Retail Mobility

Retail Mobility

Convergence is NOW! It is REAL!

Are you READY?

Supply

Chain

Insights

BRICKS

Matter

The Role of Supply Chains in Building Market-Driven

Differentiation

Book

Publishes in August

2012

LORA M. CECERE

CHARLES W. CHASE JR.

Agenda

Supply Chain Insights LLC Copyright © 2012, p. 3

Study Insights

1.6

Mobile Applications

35% A dedicated group to improving mobility

42% Struggle to get the right talent

1.3

Years working on a mobile strategy

!

Convergence is the central theme


Struggle for Growth eCommerce

Retailer

Drug Retailer

Grocery Retailer

Mass Merchant

Specialty Retailer

2000-2004 2005-2009 2010-2012

15.7% 16.0% 26.6%

14.8%

12.2%

30.6%

14.7%

19.7%

21.5%

9.6%

12.2%

9.5%

19.6%

9.1%

3.0%


Revenue Per Employee

Revenue per Employee

1200

1000

800

600

400

200

0 eCommerce

Grocery

Mass

Specialty

1990-

1994

198

112

1995-

1999

182

144

2000-

2004

343

425

253

296

2005

456

479

348

384

Source: Supply Chain Index Analysis from Annual Reports 1990-2012

Mean values utilized excluding outlier data

2006

549

475

379

414

2007

758

520

617

458

2008

612

487

479

2009

611

474

527

2010

572

533

534

2011

848 1016 998 1073

518

464

282

2012

504

348

312


Bar codes were first used at Marsh Supermarket in 1968


For Suppliers

Weather Data Market-survey Data

Contract Data

Retail Warehouse Withdrawal Data

Loyalty Data

Syndicated Data

Social Data

Panel Data

POS Data

Enrichment Data

Distributor Data

T-Log Data

Ratings and Reviews

Coupon Redemption Web Click-through Data

Orders Shipments

Returns


Revenue Per Store/Grocery


Revenue per Store - Specialty

12

10

Dick's Sporting Goods

9.2

8

6

4

TJX

Gap

Toys R Us

Limited

Ross

Talbots

Abercrombie & Fitch

Footlocker

Dick's Sporting Goods

2

0

2000 2001 2002 2003 2004 2005

Year

2006 2007 2008 2009

Footlocker

1.4

2010

Source: Supply Chain Index Analysis from Annual Reports 2000-2010 Supply Chain Insights LLC Copyright © 2012, p. 10

Shifts



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?


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.


Lands End: Did it WRONG

Users must download all catalog content, a situation exacerbated when relying on a carrier network vs. wi-fi


Agenda


Digital Path to Purchase (#DP2P)

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


“Where’s My Bud” Viral Campaign

Campaign

Objectives :

Reduce Out of Stocks at targeted retailers by 5%

Increase Shopper satisfaction and brand loyalty

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 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 instore technical capabilities


Retailer Experience

New text message to

612-961-7802:

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.


Here are some locations near you where you can find Bud Light. Be sure to use this promotion code to get your discount:

ABBL12456


Social Commerce: The use of social technologies to improve the path to purchase.


Opportunity at the Intersection of the Social and Interest Graph(s)


Losers in Social Commerce

• Extension of eCommerce

• When it is about YOU! Yelling and

Controlling the Message.

• Does Not Improve the Brand

Experience.


Techniques Vary by Product

Degree of

Difficulty

Storytelling

Reviews:

Building an

Army of

Advocates

Runway

Gaming

Open

Sourcing

Ask and

Answer Action

Buttons

Virtual

Currency

Reviews:

Experts

Grocery Cosmetics Apparel Electronics


Hallmark Card Contests

Inside Copy:

Time to give your thumbs a break and go eat some cake!


Winners: Giantnerd.com


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 products Uploading photos

Asking and answering questions Joining groups

Using the ShareThis functionality

Writing and/or editing a

Wikinerdia post

Adding Topics Starting or Commenting on Discussions

Making Lists Sending Content to Friends and Family


Hallmark


Newell Rubbermaid

• Newell Rubbermaid

#Future15SB @bwdumars


Newell Rubbermaid

#Future15SB @bwdumars


Agenda


Study Overview

WHY

• OBJECTIVE : To understand the current state of mobile in the retail extended supply chain.

• HYPOTHESIS: The use of mobile in retail is just beginning.

WHAT

• Survey topics included:

• Mobile strategy – presence and elements of strategy, barriers, use of IT systems

• Mobile influence – personal & corporate

• New technology trends – importance to company, current performance

• Company operations related to mobile & retail

WHEN & HOW

• Online interviews were conducted between

May 16 – June 18, 2012

• Conducted in partnership with Retail Connections

WHO

• 40 completed surveys

• Work in the Retail industry (Specialty, Grocery,

Mass, Convenience, Other).

• Primary positions include CIO, IT, COO


Company Details


Respondent Experience


Technology Trend Importance:

Today vs. One Year Ago


Technology Trends:

Importance vs. Performance


IT Systems for Mobile Efforts:

Importance vs. Performance


Mobile & Social Presence


Barriers to Implementing

Mobile Strategy


Agenda


Big Data will be the NEW

Foundation of the Future

Supply Chain


Big Data Plans & Expectations


Structured

Data

• Transactional

• Time phased data

Unstructured

Data

• Social

• Channel

• Customer Service

• Warranty

Sensor

Data

New

Data

Types

• Temperature

• RFID

• QR codes

• GPS

• Mapping and GPS

• Video

• Voice

• Digital Images

Definition

Challenges:

Volume

Velocity

Variability


Big Data: What is it all About?

Downstream Data

Call

EDI

Cold Chain

Center Logs eCommerce

Social

Geolocation

Ratings & RFID Facebook

Reviews

Video

T-Log Data

Twitte r

Weblogs

Photographs

Warranty Returns

Information

Sensors

Mobile Applications

Sentiment Text

Analysis

Analytics

What-if Models

Hadoop

Learning Systems

Data Visualization

Scorecards Rules-Based

R Map Reduce Ontology

Forecasting

Digital Path To

Constraint-

Purchase based Planning

Data Mining


Agenda


Wrap-up

• 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.


Bricks Matter


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 .


Where do you find Lora?

Contact Information: loracecere@gmail.com

Blog: www.supplychainshaman.com

(3500 pageviews/month)

Twitter: lcecere 3100 followers. Rated as the top rated supply chain social network user.

Linkedin: linkedin.com/pub/loracecere/0/196/573 (2300 in the network)


Retail Mobility - Supply Chain Insights

BRICKS

Matter

POS Data

Orders Shipments

Social Commerce: The use of social technologies to improve the path to purchase.

Opportunity at the Intersection of the Social and Interest Graph(s)

Big Data will be the NEW

Foundation of the Future

Supply Chain

Geolocation

Related documents

Products

Support