- a bird s eye view of the optimum systems landscape

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1 Cross channel fulfilment - a bird s eye view of the optimum systems landscape David Stocker Head of Business Development Supply Chain

2 s architecture for cross channel fulfilment Real-time inventory visibility across the entire enterprise Warehouse management In-store logistics and inventory management Store replenishment ecomm fulfilment centre replenishment Parcel carrier management and home delivery options Supplier portals

3 s architecture for cross channel fulfilment Legacy New Legacy ERP New ERP Retail Message Routing ecomm Replenishment Service On Hand Allocated Carrier Management Retail WMS Supplier Portal ecomm1 WMS ecomm2 WMS...

4 Real-time inventory visibility across the entire enterprise Legacy Message Routing New (IS) Real-time view of Inventory in underlying WMS and ILS systems (both Retail and ecomm) Enables sharing of common inventory pool across multiple channels stores and ecommerce Legacy ERP New ERP High level of real-time inventory accuracy maximises stock availability and minimises fulfilment failure Prevents the same item being sold simultaneously by accident in different channels Ease of integration of additional WMS systems (if new sites are introduced) Retail ecomm Replenishment Service On Hand Allocated Carrier Management Retail WMS Supplier Portal ecomm1 WMS ecomm2 WMS...

5 Warehouse Management Legacy New Legacy ERP New ERP Retail Message Routing ecomm Replenishment Service On Hand Allocated Carrier Management Retail WMS Supplier Portal ecomm1 WMS ecomm2 WMS...

6 Warehouse Management Warehouse Management (WMS) Cross channel needs specialist WMS functionality Ability to handle diverse order types with highly different characteristics: ecomm & Retail replenishment Diversity of handling: cases, retail units, large palletised items etc. Dynamic order processing; order flow is highly dynamic in nature; WMS should re-evaluate the order well at frequent intervals; one wave per day won t allow you to meet rapid delivery service levels to customer Replenishment logic which factors in product historical movement speed, real-time order demand, and continually re-prioritises accordingly

7 Warehouse Management Warehouse Management (WMS) Cross channel needs specialist WMS functionality Picking solution must be efficient for multiple small orders; e.g. Trolley / Cluster / Batch Order picking Voice picking for both productivity and accuracy (Visual RF less productive but accurate; paper productive but inaccurate) Larger volume operations may have a strong business case to invest in automation e.g. Goodsto-Person picking solutions with automated storage; today s solutions are highly modular and scalable Integration with Carrier Management to provide dynamic carrier selection, accurate order prioritisation, parcel labelling etc. typically during packing operation Scan-packing Support for carrier sortation post-packing Support for nasties Ratio packs, Composite s etc. are typically handled differently in ecomm from Retail store replenishment

8 In-store logistics and Inventory Management Manage trade-counter retail outlets with In-store Logistics ( ILS ) Essentially a WMS-lite, ILS manages back room inventory and order picking Case study: at Screwfix, ILS manages circa 10,000 s in-store, with a further 10,000 available for next day ordering, in 200+ stores

9 Retail Store Replenishment Legacy New Replenishment Service (RS) Schedules and drives replenishment from Retail replenishment DC to Stores Configurable rules engine takes into account real-time Retail WMS inventory levels, Store inventory levels (via ILS), Store order demand, historical demand profiles, frequency Legacy ERP of replenishment, high and low volume stores, forecasted promotional New ERP demand etc. Replenish certain product family groups on certain days The real-time nature of the (IS) is the key enabler This means that :- You can manage store replenishment Message in a highly Routing dynamic manner Be highly sensitive to in-store inventory levels (as the RS knows about them in realtime) and drive emergency replenishment accordingly Improve in-store inventory availability On Hand Allocated certain days, for background Retail ecomm1 Replenishment ; ecomm2 emergency Retail demand ecomm1 above ecomm2 this can Optimise the Retail DC pick efficiency by targeting certain product family groups on still be handled for any family group Retail Stores Replenishment Service Carrier Management Retail WMS Supplier Portal ecomm1 WMS ecomm2 WMS...

