magento + retail order management: optimizing omnichannel...

MAGENTO + RETAIL ORDER MANAGEMENT: OPTIMIZING OMNICHANNEL FOR THE NEXT GENERATION CUSTOMER EXPERIENCE

PROPRIETARY & CONFIDENTIAL

AGENDA

• Understanding the Importance of Order Management

• Examining Retail Order Management Key Capabilities

• Combining Magento with Retail Order Management

• Benefiting from Magento + Retail Order Management

• Determining the Ideal Merchant

• Demonstration

• Getting More Information

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PROPRIETARY & CONFIDENTIAL

UNDERSTANDING THE IMPORTANCE OF ORDER MANAGEMENT

PROPRIETARY & CONFIDENTIAL

EBAY ENTERPRISE OMNICHANNEL SOLUTIONS FOR EVERY STAGE OF THE CUSTOMER EXPERIENCE

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PROPRIETARY & CONFIDENTIAL

EBAY ENTERPRISE OMNICHANNEL SOLUTIONS FOR EVERY STAGE OF THE CUSTOMER EXPERIENCE

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PROPRIETARY & CONFIDENTIAL

OMS IS SYNONYMOUS WITH OMNICHANNEL

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PROPRIETARY & CONFIDENTIAL

OMS IS SYNONYMOUS WITH OMNICHANNEL

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63% of retailers surveyed cited a preference for software as a service (SaaS) or cloud-based OMS solutions

63%

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MERCHANTS ARE FOCUSED ON ORDER MANAGEMENT

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THE MARKET IS CONSOLIDATING

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August 2010

August 2011

May 2013

June 2013

January 2014

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EXAMINING RETAIL ORDER MANAGEMENT KEY CAPABILITIES

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EBAY ENTERPRISE

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HAS

DECOUPLED, MODULAR, EXTENSIBLE HIGHLY SCALABLE RETAIL ORDER MANAGEMENT PLATFORM AS A SERVICE, DESIGNED SPECIFICALLY TO

RETAILERS.

A BUILT

AND

MEET THE NEEDS OF

PROPRIETARY & CONFIDENTIAL

OUR MODULAR RETAIL ORDER MANAGEMENT SOLUTION

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DISTRIBUTED ORDER MANAGEMENT

OMNICHANNEL INVENTORY MANAGEMENT

STORE-BASED FULFILLMENT

DROPSHIP MANAGEMENT

REPORTING

PROPRIETARY & CONFIDENTIAL

WE THEN BUILT A RETAIL-OPTIMIZED PLATFORM

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Retail Optimized Integration Linking OMS to the omnichannel retail value chain

Eliminated Unnecessary Complexities Masked non-retail relevant capabilities, configurations and complexities

Unique Capabilities Omnichannel retail required functionality not in standard Sterling

STERLING COMMERCE DISTRIBUTED ORDER MANAGEMENT

OMNICHANNEL INVENTORY MANAGEMENT

WE STARTED WITH A GOOD FOUNDATION BEGAN THE JOURNEY WITH STERLING THEN SIGNIFICANTLY ENHANCED IT

PROPRIETARY & CONFIDENTIAL

OUR MODULAR RETAIL ORDER MANAGEMENT SOLUTION

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DISTRIBUTED ORDER MANAGEMENT

OMNICHANNEL INVENTORY MANAGEMENT

STORE-BASED FULFILLMENT

DROPSHIP MANAGEMENT

REPORTING

PROPRIETARY & CONFIDENTIAL

OMNICHANNEL INVENTORY MANAGEMENT Foundation for Omnichannel Single source of truth for inventory across the enterprise:

–  Know where your inventory is (and is going to be - ATP) across the entire supply chain is a pre-requisite for omnichannel fulfillment

–  Enables exposure of that inventory for sale on demand channels

–  Key considerations:

•  Safety stock at global, category or SKU level

•  Learning inventory discrepancies

•  In flight orders

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Distribution Centers

Omnichannel Inventory

Management

Dropship Vendors

In-Transit Inventory Stores

PROPRIETARY & CONFIDENTIAL

INTELLIGENT ORDER ROUTING

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DISTRIBUTED ORDER MANAGEMENT

STORE-BASED FULFILLMENT

Order Routing

PROPRIETARY & CONFIDENTIAL

INTELLIGENT ORDER ROUTING DISTRIBUTION CENTERS AND STORES WORK IN CONCERT

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DISTRIBUTED ORDER MANAGEMENT

