current state of omnichannel and impact on the supply chain

PowerPoint Presentation

How Does Omnichannel Impact Supply Chain Operations?

August, 2016

Supply Chain Insights LLC Copyright 2016, p. #

Who Am I?Founder of Supply Chain InsightsLinkedIn InfluencerGuest blog for ForbesAuthor of 5 books: Bricks Matter (2012), Shamans Journal (2014), Supply Chain Metrics That Matter (2014), Shamans Journal (2015), Shamans Journal (2016) Partner at Altimeter Group (leader in open research)7 years of Management Experience leading Analyst Teams at Gartner and AMR Research8 years Experience in Marketing and Selling Supply Chain Software at Descartes Systems Group and Manugistics (now JDA)15 Years Leading teams in Manufacturing and Distribution operations for Clorox, Kraft/General Foods, Nestle/Dreyers Grand Ice Cream and Procter & Gamble.

Contact Information: Email: [email protected]: www.supplychainshaman.com (15,000 pageviews/month)Forbes: www.forbes.com/sites/loracecereTwitter: twitter.com/lcecere (7,700 followers)LinkedIn: www.linkedin.com/in/loracecere (112,000 followers)LinkedIn Influencer: www.linkedin.com/today/author/446631


Disclaimer: I am a Skeptic


A Social Scientist


A Fortune-teller of Sorts.


I Write for the Supply Chain Leader


Current State


Reflection


A Look at History


9 out of 10 Supply Chains are Stuck


The eCommerce Story


CVS and Rite-Aid(2006 2015)


2009-2015


Historical Look at the Value Chain


Who is Your Customer?

Start at the basketStore needs the productShip to storeSit in warehouseShip to warehouseMake

Old ViewNew View


Expand the sandbox and start playing a different game. Not many have the scale to do this. KC Confidential15

The Long Tail of the Supply Chain: Growing Complexity


Bullwhip Effect


SHARED VISION+SKILLS+INCENTIVE+RESOURCES+PLAN+LEADERSHIP=CHANGESKILLS+INCENTIVE+RESOURCES+PLAN=CONFUSIONSHARED VISION+INCENTIVE+RESOURCES+PLAN+LEADERSHIP=ANXIETYSHARED VISION+SKILLS+INCENTIVE+RESOURCES+LEADERSHIP=FALSE STARTSSHARED VISION+SKILLS+INCENTIVE+PLAN+LEADERSHIP=FRUSTRATIONSHARED VISION+SKILLS+RESOURCES+PLAN+LEADERSHIP=GRADUAL CHANGE

Source: J.P. KotterCollaboration: The Right Stuff?


Bar codes were first used at Marsh Supermarket in 1968


19How long has POS data been available? Early tests with product bar codes were conducted at a Marsh Supermarket in Troy, Ohio in 1968. P&G played a key leadership role in championing the early development and continues to be engaged in ways to better track and analyze product movement. Today the result is an enormous amount of data. How do we effectively sift through the data to find meaningful learnings to improve our plans?

Process Shifts


First Moment of Truth - choosing our brands

Second Moment of Truth - using our brandsThe Moments of Truth

A.G. Lafley


21P&G brands face two moments of truth every day: the first at the store shelf, when shoppers choose which brands to buy; and the second at home, when consumers decide whether our products deliver on the brand promise. Winning at both moments of truth demands deep shopper and consumer understanding.

Winning at the first moment of truth gives us the chance to win at the second. Winning at both moments of truth time and time again is how P&G grows.

Five Moments of Truth

The List:Digital RecipeDigital CouponsOnline Rating and ReviewsThe Basket:Shelf-sensingQR CodesIn-store couponsIP Address SensingLocalized assortmentThe Check-out:Downstream DataLoyalty DataUsage:Sentiment DataRatings and Reviews

Sustainable Impact:DisposalRecycled Content


Revenue Management


Impact of eCommerce


A Major Transformation

Picking the EachRethinking Last Mile Delivery

Mobile Proof of Delivery

Endless Aisles


eCommerce Pure Plays


Retailer Online Store


Manufacturing Online Store


Click N Ship


Home Delivery


New Business Models


The Locker


Changing Role of the Store


FreshnessQualityAvailabilityAssortmentCompetitive PriceConvenienceShift in Power


Have we really delivered an omnichannel experience?


Automation of the five moments of truth in the purchase cycle through the use of social, mobile, digital, and analytics technologies.Digital Path to Purchase


Rethinking Master Data For OmniChannel


Master DataB2CB2BValue NetworkYour BrandTo Drive Market Share with Top Customers there Is a Need to Manage Master Data Outside the 4-Walls of the Enterprise


Master DataB2CB2BValue NetworkYour BrandItem: GTINis a globally unique 14-digitnumberused to identify trade items, products, or services.Item: ERP Item MasterEffective DateWeight/VolumeDimensionsSelling Unit of MeasureItem: B2C website designation.Item: Product AttributesGMO, Nutrition, Gluten-free, Portion Size


Five Moments of Truth

The List:ItemGTINAttributesThe Basket:PIATPUA

The Check-out:EINUPCUsage:Sentiment DataRatings and Reviews

Sustainable Impact:DisposalRecycled Content


Heightened Focus on AttributesB2CB2BValue NetworkYour BrandAttributes: Retail AttributesAttributes: Product DefinitionAttributes: B2C Customer AttributesItem: Product AttributesGMO, Salt, Sugar, Gluten-free, Portion Size


Supply Chains Dont Play by the Rules42

But, what if they could?


