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Capgemini Intelligent Commerce and Fulfillment – the Time is Now

Consumer Product and Retail Organizations need to view demand holistically, possess agile order replenishment mechanisms and control new cost levers without diluting competitive value.

Capgemini’s Intelligent Commerce and Fulfillment solution leverages JDA’s intelligent optimization products technologies and IBM Sterling Order Management to provide an agile planning and execution platform to meet today’s supply chain challenges.

http://www.intelligent-commerce-and-fulfillment

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Capgemini Intelligent Commerce and Fulfillment – the Time is Now

  1. 1. IBM Amplify 2015 Conference Session Number: 1260 Title: Intelligent Commerce & Fulfillment Chris McDivitt – Vice President Mark Fodor – Vice President Prashanth Mahadevaiah- Director
  2. 2. 2 IBM Amplify 2015 – Intelligent Commerce | April 2015 Copyright © Capgemini 2015. All Rights Reserved Agenda Our Omni-channel Perspective Illustration of Intelligent Commerce and Fulfillment Use Cases Our Integration Framework and getting Intelligence Commerce and Fulfillment right Intelligent Commerce and Fulfillment
  3. 3. 3 IBM Amplify 2015 – Intelligent Commerce | April 2015 Copyright © Capgemini 2015. All Rights Reserved Omni-channel World: Our Perspective Flexible Fulfillment Buy Online Pick- up in Store Store Fulfillment Seamless Returns Single view of inventory Order Orchestration Multi-tier/node Inventory Consistent Information Consistent Path to Purchase Unified experience Customer Centric
  4. 4. 4 IBM Amplify 2015 – Intelligent Commerce | April 2015 Copyright © Capgemini 2015. All Rights Reserved Omni-channel World: Evolving Customer Expectations Consequences 62% of customers will move to a competitor if a similar product is available in stock Benefits 40% of consumers will check back to see if the product is in stock and 28% will wait to be notified when the product is available 30% will go to a different physical store if the product is in stock Consumers expect store associates to have real- time ability to locate OOS items and have them shipped, held for pickup, or transferred to the store Consequences Only 50% of customers are satisfied with the ease of making returns and returns policies Benefits 82% of shoppers prefer returning products in-store or free returns with pre-paid return label Over 50% of online shoppers have chosen in-store pickup for one of their purchases Consumers want to buy online, pick up and return in store Source: UPS and Comscore’s annual study, 2014
  5. 5. 5 IBM Amplify 2015 – Intelligent Commerce | April 2015 Copyright © Capgemini 2015. All Rights Reserved Omni-channel World: Retailer Challenges Many retailers live in a fragmented world – customers, orders and inventory are ‘disconnected’   across numerous enterprise touch points, compounded by the need to understand total delivered cost. Visibility & KPIs Customers & Pricing Inventory & Orders Lack of real time visibility on product inventory Silo’d  business  units  with  separate   P&Ls and KPI Non – integrated view of the customer Limited view of pricing Orders, Inventory and Customer Management processes are designed with traditional concepts and legacy systems (e.g. DC to Store alignment, ATP by channel etc.) Unable to understand the tradeoffs between total logistics costs and service levels Understanding the right balance (cost and service) requires appropriate processes and tools Logistics Inventory Procurement Transportation Warehousing Delivery Frequency Cost Optimal
  6. 6. 6 IBM Amplify 2015 – Intelligent Commerce | April 2015 Copyright © Capgemini 2015. All Rights Reserved Retailers realize their Omni-Channel maturity and are countering it by streamlining their fulfillment process 0% 9% 34% 24% 32% 17% 12% 31% 48% 35% 36% 18% 19% 23% 23% 25% 27% 28% 31% 33% 33% 42% Developing custom Apps Third party deal offers Embedding more social capabilities in our full Improving the payment process Investing in cross-channel capabilities Add additional selling channels (including third Branded deal of the day/promotional offers Targeted email campaigns Improving search and browse capabilities Providing richer product detail information Improving fulfillment processes Top Three Opportunities Overcome Business Challenges These technology investments provide leading retailers with competitive advantage 2014 2013 Improving Fulfillment processes is top of the agenda 59 % of companies report they have no capability or inconsistent capability How prepared do you think your organization is to handle Omni-channel retailing? 33% 26% 29% 10% 2% No capability Inconsistent Competent Efficient High Performing Source: Capgemini with Penn State, 2015 Source: RSR eComm Study, 2014
  7. 7. 7 IBM Amplify 2015 – Intelligent Commerce | April 2015 Copyright © Capgemini 2015. All Rights Reserved Retailers’  are  investing  in  technologies  to  build  integrated   supply chain execution capabilities DOM and WMS are the key technology investments for leading retailers 34% 39% 45% 37% 43% 50% 64% 64% 0% 15% 30% 45% 60% 75% Transportation management systems for logistics and fulfillment Inventory management module Warehouse management systems for logistics and fulfillment Distributed order management systems Leaders Followers Percent of Respondents, n = 77 These technology investments provide leading retailers with competitive advantage These technology investments provide leading retailers with competitive advantage Leaders Followers Percent of Respondents, n = 77 24% 24% 29% 43% 43% 50% 0% 15% 30% 45% 60% 75% Up-to-date fulfillment planning and execution information is shared across channels Ability to execute a common sales & operations plans for supply chain across all channels Ability to ship/fulfill online orders the very same day after they are received Source: Aberdeen
