capgemini intelligent commerce and fulfillment – the time is now

IBM Amplify 2015 Conference Session Number: 1260 Title: Intelligent Commerce & Fulfillment

Chris McDivitt – Vice President Mark Fodor – Vice President Prashanth Mahadevaiah- Director

2

IBM Amplify 2015 – Intelligent Commerce | April 2015

Copyright © Capgemini 2015. All Rights Reserved

Agenda

Our Omni-channel Perspective

Illustration of Intelligent Commerce and Fulfillment Use Cases

Our Integration Framework and getting Intelligence Commerce and Fulfillment right

Intelligent Commerce and Fulfillment

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Omni-channel World: Our Perspective

Flexible Fulfillment

Buy Online Pick-up in Store

Store Fulfillment

Seamless Returns

Single view of inventory

Order Orchestration

Multi-tier/node Inventory

Consistent Information

Consistent Path to Purchase

Unified experience

Customer Centric

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Omni-channel World: Evolving Customer Expectations

Consequences � 62% of customers will move to a competitor if a

similar product is available in stock

Benefits � 40% of consumers will check back to see if the

product is in stock and 28% will wait to be notified when the product is available

� 30% will go to a different physical store if the product is in stock

Consumers expect store associates to have real-time ability to locate OOS items and have them shipped, held for pickup, or transferred to the store

Consequences � Only 50% of customers are satisfied with the ease

of making returns and returns policies

Benefits � 82% of shoppers prefer returning products in-store

or free returns with pre-paid return label � Over 50% of online shoppers have chosen in-store

pickup for one of their purchases

Consumers want to buy online, pick up and return in store

Source: UPS and Comscore’s annual study, 2014

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Omni-channel World: Retailer Challenges

Many retailers live in a fragmented world – customers, orders and inventory are ‘disconnected’ across numerous enterprise touch points, compounded by the

need to understand total delivered cost.

Visibility & KPIs

Customers & Pricing

Inventory & Orders

� Lack of real time visibility on product inventory

� Silo’d business units with separate P&Ls and KPI

� Non – integrated view of the customer � Limited view of pricing

� Orders, Inventory and Customer Management processes are designed with traditional concepts and legacy systems (e.g. DC to Store alignment, ATP by channel etc.)

� Unable to understand the tradeoffs between total logistics costs and service levels

Understanding the right balance (cost and service) requires appropriate processes and tools

Logistics Inventory

Procurement Transportation Warehousing

Delivery Frequency

Cost

Optimal

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Retailers realize their Omni-Channel maturity and are countering it by streamlining their fulfillment process

0%

9%

34%

24%

32%

17%

12%

31%

48%

35%

36%

18%

19%

23%

23%

25%

27%

28%

31%

33%

33%

42%

Developing custom Apps

Third party deal offers

Embedding more social capabilities in our full

Improving the payment process

Investing in cross-channel capabilities

Add additional selling channels (including third

Branded deal of the day/promotional offers

Targeted email campaigns

Improving search and browse capabilities

Providing richer product detail information

Improving fulfillment processes

Top Three Opportunities Overcome Business Challenges

These technology investments provide leading retailers with

competitive advantage

2014 2013

Improving Fulfillment processes is top of the agenda

59 % of companies report they have no capability or inconsistent capability

How prepared do you think your organization is to handle Omni-channel retailing?

33% 26% 29% 10% 2%

No capability Inconsistent Competent Efficient High Performing

Source: Capgemini with Penn State, 2015

Source: RSR eComm Study, 2014

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Retailers’ are investing in technologies to build integrated supply chain execution capabilities