Renewed Focus on Out of StocksB2CB2BValue NetworkYour BrandOut of Stocks: Empty Shelf (duration and quantity)Out of Stocks: Order ShortagesOut of Stocks. Items not availableATPMaterial Outages


Driving Growth


Growth Through Test and LearnB2CB2BValue NetworkYour Brand

Sales: Point of Sale data Harmonized with Synchronized Data.Sales: ShipmentsSales. Daily Sales HourlyMaterial Usage


Rationalizing Assortment


Case Study: Internet of Things

Rethinking Supply Chain ExecutionClosed Loop Replenishment


Big Hairy Audacious Goals

Business goals/ challenges:Scale the businessIncrease the number of machines in operation from 900 to 3,000 by 2016Expand internationally

Essentially we had to justify Whitbreads 60 million acquisition!

While transforming the Supply Chain

Replace legacy spreadsheet system with new IT system:The legacy system could not pull in data from the coffee stations telemetry systems, so all this valuable data was going to wasteOur brand guardians were effectively spending all their time poring over spreadsheets and manually replenishing stock

These processes were not scalable in line with our ambitions

We needed to transform other aspects of our supply chain and grow at the same time!Change logistics / warehousing partnerMove to direct purchasing

Solution

ToolsGroup is at the heart of our successful supply chain transformation:

System access our telemetry data tap into our machine telemetry data and uses it to calculate replenishment orders for partner sites.The data is used to forecast demand and optimise inventory levels

Some of the results (walk through the four figures on the left of the slide):

Also point out the new role of Brand Excellence Advisor

And we far exceeded our business goals!:

Blew away target to have 3,000 machines in place by 2016. We achieved this target in 2013, a full three years ahead of schedule!Moving into new markets Poland, Ireland and DubaiLaunched new CEM-200 "intelligent" coffee station concession

Next steps (only if there is time)47

ListeningB2CB2BValue NetworkYour Brand

Retail Social ListeningSentiment: Call CenterSentiment. Rating and ReviewsSocial SentimentMaterial Usage


Opportunity at the Intersection of the Social and Interest Graph(s)


Review Aggregation: Pros, cons and best uses


Levis Uses the Like button on Facebook So shoppers Can Rate New Product Launch


http://www.levis.com

April 12, 2010

#fashion#advocate #intention#christine

51

Newell RubbermaidListening: Newell Rubbermaid

#Future15SB @bwdumars


#Future15SB @bwdumars

Newell Rubbermaid


Listening: Lenovo


0000000CanadaCustomer A calls about a blue screen on a YogaCustomer B posts on Facebook about his X220s AC/DC adapter issuesLarge Enterprise Client experiences 5 keyboard malfunctions in their latest shipment. Complaints received through account executive[Critical Situation]BrazilCustomer F submits a service from on esupport.lenovo.com regarding their W530 hard driveMoroccoCustomers G & H comment on their X220s electrical issues on Twitter.comCustomer I called about Yoga screen issues AustraliaCustomer J write a review on NewEgg.com about AC/DC adapter issues on X220Customer K had an eChat with Lenovo about Yoga screen issuesChinaCustomer L wrote on Weibo about Yoga screen issuesCustomer M calls about a Tablet 8 battery issuesVoice of Customer Comes in Many Forms

USACustomers C & D write X220 product reviews on amazon.com and mention issues with AC/DC adaptersCustomer E posts on forums.lenovo.com that they are experiencing blue screens on their Yoga


55

0000000Lenovo

6 recorded issues about X220s AC/DC adapter

5 recorded issues about keyboard issues on X1 Carbon

5 recoded issues about Yoga screen

1 recorded issue about W530 hard-drive

1 recorded issue about Tablet 8 batteryOne Voice A Single View of Perceptual Quality


Synchronize/organize all comments/complains into one voice56

Wrap-up

Omnichannel supply chains are in evolutionLook at data systems holistically across the moments of truth


Questions?


About Lora Cecere Founder of Supply Chain InsightsLinkedIn InfluencerGuest blog for ForbesAuthor of 5 books: Bricks Matter (2012), Shamans Journal (2014), Supply Chain Metrics That Matter (2014), Shamans Journal (2015), Shamans Journal (2016) Partner at Altimeter Group (leader in open research)7 years of Management Experience leading Analyst Teams at Gartner and AMR Research8 years Experience in Marketing and Selling Supply Chain Software at Descartes Systems Group and Manugistics (now JDA)15 Years Leading teams in Manufacturing and Distribution operations for Clorox, Kraft/General Foods, Nestle/Dreyers Grand Ice Cream and Procter & Gamble.

Contact Information: Email: [email protected]: www.supplychainshaman.com (15,000 pageviews/month)Forbes: www.forbes.com/sites/loracecereTwitter: twitter.com/lcecere (7,700 followers)LinkedIn: www.linkedin.com/in/loracecere (112,000 followers)LinkedIn Influencer: www.linkedin.com/today/author/446631



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