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IBM Amplify 2015 Conference Session Number: 1260 Title: Intelligent Commerce & Fulfillment
Chris McDivitt – Vice President Mark Fodor – Vice President Prashanth Mahadevaiah- Director
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IBM Amplify 2015 – Intelligent Commerce | April 2015
Copyright © Capgemini 2015. All Rights Reserved
Agenda
Our Omni-channel Perspective
Illustration of Intelligent Commerce and Fulfillment Use Cases
Our Integration Framework and getting Intelligence Commerce and Fulfillment right
Intelligent Commerce and Fulfillment
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IBM Amplify 2015 – Intelligent Commerce | April 2015
Copyright © Capgemini 2015. All Rights Reserved
Omni-channel World: Our Perspective
Flexible Fulfillment
Buy Online Pick-up in Store
Store Fulfillment
Seamless Returns
Single view of inventory
Order Orchestration
Multi-tier/node Inventory
Consistent Information
Consistent Path to Purchase
Unified experience
Customer Centric
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IBM Amplify 2015 – Intelligent Commerce | April 2015
Copyright © Capgemini 2015. All Rights Reserved
Omni-channel World: Evolving Customer Expectations
Consequences � 62% of customers will move to a competitor if a
similar product is available in stock
Benefits � 40% of consumers will check back to see if the
product is in stock and 28% will wait to be notified when the product is available
� 30% will go to a different physical store if the product is in stock
Consumers expect store associates to have real-time ability to locate OOS items and have them shipped, held for pickup, or transferred to the store
Consequences � Only 50% of customers are satisfied with the ease
of making returns and returns policies
Benefits � 82% of shoppers prefer returning products in-store
or free returns with pre-paid return label � Over 50% of online shoppers have chosen in-store
pickup for one of their purchases
Consumers want to buy online, pick up and return in store
Source: UPS and Comscore’s annual study, 2014
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IBM Amplify 2015 – Intelligent Commerce | April 2015
Copyright © Capgemini 2015. All Rights Reserved
Omni-channel World: Retailer Challenges
Many retailers live in a fragmented world – customers, orders and inventory are ‘disconnected’ across numerous enterprise touch points, compounded by the
need to understand total delivered cost.
Visibility & KPIs
Customers & Pricing
Inventory & Orders
� Lack of real time visibility on product inventory
� Silo’d business units with separate P&Ls and KPI
� Non – integrated view of the customer � Limited view of pricing
� Orders, Inventory and Customer Management processes are designed with traditional concepts and legacy systems (e.g. DC to Store alignment, ATP by channel etc.)
� Unable to understand the tradeoffs between total logistics costs and service levels
Understanding the right balance (cost and service) requires appropriate processes and tools
Logistics Inventory
Procurement Transportation Warehousing
Delivery Frequency
Cost
Optimal
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IBM Amplify 2015 – Intelligent Commerce | April 2015
Copyright © Capgemini 2015. All Rights Reserved
Retailers realize their Omni-Channel maturity and are countering it by streamlining their fulfillment process
0%
9%
34%
24%
32%
17%
12%
31%
48%
35%
36%
18%
19%
23%
23%
25%
27%
28%
31%
33%
33%
42%
Developing custom Apps
Third party deal offers
Embedding more social capabilities in our full
Improving the payment process
Investing in cross-channel capabilities
Add additional selling channels (including third
Branded deal of the day/promotional offers
Targeted email campaigns
Improving search and browse capabilities
Providing richer product detail information
Improving fulfillment processes
Top Three Opportunities Overcome Business Challenges
These technology investments provide leading retailers with
competitive advantage
2014 2013
Improving Fulfillment processes is top of the agenda
59 % of companies report they have no capability or inconsistent capability
How prepared do you think your organization is to handle Omni-channel retailing?