STORE-BASED FULFILLMENT

Order Routing

•  Profitability •  Proximity •  Transit time •  Inventory burn •  SKU specific

routing •  Split orders

•  Store & item eligibility

•  Max orders •  Days of week •  VAS (gift wrapping,

etc.) •  Store preference

PROPRIETARY & CONFIDENTIAL

INTELLIGENT ORDER ROUTING

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STORE-BASED FULFILLMENT

Routing •  Store & item eligibility

•  Max orders •  Days of week •  VAS (gift wrapping,

etc.) •  Store preference

PROPRIETARY & CONFIDENTIAL

STORE-BASED FULFILLMENT TOOLS

In-store fulfillment functionality tailored for store associates

• Mobile app and mobile optimized mobile web

• API’s to integrate with other or existing store systems

–  POS, eBay Retail Associate Platform

• Fully integrated with carriers and eBay Local

• Standardized order reporting

• Administrative dashboard

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PROPRIETARY & CONFIDENTIAL

COMBINING MAGENTO WITH RETAIL ORDER MANAGEMENT

PROPRIETARY & CONFIDENTIAL

OMS INTEGRATION IS CRITICAL

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54% of retailers surveyed cited they were worried or very worried about the complexities of integrating an OMS platform into their existing back-end systems

54%

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ROM INTEGRATION FRAMEWORK

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Extended Supply Chain

eBay Payment, Tax Fraud Management

Commerce Platforms

Client Systems

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THE INTEGRATION FRAMEWORK

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ECP

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• Enable Maximum Capability –  Core products of Magento and eBay enterprise

with minimal customization or compromise

• Retain Magento’s Flexibility –  Enable third party extensions to operate as

designed; integrated into the experience

• Minimize Seams in Integration –  Pre-configure component integrations and make

available functions traditionally complex to incorporate

–  Make it as simple and repeatable as possible for each new store / Website

• Maintain Backward Compatibility –  Provide for site stability with updates to

front-end or back end platforms to be independent and without impact or necessary modifications for clients

Storefront implementation

Back-office implementation

Typical Magento Implementation

Integration Component

Typical Exchange Platform

Implementation

Target Cheetah Implementation

Time / C

ost

GOALS OF THE MAGENTO + ROM PLATFORM INTEGRATION

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PROPRIETARY & CONFIDENTIAL 25

Standard extension to Magento Enterprise Edition Linking to ROM Platform

• Simple to install and minimal to configure

•  Incorporation from standard Magento methods to leverage ROMS Platform real-time checkout flow functions

• Automation and consistent data allowing extraction of ebay enterprise item data to the Magento catalog

• Modification and certification of Magento payment bridge to support ebay enterprise payments gateway and PCI DSS compliance

•  Integration of order events and status into Magento order records

•  Image metadata from Magento to exchange platform for shared usage

WHAT WE CREATED

PROPRIETARY & CONFIDENTIAL

OMS Features Order Processing & Cancellation ✔ ✔

Order Lookup & Order History Detail ✔ ✔

Buyer’s Remorse Period Management ✔

Online Inventory Management ✔ ✔

CSR Tools for Advanced, Large-scale Order Management ✔ ✔

Omnichannel Inventory Visibility ✔

Omni-source Visibility (WMS, Store, Dropship, etc.) ✔

Complex Order Routing & Brokering ✔

Estimated Ship Date Calculation ✔

Payment Processing and Gateway ✔ ✔

Extensive & Customizable Product & Financial Reporting ✔

Prebuilt connection to eBay’s omnichannel capabilities ✔

Pre-Built connections to Best-of-Breed WMS systems ✔

Pre-built connections to Best-of-Breed eMail Marketing Solution ✔ ✔

COMBINING MAGENTO WITH ROM

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Retail Order Management

PROPRIETARY & CONFIDENTIAL

Development / Deployment

Platform Hosting

DEVELOPMENT, DEPLOYMENT AND PLATFORM HOSTING OPTIONS

Magento Enterprise Edition

ROMS components

Hosted Anywhere (on premise, hosting

partner, system integrator)

SaaS Solution Hosted by eBay

Scalable, secure, reliable

Pre Integrated connection

System Integrator/Magento

Developers

eBay Enterprise Client Services

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PROPRIETARY & CONFIDENTIAL

BENEFITING FROM THE COMBINED SOLUTION

PROPRIETARY & CONFIDENTIAL

1.  Connections and interfaces between Magento and Retail Order Management Platform are preconfigured and prebuilt. No coding to API’s needed.

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2.  Product data formatting / reformatting is cut down with a single feed set populating both the front and back-end systems.

–  No need to build import / export processes or reformatting.

