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Martin Priest Manager, Business Development & Operations, eCommerce, Lowe’s Canada

The Changing Role of Operations and Fulfillment in Omni-Channel Retail

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Page 1: The Changing Role of Operations and Fulfillment in Omni-Channel Retail

Martin PriestManager, Business Development & Operations,

eCommerce, Lowe’s Canada

Page 2: The Changing Role of Operations and Fulfillment in Omni-Channel Retail

What is Omni-Channel?

Page 3: The Changing Role of Operations and Fulfillment in Omni-Channel Retail
Page 4: The Changing Role of Operations and Fulfillment in Omni-Channel Retail

What is driving Omni-Channel Fulfillment?

Page 5: The Changing Role of Operations and Fulfillment in Omni-Channel Retail
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Where Lowes.ca started

Page 13: The Changing Role of Operations and Fulfillment in Omni-Channel Retail

Lowes.ca launched in late 201237 locations, 4 provinces

Page 14: The Changing Role of Operations and Fulfillment in Omni-Channel Retail

Platform is owned by LoweseCommerce-dedicated call centre

Page 15: The Changing Role of Operations and Fulfillment in Omni-Channel Retail

Store pick-up and truck delivery available

All items are shipped from store, parcel shipping works on a hub store matrix

Page 16: The Changing Role of Operations and Fulfillment in Omni-Channel Retail

Ship-from-warehouse introduced in 2014

Customers can gain insights to product availability with Real-Time Inventory

Page 17: The Changing Role of Operations and Fulfillment in Omni-Channel Retail

90% of in-store SKUs available online65,000 Extended Aisle SKUs

Page 18: The Changing Role of Operations and Fulfillment in Omni-Channel Retail

Omni-Channel is changing the way business is doneLearnings from forming an omni-channel strategy at Lowe's

Page 19: The Changing Role of Operations and Fulfillment in Omni-Channel Retail

Organizational silos between the online and offline divisions drive the

wrong behaviours

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Tactical LessonsOps says it works one way, but the stores tell the real story.

Store inventory data is less accurate than a warehouse.

Page 23: The Changing Role of Operations and Fulfillment in Omni-Channel Retail

Tactical LessonsBuffers, Picking, Inventory in hands - high velocity.

Extended aisle SKU’s are much less productive on average, we’re finding 5% of SKU’s do 80% of the work, recognized

brand names have good traction.

Page 24: The Changing Role of Operations and Fulfillment in Omni-Channel Retail

Tactical LessonsQuantity limitations for parcel shipping

Real-time inventory visibility is a must

Page 25: The Changing Role of Operations and Fulfillment in Omni-Channel Retail

Key Lesson #1

Don’t assume everyone understands eCommerce or that it is a priority.

Page 26: The Changing Role of Operations and Fulfillment in Omni-Channel Retail

Key Lesson #2

Learn the rest of the business

Page 27: The Changing Role of Operations and Fulfillment in Omni-Channel Retail

Key Lesson #3

Training, Training, Training

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Key Lesson #4

Supply Chain will never be the same

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Key Lesson #5

Information is King

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Key Take Away

The new role of Operations is of a student and a teacher.