1. Supporting an Omnichannel Strategy
Santiago Gallino – Tuck School of Business
Toni Moreno – Kellogg School of Management
January 2017
July 2013 – LBS – London, UK

2. Learning Modules 1. Demand forecasting 2. Inventory Decisions
3. Assortment Planning
4. Pricing Decisions
5. The omnichannel customer
6. Fulfilling omnichannel demand
7. Omnichannel journeys
8. Supporting an omnichannel strategy

3. M8.2 Retail Jobs don’t need to be bad1
The retailer that want to remain competitive needs to offer competitive prices.
Two main expenses at most if not all retailer’s are COGS and Payroll.
To do that the retailer push to reduce it’s expenses: COGS and Payroll.
These expenses are fundamentally different.

4. M8.2 Is there a real trade off?
Is there a real trade-off between “bad Job” and “low prices”?

5. M8.2 Retail Jobs don’t need to be bad1
Retail Jobs are challenging (Zeynep Ton)
More than 40 Million only in the US.
It is not uncommon that the offer includes:
Low Wages
Chaotic Schedulles
No Training
Poorly Design Work
Lack of purpose

6. M8.2 Is there a real trade off?
There are retailers that have broke this dilemma.
Invest in People.
See beyond the cost.
The key is productivity.
L.L. Bean: The outdoor apparel retailer gives employees 11 paid holidays. The company has a three percent turnover rate for full-time employees. 
The Container Store: The retailer pays its front-line workers double the retail average, nearly $50,000 annually. 
Sales per Sq. Foot are Double of Sam’s club or BJ

7. M8.2 The Productivity Link1
The key is productivity.
Strategic decision to reduce complexity
Look for standardization
Empowerment
Training and Cross Training
“Over Staff”

8. M8.2 The Productivity Link3
The People, the employees, can make a dramatic difference in the Retailers execution
Tempting to reduce since this give and immediate profit jump
The culture can be an enabler or a barrier to success
Resistance to change

9. M8.2 The Productivity Link3
Labor Quantity and Quality
Operation Execution
Sales and Profit
Labor Budget

10. M8.2 Knowledgeable Employees4
CONVERTING DEMAND INTO SALES
Customer are more knowledgeable today that ever

11. Can training can help increase knowledge?
But can Online learning do the job?

12. Data
Upscale department store chain in the United States, with more than 300 stores in 29 states.
A sales and service solution company that partners with top brands to give retail sales representatives short online training courses. (+100 brands)

13. Data Hours worked for their sales associate
Total dollars sales and number of units sold by brand, month and SA
in-stock percentage by brand and store
The date and a unique identification of Dillard’s SA that took a module.
Description of the brand that the OTM was about: total time spent on a module and if the employee passed the test.

14. Non Linear Impact

15. Training and Tenure

16. Who benefit the most? 1 2 3 4 Passed a Module (0.006) 0.042 0.016
***
0.016
***
0.014 *

17. M8.2 Closing 5 See the labor budget as an Investment in People.
See beyond the cost.
The key is productivity.
Home depot – Trader Joe’s
Nordstrom – Banana Republic – The North Face