Managing Growth in an Omni-Channel World
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1 Managing Growth in an Omni-Channel World October 15, 2015 Marc Kalman Breaking the Mold of Outdated ERPs 1
2 What We Will Cover What is Omni-Channel? Market Challenges Save the Sale Turning to the Supply Chain What Does the Future Hold 2
3 Quick Intro to BizSlate BizSlate is a cloud-based solution that measurably helps your business increase revenue and profit by improving the relationships between your customers, orders, and inventory. 3
4 Quick Intro to BizSlate Omni-Channel SaaS ERP for SMBs B2C Supply Chain Management Wholesale to Large Retail Inventory Wholesale to Small Boutiques Order Management Procurement 4
5 What is Omni-Channel A Multi-channel approach to sales that seeks to provide the customer with a seamless shopping experience whether customer is shopping online from a desktop or mobile device, by telephone, or in a bricks and mortar store. 5
6 What is Omni-Channel Customer Centricity Customer is dictating route they take to transact Systems & process within retail simply facilitate the customer journey to transact and be served 6
7 What is Omni-Channel 7
8 What is Omni-Channel Linear Retail Supply Chain Model 8
9 What is Omni-Channel Linear e-commerce Supply Chain Model 9
10 What is Omni-Channel 10
11 What is Omni-Channel What is the Customer Journey? Research online -> Buy in store Buy online -> Pickup in store Buy online -> Return to store Buy in store -> Ship to destination 11
12 What is Omni-Channel 12
13 What is Omni-Channel 13
14 What is Omni-Channel Wholesale to Large Retail Social B2C Wholesale to Small Boutiques Inventory Managing Multiple Channels as a Supplier 14
15 What is Omni-Channel Started approximately 2003 Best Buy pioneered as a means to compete with Walmart Couldn t compete on price Best Buy concluded they could better compete focusing on customer experience This is where Customer Centricity was born 15
16 What is Omni-Channel Fast Forward to 2015 A good chunk of retailers now doing something about Omni-channel instead of just talking about it More retailers now treating Omni-channel as corporate strategy instead of being reactive to consumer demands Went from We don t know what consumers want from us to What s Next? 16
17 What is Omni-Channel Lesson #1: You cannot be Omni-channel without being Customer Centric 17
18 Market Challenges New instant delivery models increased retailers need for speed in responding to consumer demand Amazon 2-day free delivery via Prime could still be beat in store for those needing it now 18
19 Market Challenges 19
20 Market Challenges Marketers scramble for better ways to communicate with this new customer Now have to deal with volume of frequent transactions being optimized 20
21 Market Challenges The traditional retail model is built for moving goods from manufacturer to store And from manufacturer via drop ship to consumer Both are separate linear processes Omni-channel is multi-facetted and complex Model is not designed for this 21
22 Market Challenges Supply chain challenges are acute Lack of visibility into inventory (across locations) Increased pressure on inventory turn and margin Retailers growing sense of missing out 22
23 Market Challenges Omni-channel is still a process in evolution Enormous investments in distribution centers and the systems that support them Many systems not yet on par with Omnichannel needs Stores are not properly zoned as pick/pack/ship 23
24 Market Challenges 24
25 Save the Sale Let s Say a Store s Service Level is 90% If Ship from Store Cross Channel -> 5%? Net Positive Gain (even with added costs) 25
26 Save the Sale SAVE the Sale whether by exposing Store Inventory online or by empowering store associates to make the sale without having inventory directly on-hand A BIG WIN! 26
27 Save the Sale Lesson #2: Cross-Channel Inventory Visibility is Essential 27
28 Turning to the Supply Chain Global Retail & Consumer Goods CEO Survey: The Omni-Channel Fulfillment Imperative, JDA,
29 What is Omni-Channel Global Retail & Consumer Goods CEO Survey: The Omni-Channel Fulfillment Imperative, JDA,
30 Turning to the Supply Chain The path to Omni-channel fulfillment Capture customer demand wherever it lives Prioritize based on Customer needs Orient on the store to connect demand capture to in store first Work through the manual in store process before deciding how to automate 30
31 Turning to the Supply Chain Next Step: Speed of fulfillment The need to access and sell all inventory, no matter where it happens to be located 31
32 Turning to the Supply Chain Issues to Address What if Store is Out of Stock? Where; When; How; How Fast? Can Ship From be Best Optimized? When / Where / Cost 32
33 Turning to the Supply Chain Are your suppliers part of your omni-channel strategy? How fast could they replenish you? Could they drop ship direct to consumer? How real-time is available inventory visibility through to your suppliers? 33
34 Turning to the Supply Chain The mindset is to use stores as local fulfillment centers Pick/pack/ship in-store is more expensive than traditional warehouse due to productivity Route shipping to store for shipping based on availability & proximity to consumer destination 34
35 What Does the Future Hold RFID will play important role Suppliers will become part of Visibility Ecosystem ERP-to-ERP Integration 35
36 Conclusion Customers Drive Journey Customer Centricity is Essential Inventory Visibility is Key Don t Get Left Behind 36
37 Questions Thank you! 37
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