33% 26% 29% 10% 2%
No capability Inconsistent Competent Efficient High Performing
Source: Capgemini with Penn State, 2015
Source: RSR eComm Study, 2014
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IBM Amplify 2015 – Intelligent Commerce | April 2015
Copyright © Capgemini 2015. All Rights Reserved
Retailers’ are investing in technologies to build integrated supply chain execution capabilities
DOM and WMS are the key technology investments for leading retailers
34%
39%
45%
37%
43%
50%
64%
64%
0% 15% 30% 45% 60% 75%
Transportation management systems
for logistics and fulfillment
Inventory management module
Warehouse management systems
for logistics and fulfillment
Distributed order management systems
Leaders Followers
Percent of Respondents, n = 77
These technology investments provide leading retailers with competitive
advantage
These technology investments provide leading retailers with
competitive advantage
Leaders Followers
Percent of Respondents, n = 77
24%
24%
29%
43%
43%
50%
0% 15% 30% 45% 60% 75%
Up-to-date fulfillment planning and execution information is shared
across channels
Ability to execute a common sales &
operations plans for supply chain across all
channels
Ability to ship/fulfill online orders the very
same day after they are received
Source: Aberdeen
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IBM Amplify 2015 – Intelligent Commerce | April 2015
Copyright © Capgemini 2015. All Rights Reserved
Agenda
Our Omni-channel Perspective
Illustration of intelligent & Fulfillment Commerce Use Cases
Our Integration Framework and getting Intelligent Commerce & Fulfillment right
Intelligent Commerce & Fulfillment
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IBM Amplify 2015 – Intelligent Commerce | April 2015
Copyright © Capgemini 2015. All Rights Reserved
Our Approach for Omni-channel Supply chain demands inventory, orders, and fulfillment across all channels
…And tracked from point of sale to delivery with proactive notification, backed ability to return through any channel
…That can be viewed in real time, held, modified, ordered and fulfilled via any combination of channels…
Empowered consumers expect a broader range of inventory available across all channels…
Purchase Post-Purchase Pre-Purchase
In-Transit
DCs
Stores
Suppliers
Inventory Visibility Ordered Fulfilled Tracked Returned
Stores
Home Delivery
DCs
Suppliers
DCs
Stores
In need of a solution to:
� Support all order channels & centralizes & stores all order information to help planning and execution � Integrate and centralize all inventory information & optimizes sourcing & promising (& fulfillment) � Provide a configurable, extensible, & scalable platform for integration & growth
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IBM Amplify 2015 – Intelligent Commerce | April 2015
Copyright © Capgemini 2015. All Rights Reserved
Intelligent Commerce & Fulfillment: JDA-IBM
Integrated JDA-IBM products for Omni-channel fulfillment provisioning for optimal order management and cost-effectiveness*
JDA & IBM Patnership
Solution Framework
Customer Sources: Demand Signals
Network Participants: Supply Signals
Store Distributor Mobile Call Center Web
Service Provider Distributor Carrier Producer Store
Order Management Service Delivery Fullfillment
Network
JDA Integrated Planning & Execution
IBM Commerce & Order Management
Highlights � Optimised
solution across channels
� Visibility to enable Agility
� Balance between planning and execution
� Cost and Service trade-offs in a profitable way
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IBM Amplify 2015 – Intelligent Commerce | April 2015
Copyright © Capgemini 2015. All Rights Reserved
Agenda
Our Omni-channel Perspective
Illustration of Intelligent Commerce and Fulfillment Use Cases
Our Integration Framework and getting Intelligent Commerce and Fulfillment right
Intelligent Commerce and Fulfillment
12
IBM Amplify 2015 – Intelligent Commerce | April 2015
Copyright © Capgemini 2015. All Rights Reserved
Buy Online – Pickup in Store � Customer originates and
completes order using eCom storefront
� Customer order is dropped in to OMS
� OMS drops the order to the corresponding store for pick-up
� Store Associate picks, packs and makes the product available for customer pick-up
� Customer verifies identity and picks up the product from the store
� Demand planning systems to ensure excess demand is taken in to account for stores supporting pick-up
� Fulfillment and Replenishment systems to ensure appropriate inventory is available at the store
Execution (WMS/TMS)
Fulfillment & Replenishment
Store Systems POS eComm
Merch Assortment
planning
Planogram Return History
Order History
Forecast
Purchase Order
Transfer Order
POS History
Returns
Orders
IBM Component
JDA Component Not Impacted
Demand
Forecast Transfer Order
Purchase Order
OMS
Order
Intelligent Commerce & Fulfillment: Illustration for Buy Online – Pickup in Store
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IBM Amplify 2015 – Intelligent Commerce | April 2015
Copyright © Capgemini 2015. All Rights Reserved
Intelligent Commerce & Fulfillment: Illustration for Buy Online – Ship from Store
Store Fulfillment (Shipment/Delivery) � Customer originates and
completes order using eCom storefront
� Customer order is dropped in to OMS
� OMS determines the most cost-effective node (store) to fulfill the order
� OMS drops the order to the appropriate store when the order is ready to be fulfilled
� Store Associate picks, packs and makes the product available for shipment
� Carrier picks up the product from store and delivers to customer
� Demand planning systems to ensure excess demand is taken in to account for stores supporting pick-up
Execution (WMS/TMS)
Fulfillment & Replenishment
Store Systems POS eComm
Merch Assortment
planning
Planogram Return History
Order History
Forecast
Purchase Order
Transfer Order
POS History
Returns
Orders
IBM Component
JDA Component Not Impacted
Demand
Forecast Transfer Order
Purchase Order
OMS
Order
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IBM Amplify 2015 – Intelligent Commerce | April 2015
Copyright © Capgemini 2015. All Rights Reserved
Agenda
Our Omni-channel Perspective
Illustration of Intelligent Commerce Use Cases
Our Integration Framework and getting Intelligent Commerce right
Intelligent Commerce
15
IBM Amplify 2015 – Intelligent Commerce | April 2015
Copyright © Capgemini 2015. All Rights Reserved
Flexible/Adaptive � Fusion of online and offline bridging the customer experience across multiple channels and ecosystems � Delivering business value in an agile and responsive manner � Multi-directional ecosystem to support cloud based and enterprise systems � Agile application framework leveraging eCommerce, OMS & others to respond quickly to market demands � Reliable infrastructure providing availability, performance and stability to support emerging technologies � Consumable Services that have robust API’s and web services
Capgemini offers a flexible integration layer for Intelligent Commerce & Fulfillment
Call Center Call Center Kiosk Point of Sale Web Point of Sale
CRM 3rd Party (dropship) OMS Inventory WMS PIM
ESB/SOA Business Integration Layer
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IBM Amplify 2015 – Intelligent Commerce | April 2015
Copyright © Capgemini 2015. All Rights Reserved
� Capgemini Immediate is a robust and secure "Digital Platform” on which “Digital Services” can be integrated quickly, consistently and cost effectively, on-premise or in the cloud.
