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Managing Growth in an Omni-Channel World
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Breaking the Mold of Outdated ERPs
October 15, 2015
Marc Kalman
What We Will Cover
• What is Omni-Channel?
• Market Challenges
• Save the Sale
• Turning to the Supply Chain
• What Does the Future Hold
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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.
Quick Intro to BizSlate
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Supply Chain Management
Inventory
Procurement
Order Management
Wholesale to
Small Boutiques
Wholesale to Large Retail
B2C
Quick Intro to BizSlate Omni-Channel SaaS ERP for SMBs
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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.
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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
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What is Omni-Channel
What is Omni-Channel
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Linear Retail Supply Chain Model
What is Omni-Channel
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Linear e-Commerce Supply Chain Model
What is Omni-Channel
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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
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What is Omni-Channel
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What is Omni-Channel
Inventory
Wholesale to
Small Boutiques
Wholesale to Large Retail
B2C
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Social
What is Omni-Channel
Managing Multiple Channels as a Supplier
• 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
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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?”
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What is Omni-Channel
Lesson #1:
You cannot be Omni-channel without being Customer Centric
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What is Omni-Channel
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”
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Market Challenges
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Market Challenges
• Marketers scramble for better ways to communicate with this new customer
• Now have to deal with volume of frequent transactions being optimized
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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
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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
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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 Omni-channel needs
• Stores are not properly zoned as pick/pack/ship
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Market Challenges
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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)
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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!
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Save the Sale
Lesson #2:
Cross-Channel Inventory Visibility is Essential
Turning to the Supply Chain
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Global Retail & Consumer Goods CEO Survey: The Omni-Channel Fulfillment Imperative, JDA, 2015
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What is Omni-Channel
Global Retail & Consumer Goods CEO Survey: The Omni-Channel Fulfillment Imperative, JDA, 2015
• 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
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Turning to the Supply Chain
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
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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
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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?
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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
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What Does the Future Hold
• RFID will play important role
• Suppliers will become part of Visibility Ecosystem
• ERP-to-ERP Integration
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Customers Drive Journey
Customer Centricity is Essential
Inventory Visibility is Key
Don’t Get Left Behind
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Conclusion
Thank you!
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Questions
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