We introduce you to the key benefits and challenges that omnichannel fulfilment represents for retailers today, how leading retailers are performing in this area and what the key aspects are that you must consider from people as well as organization and technology standpoints on your path to leveraging key initiatives like store fulfilment.

1. © 2015 Openbravo Inc. All Rights Reserved
Readying Retailers for Omnichannel Fulfillment
July 16, 2015
Readying Retailers for Omnichannel Fulfillment
July 16, 2015 Click here to go to the recorded webinar in Brighttalk

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Xavier Places
Product Marketing Director
@xplacesc
xavier-places-cano
▪ More than 15 years experience in IT sector
▪ International consultancy firms as ERP, CRM
and BI Business Unit responsible
▪ In Openbravo since 2007
▪ Services Director
▪ Retail Lead, for the launch of the Retail vertical
▪ Business Development Director
▪ Product Marketing Director
Today’s Presenter

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▪ Introduction
▪ Key Dimensions to Evaluate your Readiness
▪ Examples of Leading Retailers
▪ Key Takeaways
▪ Q&A
Agenda and Goals

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The Omnichannel Customer
▪ Convenience, to
buy, pay, receive
and return how
they prefer
▪ Speed, to receive
ordered products
or information
▪ Personalization,
on each
interaction with
the brand
21%
more
profitable

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Channel Shift
In the next 5 years, the most
significant shift in omnichannel
fulfillment will be the in-store
pickup of goods,
a fulfillment option predicted to
virtually double by 2017.
35% 13% 5%
Source: Planet Retail 2014

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Readiness
Assessment

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Five Key Dimensions
Customer
Product
Inventory
Order/
Fulfillment
Technology

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Customer Dimension
▪ Identify an executive who has
consolidated ownership of the customer
experience.
▪ Create a working team consisting of
multiple functional areas and IT to work
together to identify how customer data
can be used internally more widely and
strategically.
▪ Have a customer data leadership team
that sets out the policies and procedures
required to identify new customer data
sources, ensure data quality, and ensure a
single version of the truth.
▪ Ensure Marketing, Channels, and
Merchandising operate off of the same
shared perspective on customer behavior
and segments.
Customer
Product
Inventory
Order/
Fulfillment
Technology

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Product Dimension
▪ Manage assortments across channels on a
portfolio basis. For example, products are
planned to be introduced online,
expanded into stores, and then cleared via
online at end of life. Pricing decisions are
made across channels.
▪ Manage a master assortment that can be
leveraged in any channel, and localized
by channel and geography, as well as by
customer segment.
▪ Integrate user-generated content, like for
example, product ratings and reviews that
can be featured in stores.
▪ Create product content organized by its
role in enabling a path to purchase.
▪ Implement a proper master data
management to ensure product
information is consistent across all
channels.
Customer
Product
Inventory
Order/
Fulfillment
Technology

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Inventory Dimension
▪ Provide visibility about all available
inventory for sale, including inventory in
suppliers' locations, in returns, or in transit,
regardless of the channel where it is
physically located.
▪ Aspire to an almost real-time visibility about
your stock levels in all locations.
▪ Enable channels to reserve stock in remote
locations and provide visibility about its
status.
▪ Incorporate supplier considerations as well
as channels in your demand planning.
▪ Implement mechanisms to increase
visibility and transfer of inventory across
channels
Customer
Product
Inventory
Order/
Fulfillment
Technology

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Order/Fulfillment Dimension
▪ Give Supply Chain the ownership of
customer orders, to optimize inventory
locations outside of the store.
▪ Design your distribution network to minimize
logistic costs and delivery times according
to your geographical coverage
▪ Allow capture orders in any channel,
regardless of that channel's ability to fulfill
the order.
▪ Leverage customer data during customer
order and fulfillment processes to propose
product recommendations.
▪ Implement algorithms to help optimizing
inventory fulfillment options.
▪ Leverage store fulfillment.
▪ Support typical cross-channel scenarios
like buy online-pick up in the store, buy
online-return in the store, buy online-ship
from store or reserve in the store
Customer
Product
Inventory
Order/
Fulfillment
Technology

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Assisted Sale and Inventory Visibility
Click here to get a copy of the Openbravo Store Solution Datasheet including Web POS features

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Distributed Order Management
▪ Manages the fulfillment process behind
the scenes to provide a better shopping
experience and delivery promise
▪ Orchestrates fulfillment across enterprise
and channels
▪ Provides single view of the inventory
across the entire distribution network
▪ Responsible for determining delivery
method and dates
▪ Responsible for determining best locations
from which inventory is taken
▪ Communicates information during selling
process to ensure order capture

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E-commerce platform
Marketplaces
Payment Processor
Logistic Providers
Stores
Groupe Adeo places the Openbravo Commerce Suite at the
heart of the new Home’s Up complete multichannel retail solution
Click here to get a copy of the Home’s Up Success Story
OMS Example: Home’s Up

