1. From offline to online Information
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. M7.2 Providing Online Information1
The online and the offline stores allow retailers to provide information.
Traditionally retailers have focus on how the information provided in one store affected that store
Today there are a number of examples that show how Retailers expand the they delivery information options
Home depot – Trader Joe’s
Nordstrom – Banana Republic – The North Face

4. Information Delivered
M7.2 Introduction 1
Fulfillment
Offline
Online
Offline
Information Delivered
Online
Home depot – Trader Joe’s
Nordstrom – Banana Republic – The North Face

5. M7.2 BOPS 2
We are going to focus on different omni channel implementations and the relevance of information sharing in this context.
Home depot – Trader Joe’s
Nordstrom – Banana Republic – The North Face

6. M7.2 BOPS 2 Buy online Pick up in the store. Tell the story
Why the company did this?
What were the implementation challenges?
What was the company expectation?
This is information availability not on the product characteristics
Home depot – Trader Joe’s
Nordstrom – Banana Republic – The North Face

7. 7% 1% 6% 13% M7.2 BOPS 3 Results Implications online sales cart
abandonment
store
sales 6%
store traffic
13%
Implications
Home depot – Trader Joe’s
Nordstrom – Banana Republic – The North Face

8. M7.2 BOPS 3 Home depot – Trader Joe’s
Nordstrom – Banana Republic – The North Face

9. M7.2 BOPS 3
ROPO behavior has a different impact depending on your ownership structure
Commodities
Exclusive
Home depot – Trader Joe’s
Nordstrom – Banana Republic – The North Face

10. M7.2 Ship to Store 4 Explain the program Home depot – Trader Joe’s
Nordstrom – Banana Republic – The North Face

11. M7.2 Ship to Store 4 Explain the implications Concentrated Dispersed15 6 11 4 3 5 2 7 1
Home depot – Trader Joe’s
Nordstrom – Banana Republic – The North Face

12. M7.2 Ship to Store 5 Explain the results
STS increased sales dispersion
Increase in dispersion generated from the shifting of sales high-demand to medium-demand products.
Interpretation: STS affected the tradeoff between accessibility and preference
Home depot – Trader Joe’s
Nordstrom – Banana Republic – The North Face

13. M7.2 Ship to Store 5 Explain the implications Discuss the long tail
Home depot – Trader Joe’s
Nordstrom – Banana Republic – The North Face

14. M7.2 Closing 7
Simple things like sharing inventory availability can have a big impact
Sharing location of items in the store
Reducing phantom stock outs
Sharing information on the staff available in the store
Hair dressers
Specialty Stores
This implementations can be challenging
Which information is good to share?
Sometimes is hard to predict
This things can be tested
Home depot – Trader Joe’s
Nordstrom – Banana Republic – The North Face