1

2

2

SIMPLIFY QA, LOWER RISK, DECREASE TIME-TO-MARKET

PROPRIETARY & CONFIDENTIAL

LEVERAGE BEST PRACTICES FROM THE STORE-BASED FULFILLMENT LEADER

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First deployment of Ship-From-Store – Nine West in 2008

0

1,000

2,000

3,000

4,000

5,000

6,000

2008 2009 2010 2011 2012 2013 2014

Stores

0 5

10 15 20 25 30 35 40 45 50

2008 2009 2010 2011 2012 2013 2014

Retailers Countries

0 10,000,000 20,000,000

2008 2009 2010 2011 2012 2013 2014

Orders

P P

14 countries now with TRU China 24 clients and ~ 40 brands

3,407 stores and growing

Processed nearly 3M orders in 1Q 14

P

PROPRIETARY & CONFIDENTIAL

POSITIVELY INFLUENCE KEY METRICS WITH STORE-BASED FULFILLMENT RESULTS

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20-40% Average increase

in incremental ecommerce revenue

33% Average percent of items shipped

are inactive

30%+ Margin increase

on items nearing markdown

80%+ 1 day

transit time, 96% 2 day

PROPRIETARY & CONFIDENTIAL

RETAIL OMS CORE

DISTRIBUTED ORDER MANAGEMENT

OMNICHANNEL INVENTORY

STORE, FINANCIAL & OPERATIONAL REPORTING

OMNICHANNEL SERVICES

SHIP FROM STORE SHIP TO STORE

BUY ONLINEPICKUP IN STORE DROP SHIP

eE WMS TRANSPORTATION

ORDER ROUTING OPTOMIZATION

RETAIL OMS SERVICES

PAYMENTS &COMPLIANCE

ADDRESS VALIDATION

EMAIL

RISK/FRAUDMANAGEMENT

ORDER LOGIC

TAXES & DUTIES

RETURN LABEL

IVR

ORDERPROCESSING

CART &CHECKOUT

INVENTORYAVAILABILITY

INT'L SHIPMENTS

ORDER ROUTING OPTIMIZATION

Faster Time To Profitability

Significantly Reduced Costs

Significantly Reduced Risk

Innovate & Differentiate

Faster Time To Profitability

Ready on “Day 1”

Streamlined client on-boarding

Pre-defined order handling template processes

Configuration-based enhancement framework

Fast & easy customization

Significantly Reduced Costs

No initial infrastructure build-out costs No R&D, support & maintenance costs Innovate at lower cost No security compliance costs Adapt to new integrations more easily

Significantly Reduced Risk

Reduce risk of managing complex licensed software implementations Reduce FTE Management exposure Reduce operational risks Leverage best practices from market-leading retail OMS service provider

Innovate & Differentiate

Access to market-leading Retail OMS capabilities

Access to Real-time, event-driven services

Pre-integrated commerce-enabling services

Pre-built 3rd party integrations

Future-proof

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RETAIL ORDER MANAGEMENT IS THE DIFFERENTIATOR NOT A COMMODITY

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DETERMINING THE IDEAL MERCHANT

PROPRIETARY & CONFIDENTIAL

MERCHANTS WITH THE FOLLOWING CHARACTERISTICS & NEEDS WILL BENEFIT MOST

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Brand  Goals  &  Revenue  •  Established  brand  with  revenue  >  $10m  online    •  Sustainable,  Long-­‐term  Bus.  &  Sourcing  Models  •  Focus  on  growth  plan  ~10%  Year-­‐over-­‐Year  

Annual  Target  •  Retailers:  pure  play,  mulK  channel,  B2C  

General  •  Seeking  operaKonal  efficiencies  through  fully  

integrated,  scalable,  modular  PaaS  OMS  –  preconfigured,  retail  opKmized  soluKon  

•  Open  to  an  OpEx  cost  model      

Order  Management  Requirements  •  Distributed  Order  Management  &  Omnichannel  

Inventory  Management  Needs:  •  Omnichannel  Fulfillment:    Stores,  Drop  Shippers,  

mulKple  DCs,  3PLs  •  Difficulty  processing  increasing  order  volumes  •  Omnichannel  selling:  accept/orchestrate  orders  

from  mulKple  touch  points  •  Support  pre-­‐sale  and  backorder  •  Support  customer  service  scenarios  more  

effecKvely    •  DOM  +  OIM  +  Payments  +  Fraud  •  Support  growing  payment  types  and  robust  fraud  

screening      

Opera8ons  &  Marke8ng  (Op8ons)  •  PotenKal  Interest  in  outsourced  DC  Fulfillment  

leveraging  eBay  freight  rates  •  No  perishables  (special  condiKons  discussed)  •  Ideally  limit  large  item  inventory  •  PotenKal  interest  in  drop  ship  management  

•  50k  to  100k  annual  order  volume  •  PotenKal  interest  in  outsourced  customer  service  

•  100,000  call  center  interacKons  annually  In  Store  Fulfillment  

•  300M  total  chain  revenue  •  50+  store  across  chain  

•  PotenKal  interest  in  affiliate,  display,  email,  search,  analyKcs,  creaKve,  strategy  

PROPRIETARY & CONFIDENTIAL

DEMONSTRATION

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GETTING MORE INFORMATION: WHO TO CONTACT

PROPRIETARY & CONFIDENTIAL

WHO TO CONTACT

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John Huntington – Director, Strategic Alliances

jhuntington@ebay.com