To thrive in a hyper-competitive market, retailers are turning to advanced analytics and optimization to drive their ship-from-store effectiveness. Marc Chretien, Sr. Director of eCommerce Operations at ALDO Group, shares his thoughts on their approach, challenges with traditional omnichannel fulfillment, and positive business benefits of advanced analytics.

1. Using Advanced Analytics
to Fulfill Online Orders
An Inside Look at ALDO Group’s Approach

2. Welcome!
© 2018 Celect, Inc. All Rights Reserved.2
Marc Chretien
Sr. Dir of eCommerce Operations
Todd Harris
Director of Marketing

3. Background
• Celect helps retailers understand the
location specific demand for a product
• Patented advanced analytics and
optimization technology
• Top 50 Technology Innovation out of
MIT Artificial Intelligence Lab
© 2018 Celect, Inc. All Rights Reserved.3

4. “The New Retail”
4
mobile
Purchase Made
home
store
Concept courtesy of Coresight Research, “18 Retail Trends for ‘18: Preparing for Another Year of Change”
Fulfilled From
DC
vendor
store
elsewhere?
home
Delivered To
store

5. Order Fulfillment Challenges
• Growing ways to get product to customers
‒ Ship from store and buy online pickup in store
• Enormous strains on inventories and demand forecasting
‒ Resulting in excess inventory costs, transportation costs, and
unnecessary markdowns
• Consumers expect everything in stock, all the time
© 2018 Celect, Inc. All Rights Reserved.5
THE “LAST MILE” SUPPLY CHAIN CHALLENGE

6. What we’ll cover today
1. Challenges and opportunities when fulfilling online
orders from stores
2. How and why advanced analytics plays a major role
3. Where Celect fits in the bigger picture at ALDO Group
4. ROI and business impact of Fulfillment Optimization
5. Audience questions!
© 2018 Celect, Inc. All Rights Reserved.6

7. © 2018 Celect, Inc. All Rights Reserved.7
Tell us a bit about ALDO Group and your role.Q
Marc Chretien
Sr. Dir of eCommerce Operations

8. © 2018 Celect, Inc. All Rights Reserved.8
What was the particular challenge you were
faced with as it relates to fulfilling online orders?
What are the unique issues that made it difficult?
Q

9. Online Order Fulfillment Example
© 2018 Celect, Inc. All Rights Reserved.9
Store 4
Store 1
Store 3
Store 2
ONLINE ORDER RECEIVED -- HOUSTON, TX

10. Online Order Fulfillment Example
How an OMS would handle an order
© 2018 Celect, Inc. All Rights Reserved.10
Rule 1 – Complete Order
✔
Rule 1 – Complete Order
✔
❌ Rule 1 – Complete Order
Store 1
Store 2
Store 4
✔Rule 2 (tiebreaker) –
Closer to customer
Rule 2 (tiebreaker) –
Closer to customer
Rule 1 – Complete Order
✔
❌
Rule 2 (tiebreaker) –
Closer to customer
Store 3
ONLINE ORDER RECEIVED -- HOUSTON, TX

11. Online Order Fulfillment Example
With Celect Fulfillment Optimization
© 2017 Celect, Inc. All Rights Reserved.11
Store 1
Store 3
Store 4
Consider all stores, the potential benefits
of each – in real-time, for every order
Store 2
Incurs Split Shipment
Close to Customer
High in-store demand
Low chance of pick-decline
Lowest in-store demand
No Split Shipment
Low chance of pick-decline
Far from Customer
No Split Shipment
Close to Customer
High in-store demand
Moderate chance of pick-decline
No Split Shipment
Low in-store demand
Moderate chance of pick-decline
Far from Customer
ONLINE ORDER RECEIVED -- HOUSTON, TX

12. © 2018 Celect, Inc. All Rights Reserved.12
Regarding analytics in particular, what role
do advanced analytics play at ALDO Group in
terms of driving success?
Q

13. © 2018 Celect, Inc. All Rights Reserved.13
What was it that prompted you to look at
advanced analytics solutions for fulfillment?
What attracted you to Celect Fulfillment
Optimization?
Q

14. © 2018 Celect, Inc. All Rights Reserved.14
What was the evaluation process like? Where
did you start? How long did it take?
Q

15. © 2018 Celect, Inc. All Rights Reserved.15
Where does Celect fit in your business? How
does it integrate with your existing systems?
Q

16. Baseline Fulfillment with OMS
© 2018 Celect, Inc. All Rights Reserved.16
ALL DIGITAL
ORDERS
SUBMIT TO
OMS
OMS RULES &
FULFILLMENT
SHIP FROM
STORE OR DC
OMS

17. Optimized Fulfillment & Localized Demand Prediction
Integrated with OMS
© 2018 Celect, Inc. All Rights Reserved.17
ALL DIGITAL
ORDERS
SUBMIT TO
OMS
FULFILLMENT
OPTIMIZATION SHIP FROM
STORE OR DC
• Increased conversions
• Fewer markdowns
• Higher margins
OMS

18. © 2018 Celect, Inc. All Rights Reserved.18
Can you share any of the successes you have
had so far in terms of ROI and business impact?
Q

19. AUDIENCE QUESTIONS:
1. What challenges did you face with store teams on
adopting fulfillment from store?
2. How many stores are fulfilling orders? What is the %
of order fulfillment from DC versus stores?
3. What do you recommend - supplying online orders
from store directly or a separate warehouse.
© 2018 Celect, Inc. All Rights Reserved.19

20. 3 KEY TAKEAWAYS:
1. You most likely have inventory challenges
2. Yes, you need store operations alignment
3. Advanced analytics is the right play
© 2018 Celect, Inc. All Rights Reserved.20

21. NOW WHAT?
© 2018 Celect, Inc. All Rights Reserved.21
Learn more about Fulfillment Optimization
https://www.celect.com/fulfillment-optimization
Book a 15-minute evaluation with a specialist:
https://drift.me/evanc