Supply Chain Insights Retail Mobility Convergence is NOW! It is REAL! Are you READY? Convergence is NOW! It is REAL! Are you READY?

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Presentation transcript:

Supply Chain Insights Retail Mobility Convergence is NOW! It is REAL! Are you READY? Convergence is NOW! It is REAL! Are you READY?

BRICKS Matter The Role of Supply Chains in Building Market-Driven Differentiation LORA M. CECERE CHARLES W. CHASE JR. Book Publishes in August 2012

Supply Chain Insights LLC Copyright © 2012, p. 3 Agenda

Supply Chain Insights LLC Copyright © 2012, p. 4 Study Insights Mobile Applications A dedicated group to improving mobility Struggle to get the right talent Years working on a mobile strategy Convergence is the central theme % 1.3 ! ! 42%

Supply Chain Insights LLC Copyright © 2012, p. 5 Struggle for Growth

Supply Chain Insights LLC Copyright © 2012, p. 6 Revenue Per Employee Source: Supply Chain Index Analysis from Annual Reports Mean values utilized excluding outlier data

Supply Chain Insights LLC Copyright © 2012, p. 7 Bar codes were first used at Marsh Supermarket in 1968

Supply Chain Insights LLC Copyright © 2012, p. 8 For Suppliers Weather Data Retail Warehouse Withdrawal Data Syndicated Data POS Data Loyalty Data Coupon Redemption Panel Data Social Data Distributor Data Enrichment Data Web Click-through Data Contract Data OrdersShipments Market-survey Data Returns T-Log Data Ratings and Reviews

Supply Chain Insights LLC Copyright © 2012, p. 9 Revenue Per Store/Grocery

Supply Chain Insights LLC Copyright © 2012, p. 10 Revenue per Store - Specialty Source: Supply Chain Index Analysis from Annual Reports

Supply Chain Insights LLC Copyright © 2012, p. 11  Power shifting to the shopper.  Amazon seizing “center store”.  Omnichannel expectations growing.  Supply chains moving from near real-time to real-time data and from inside-out to outside-in processes.  More and more costs are being pushed backwards in the supply chain.  A time for disintermediation? Shifts

Supply Chain Insights LLC Copyright © 2012, p. 12 Starbucks: Did it RIGHT The mobile card program was tested in 2009, and found to be the fastest way for customers to pay. It’s available at 9000 stores. Customers purchase credit via PayPal or credit card.

Supply Chain Insights LLC Copyright © 2012, p. 13 Lands End: Did it WRONG Users must download all catalog content, a situation exacerbated when relying on a carrier network vs. wi-fi

Supply Chain Insights LLC Copyright © 2012, p. 14 Agenda

Supply Chain Insights LLC Copyright © 2012, p. 15 A look at transforming the four moments of truth to improve the shopping experience through mobility: At Home: The list In the Store: The decision to buy Check-out: The transaction Usage: Post purchase Digital Path to Purchase (#DP2P)

Supply Chain Insights LLC Copyright © 2012, p. 16 Campaign Objectives : Reduce Out of Stocks at targeted retailers by 5% Increase Shopper satisfaction and brand loyalty “Where’s My Bud” Viral Campaign Concept: Execute a viral campaign focused on leveraging shoppers to identify out of stocks and potentially pricing compliance issues Leverage a combination of consumer, internet, and in- store technical capabilities Validation: Identify a key leader or market that wants to pilot. 50/50 shared risk in effort and resources to pursue. Keep costs to a minimum for pilot, under $75K

Supply Chain Insights LLC Copyright © 2012, p. 17 Retailer Experience New text message to : A customer at Denny and Doug’s Liquor Emporium has just snapped a tag. You’re out of stock on Bud Light. Please contact your wholesaler.

Supply Chain Insights LLC Copyright © 2012, p. 18 Here are some locations near you where you can find Bud Light. Be sure to use this promotion code to get your discount: find Bud Light. Be sure to use this promotion code to get your discount: ABBL12456

Supply Chain Insights LLC Copyright © 2012, p. 19 Social Commerce: The use of social technologies to improve the path to purchase.

Supply Chain Insights LLC Copyright © 2012, p. 20 Opportunity at the Intersection of the Social and Interest Graph(s) Opportunity at the Intersection of the Social and Interest Graph(s)

Supply Chain Insights LLC Copyright © 2012, p. 21 Extension of eCommerce When it is about YOU! Yelling and Controlling the Message. Does Not Improve the Brand Experience. Losers in Social Commerce

Supply Chain Insights LLC Copyright © 2012, p. 22 Techniques Vary by Product ApparelCosmetics Grocery Electronics Reviews: Building an Army of Advocates Reviews: Experts Open Sourcing Gaming Ask and Answer Degree of Difficulty Runway Action Buttons Virtual Currency Storytelling

Supply Chain Insights LLC Copyright © 2012, p. 23 Hallmark Card Contests Inside Copy: Time to give your thumbs a break and go eat some cake!

