Responsive Retail Strategies That Yield 10x ROI
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Responding to changing sales cycles and channels, winter sporting goods supplier, Burton, needed a way to make inventory available to customers anywhere and at any time. In almost half the estimated time, it delivered a new logistics solution allowing employees to source products directly from retail stores when the warehouse is out of stock, resulting in overall less stagnant inventory and a 10X ROI.
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Responsive Retail Strategies That Yield 10x ROI
- 1. | Responsive Retail Strategies That Yield 10x ROI Responsive Retail Strategies That Yield 10x ROI Seeing obstacles as opportunities and finding creative ways to over come them.
- 2. | Responsive Retail Strategies That Yield 10x ROI| Responsive Retail Strategies That Yield 10x ROI Matthew Burns Manager of Advanced Analytics| Burton Snowboards @ in speaker@mail.com /speaker
- 3. | Responsive Retail Strategies That Yield 10x ROI| Responsive Retail Strategies That Yield 10x ROI We Are Riders, We Work Like We Ride, We Ride Together.
- 4. | Responsive Retail Strategies That Yield 10x ROI| Responsive Retail Strategies That Yield 10x ROI ● Burton Snowboards ■ Established in 1977 ■ Offices: Burlington VT, Innsbruck, Tokyo ■ 52 Stores Worldwide ■ Jake & Donna ■ Hardgoods, Soft goods, Bags & Luggage, Mountain Life Apparel ■ Premium brand placement in the market ■ Strive to be innovative and sustainable
- 5. | Responsive Retail Strategies That Yield 10x ROI| Responsive Retail Strategies That Yield 10x ROI ● Traditionally a Wholesale brand ■ Buyer Sell-in October - February ■ Product Ships August - October ■ Specialty Retails aka, Board Shops ■ Cultural heart of snowboarding ■ Highly impacted by online sales ● Direct to Consumer Movement ■ Limited ECOM exposure in 2009 ■ Ensure premium distribution channels ■ Burton retail summer clearance event
- 6. | Responsive Retail Strategies That Yield 10x ROI| Responsive Retail Strategies That Yield 10x ROI Controlling the Edge of Inventory
- 7. | Responsive Retail Strategies That Yield 10x ROI| Responsive Retail Strategies That Yield 10x ROI ● Inventory Scarcity Model ■ Stronger in-season Sell-Thru ■ Reduce in-season off-price sales ■ Sustainability ● Balanced Inventory Channels ■ Reduce on-hand inventory for yearly clearance event ■ Fluid Ecom & Retail inventory ■ Sell to the demand
- 8. | Responsive Retail Strategies That Yield 10x ROI| Responsive Retail Strategies That Yield 10x ROI Discounting Inventory Model Distribution Center ECOM Inventory Retail Inventory Inventory from Manufacturers Burton Retail
- 9. | Responsive Retail Strategies That Yield 10x ROI| Responsive Retail Strategies That Yield 10x ROI Discounting Inventory Model Aged Inventory Distribution Center ECOM & Retail Inventory Packed & Tagged Burton Retail Summer Sale Discount Pricing
- 10. | Responsive Retail Strategies That Yield 10x ROI| Responsive Retail Strategies That Yield 10x ROI Scarcity Inventory Model Distribution Center ECOM Inventory Retail Inventory ECOM Demand Burton Retail
- 11. | Responsive Retail Strategies That Yield 10x ROI| Responsive Retail Strategies That Yield 10x ROI Uncorking the Demand
- 12. | Responsive Retail Strategies That Yield 10x ROI| Responsive Retail Strategies That Yield 10x ROI ● OMNI Channel Dashboard (OCD) ■ Project conception Spring 2016 ■ MVP delivery February 2017 ■ Black Friday identified business opportunity summer 2016 ■ MVP schedule revised for November 1st 2016
- 13. | Responsive Retail Strategies That Yield 10x ROI| Responsive Retail Strategies That Yield 10x ROI ● Project Details ■ Estimated at 900 hours ■ 1 PT intern & 1 FT developer ■ Execution start mid-August ● Investment & Deployment ■ Capitalized 500 hours, ~ $30k ■ 1 pilot store, started NA store rollouts in February ■ First 60 days, 1.7k deliveries with 5xROI in Revenue
- 14. | Responsive Retail Strategies That Yield 10x ROI| Responsive Retail Strategies That Yield 10x ROI
- 15. | Responsive Retail Strategies That Yield 10x ROI| Responsive Retail Strategies That Yield 10x ROI
- 16. | Responsive Retail Strategies That Yield 10x ROI| Responsive Retail Strategies That Yield 10x ROI
- 17. | Responsive Retail Strategies That Yield 10x ROI| Responsive Retail Strategies That Yield 10x ROI ● Current State ■ 23 stores in The United States, Europe, & Japan ■ Over 80k units shipped ■ Approx. $40k year on dev & support ● Direct ROI ■ Summer Sale OH units down %38 YoY ■ North of 10M in Revenue ■ 35xROI in Revenue