10 ecomm Fulfilment Centre Replenishment Legacy On Hand New Replenishment Service (RS) Schedules and drives replenishment from Retail DC to ecomm Fulfilment Centre Configurable rules engine takes into account real-time Retail WMS inventory levels, ecomm WMS inventory levels, ecomm order demand, historical demand profiles, stocked/stockless Legacy ERP operation, prioritisation, forecasted promotional demand New etc. ERP Leverages storage and fulfilment capability of existing Retail DC This means that :- You can treat an ecomm operation as a virtual store if you are introducing ecomm into an existing mature retail replenishment operation Message Routing But at the same time massively increase the frequency of ordering into the Retail DC in order to meet more onerous ecomm delivery timescales Take away ecomm-specific processes from Retail DC WMS and satisfy via specialist ecomm WMS with more appropriate functionality Allocated Retail ecomm Replenishment Service Carrier Management Retail WMS Supplier Portal ecomm1 WMS ecomm2 WMS...

11 Parcel Carrier Management Web Site Order Management Orders Returns Real-time Inventory levels Fulfilment Confirmation On Hand WMS1 WMS2... Master Data Orders Inbound Deliveries Returns ILS Allocated WMS1 WMS ILS Customers Warehouse Management s In-store Logistics s Delivery Options at Checkout Electronic Bookings Track & Trace data Orders Carrier Labels Electronic manifests Track & Trace data Electronic bookings Carrier Management Parcel carriers Carrier Management (CMS) Allows you to integrate with new carriers as and when you wish Mature CMS products exist you can do this now, relatively easily, via integration with your WMS Large array of carriers available, both domestic and international CMS is a highly configurable rules engine that deals with carrier selection, label printing, electronic manifesting, Track & Trace, electronic bookings etc. Many benefits :- Switch carriers instantly, in exception scenarios Migrate easily and gradually to new carriers Track & Trace gives visibility of carrier performance, and helps to minimise delivery promise failure Selecting the optimum carrier service for each parcel keeps carrier costs to a minimum

12 Integrating Carrier Management with the Web platform CMS Delivery Options Service Integration of valid delivery options from CMS to fulfilment web site in real-time during customer check-out process Based on configurable rules engine (selection by product characteristics, postcode, weight, dimensions, content value etc.) Web platform / OMS can then break multi-line order into multiple consignments with assistance from CMS, taking into account product characteristics and what can be shipped together, customer delivery address and carrier services thereto, multiple source fulfilment sites, split delivery to get some items quicker, real-time stock availability, etc. Brings greater choice of delivery options, including collect from store, courier delivery etc.

13 Supplier Portals Legacy New Supplier Portal (SP) Allows Drop-ship Vendors to publish inventory levels to the and onwards to the web site, via portal or integration messaging Allows Drop-ship Vendors access to fulfilment instructions, despatch documentation and Legacy carrier ERP labels (via CMS) without systems integration, via web portal New ERP Allows suppliers to pre-advise of inbound delivery to fulfilment centre or DC Suitable for small/medium suppliers who do not wish ecomm to integrate Platform with your web platform, OMS or inventory systems via electronic messaging Retail Message Routing ecomm Replenishment Service On Hand Allocated Carrier Management Retail WMS Supplier Portal ecomm1 WMS ecomm2 WMS...

14 Supply Chain Map Fulfilment Determination DCs Orders Web Site Order Management Customers Delivery Options at Checkout Electronic Bookings Track & Trace data Electronic manifests Track & Trace data Electronic bookings The Supply Chain Map - where does this get you Parcel carriers Product & Price Ranging Purchase Order Management Purchase orders Financials Master Data Real-time Inventory Master When Product ranges deployed together, Orders the components Returns levels forming the Supply Data Price ranges Fulfilment Carrier Management Confirmation Chain Map allow you to :- Manage Retail replenishment and ecommerce from a shared Inventory Inventory levels levels Inventory Inventory value inventory pool movements On Hand Allocated WMS1 WMS2 ILS1 WMS1 WMS2 ILS1 Optimise your internal supply chain Inventory levels DC Supplier Inventory levels Orders Fulfilment Confirmation Master Data Real-time Inventory levels Fulfilment Confirmation Master Data Orders Inbound Deliveries Returns Carrier Labels Deliver Stock Accounting on all customer... shopping permutations, Master Data including home delivery, collect from store, fulfil from store, where orders can be placed at home, via mobile or in-store Maximise warehousing productivity and accuracy Orders Inventory Minimise spend levels on parcel carriers by selecting the optimum Replenishment service for every order movement orders Integrate Drop-ship Vendors into your overall offering Warehouse Management s In-store Logistics s Load Plans Crossdock preadvice Invoices Clients Activity Based Costing Inventory movements Operator Activity data Transport Management Provided by Provided by others Store Replenishment Service Supplier Portal Inbound Delivery pre-advice Trailer locations Yard Management

15 Thankyou

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