Adaptive Retailing: Path to greater sales, margins and

Adaptive Retailing:

Path to greater sales,

margins and

customer satisfaction

Key challenge in retailing

CHANNEL EXPLOSION

Stores Catalog

1950s

Malls

1990s

eCommerce

2007

Mobile Commerce

2009+

Social Digital Display

Tablets Gaming

GoogleTV

CHANING CUSTOMER BEHAVIOR

COMPETITIVE THREATS

GOVERNMENT REGULATIONS

RESPONDING TO RAPID CHANGES IN ENVIRONMENT

Adaptive Retailing Overview

Competitors Market Forces

Changing Needs

PAM Operations

Adaptive Retailing

Responsive Promotions

& Pricing

Adaptive Portfolio

Configurable Inventory

Intelligent Supplier

Mgmt

Approach to Delivery

Optimization (Planning)

Collaborative Execution Engine

(Execution)

Establish Visibility & Control Points (Feedback)

Step

3

Step

2

Step

1

Responsive Pricing

Competitor Segments

Price Data

Promotional Data

Pricing Rules

Constraints

Recommendation Engine

Supplier Input

Confirm/ Modify Pricing

Pricing Data Replication

Critical Article Review

• Optimized pricing process while adding value from >2 weeks to 3 days

• Delivery accomplished in 14 weeks

Intelligent Supplier Management

• Plan in advance based on global objectives

• Focus on most critical contracts

• Decision making information when needed

• Information currency

Historical Data

Customer Needs

Portfolio Consideration

Impact Analysis

Supplier Contract

Objectives

Highlights

Questions

How responsiveness is your organization to changes?

Sat Vijayaraghavan Retail Practice, Thoughtworks sat@thoughtworks.com

Marco Bon Delivery Manager IT, Gruppo PAM marco.bon@gruppopam.it