� Its purpose is to allow an organisation to quickly leverage the market innovations of their choice in order to achieve growth and stay two steps ahead of the competition.
� Immediate consists of a reference architecture and six accelerators: • Integration • API Management • Identity & Access Management • Service Management • Automated Provisioning • Application Lifecycle Management
� Each accelerator is based on mature open-source products and contains extensive documentation, scalable examples and auto-provisioning scripts.
Capgemini’s ‘Immediate’ Framework
Personalisation & Interaction
Customer, Supplier, Partner Management
Operational Business Services
Common Data
Services
Business Support Services
Iden
tity
& A
cces
s M
anag
emen
t
Ser
vice
Man
agem
ent
Automated Provisioning
Application Lifecycle Management
Integration
API Management (external)
API Management (internal)
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IBM Amplify 2015 – Intelligent Commerce | April 2015
Copyright © Capgemini 2015. All Rights Reserved
Three foundational elements to getting Intelligent Commerce right
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� Creating a centralized inventory snapshot providing in-stock and in-transit inventory visibility across all stores, DC’s and third party vendors is the first capability organizations must develop.
� Enabling multi-tier, multi-node allocation � Develop a comprehensive inventory management
strategy across the chain policies, exceptions
� Re-visit enterprise architecture across the board and move towards a Service Oriented Architecture, ensuring scalability and rapid deployment of new applications/packages
� Develop services to expose foundational components like Item data, customer data, pricing and inventory data to external systems
� Establish an Omnichannel leadership to ensure collaboration across different groups to enable timely decision making and responsibilities across core and linked initiatives.
� Start small, learn, iterate and scale
Inventory and Order
Management
Integration Architecture
Organizational Alignment
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IBM Amplify 2015 – Intelligent Commerce | April 2015
Copyright © Capgemini 2015. All Rights Reserved
Capgemini’s Unique Proposition for Intelligent Commerce
Omni-channel Expertise Key player in Omni-channel solution space with IP creation of reusable delivery assets and solutions
Thought Leadership Thought leadership exhibited through new IP creation, business propositions, value analysis and addressing solution gaps
Expertise in Supply Chain Deep expertise in Supply chain through process and product experience facilitated by dedicated global center of excellences
Strategic Alliances Capgemini is a premium alliance partner for IBM and JDA. Uniquely placed with proximity to net IP with all concerned
Capgemini Differentiators
� Capgemini’s IBM and JDA Partnerships. Strong alliances with leading DOM, SCM, WMS, TMS, Visibility software vendors
� Capgemini’s Industry leading IP&E framework and Sterling Commerce expertise
� Global Logistics & Fulfillment Center of Excellence to provide sales, delivery and community support
� Strong investment in logistics related thought leadership publications • 3PL Study • Trends in Logistics Study • TM Process & Software Report • WMS in the Cloud • Regular Features in Logistics Management
Magazine � Innovative new offerings such as TMS NOW,
Seamless Commerce across all touch-points B2B & B2C and a fully integrated e-Commerce offering with DAM, WCM for enterprise customers
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IBM Amplify 2015 – Intelligent Commerce | April 2015
Copyright © Capgemini 2015. All Rights Reserved
Capgemini Contact Information
� Chris McDivitt, Vice President, Supply Chain Technologies Leader - Email:[email protected]
� Mark Fodor, Vice President, Digital Commerce Leader
- email.:[email protected]
� Prashanth Mahadevaiah, Director, Supply Chain Leader India - email.:[email protected]
The information contained in this presentation is proprietary. Copyright © 2015 Capgemini. All rights reserved.
Rightshore® is a trademark belonging to Capgemini.
www.capgemini.com
About Capgemini With almost 145,000 people in over 40 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services. The Group reported 2014 global revenues of EUR 10.573 billion.
Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business Experience™, and draws on Rightshore®, its worldwide delivery model.
Learn more about us at www.capgemini.com.