Capgemini Intelligent Commerce and Fulfillment – the Time is Now

IBM Amplify 2015 Conference
Session Number: 1260
Title: Intelligent Commerce &
Fulfillment
Chris McDivitt – Vice President
Mark Fodor – Vice President
Prashanth Mahadevaiah- Director

2
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

3
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

4
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

5
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

6
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

7
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

8
Agenda
Illustration of intelligent & Fulfillment Commerce Use Cases
Our Integration Framework and getting Intelligent Commerce & Fulfillment right
Intelligent Commerce & Fulfillment

9
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-PurchasePre-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

10
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

11
Agenda
Illustration of Intelligent Commerce and Fulfillment Use Cases
Our Integration Framework and getting Intelligent Commerce and Fulfillment right
Intelligent Commerce and Fulfillment

12
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
ForecastTransfer Order
Purchase Order
OMS
Order
Intelligent Commerce & Fulfillment:
Illustration for Buy Online – Pickup in Store

13
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
ForecastTransfer Order
Purchase Order
OMS
Order

14
Agenda
Illustration of Intelligent Commerce Use Cases
Our Integration Framework and getting Intelligent Commerce right
Intelligent Commerce

15
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 SaleWeb Point of Sale
CRM 3rd Party (dropship)OMS Inventory WMS PIM
ESB/SOA Business Integration Layer

16
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
Identity&AccessManagement
ServiceManagement
Automated Provisioning
Application Lifecycle Management
Integration
API Management (external)
API Management (internal)

17
Three foundational elements to getting Intelligent
Commerce right
17
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

18
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

19
Capgemini Contact Information
Chris McDivitt, Vice President, Supply Chain Technologies Leader
- Email:christopher.mcdivitt@capgemini.com
Mark Fodor, Vice President, Digital Commerce Leader
- email.:mark.fodor@capgemini.com
Prashanth Mahadevaiah, Director, Supply Chain Leader India
- email.:prashanth.mahadevaiah@capgemini.com

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.

Capgemini Intelligent Commerce and Fulfillment – the Time is Now

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Capgemini Intelligent Commerce and Fulfillment – the Time is Now