store shoppers have previously been on homedepot.com before purchasing in our store. It s for this reason that we have dropped the e off of e-commerce. -Hal Lawton, President, The Home Depot Online Business Source: Logistics Viewpoints

20 How E-Commerce is Reshaping Supply Chains Panel Discussion/ Q &A Panel Facilitator: Art Eldred/ Client Executive, System Engineering Panelists: Pattiann McAdams-Russell, CEO, 2DecadesDigital, LLC, (former GM/SVP with Bath & Body Works Direct), Columbus, OH Andrew Norris, Marketing Segment Manager, UPS, Columbus, OH Steve Reade, Director, Distribution Services, DSW Inc., Columbus, OH