RETAIL TECHNOLOGYTHE NEED FOR A NEW APPROACH

Oliver Guy

2 |

WarehousingWarehousing

Planning

Merchandise Planning

Forecasting

Replenishment & Alloction

WarehousingTransport

Planning & Execution

Purchase Order

Management

Vendor Deals Management

Execution

Stock Ledger

Store Operations

Head Office

Store Inventory

ManagementPoint of Service

Customer Service

Returns Management

Online & Channels

Customer Order

Management

Commerce Storefront

Visualisation / Planogrammin

g

Item MasterAssociate Planning

Price Management

General Ledger

Ecommerce Search

Store Support

Consumer engagement

Private Label Development

Channel Inventory

Data warehou

se

Data warehou

se

Invoice Matching

Finance & HR

Associate Planning

CRM

Supply Chain Operations

Suppliers & Third Party Service Providers

Marketing offer

Management

Call CentreContent Management

HR

EXAMPLE RETAIL ARCHITECTURE

Assortment & Space

Price & Promotion Planning

Inventory Management

Store & Channel Operations

Clearance & Markdown

DSB (Departmental Service Bus)

Maintaining Existing

Innovation & Investment

3 |

Customer Order

Management

Data warehou

se

Inventory Management

Assortment & Space

Price & Promotion Planning

WarehousingWarehousing

EXAMPLE RETAIL ARCHITECTURE

Planning

Merchandise Planning

Forecasting

Replenishment & Alloction

WarehousingTransport

Planning & Execution

Purchase Order

Management

Vendor Deals Management

Execution

Stock Ledger

Store Operations

Store Inventory

ManagementPoint of Service

Customer Service

Returns Management

Online & Channels

Commerce Storefront

Visualisation / Planogrammin

g

Item MasterAssociate Planning

Price Management

General Ledger

Ecommerce Search

Store Support

Consumer engagement

Private Label Development

Channel Inventory

Data warehou

se

Finance & HR

Associate Planning

CRM

Marketing offer

Management

Call CentreContent Management

HR

VENDORS COULD LOOK LIKE THIS…

HOME

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LEGACY

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LEGACYHOME

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LEGACY

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GROWN

LEGACY

HOME

GROWN

LEGACY

HOME

GROWN

LEGACY

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LEGACYHOME

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LEGACYHOME

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LEGACY

HOME

GROWN

LEGACY

Head Office

Supply Chain Operations

Suppliers & Third Party Service Providers

Store & Channel Operations

Clearance & Markdown

DSB (Departmental Service Bus)

Maintaining Existing

Innovation & Investment

4 |

WarehousingWarehousing

Merchandise Planning

Assortment & Space

Forecasting

Replenishment & Alloction

WarehousingTransport

Planning & Execution

Purchase Order

Management

Vendor Deals Management

Stock Ledger

Store Inventory

ManagementPoint of Service

Customer Service

Returns Management

Customer Order

Management

Commerce Storefront

Price & Promotion Planning

Visualisation / Planogrammin

g

Item MasterAssociate Planning

Price Management

General Ledger

Ecommerce Search

Store Support

Consumer engagement

Private Label Development

Channel Inventory

Data warehou

se

Invoice Matching

Associate Planning

CRM

Marketing offer

Management

Call CentreContent Management

HR

EXAMPLE RETAIL ARCHITECTURE‘CONNECTING THE DOTS’ – MASSIVE COMPLEXITY CONSTRAINS THE BUSINESS

Planning

Execution

Store Operations

Online & Channels

Finance & HR

Data warehou

se

Inventory Management

Head Office

Supply Chain Operations

Suppliers & Third Party Service Providers

Store & Channel Operations

Clearance & Markdown

DSB (Departmental Service Bus)

