Creating a Seamless Customer Experience with Integrated EDI & Powerful Sell Through Data

Dan Chang – Sr. Channel Partner Manager, Dynamics GP

dhchang@spscommerce.com, 612-844-2183

© 2016 SPS Commerce

RETAIL WILL CHANGEMORE IN THE NEXT 5 YEARS THAN IT HAS IN THE LAST 50

WE’RE IN THE AGE OF DIGITAL RETAILING.

© 2016 SPS Commerce

Standard Text Slide

IT ALL BEGINS ON A DEVICE.

© 2016 SPS Commerce

EVERYONE MUST THINK LIKE A CONSUMER because consumers are setting the tempo

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FROM THE JOURNEY THAT BUILT RETAIL…

Awareness Purchase Return

Awareness

© 2016 SPS Commerce

Fulfillment

Consideration

TO TODAY…

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EVERYONE IS TRYINGTO CONNECT WITH CONSUMERS LIKENEVER BEFORE

HOLIDAY 2015© 2016 SPS Commerce

53%

MOBILE SALES GREW FEDEX & UPS RAN

OUT OF AIRPLANES

30%

ONLINE SALES TRAFFIC

▲

65%

MORE PARTNERS

…

BUYERS FOCUSED ON A

.COM/DTC RETAIL MODEL

TRADE WITH

5x

MORE LIKELY TO OBTAIN A

NEW PARTNER EACH MONTH

… SUPPLIERS WHO

PARTNER WITH THEM

© 2016 SPS Commerce

A NEW SUPPLYCHAIN ARCHITECTUREIS NEEDED

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SPS COMMERCE (SPSC) –THE CLOUD RETAIL LEADER

$1+Torders annually

Volume

1.3Mproducts

Sourcing

7K companies35M

UPCs

Assortment

Supportall models

Fulfillment

360K

retail locations

Analytics

Membership

60Ktrading partners

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Commerce Platform

ENGINE NETWORK GRAPH

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Commerce Platform

ENGINE NETWORK GRAPH

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Commerce Platform

ENGINE NETWORK GRAPH

DIGITAL CONSUMER EXPECTATION

© 2016 SPS Commerce

(21)$120

Style:034566-003Pink Electric Orange Melon Green Blue

Winner of the Runner’s World 2014 Best Update Award

SIZE QTY ADD TO CART

Size Chart Save to Wish List

Wings Running ShoeWOMEN’S RUNNING SHOE

More flexible than the 5.0 and more

cushioned than the 3.0, the Wings

Running Shoe unleashes your natural

stride with a lightweight, supportive upper

and highly flexible, low profile outside.

SPS COMMERCE CONFIDENTIAL INFORMATION 21

Rich product information

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Commerce Platform

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COMPONENTS OF EDI

• TP Communications

• Van Mailbox

• AS2 Software

• FTP/Other SW

• Staff

• Install/IMP

• TP Maps

• Trading Partner Kits

• Staff

• Mapping Tool Training

• Initial TP Map Dev

• “Box” to run EDI

• Hardware

• System SW

• EDI Software License

• EDI Translator

• EDI Mapping Tool

• Admin/Forms/Other SW

• Staff—Design & Install

• Integration SW

• Adapter

• Staff

• Training

• Development/Imp

UPFRONT COSTS

CONNECTIVITYSoftware/Network for

transporting data between you

and TPs.

MAPPINGSoftware for reconciling data

between you and your trading

partners.

TRANSLATIONSoftware & Hardware for

converting data into and out of

EDI.

APPLICATIONINTEGRATIONSoftware for exchanging data

into & out accounting system.

• TP Communications

• Van Trans. Fees

• AS2

• Software

• Maintenance

• FTP/Other SW Maintenance

• Staff

• Network Admin Costs

• TP Maps

• Trading Partner Kits

• Staff

• Map Maintenance

• Additional Map Dev

• EDI Ops & Admin

• TP Relations

• “Box” to run EDI

• Hardware Upgrade

• System SW Upgrade

• EDI Software License

• EDI Translator, & Mapping Tool Maintenance

• Admin/Forms?