DOM and WMS are the key technology investments for leading retailers

34%

39%

45%

37%

43%

50%

64%

64%

0% 15% 30% 45% 60% 75%

Transportation management systems

for logistics and fulfillment

Inventory management module

Warehouse management systems

for logistics and fulfillment

Distributed order management systems

Leaders Followers

Percent of Respondents, n = 77

These technology investments provide leading retailers with competitive

advantage

These technology investments provide leading retailers with

competitive advantage

Leaders Followers

Percent of Respondents, n = 77

24%

24%

29%

43%

43%

50%

0% 15% 30% 45% 60% 75%

Up-to-date fulfillment planning and execution information is shared

across channels

Ability to execute a common sales &

operations plans for supply chain across all

channels

Ability to ship/fulfill online orders the very

same day after they are received

Source: Aberdeen

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Agenda


Illustration of intelligent & Fulfillment Commerce Use Cases

Our Integration Framework and getting Intelligent Commerce & Fulfillment right

Intelligent Commerce & Fulfillment

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Our Approach for Omni-channel Supply chain demands inventory, orders, and fulfillment across all channels

…And tracked from point of sale to delivery with proactive notification, backed ability to return through any channel

…That can be viewed in real time, held, modified, ordered and fulfilled via any combination of channels…

Empowered consumers expect a broader range of inventory available across all channels…

Purchase Post-Purchase Pre-Purchase

In-Transit

DCs

Stores

Suppliers

Inventory Visibility Ordered Fulfilled Tracked Returned

Stores

Home Delivery

DCs

Suppliers

DCs

Stores

In need of a solution to:

� Support all order channels & centralizes & stores all order information to help planning and execution � Integrate and centralize all inventory information & optimizes sourcing & promising (& fulfillment) � Provide a configurable, extensible, & scalable platform for integration & growth

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Intelligent Commerce & Fulfillment: JDA-IBM

Integrated JDA-IBM products for Omni-channel fulfillment provisioning for optimal order management and cost-effectiveness*

JDA & IBM Patnership

Solution Framework

Customer Sources: Demand Signals

Network Participants: Supply Signals

Store Distributor Mobile Call Center Web

Service Provider Distributor Carrier Producer Store

Order Management Service Delivery Fullfillment

Network

JDA Integrated Planning & Execution

IBM Commerce & Order Management

Highlights � Optimised

solution across channels

� Visibility to enable Agility

� Balance between planning and execution

� Cost and Service trade-offs in a profitable way

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Agenda


Illustration of Intelligent Commerce and Fulfillment Use Cases

Our Integration Framework and getting Intelligent Commerce and Fulfillment right

Intelligent Commerce and Fulfillment

12



Buy Online – Pickup in Store � Customer originates and

completes order using eCom storefront

� Customer order is dropped in to OMS

� OMS drops the order to the corresponding store for pick-up

� Store Associate picks, packs and makes the product available for customer pick-up

� Customer verifies identity and picks up the product from the store

� Demand planning systems to ensure excess demand is taken in to account for stores supporting pick-up

� Fulfillment and Replenishment systems to ensure appropriate inventory is available at the store

Execution (WMS/TMS)

Fulfillment & Replenishment

Store Systems POS eComm

Merch Assortment

planning

Planogram Return History

Order History

Forecast

Purchase Order

Transfer Order

POS History

Returns

Orders

IBM Component

JDA Component Not Impacted

Demand

Forecast Transfer Order

Purchase Order

OMS

Order

Intelligent Commerce & Fulfillment: Illustration for Buy Online – Pickup in Store

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Intelligent Commerce & Fulfillment: Illustration for Buy Online – Ship from Store

Store Fulfillment (Shipment/Delivery) � Customer originates and

completes order using eCom storefront

� Customer order is dropped in to OMS

� OMS determines the most cost-effective node (store) to fulfill the order

� OMS drops the order to the appropriate store when the order is ready to be fulfilled

� Store Associate picks, packs and makes the product available for shipment

� Carrier picks up the product from store and delivers to customer

� Demand planning systems to ensure excess demand is taken in to account for stores supporting pick-up

Execution (WMS/TMS)

Fulfillment & Replenishment

Store Systems POS eComm

Merch Assortment

planning

Planogram Return History

Order History

Forecast

Purchase Order

Transfer Order

POS History

Returns

Orders

IBM Component

JDA Component Not Impacted

Demand

Forecast Transfer Order

Purchase Order

OMS

Order

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Agenda


Illustration of Intelligent Commerce Use Cases

Our Integration Framework and getting Intelligent Commerce right

Intelligent Commerce

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Flexible/Adaptive � Fusion of online and offline bridging the customer experience across multiple channels and ecosystems � Delivering business value in an agile and responsive manner � Multi-directional ecosystem to support cloud based and enterprise systems � Agile application framework leveraging eCommerce, OMS & others to respond quickly to market demands � Reliable infrastructure providing availability, performance and stability to support emerging technologies � Consumable Services that have robust API’s and web services