Maintaining Existing

Innovation & Investment

5 |

WarehousingWarehousing

Planning

Merchandise Planning

Forecasting

Replenishment & Alloction

WarehousingTransport

Planning & Execution

Purchase Order

Management

Vendor Deals Management

Execution

Stock Ledger

Store Operations

Store Inventory

ManagementPoint of Service

Customer Service

Returns Management

Online & Channels

Customer Order

Management

Commerce Storefront

Visualisation / Planogrammin

g

Item MasterAssociate Planning

Price Management

General Ledger

Ecommerce Search

Store Support

Consumer engagement

Private Label Development

Channel Inventory

Data warehou

se

Data warehou

se

Invoice Matching

Finance & HR

Associate Planning

CRM

Marketing offer

Management

Call CentreContent Management

HR

EXAMPLE RETAIL ARCHITECTURE

Assortment & Space

Price & Promotion Planning

Inventory Management

COMPLEXITY EXAMPLE – BUY ONLINE, PICK-UP INSTORE

1

1

23

3

3

4

5

6

6

6

1

1

6

7

8

9

9

6 6

79

95

Head Office Store & Channel Operations

Supply Chain Operations

Suppliers & Third Party Service Providers

Clearance & Markdown

DSB (Departmental Service Bus)

1. Customer selects2. Service location selected3. Inventory check4. Delivery capacity5. Customer transacts6. Product reserved, transfer

arranged7. Arrives in store8. Customer alerted9. Customer collects

Maintaining Existing

Innovation & Investment

6 |

DSB (Departmental Service Bus)

Clearance & Markdown

WarehousingWarehousing

Merchandise Planning

Assortment & Space

Forecasting

Replenishment & Alloction

WarehousingTransport

Planning & Execution

Purchase Order

Management

Vendor Deals Management

Stock Ledger

Store Inventory

ManagementPoint of Service

Customer Service

Returns Management

Customer Order

Management

Commerce Storefront

Price & Promotion Planning

Visualisation / Planogrammin

g

Item MasterAssociate Planning

Price Management

General Ledger

Ecommerce Search

Store Support

Consumer engagement

Private Label Development

Channel Inventory

Data warehou

se

Invoice Matching

Associate Planning

CRM

Marketing offer

Management

Call CentreContent Management

HR

Planning

Execution

Store Operations

Online & Channels

Finance & HR

Data warehou

se

Inventory Management

EXAMPLE RETAIL ARCHITECTURE‘CONNECTING THE DOTS’ – THE OBSTACLES CREATED

Head Office

Supply Chain Operations

Suppliers & Third Party Service Providers

• Visibility - Delayed visibility and decisions• Connectivity – Poor integration among systems• Process – Inconsistent systems and opaque processes• Data Models – Siloed models and data sources• Communication – poor connectivity to external stakeholders• Automation – Applications failing to support business demand• Big Data – Inability to scale with extreme data volumes

Store & Channel Operations

Maintaining Existing

Innovation & Investment

7 |

HR

Merchandise Planning Forecasting Replenishmen

t & Alloction

WarehousingWarehousingWarehousing

Transport Planning & Execution

Purchase Order

ManagementVendor Deals Management

Stock Ledger

Head Office

Store Inventory

ManagementPoint of Service

Customer Service

Returns Management

Customer Order

ManagementCommerce Storefront

Visualisation / Planogrammin

g

Item Master

Associate Planning

Price Management

General Ledger

Ecommerce Search

Store Support

Consumer engagement

Private Label Development

Channel Inventory

Invoice Matching

Finance & HR

Associate Planning

CRM

Marketing offer

Management

Call CentreContent Management

EXAMPLE RETAIL ARCHITECTURE

Assortment & Space

Price & Promotion Planning

Inventory Management

ELIMINATING COMPLEXITY REMOVES THE OBSTACLES

Store & Channel Operations

Execution Online & Channels Store OperationsSupply Chain Operations

Planning

Supply Chain Operations

INTEGRATION & CONNECTIVITY

DATA (EVENTS)

TASKS (PROCESSES)

DECISIONS (RULES)

Suppliers & Third Party

Service Providers

Data warehou

se

Data warehou

se

Common Reporting

Clearance & Markdown

BU

SIN

ES

S L

OG

IC

IN MEMORY DATA

Maintaining Existing

Innovation & Investment

9 |

Driving Digital Retail

www.SoftwareAG.com/Retail Oliver.Guy@SoftwareAG.com+44 7721 956697