  8. 8. 8 IBM Amplify 2015 – Intelligent Commerce | April 2015 Copyright © Capgemini 2015. All Rights Reserved Agenda Our Omni-channel Perspective Illustration of intelligent & Fulfillment Commerce Use Cases Our Integration Framework and getting Intelligent Commerce & Fulfillment right Intelligent Commerce & Fulfillment
  9. 9. 9 IBM Amplify 2015 – Intelligent Commerce | April 2015 Copyright © Capgemini 2015. All Rights Reserved Our Approach for Omni-channel Supply chain demands inventory, orders, and fulfillment across all channels …And  tracked  from  point  of  sale  to   delivery with proactive notification, backed ability to return through any channel …That can be viewed in real time, held, modified, ordered and fulfilled via any combination  of  channels… Empowered consumers expect a broader range of inventory available across  all  channels… Purchase Post-PurchasePre-Purchase In-Transit DCs Stores Suppliers Inventory Visibility Ordered Fulfilled Tracked Returned Stores Home Delivery DCs Suppliers DCs Stores In need of a solution to: Support all order channels & centralizes & stores all order information to help planning and execution Integrate and centralize all inventory information & optimizes sourcing & promising (& fulfillment) Provide a configurable, extensible, & scalable platform for integration & growth
  10. 10. 10 IBM Amplify 2015 – Intelligent Commerce | April 2015 Copyright © Capgemini 2015. All Rights Reserved Intelligent Commerce & Fulfillment: JDA-IBM Integrated JDA-IBM products for Omni-channel fulfillment provisioning for optimal order management and cost-effectiveness* JDA & IBM Patnership Solution Framework Customer Sources: Demand Signals Network Participants: Supply Signals Store Distributor Mobile Call Center Web Service Provider Distributor Carrier Producer Store Order Management Service Delivery Fullfillment Network JDA Integrated Planning & Execution IBM Commerce & Order Management Highlights Optimised solution across channels Visibility to enable Agility Balance between planning and execution Cost and Service trade-offs in a profitable way
  11. 11. 11 IBM Amplify 2015 – Intelligent Commerce | April 2015 Copyright © Capgemini 2015. All Rights Reserved Agenda Our Omni-channel Perspective Illustration of Intelligent Commerce and Fulfillment Use Cases Our Integration Framework and getting Intelligent Commerce and Fulfillment right Intelligent Commerce and Fulfillment
  12. 12. 12 IBM Amplify 2015 – Intelligent Commerce | April 2015 Copyright © Capgemini 2015. All Rights Reserved Buy Online – Pickup in Store Customer originates and completes order using eCom storefront Customer order is dropped in to OMS OMS drops the order to the corresponding store for pick-up Store Associate picks, packs and makes the product available for customer pick-up Customer verifies identity and picks up the product from the store Demand planning systems to ensure excess demand is taken in to account for stores supporting pick-up Fulfillment and Replenishment systems to ensure appropriate inventory is available at the store Execution (WMS/TMS) Fulfillment & Replenishment Store Systems POS eComm Merch Assortment planning Planogram Return History Order History Forecast Purchase Order Transfer Order POS History Returns Orders IBM Component JDA Component Not Impacted Demand ForecastTransfer Order Purchase Order OMS Order Intelligent Commerce & Fulfillment: Illustration for Buy Online – Pickup in Store
  13. 13. 13 IBM Amplify 2015 – Intelligent Commerce | April 2015 Copyright © Capgemini 2015. All Rights Reserved Intelligent Commerce & Fulfillment: Illustration for Buy Online – Ship from Store Store Fulfillment (Shipment/Delivery) Customer originates and completes order using eCom storefront Customer order is dropped in to OMS OMS determines the most cost-effective node (store) to fulfill the order OMS drops the order to the appropriate store when the order is ready to be fulfilled Store Associate picks, packs and makes the product available for shipment Carrier picks up the product from store and delivers to customer Demand planning systems to ensure excess demand is taken in to account for stores supporting pick-up Execution (WMS/TMS) Fulfillment & Replenishment Store Systems POS eComm Merch Assortment planning Planogram Return History Order History Forecast Purchase Order Transfer Order POS History Returns Orders IBM Component JDA Component Not Impacted Demand ForecastTransfer Order Purchase Order OMS Order
  14. 14. 14 IBM Amplify 2015 – Intelligent Commerce | April 2015 Copyright © Capgemini 2015. All Rights Reserved Agenda Our Omni-channel Perspective Illustration of Intelligent Commerce Use Cases Our Integration Framework and getting Intelligent Commerce right Intelligent Commerce
