Connected cloud commerce What does OmniChannel mean to you Expectations meets operational excellence the motley edi culture Industry expectations Store closures bankruptcies going online entirely ID: 763324
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Connected cloud commerce What does Omni-Channel mean to you?Expectations meets operational excellence
the motley edi culture
Industry expectations Store closures, bankruptcies, going online entirely Retail sales? % of retail sales online? Amazon
Price? How many items? What do they do well? How many EDI coordinator does Amazon have? ?
Market expectations Omni-channel – Consumer uses the Internet for research and price. Consumer uses the store for touch and immediate delivery.Demands on retailer There are only two ways to play – Go big, Go specialized – there is no middle ground. With the Internet you are competing with the universe. Private label – differentiators, more products, more bar codes, more attributes Demands on vendor/manufacturer How do you effectively manage all of the channels and still make money? Every retail partner has a unique process and requirements
Total Retail’s Top 100 Omni-Channel
What changes with omni-channel?Inventory Processing Content management Real-time analytics The good news – there is a lot of transactions and unique processes The bad news – there is a lot of transactions and unique processes
Market realities in supply chain *University of Tennessee Supply Chain Center May 2017
EDI Cloud Multitenant architecture OMNI-CHANNEL APPLICATIONS – SUPPLEMENTING MID-RANGE AND SME ERP AND ACCOUNTING PACKAGES Dashboard alerts, reports, exceptions, data enrichment stand-alone WebEDI application Master Canonicals PO – INV – ASN INTEGRATION LAYER Product information management Choreography with 3PLs Real-time inventory updates One place for all orders – all customers Batch processing automation Full support unique to each major customer It becomes the only option for SME and mid-size to large suppliers to effectively engage in Omni-channel REST API integration with 3PL and Carriers UPS, FEDEX, USPS
Answer to all Retailers 3PL Suppliers Sourcing Companies Manufacturers Transportation Partners EDI XML IDOC CSV UDF Payment Instructions Purchase Orders Invoices Shipment Notices Carrier Tender Shipment Status Demand Forecast Point of Sale Remittance Financial Institutions Healthcare
Trading partners want to use their one-central provider for all of their orders. It’s about interoperability among providers, and retailers continuing to mandate standards not vendors.
Commercehub
CEO Frank Poore
Ace Hardware AAFES Academy Online American-Hotel Auto Anything Casual Male Dick Sporting Goods Donna Karan FAO Schwartz GNC Live Well Kate Spade Kenneth Cole Micheaels Major League Baseball Neiman Marcus NFL Orvis VendorNet (Radial) CommerceHub Bed Bath & Beyond Belk.com Bellacor Best Buy Canada Best Buy.com BJ’s Wholesale Boscovs.com Costco.com CVS Direct Buy Drugstore.com Fingerhut (Bluestem) Bonton.com JCPenney Fred Meyer DS Groupon HHGregg.com Kmart Kohls Meijer OfficeMax/OM D2C QVC Sears Canada Sears Dropship Shopko ShopNBC Stage Stores Staples Advantage Staples Canada The Bon Ton.com The Home Depot.com Toys R Us Walgreens Wal-Mart Canada Wal-Mart.com PetSmartRalph Lauren Sports Authority Stein Mart The Shopping ChannelToys R Us Walgreens Zales Silo Niche Players – Will they survive?
Buy Side requirements There is a max cost. Real time inventory across all channels Real time alerts and reports on supplier performance Configurable KPIs rules per trading partner and product When talking millions of transactions, complete automation is needed in reconciling invoice/Po match Self service – product attributes, images, etc.
Inventory Alignment is King Managed and automated by the manufacturer, as order and shipments come in the system auto adjust inventory levels and updates the customer as the customer requires.Missed sales due to out of stock is considered the quickest way to lose a customer based on trust.
Smart ship options Carrier and handling costs are the highest component costs in the omni-channel equation. REST API integration with carriers and built in logic of ZIP code to ZIP code shipping is a must. For instance, if the customer pays for 2 day shipping and due to location, supplier can use standard shipping to still arrive on time. That savings per transaction is significant.
One place to fulfill orders Independent web-sites and vendor portals without integration, mandating vendors not standards, quickly become unmanageable for the vendor.Central site for all orders with order life-cycle support unique for each customer’s requirements.
One place to manage product content information Eighty percent of market leaders use a third party content provider and 95% of supplier market leaders use a cloud-based product information system(s ).* *Source: Walker-Sands/1WorldSync Market Survey -Charting Course for Global Commerce April 2017 Half of merchant market leaders have a product information system that can easily discover new products and diversify product offerings to meet customer expectations.* Not only is product information important for the website but accurate information is key from the beginning of the supply chain to not cause exceptions.
Questions for the user group What KPIs are important to fulfillment at Wayfair? Supplier performance?What are the top three challenges in supporting an omni -channel supply chain? Are you looking at new transactions to support returns and rebates? Major Brands, New Balance, Carhartt – where are you running behind in new requirements, chargebacks and performance? Have any retailers made unreasonable support requests or driven vendors instead of standards? Technology and Service Providers – Game theory, how do we drive adoption that raises the tide and all boats?
Take aways Omni-channel complexities require standards of interoperability of existing solution providers in offering best of breed industry solutions that make financial market sense. There is a maximum cost for omni -channel supply chain integration. Revenue models need to move away from per-transaction based pricing models. With complexity and increased requirements comes new opportunities. Requirements: start with accurate data management, self-service, complete automation, reporting, real-time inventory, complete order fulfillment solution. Implementation involves a large component of on-boarding support and education. Don’t immediately dismiss any crazy opportunities presented to you, they just might be crazy enough to be huge.
Questions Rob Guerriere Director of Industry Solutions DiCentral Corp robg@dicentral.com