Supply Chain Insights LLC Copyright © 2012, p. 24 Winners: Giantnerd.com

Supply Chain Insights LLC Copyright © 2012, p. 25 Winners: Giantnerd.com You earn 10% back for every dollar you spend on regular priced items and 5% back for every dollar you spend on discounted items. Use your points for free gear and clothing at Giantnerd®. How to become a Giant Nerd? Reviewing productsUploading photos Using the ShareThis functionality Asking and answering questionsJoining groups Writing and/or editing a Wikinerdia post Adding TopicsStarting or Commenting on Discussions Making ListsSending Content to Friends and Family

Supply Chain Insights LLC Copyright © 2012, p. 26 Hallmark

Supply Chain Insights LLC Copyright © 2012, p. 27 Newell Rubbermaid

Supply Chain Insights LLC Copyright © 2012, p. 28 Newell Rubbermaid

Supply Chain Insights LLC Copyright © 2012, p. 29 Agenda

Supply Chain Insights LLC Copyright © 2012, p. 30 Study Overview

Supply Chain Insights LLC Copyright © 2012, p. 31 Company Details

Supply Chain Insights LLC Copyright © 2012, p. 32 Respondent Experience

Supply Chain Insights LLC Copyright © 2012, p. 33 Technology Trend Importance: Today vs. One Year Ago

Supply Chain Insights LLC Copyright © 2012, p. 34 Technology Trends: Importance vs. Performance

Supply Chain Insights LLC Copyright © 2012, p. 35 IT Systems for Mobile Efforts: Importance vs. Performance

Supply Chain Insights LLC Copyright © 2012, p. 36 Mobile & Social Presence

Supply Chain Insights LLC Copyright © 2012, p. 37 Barriers to Implementing Mobile Strategy

Supply Chain Insights LLC Copyright © 2012, p. 38 Agenda

Supply Chain Insights LLC Copyright © 2012, p. 39 Big Data will be the NEW Foundation of the Future Supply Chain

Supply Chain Insights LLC Copyright © 2012, p. 40 Big Data Plans & Expectations

Supply Chain Insights LLC Copyright © 2012, p. 41 Definition Challenges: Transactional Time phased data Structured Data Social Channel Customer Service Warranty Temperature RFID QR codes GPS Mapping and GPS Video Voice Digital Images Unstructured Data Sensor Data New Data Types Volume Velocity Variability

Supply Chain Insights LLC Copyright © 2012, p. 42 Big Data: What is it all About? Downstream Data Cold Chain Geolocation RFID Social Ratings & Reviews T-Log Data Twitte r Facebook Call Center Logs Video Photographs Warranty Information Returns Weblogs eCommerce EDI Data Mining Forecasting Sentiment Analysis What-if Models Hadoop Rules-Based Ontology Constraint- based Planning Data Visualization Learning Systems R Text Analytics Scorecards Sensors Map Reduce Digital Path To Purchase Mobile Applications

Supply Chain Insights LLC Copyright © 2012, p. 43 Agenda

Supply Chain Insights LLC Copyright © 2012, p. 44 Mobile is not mobile for the sake of mobile. It is about the delivery of an improved shopping experience. Convergence is the stated goal, but we are just at the starting line. Big data is needed to make convergence work. Wrap-up

Supply Chain Insights LLC Copyright © 2012, p. 45 Bricks Matter

Supply Chain Insights LLC Copyright © 2012, p. 46 Who is Lora? Founder of Supply Chain Insights Partner at Altimeter Group (leader in open research) 7 years of Management Experience leading Analyst Teams at Gartner and AMR Research 8 years Experience in Marketing and Selling Supply Chain Software at Descartes Systems Group and Manugistics (now JDA) 15 Years Leading teams in Manufacturing and Distribution operations for Clorox, Kraft/General Foods, Nestle/Dreyers Grand Ice Cream and Procter & Gamble.

Supply Chain Insights LLC Copyright © 2012, p. 47 Where do you find Lora? Contact Information: Blog: (3500 pageviews/month) Twitter: lcecere 3100 followers. Rated as the top rated supply chain social network user. Linkedin: linkedin.com/pub/lora- cecere/0/196/573 (2300 in the network)