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1 Cross-Channel Retailing Challenges Melanie Nuce

2 Omnichannel Initiatives Slide 2 GXS, Inc.

3 Cross-Channel Retailing Catalog Store Web Tablet Phone Marketplace All via single channel Research Buy Return Each phase via any channel mix & match All done by retailer Warehouse Shipping Customize Numerous models - varies by product Store DC Manufacturer DC 3 rd Party Fulfillment Print On Demand Slide 3 GXS, Inc.

4 -Led Online Sales Consumer places order on manufacturer s e- commerce website uses distributed order management to dispatch to fulfillment location Consumer Shopping Site Picked from Local Store Shipped to Local Store Shipped from Retail DC Shipped from Picked from local store. Removes slow moving trapped inventory from supply chain s distribution centre receives order and ships to store in proximity of consumer s distribution centre receives order and ships directly to consumer s address 3 rd party supplier receives order and drop ships to the consumer s address Slide 4 GXS, Inc.

5 Manufacturer-Led Online Sales Consumer places order on manufacturer s e- commerce website Manufacturer captures consumer data. Uses distributed order management to dispatch to fulfillment location Consumer Brand Owner 3 rd Party Website Warehouse Local Retail Location Manufacturer Warehouse 3 rd Party website receives order and drop ships to the consumer s address Local retailer in proximity of consumer receives order. In-store pickup or home delivery Manufacturer s distribution centre receives order and ships directly to consumer s address 3 rd party supplier receives order and drop ships to the consumer s address Slide 5 GXS, Inc.

6 -to- Data Exchange Tier 1 s With Marketplaces Item Management Price Management Order Lead Time Inventory Update Tier 2 s with Channel Models s Slide 6 GXS, Inc.

7 Sell Side of Retail Third Party s EDI EDI Product Catalog Inventory Position Point of Sale Purchase Order Ship Notice Invoice Sears Holdings Private Label Manufacturers Slide 7 GXS, Inc.

8 Drop Ship Programs Performance Dashboard Assessment Tool Headquarters Distribution Centre Product Catalogue Purchase Orders Purchase Order Acknowledgment Advanced Shipment Notice Invoice Pick & Pack Unit of One Order Custom Packing List Consumer Online Transportation Carrier Slide 8 GXS, Inc.

9 Vendor Assessment s Department must survey supplier community to understand drop ship capabilities Capabilities Assessment Portal s warehouse teams must be prepared to pick/pack orders of one unit. s systems must be configured to accept orders of quantity one (versus pallet or case) s must arrange with transportation carriers for home delivery of LTL shipments N Slide 9 GXS, Inc.

10 Item Setup and Maintenance Headquarters Product Catalogue Items available for online sale may include store merchandise or exclusive Internet offerings Product description, pricing, color, size, style and other attributes must be setup for items available online Item Master Database for B2C Web Site Item Master Slide 10 GXS, Inc.

11 Inventory Stock Position Headquarters Warehouse Inventory Report may store actual inventory quantity available from supplier or simply indicator of instock position provides daily update on inventory available to promise for all GTINs being sold online Database for B2C Web Site Warehouse Management System Slide 11 GXS, Inc.

12 Distributed Order Management Consumer Purchases Items in Online Shopping Cart s Distributed Order Management Application EDI Purchase Order Orders to be fulfilled directly by the retailer are routed to the appropriate location via internal workflow B2C Online application splits up shopping cart into multiple fulfillment requests. EDI Purchase Order EDI Purchase Order Drop ship orders are routed to suppliers via EDI for fulfillment. Purchase orders may or may not include multiple items. EDI Purchase Order Distribution Centre Retail Store Fulfillment Centre Slide 12 GXS, Inc.

13 Purchase Order Acceptance Headquarters Purchase Order Purchase Order Acknowledgement must review EDI purchase order and determine if it can be fulfilled. Inventory may be on back-order or GTIN may be discontinued. may request one of many different service levels depending upon consumer s shipping requests Next Day Air, 2-Day, Ground responds to retailer with purchase order confirmation or cancellation request. Different EDI transactions are used (855, 870) Warehouse Management System Slide 13 GXS, Inc.

14 Pick, Pack and Ship Headquarters Distribution Centre Advanced Shipment Notice may require the supplier to print its custom packing list with retailer branding for inclusion with shipment sends Advanced Shipment Notice with LTL carrier s tracking number to the. will send one ASN per purchase order. ASN may or may not contain multiple line items Consumer can track the status of the order on s web site even though fulfilled by the supplier. Custom Packing List Physical Shipment Consumer s Address LTL Transportation Carrier Slide 14 GXS, Inc.

15 Delivery Confirmation and Billing Headquarters Distribution Centre Invoice & Delivery Confirmation Transport carrier provides status or delivery confirmation back to the supplier. Delivery may be delayed due to bad address data. forwards shipment status update (or delivery confirmation) to the retailer. Delivery confirmation from the supplier triggers billing of the consumer s credit card and updates order status to complete. Delivery Confirmation Consumer s Address LTL Transportation Carrier Slide 15 GXS, Inc.

16 Vendor Performance Monitoring Headquarters Purchase Orders Purchase Order Acknowledgment Distribution Centre Advanced Shipment Notice Invoice Performance Dashboard can identify purchase orders which have not been acknowledged or canceled. Also can identify orders which have not shipped on time. can take corrective action before violating retailer service level commitments. Also can view historical performance against scorecards. Exception Reporting Slide 16 GXS, Inc.

17 Slide 17 GXS, Inc.

18 Slide 18 GXS, Inc.

19 Thank you! Melanie F. Nuce Director, Retail Industry Marketing blogs.gxs.com/nucem Slide 19 GXS, Inc.

Service description V 0.14 1 (9) Drop Shipping. Drop Shipping. Service Description. Kotipaikka: Helsinki Y-tunnus: 0109357-9.

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