Digital Supply Chain and Transformation Michael Tung ...

transcript

Digital Supply Chain and Transformation

Michael Tung

Senior Executive Manager,

Centre of Excellence, SCM

• Transformation never stop in the last 150 years, it just gets faster with Internet

• DKSH’s digital solution suite

• DKSH’s approach to Omni Channel

• Results and key learnings

Contents

A 150+ years of journey

…Transformation never stops, it just goes faster with

Digital and Internet of Things

Experience in Asia dates back to the

1860’s when our founders ventured to Asia

Market Expansion

Services provider

Specialized services

providerTrading companies

1865 20172002

We have built sustainable relationships with

international companies and local business

communities

Now we are the No. 1 Market Expansion

Services provider with a focus on Asia

Access to internet changes brand interactions

Increased access to the internet and the

rise of mobile technology are dramatically

changing the way that consumers are

interacting with brand owners.

…with a comprehensive, tailor-made portfolio

of services

Market Expansion Services goes beyond offering individual services – it is about

the integration of many different services to meet the needs of business partners

After-sales

services

Distribution

and logistics

Marketing

and sales

Market

analysis and

research

Sourcing

Tailor-made, integrated service portfolio

Backflow of information from customers to clients

enabled by fully integrated and centralized IT platform

We link business partners and add value to

businesses

Consumer goods, healthcare products

Specialty chemicals and ingredients, analytical

instruments, capital investment goods

We support our clients in marketing,

selling and distributing products, provide

after-sales services and market insight in

new and existing markets

We support our customers in getting the

best raw materials, products and brands

at the best price and we provide them

with knowledge and market insights

Market insightsRetailer

Manufacturer

Client Customer

B2B/B2C

Market insights

Our current solutions and services

1. Digital Marketing

2. Online Channel Management

3. E-Fulfillment

4. Data Analytics

1. Digital Marketing

Provide strategic direction

Execute digital marketing campaigns

Search marketing

Email marketing

Video marketing

Social media marketing

Display marketing

Content marketing

Introduction and application of data analytics

Agency partners

2. Online Channel Management (1/2)

Product

onboarding and

management

Returns

manage-

Customer care

Order fulfillment

and delivery

Inventory

transfer and

management

Technical

monitoring

Price and

promotion

manage-

Financial

reconciliation

Channel

strategy and

consultation

Fulfillment facilitiesTechnology

integration

2. Online Channel Management (2/2)

SAP plays primary role for Management of Product Information, Price & Promotions, Orders, Inventory, Warehouse, Billing, Accounting

SelluSeller plays primary role in Product Content Management, Order Status Management, Interfacing with 3rd Party Marketplaces

Products

• SKU

• Retail Price

• Promotions

• Available Stock

Orders

• Sales

• Returns

• Billing

Reporting

• Client

• Internal

• Listings Management

• Inventory Allocation

• Order Consolidation

• Reporting and Analytics

Online Channel

Management

3. E-Fulfillment

Distribution Center

B2C fulfillment area

• Same facility

• Different pick and pack process

• Last mile orchestration

4. Data Analytics

Data and Insights from Channel Partners Data and Insights by DKSH

DKSH’s approach to Omni Channel

Through DKSH Connect, we empower our

business partners to manage and grow their

businesses at their convenience – 24 hours a

day, seven days a week

DKSH’s online customer engagement platform

DKSH Connect is an online tool. It enables you to:

Browse our

catalog of

products

orders

shipping

Make payments

and view

statements

It’s available anytime, anywhere with any device

Increased visibility and access of our client’s products,

back by seamless supply chain for efficient consumer

response

Key learnings

Results and key learnings

Consumer

centricity

Data-drivenOmni-channel BD

value proposition

One DKSH

Strategic channel

partnership

1. After 3 years, DKSH is selling 400 brands online in 9 Asian countries.

2. Omni-channel business development value proposition to our clients

3. Client expects DKSH to operates as ONE services provider in agility

4. Build strategic channel partnerships in the region

5. Consumer centricity – know the needs and ensure superior shopping experiences both

online and offline

6. Turning data into valuable asset, strengthened by digital transformation

Business partners can be both competitors and

complementors

Source: McKinsey

Complementor Competitor

Fast-changing and more complex relationships Future scenarios for online ecosystem in SEA

Online channel

partner

Platform to sell

directly to

consumers

Outsourcing

partner

Offering e-MES

services

CBT partnerPlatform to sell

directly to

consumers

The industry is still being shaped as players change their strategies constantly – DKSH needs to

build strategic relationships with key players

Channel

consolidation

Infrastructure

efficiencies

fast track

scenario

Status

slow track

scenario

heroes

scenario

Thank you for your attention

Due care has been used in preparation of this presentation and DKSH makes every effort to

provide accurate and up-to-date information. Nevertheless, this presentation may be subject

to technical inaccuracies, information that is not up-to-date or typographical errors

DKSH does not assume liability for relevance, accuracy and completeness of the information

provided. DKSH reserves the right to change, supplement, or delete some or

all of the information on this presentation without notice

The layout, graphics and other contents in this presentation are protected by copyright law

and should not be reproduced or used without DKSH’s written permission

Disclaimer

Digital Supply Chain and Transformation Michael Tung ...

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