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The Future of Retail “ TAPaS ” Paul Booth Global Technology Head Terminals Logistics
The Future of Retail“TAPaS”
Paul Booth
Global Technology HeadTerminals Logistics
£42,2Bn Revenue 2015
446MCustomers
17 Countries with
Fixed
Broadband
72% 4G EU
Coverage
Vodafone and its
Global Reach
Source: All numbers are from the Vodafone Group Annual Report, 2015
Terminals Spend € 6bn/year
Stock on Hand € 396m
Business Benefit Target (0.01%) € 60m
Systems
Financial KPIs
Retail
Structure
Delivery
Release Cycle
EU Warehouses 14
Owned/Franchised Retail Estate 12,852
Release Management Life-cycle Over 9months
Delivery Model Waterfall
Landscape across Local Markets Fragmented
At the beginning
of our journey…For Demand & Supply Management
Source: All target numbers are from Vodafone Group Terminals Quarterly Report, July 2015
How we applied
RPASTAPaS Transformation Solution
Transformation sequence
1 Implemented a New planning engine across
Retail, next is COPS & Online
2 Sales, Stock by Channel Out of SAP for
the respective OpCos
3 Receive Replenishment plan for stores in
different OpCos
4 Request item codes from SAP for
Terminals
5 Forecast to E-Hub and supplier
commitments back to the Stores
6 Replenishment plan/ allocation to
Local Legacy ERP OpCo Systems
Source: Vodafone Group Technology, Strategy & Architecture, June 2015
SAP – Master Data
Retail COPS Online1
Integration layer
Local Legacy
ERP
E-Hub
Supply Chain
Forecasting & Planning (Oracle RPAS)
Terminals
Stores2
3
6
4
5
Demand Forecasting
Supply Planning
Portfolio Planning
Top Down Planning
Reporting
Local Market Channels
Our 9-6-1
Success Story
Source: Vodafone Group Technology, Terminals Logistics – Bi-weekly Delivery Report, June 2015
Reducing the Delivery cycles from 9 to 6 to 1 month by applying a Dev Ops culture &
Collaboration across the teams
Discovery, Gap Analysis & Solution Design
Build & E2E Testing
UAT, Business Simulation & Go Live
Focus Area
Optimised
Focus Area
Going the “9-6-1” Way
90%
Speed of
Delivery
# of CRs per
Release
Entering the ‘new
‘ approach
70%
Defect Detection
Efficiency
20%
Environment
Defect %
DevOps
Implementation %
80% 70%
Before: 9+months/ release
After: 4-5 weeks/ release
Before: 49.41%
After: 84.62%
Before: 15.48%
After: 12.90%
Before: Not implemented
After: 70%
Before: 20 (CR driven build)
After: 4 (2 UK, 2 NL)
• Demand Forecasting live in UK, Greece, South Africa and Spain.
• Supply Planning live in UK (Full Capability) & GR and ZA (Partial Capability)
• On an average 37,000 handsets and accessories replenished to all stores all products in UK on
a daily basis
• Forecast Accuracy improved by 10% in Greece.
FY15
Core
Functions
• Automated cleansing and forecasting – reduces user intervention for 75% of products
• Intelligence added to manage new products and new location - helps in product/ location
induction process by 5 times
• Improved system accuracy with introduction of dynamic forecast - helps in improving the forecast
by 10%
• Improved user interface - helps in reducing number of clicks by 4-5 times
FY15
Simplification€1.5M
€111M
Gro
ss S
avin
gs
€60M
• Roll-out solution across markets (NL, DE, IT, RO) with significant size of the terminal business
• Adopting the 9-6-1 strategy to accelerate TAPaS to markets
• Boost current solution – add multichannel, fixed line and indirect channel supply features
FY16 & 17
Global Rollout
And our targets for FY17
Where we are
today
Source: Vodafone Group Technology , TAPaS Business Case Deep Dive, January 2015
Applying TAPaS across Vodafone globally and…
Our Definition of
Success for FY16
Enhanced Promotion
&
Deal Pricing
capabilities
1%
Expected sales
boost
2-8%
Reduction in
Inventory Levels in
Store
15%
Reduction in inventory
levels across merchandise
departments
Single
version of merchandise
financial planning &
tracking
Source: All target numbers are from Vodafone Group Terminals Quarterly Report, October 2015
“To develop TAPaS into a Leading Next Generation Supply Chain Solution that is deployed across all our Local Markets across the globe.The Goal
Questions?