  15. 15. 15 IBM Amplify 2015 – Intelligent Commerce | April 2015 Copyright © Capgemini 2015. All Rights Reserved Flexible/Adaptive Fusion of online and offline bridging the customer experience across multiple channels and ecosystems Delivering business value in an agile and responsive manner Multi-directional ecosystem to support cloud based and enterprise systems Agile application framework leveraging eCommerce, OMS & others to respond quickly to market demands Reliable infrastructure providing availability, performance and stability to support emerging technologies Consumable  Services  that  have  robust  API’s  and  web  services Capgemini offers a flexible integration layer for Intelligent Commerce & Fulfillment Call Center Call Center Kiosk Point of SaleWeb Point of Sale CRM 3rd Party (dropship)OMS Inventory WMS PIM ESB/SOA Business Integration Layer
  16. 16. 16 IBM Amplify 2015 – Intelligent Commerce | April 2015 Copyright © Capgemini 2015. All Rights Reserved Capgemini Immediate is a robust and secure "Digital Platform”  on  which  “Digital  Services”  can  be   integrated quickly, consistently and cost effectively, on-premise or in the cloud. Its purpose is to allow an organisation to quickly leverage the market innovations of their choice in order to achieve growth and stay two steps ahead of the competition. Immediate consists of a reference architecture and six accelerators: • Integration • API Management • Identity & Access Management • Service Management • Automated Provisioning • Application Lifecycle Management Each accelerator is based on mature open-source products and contains extensive documentation, scalable examples and auto-provisioning scripts. Capgemini’s  ‘Immediate’  Framework Personalisation & Interaction Customer, Supplier, Partner Management Operational Business Services Common Data Services Business Support Services Identity&AccessManagement ServiceManagement Automated Provisioning Application Lifecycle Management Integration API Management (external) API Management (internal)
  17. 17. 17 IBM Amplify 2015 – Intelligent Commerce | April 2015 Copyright © Capgemini 2015. All Rights Reserved Three foundational elements to getting Intelligent Commerce right 17 Creating a centralized inventory snapshot providing in-stock and in-transit inventory  visibility  across  all  stores,  DC’s  and  third  party  vendors is the first capability organizations must develop. Enabling multi-tier, multi-node allocation Develop a comprehensive inventory management strategy across the chain policies, exceptions Re-visit enterprise architecture across the board and move towards a Service Oriented Architecture, ensuring scalability and rapid deployment of new applications/packages Develop services to expose foundational components like Item data, customer data, pricing and inventory data to external systems Establish an Omnichannel leadership to ensure collaboration across different groups to enable timely decision making and responsibilities across core and linked initiatives. Start small, learn, iterate and scale Inventory and Order Management Integration Architecture Organizational Alignment
  18. 18. 18 IBM Amplify 2015 – Intelligent Commerce | April 2015 Copyright © Capgemini 2015. All Rights Reserved Capgemini’s  Unique  Proposition  for Intelligent Commerce Omni-channel Expertise Key player in Omni-channel solution space with IP creation of reusable delivery assets and solutions Thought Leadership Thought leadership exhibited through new IP creation, business propositions, value analysis and addressing solution gaps Expertise in Supply Chain Deep expertise in Supply chain through process and product experience facilitated by dedicated global center of excellences Strategic Alliances Capgemini is a premium alliance partner for IBM and JDA. Uniquely placed with proximity to net IP with all concerned Capgemini Differentiators Capgemini’s  IBM  and  JDA  Partnerships.   Strong alliances with leading DOM, SCM, WMS, TMS, Visibility software vendors Capgemini’s  Industry  leading  IP&E framework and Sterling Commerce expertise Global Logistics & Fulfillment Center of Excellence to provide sales, delivery and community support Strong investment in logistics related thought leadership publications • 3PL Study • Trends in Logistics Study • TM Process & Software Report • WMS in the Cloud • Regular Features in Logistics Management Magazine Innovative new offerings such as TMS NOW, Seamless Commerce across all touch-points B2B & B2C and a fully integrated e-Commerce offering with DAM, WCM for enterprise customers
  19. 19. 19 IBM Amplify 2015 – Intelligent Commerce | April 2015 Copyright © Capgemini 2015. All Rights Reserved Capgemini Contact Information Chris McDivitt, Vice President, Supply Chain Technologies Leader - Email:christopher.mcdivitt@capgemini.com Mark Fodor, Vice President, Digital Commerce Leader - email.:mark.fodor@capgemini.com Prashanth Mahadevaiah, Director, Supply Chain Leader India - email.:prashanth.mahadevaiah@capgemini.com
  20. 20. The information contained in this presentation is proprietary. Copyright © 2015 Capgemini. All rights reserved. Rightshore® is a trademark belonging to Capgemini. www.capgemini.com About Capgemini With almost 145,000 people in over 40 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services. The Group reported 2014 global revenues of EUR 10.573 billion. Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business Experience™, and draws on Rightshore®, its worldwide delivery model. Learn more about us at www.capgemini.com.

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