How the Omnichannel is Impacting the Supply Chain
26. April 2017
dSC LoB – Western Europe
Hans Kourimsky
Florence the city of Omni art
26.0
5.2
017
2
47%
23%
11%
17%
2% 1%
216 220272
342407
457557
696778
itelligence Worldwide in Numbers
5/2
6/2
017
© 2
017 ite
llig
ence
1989 5,600+777.9 MEUR(2016)
6,000+German-Speaking Europe
Western Europe
Asia
Other
Eastern Europe
USA
Employees Development of Headcount Revenue
Revenue per Region (2016)
+17,4% Revenue Growth from 2008
24 CountriesCustomers
Founded
14311545
1844
2251
2765
30784140
4702
2008 20162009 2010 2011 2012 2013 2014 2015
5677
+
SAP aquired Hybris in 2013
itelligence launched ‘Hybris’ team around CRM – e-commerce – and ERP integration
Within this team we identified that the shift to an omni channel world canbring major changes in the SupplyChain world, our conclusions whereput in this whitepaper.
5/2
6/2
017
© 2
015 ite
llig
ence
Multi channel vs. Omni channel
5/2
6/2
017
© 2
015 ite
llig
ence
5
Sto
res
Mobile
Web
Cata
logue
Sto
res
Mobile
Web
Cata
logue
Seamless experience
NEW MODEL, OMNI-CHANNEL | EFFICIENT, OPTIMIZED EXPERIENCE
5/2
6/2
017
© 2
015 ite
llig
ence
6
ERP
BACK END
WAREHOUSE PLM CRM DATA POOLS
SUPPLIERS
WEB CALL CENTER
CONSOLE MOBILEPOS SOCIALTV PRINT
ORDER MANAGEMENT
PLATFORM
MASTER DATA
OMNI-CHANNEL LOGIC
EXPERIENCE MANAGEMENT
5/2
6/2
017
© 2
015 ite
llig
ence
Better Process and Data Management
SavingsBy cost reduction
45%
Of the savings by reducing
costs through better product
management
15%
34%Of the savings through
process simplifications
38%
Revenue
Increase in online sales
Upsell
18%Increased cart size.
Business impact
DIGITALLY CONNECTED
79%of customers spend at least 50% of total shopping
time researching products online.
SOCIALLY NETWORKED
53%of customers abandoned a purchase due to
negative online sentiment.
BETTER INFORMED
59%
of customers are willing to try a new brand to get
better customer service.
Customer Facts
Source SAP, CXP & FEVAD
5/2
6/2
017
© 2
015 ite
llig
ence
8
Click to possession performance in France
5/2
6/2
017
© 2
015 ite
llig
ence
9
Order Ship Deliver
Source FEVAD 2015 – 2016 e-commerce logistics observatory
Less than a Day
Less than two Days
Less than a Day
Day + 1
5/2
6/2
017
© 2
015 ite
llig
ence
10
Omnichannel Retail in Europe - Strategies, Challenges & Measuring Success - Executive Summary CXP – PAC 2015
The Supply chain impact
New volumes
5/2
6/2
017
© 2
015 ite
llig
ence
12
What should be on stock ?Source Metis Conseil
Disruption of the traditional supply chain
5/2
6/2
017
© 2
015 ite
llig
ence
13
Where to ship from ?Factories
Distribution centers
Stores
Impact of Omni channel on the Supply Chain Planning
5/2
6/2
017
© 2
015 ite
llig
ence
14
What is my target service levelWhere do I store the products
Digital transformation and the supply chain
5/2
6/2
017
© 2
015 ite
llig
ence
15
How to handle the new business requirements ?
Digital transformation and the supply chain
5/2
6/2
017
© 2
015 ite
llig
ence
16
IoT dataSocial Media data
Processes
Things
How to handlethe real time
data updates ?
Omni channel warehouse
5/2
6/2
017
© 2
015 ite
llig
ence
17
Where and how to process the new deliveries ?
Introducing mass picking to match detail delivery requirements
5/2
6/2
017
© 2
015 ite
llig
ence
18
5/2
6/2
017
© 2
015 ite
llig
ence
19
Brain
Body Eye/Ear Recognizes the event and categorize some pattern data.
Analyzes the data and give answer
Executes the
instruction accurately
Instruction
Feedback
Is robotics as solution ?
The returns nightmare
5/2
6/2
017
© 2
015 ite
llig
ence
20
How to handle the returns volumes ?Where to process the returns ?
Take awaysImpacts on the Supply chain through Omni-Channel and digitalization
Ensure greater data accuracy
More flexibility in business processes
Faster business cycles
Open to robotics
Lot size of 1
Returns processing
5/2
6/2
017
© 2
015 ite
llig
ence
21
itelligence MarketingKönigsbreede 133605 [email protected]
We make the most of SAP® solutions!
5/2
6/2
017
© 2
015 ite
llig
ence
Copyright itelligence AG - All rights reserved
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of itelligence AG. The information contained herein may be changed without prior notice.
Some software products marketed by itelligence AG and its distributors contain proprietary software components of other software vendors. All product and service names mentioned and associated logos displayed are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.
The information in this document is proprietary to itelligence. This document is a preliminary version and not subject to your license agreement or any other agreement with itelligence. This document contains only intended strategies, developments and product functionalities and is not intended to be binding upon itelligence to any particular course of business, product strategy, and/or development. itelligence assumes no responsibility for errors or omissions in this document. itelligence does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement.
itelligence shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent or gross negligence.
The statutory liability for personal injury and defective products is not affected. itelligence has no control over the information that you may access through the use of hot links contained in these materials and does not endorse your use of third-party Web pages nor provide any warranty whatsoever relating to third-party Web pages.
5/2
6/2
017
© 2
015 ite
llig
ence
23