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UPS Pulse of the
Online
Shopper, June
2015
Store Fulfillment
▪ Different SLAs, schedules and
metrics
▪ Train the people for new activities
▪ Increased task management
complexity
▪ Enable a new store space
▪ Handle frequent parcel shipments
that can increase costs
▪ Changes in replenishment, with
more frequent need of stock
Challenges
▪ Provide added convenience to customers
▪ Increase in-store traffic
▪ Minimize out-of-stock
▪ Get products to customers faster
▪ Increase inventory turnover
45% have made a new purchase when picking up the purchase
in store, among those who have used an in-store pickup option
70% of those who return items to a store will purchase a new item

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Best Practices for Store Fulfillment
▪ Put daily “ship from” limits in place
▪ Don’t enable small footprint stores
▪ Don’t enable your most profitable stores
▪ Give store managers control to throttle or opt
out due to operational constraints
▪ Invest in dedicated ‘pick’ staff for store pickup
▪ Staff the pick-up desk at all times
▪ Put the pick-up desk at the store entrance
▪ Enable guest pickup options online
▪ Ask for photo ID or scan a 3D barcode receipt
▪ Have the pickup order to hand (not in the stock
room)
▪ Establish pickup KPI‟s and monitor
Picking process optimization
▪ Use of mobile devices
▪ Batch picks together
▪ Split by zone or floor
▪ Enable route optimization
▪ Consider single order picks for priority
pickup orders
▪ Task management
Basic needs for pack & ship:
▪ De-tagging
▪ Wi-Fi connectivity
▪ Packing inventory
▪ Packing table and storage space
▪ Carrier integrated weigh station
▪ Invoice & pack slip printer
▪ Carrier integration and label printing
▪ Carrier pickup access
Store
Shipments
Store Pick-
Up
Deliver-to-
store
In a Deliver-to-store scenario the customer also
picks up the products in the store, but the stock
comes either from other store or from a central
fulfillment center
Receptions process optimization
▪ Use of mobile devices
Basic needs for pack & ship:
▪ Wi-Fi connectivity
▪ Unpacking table and Storage space

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Technology Dimension
▪ Evaluate any IT investment against your
omnichannel strategy.
▪ Enable business leaders to influence or own
the strategic direction of cross-channel
investments.
▪ Invest on technologies that provide the
highest possible freedom to adapt to future
needs and allow to adapt for
competitiveness
▪ Ensure new technologies will allow you to
leverage existing legacy systems.
Customer
Product
Inventory
Order/
Fulfillment
Technology

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Benchmark

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New Position: Chief Omnichannel Officer
Robert B. Harrison Brent Kirby
A new executive position to oversee the integration of all channels and ensure
the execution of the company omnichannel strategy

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Online Inventory Visibility

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Click and Collect Gaining Ground
John Lewis
delivered more
online orders by
click and collect
than by home
delivery for the first
time in its latest
financial year.
54% of online
orders were
delivered to the
store for pick up in a
year in which click
and collect orders
grew by 47%
compared to the
same time last year.

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As a result of its ship-
from-store program,
Nordstrom's turnover
spiked to 5.41 from
a previous five-year
high of 4.84.
Impact on Inventory Turnover

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Added Convenience with Reserve in Store

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Buy Online in the Store
Customers can
explore over a
million of products
that cannot be
found on the
shelves of the brick
and mortar stores.
The in-store kiosks
created double-
digit growth in
sales since they
were introduced in
stores in July 2014.

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Omnichannel Distribution Network
▪ Supply Chain remodeling
started in 2007
▪+2.000 stores. 35.000
SKU’s
▪18 RDC (Rapid
Deployment Centers)
▪3 DFC (Direct Fulfillment
Center). 100.000 SKU’s.
50% improvement in
speed of order prcessing
▪ Legacy network of 70 DC
(Distribution Centers)
RDC
DFC
DC
Store
Customer /
Home
Supplier
1. Customer enters an online order
2. DFC receives it and ships to home or to a RDC
3. RDC receives it and ships to a store
4. Customer picks up the order
5. Store could also fulfill order from its stock
eComm

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Key Takeways
Key
Takeaways

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Key Takeaways
▪ Omnichannel customers continuously
demand higher speed, convenience and
personalization in all interactions.
▪ Store stock is now used to fulfill most click &
collect orders
▪ Ensure customer is placed at the center of
your strategies.
▪ Ensure product information is consistent
across channels and personalize
assortments by channel and customer
profiles.
▪ Provide enterprise wide inventory visibility
to all your sales channels.
▪ Adopt an OMS to support distributed order
management and leverage store
fulfillment.
▪ Invest in technologies aligned with your
omnichannel strategy that provide you
future freedom while helping to leverage
prior investments.

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