Capgemini offers a flexible integration layer for Intelligent Commerce & Fulfillment

Call Center Call Center Kiosk Point of Sale Web Point of Sale

CRM 3rd Party (dropship) OMS Inventory WMS PIM

ESB/SOA Business Integration Layer

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� Capgemini Immediate is a robust and secure "Digital Platform” on which “Digital Services” can be integrated quickly, consistently and cost effectively, on-premise or in the cloud.

� Its purpose is to allow an organisation to quickly leverage the market innovations of their choice in order to achieve growth and stay two steps ahead of the competition.

� Immediate consists of a reference architecture and six accelerators: • Integration • API Management • Identity & Access Management • Service Management • Automated Provisioning • Application Lifecycle Management

� Each accelerator is based on mature open-source products and contains extensive documentation, scalable examples and auto-provisioning scripts.

Capgemini’s ‘Immediate’ Framework

Personalisation & Interaction

Customer, Supplier, Partner Management

Operational Business Services

Common Data

Services

Business Support Services

Iden

tity

& A

cces

s M

anag

emen

t

Ser

vice

Man

agem

ent

Automated Provisioning

Application Lifecycle Management

Integration

API Management (external)

API Management (internal)

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Three foundational elements to getting Intelligent Commerce right

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� Creating a centralized inventory snapshot providing in-stock and in-transit inventory visibility across all stores, DC’s and third party vendors is the first capability organizations must develop.

� Enabling multi-tier, multi-node allocation � Develop a comprehensive inventory management

strategy across the chain policies, exceptions

� Re-visit enterprise architecture across the board and move towards a Service Oriented Architecture, ensuring scalability and rapid deployment of new applications/packages

� Develop services to expose foundational components like Item data, customer data, pricing and inventory data to external systems

� Establish an Omnichannel leadership to ensure collaboration across different groups to enable timely decision making and responsibilities across core and linked initiatives.

� Start small, learn, iterate and scale

Inventory and Order

Management

Integration Architecture

Organizational Alignment

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Capgemini’s Unique Proposition for Intelligent Commerce

Omni-channel Expertise Key player in Omni-channel solution space with IP creation of reusable delivery assets and solutions

Thought Leadership Thought leadership exhibited through new IP creation, business propositions, value analysis and addressing solution gaps

Expertise in Supply Chain Deep expertise in Supply chain through process and product experience facilitated by dedicated global center of excellences

Strategic Alliances Capgemini is a premium alliance partner for IBM and JDA. Uniquely placed with proximity to net IP with all concerned

Capgemini Differentiators

� Capgemini’s IBM and JDA Partnerships. Strong alliances with leading DOM, SCM, WMS, TMS, Visibility software vendors

� Capgemini’s Industry leading IP&E framework and Sterling Commerce expertise

� Global Logistics & Fulfillment Center of Excellence to provide sales, delivery and community support

� Strong investment in logistics related thought leadership publications • 3PL Study • Trends in Logistics Study • TM Process & Software Report • WMS in the Cloud • Regular Features in Logistics Management

Magazine � Innovative new offerings such as TMS NOW,

Seamless Commerce across all touch-points B2B & B2C and a fully integrated e-Commerce offering with DAM, WCM for enterprise customers

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Capgemini Contact Information

� Chris McDivitt, Vice President, Supply Chain Technologies Leader - Email:[email protected]

� Mark Fodor, Vice President, Digital Commerce Leader

- email.:[email protected]

� Prashanth Mahadevaiah, Director, Supply Chain Leader India - email.:[email protected]

The information contained in this presentation is proprietary. Copyright © 2015 Capgemini. All rights reserved.

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capgemini intelligent commerce and fulfillment – the time is now

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