• Other SW Maintenance Staff

• System Ops & Admin

• Integration SW

• Adapter Maintenance

• Staff

• Maintenance / Admin

ONGOING COSTS

APPROACHES TO EDI SOLUTIONS VARY

SERVICE MINDSET

• Priority is control

• Is EDI a core competency for my business?

• You set expectations for internal customers

• Priority is reduced expense

• How much extra cost is there?

• Your expectations are managed

• Full service

• Priority is customer satisfaction

• Proactive calls to resolve issues

• Proactive fixes on behalf of many

PRODUCT ARCHITECTURE

• “Point-to-Point” integrations = errors

• Integration layers require trading partner

logic

• One-off documents are custom/manual

• “Point-to-Point” integrations = errors

• Integration layers require trading

partner logic

• One-off documents are custom/manual

• Re-use of syntax maps = Reliability

• Complete API simplifies integrations

• Easy options for all requirements

EXTENSIBILITY

• Strong only for EDI customers

• Are partnerships working in

production today

• Easily extended to external

partners

• SPS system is easy to plug into

• Strong only for EDI customers

• Are partnerships working in

production today

SELF-SERVICE MANAGED SERVICES MULTI-TENANT, CLOUD

High staff requirements Low staff requirements

Unique maps required

Limited growth

Unique maps provided

Infinite growth

SINGLE CONNECTION NOW & FUTURE

Retailers

3PLs

Carriers

Sourcing

Companies

Factories

YOUR FULL-SERVICE TEAM

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24X7 Access toSupport Center

DataMonitoring

Customer Support Team

System Monitoring

Fulfillment Support Team

• Phone

• Social Media

• Email

• Online Forums

Trading PartnerChange

Management

Trading Partners

PartnerTeam

Account Executive

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Commerce Platform

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THE BUYER<>SELLER RELATIONSHIP

No chance to understand all the data

Not the expert in the product

1,000s of Stores

10,000s of Items

100s of Vendors

Buyer

28

Can help but NEEDS the sales data

Expert in the product

100s or 1,000s of Stores

100s of Items

1-5 Retailers

Seller

POINT-OF-SALE & INVENTORY VISIBILITYWHO BENEFITS?

Drive new sales, help buyers merchandize,

deliver accurate forecasts

Improve supply chain planning, optimize

inventory levels

Input into financial forecasts, sales &

territory planning, new products introduction

Receive cleansed POS data to combine with other essential data across the business

VP SalesVP

Supply Chain

Business Analysts

IT

POS DATA SHARING HOW IT WORKS

30

Raw POS

Data

Rich

AnalyticsSupplier

Sellers

RetailerBuyers

Factual Insights & Recommendations• Out of stock warnings• Allocations recommendations• Support for new product launches

Retailers

And many more…

POS Analytics Platform

Dashboards | Ad-hoc | Reports Data extracts

Business

insights

31

Year over year

retail sales by

week for all

connected

retailers. Green

line shows

variance trend.

Retailer detail

breakouts for the

selected period.

Select a

timeframe – 52

weeks, Year to

Date, Season to

Date, or Qtr to

Date

State level

geospatial

variance

KPIs for all

connected

retailers.

Executive overview of the

whole business

Business

overview of

individual retailers

Top and bottom

performing store

detail breakouts

for the selected

period.

KPIs for

individual

retailer.

Choose any

report or

multiple reports

for the data set

Isolate

metrics and

groupingsChoose

different types

of

visualizations

Quickly see

data and any

outliers in a

visual format

USER CREATED DASHBOARDS

Front Office

MEASUREABLE BUSINESS RETURN

Back OfficePre-Season

Planning

In-Season

Adjustment

Replenishment Executive

Visibility

Demand

Planning

Optimize assortment & allocation plans

React quickly to in-store volatility

Optimize store replenishment

Comprehensive view of demand

Cleansed demand data directly integrated

• Consumers have changed retail forever

• Detailed item data drives shopping experience

• Legacy integration models can’t support digital retail

• Collaboration between trading partners is key

• Analytics will drive more sales and lower inventory costs

Questions?