Innovative Logistics Strategies for Omnichannel Fulfillment September 15th, Openbravo Inc. All Rights Reserved. 1

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Benedict Spencer
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com/retailers/resources/overview/ Check out additional resources and don t forget to share them with your colleagues.

2 Simple steps to increase the value of today s webinar experience Today s presentation is available to download on the Attachment tab on the webinar page. Visit openbravo.com/retailers/resources/overview/ Check out additional resources and don t forget to share them with your colleagues. Have a question? Click on the Question tab. Q&A will be at the end of today s presentation. Submit additional questions or comments after the webinar on Twitter. Hashtag: #obravowebinar 2016 Openbravo Inc. All Rights Reserved. 2

5 Supply Chain Challenges for Retailers SKU proliferation Lengthening supply chains Handling returns Inventory accuracy Carrier costs End-to-end visibility Multiple channels New fulfillment options 2016 Openbravo Inc. All Rights Reserved. 5

Omnichannel Brings More Challenges Managing

aisle DCs need to be closer to customer.

6 Omnichannel Brings More Challenges Managing inventory across multiple locations and channels is difficult. More warehousing staff and smarter technology needed to pick online orders. Bigger warehouses needed to offer the endless aisle DCs need to be closer to customer. Returns become more of a problem as more consumers buy online Openbravo Inc. All Rights Reserved. 6

The Need for Speed in Fulfillment Amazon Prime s same-day

than double the locations available two years ago.

online shopping if same-day delivery is not an option.

7 The Need for Speed in Fulfillment Amazon Prime s same-day delivery is available in 30 US cities nationwide, more than double the locations available two years ago. One in four shoppers say they would consider abandoning online shopping if same-day delivery is not an option. Source: Business Insideer 2016 Openbravo Inc. All Rights Reserved. 7

How Home Depot Solved the Last-mile Problem

stores 90% of its online returns handled by

Ecommerce Boom Continues Retail E-commerce Sales Worldwide % change % of total retail

11 The Continuing Importance of the Physical Store 62% 55% 53% 46% Preferred Purchase Method Apparel & footwear Furniture & homeware Sports equipment DIY 25% 21% 17% 17% 12% 9% 10% 8% Source: PwC in store PC mobile device 2016 Openbravo Inc. All Rights Reserved. 11

12 Need for Better Returns Management Electrical omeware Furniture Health Sports Fashion Source: KPMG 4% to 6% of all retail purchases are returned.. But online its much higher Online Returns 0% 10% 20% 30% 2016 Openbravo Inc. All Rights Reserved. 12

a new type of fulfillment center intended to blend online

14 Blending Fulfillment for Omnichannel Customers Home Depot has remodeled its supply chain, building the foundation for a new type of fulfillment center intended to blend online and instore shopping 2016 Openbravo Inc. All Rights Reserved. 14

15 How to Revolutionize your Supply Chain You need scale Integrate online and retail operations Consider store-based fulfillment Share inventory across channels You need business rules to handle supply chain complexity 2016 Openbravo Inc. All Rights Reserved. 15

Ship-from-Store Benefits For the Customer Expanded product assortment Fewer out of stock / back order scenarios Fast delivery (expectation of 80% within 1 day; 96% within 2 days) Products always

17 Ship-from-Store Benefits For the Customer Expanded product assortment Fewer out of stock / back order scenarios Fast delivery (expectation of 80% within 1 day; 96% within 2 days) Products always available when desired For the Retailer 10-20% incremental e-commerce revenue Increase inventory sell through Decrease markdowns Optimize store assets and labor 10-20% Revenue uplift Source:Teradata 2016 Openbravo Inc. All Rights Reserved. 17

Buy-Online-Pickup-in-Store Benefits For the Customer Convenience of online shopping Same day pickup No shipping costs For the Retailer 37% purchase additional products while picking up in-store

18 Buy-Online-Pickup-in-Store Benefits For the Customer Convenience of online shopping Same day pickup No shipping costs For the Retailer 37% purchase additional products while picking up in-store Leverage store assets Increase foot traffic and upsell opportunity Demonstrate unique and differentiated guest experience 37% Purchase additional products Source:Teradata 2016 Openbravo Inc. All Rights Reserved. 18

Research Enterprise-wide inventory visibility separates the leaders from the

19 Inventory Visibility is Key to Omnichannel Success 63% Winners Laggards 25% Percentage of retailers with access to inventory across all channels Source: RSR Research Enterprise-wide inventory visibility separates the leaders from the laggards in successful omnichannel execution 2016 Openbravo Inc. All Rights Reserved. 19

20 Real-time Inventory Visibility with Openbravo Centralized real-time tracking of goods movements, inventory status and quantities across all channels and locations - physical stores, headquarters or distribution centers. Set up different warehouse rules and easy management of goods transfers, picking and packing activities and reservations Openbravo Inc. All Rights Reserved. 20

21 Leverage New Technologies with Openbravo Mobile warehouse functionality for inventory count, goods movements and picking lists for a more convenient and accurate capture of data. Ability to integrate RFID in sales and inventory processes for faster data capture and accuracy Openbravo Inc. All Rights Reserved. 21

22 Key Takeaways Today s customers demand higher speed, convenience and personalization. To compete better, retailers need to offer new fulfillment capabilities such as Buy Online, Pick up in-store or In-store Fulfillment. Supply chains need to be redesigned to offer greater flexibility and agility. Distribution centers need to be integrated to handle online and store orders. You need a technological solution that provides real-time inventory visibility across all channels Openbravo Inc. All Rights Reserved. 22

questions or comments after the webinar on

Thank you very much for your attention Web: www.openbravo.