- 18. | Responsive Retail Strategies That Yield 10x ROI| Responsive Retail Strategies That Yield 10x ROI
- 19. | Responsive Retail Strategies That Yield 10x ROI Thank You! @ inspeaker@mail.com /speaker
- 20. | Responsive Retail Strategies That Yield 10x ROI| Responsive Retail Strategies That Yield 10x ROI Networking Reception 5 – 8pm Exhibition Hall Up Next:
Editor's Notes
- Largest independently owned snowboard company Established in Mansfield VT Corporate Headquarters in Burlington VT with regional headquarters in Innsbruck Austria, Tokyo Japan, and regional offices in Australia and China Currently we have 28 Flagship and Outlet stores world wide. 12 in the US and 1 in Canada with 7 in Europe Owned by Jake Burton Carpenter, didn’t invented snowboarding but lead the charge to turn it into a sport Donna is a leader work place gender equality and climate change activism 400-500 employees world wide Not only snowboard gear but mountain life gear, camping gear, mountain life apparel, bags & luggage Burton dominates all snowboarding hardgood categories, also sells more softgoods then another snowboard company
- Specialty board shops are seeing less and less foot traffic Board shops and their culture has been the heart of snowboard community, every board shop closed is a lost group of customers Major sporting good chains have closed within the last 2 years with Dicks and Under Armor currently struggling Amazon and the power of reviews is driving sales on-line. Customers are no longer buying “kits” before they season starts Customers are waiting until big trips or discounts before buying Moving from early season to later winter. Online reviews are replacing word of mouth Touch in the stores, buy on-line Sell-Thru dependent by weather events **SNOW** Flagships often have with limited back stock rooms and take smaller replenishment orders from DC then typical wholesale accounts Summer Sale Products sold for 50-80% off of MSRP Once product leaves the warehouse it can’t go back Large sales event hurts the brand image
- A Customer places the order, the order is passed from the Ecom site (SFCC) to the backend ERP solution (SAP) SAP ensure the product is in the DC and then passes the ”request for delivery” to the DC The DC creates the shipment and sends it to the customer, a dissatisfied customer while then ship the product back to the DC The communication between the DC and ERP solution is through an EDI gateway via SAP Idocs, xml based documents The DC uses logistical solutions to handle the processing
- The solution the inventory quandary is to provide the stores with a logistical solution so the stores can be have as outbound shipping points In the new state the ERP system can look to the store to help fulfill parts of the order that the DC can not. To do this, the store would need a UI to receive incoming ”request for delivery” work items and process them This will require store employees to learn new but part time skill, shipping. The experience of the customer must not suffer, so the stores need to match the level of quality from the DC
- High level business requirements The business had developed some working wireframes, for the UI Origin of the shipment must be transparent to the customer Low volume, estimated 5-10 shipments/Store/Day Processor identification & security Simple intuitive design UI must support tablet & touch screens UPC tags to be scanned for verification Create & Track UPS Shipments Auto Print packing slip & shipping labels directly from UI Inventory discrepancy management
- Scope RESTFul web services UPS Shipment & Tracking APIs Print packing slip & labels directly from UI Zebra Printer - Browser Print Merged PDF Printing – peel off return label SAP POS Inventory management 1 Full Time FTE: Enterprise Service Bus & Data Storage Production Support (25% ~ 100%) 1 Part Time Student: User Interface MIS & Digital Marketing focus 20 hours a week Implementation November 1st MVP Delivered 1st customer was the DTC VP Restricted Stock 7 styles of Levi’s jeans Opened to all inventory November 15th
- Go-live view
- Top image is go live version Bottom image is the evolution of the UI.
- Japan just went live a month ago. Translations happening with property based localized files Implemented new logistics carrier