Design the Omni-Channel Supply Chain with Integrated Optimization and SimulationPanel Discussion with Cabela’s, Michael Kors and LLamasoft

Today’s Presenters

Toby BrzoznowskiExecutive Vice President,LLamasoft, Inc.

Earl DavisDirector of Retail Supply Chain,Cabela’s, Inc.

Peter HunnewellDirector, Supply Chain Strategy,Michael Kors

Cabela’s, Inc.

Outdoors retailer: hunting, fishing, camping, etc.

Began as catalog-only company in 1961

First store: 1991—Now 78 North American stores, 8 opening 2016

Started .com page: 1998

Went public: 2004

First ship from store: 2013

Currently have five distribution centers and one returns center—Retail and direct share inventory

2014 total revenue: $3.65 billion

Destination shopping experience

Superior customer service

Michael Kors

Global accessories, footwear and apparel company

1981: The Michael Kors label was born

2006: Michael Kors opens its first retail stores in the US

2011: Michael Kors Holdings Ltd. launches IPO

2013: eCom launched

2015: First ship from store

FY 2015 total revenue: $4.37 billion

LLamasoft

Global leader in supply chain design software and solutions

Founded in 1998

Supported more than 2,000 supply chain design initiatives

Over 100 supply chain design consultants

Customers include largest global companies, logistics and consulting firms, military supply chains and global health initiatives

Over 50% of Fortune 100 supply chains designed with LLamasoft

Challenge: Volatility and Change is the New Normal

INTERNAL FACTORS

EXTERNAL FACTORS

SERVICE & PERFORMANCE METRICSHow does a change in inventory policy effect my service rates?How many shipments will be late?Am I at risk of hitting capacity constraints?Will this new schedule improve throughout?

With Volatility and Change Come More Questions To Answer

PRODUCT FLOWHow much does it cost to serve each customer?Which ports should I be using?Should I consolidate my inbound through a cross-dock?

TRANSPORTATIONHow many routes & assets do I need?What if I change delivery frequency?How can I reduce my empty miles?Can I combine inbound and outbound shipments?

INVENTORYHow much inventory do I need?How much does it cost to increase my service levels?Where should I stock each product?

PRODUCTION FOOTPRINTWhen should I pre-build?Where should I make each product?Do I have the right balance of capacity?Should I be outsourcing production?

NETWORK STRUCTUREShould I lease of build new sites?Who should source each customer?When do I need more capacity?How do I consolidate assets? PRODUCT DEMAND

How are customers buying our products?How should I segment different customers and products?

There is Seemingly No

Limit to the Questions

The Third Discipline of Supply Chain Management

DESIGN

Network strategyRoute modeling

Demand segmentationEnterprise simulation

Inventory policy analysisProduct flow-path designService-level optimization

PLANNING

Enterprise resource planningProduction planning & scheduling

Inventory management & planningSales & operations planning

Demand forecastingSourcing & procurement

Integrated business planning

EXECUTION

Transportation managementWarehouse managementWorkforce management

Yard managementTracking & tracing

Global trade management3rd party scheduling & billing

Introduction: Omni-Channel Means Re-Thinking & Re-Designing Many Aspects of Retail Supply Chain

Supply chain network structure

Inventory positioning

Transportation:

Mode shifts

Service shifts

3PL vs. internal

Parcel usage

Inbound and outbound flow changes

Role of store changes

Changing service goals

More Questions? Let’s Talk!

LLamasoft Booth 636

Meet us in the RILA omni-channel HUB 5:30 p.m. today