building the omni-channel supply chain - gs1 the omni-channel supply chain frits van den bos,...

Building the Omni-channel Supply Chain

Frits van den Bos, innovation manager GS1 Netherlands

12 November 2015

© GS1 Nederland 2015

Vacant points of sale

3

In the UK, the vacancy rate has already reached 15%

“Big chains won't return to high street because of rise of online shoppers”, Mary Portas Review

09

5,5

10

6,0

11

6,3

12

7,5

2015

10,0

2020

5,0

2008

+5,9% p.a.

5,3

Vacant points of sale1, %

SOURCE: Locatus, Expert Reports “The New Shopping Street"

1 - Extrapolated in 2015 and 2020 on the basis over average annual growth 2008-2012; vacancy is defined as a vacantbuilding that is intended for sale. Buildings that used to be shops but are now used differently will not be included.


Growth e-commerce

CONSUMER• Social media• 24/7 connected• In control and informed• Responsible individual

NEW TECHNOLOGIES• Mobile, location based, touch points• Big data• Digitalization (products and services)• 3D printing• AutoID: RFID, barcoding• Internet of things

SUSTAINABILITY• People require sustainability• E-commerce effects on the planet increase

• Profits leave little roomfor largeinvestments

NEW LEGISLATION • Privacy• Consumer rights• Safety• Sustainability• Cross border e-commerce

Underlying trends


The Omni-channel supply network

6

Manufacturer

Logistics Service Provider

Manufacturer Store

Retail Distribution Centre

WholesalerManufacturer

Manufacturer

Manufacturer

Manufacturer

E-Store

Consumer

E-fullfilment centre

Parcel service

Pick up point

Collies Items Baskets / Parcels


The customer journey 2020?

7


Delivery for free, where and when I want it….

9

12%

51%11%

26%21%

22%

11%

46%

2014(n= 123) (n= 113)

2020

Delivery cost are charged separately

Delivery for free (Delivery costs are included in the selling price)

Delivery costs are partly charged amd artlly included in de selling price

Delivery costs are charged seperately, unless the order amount exceed a minimum amount and delivery costs are dropped.


What will have the biggest impact on the supplychain?

10

17%

37%

41%

33%

14%

13%

26%

26%

31%

20%

26%

24%

23%

22%

27%

44%

13%

10%

15%

40%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Alle voorraad beschikbaar en transparant voor alle kanalen(online en offline)

Off shore productie kosten stijgen

Off shore productie leadtimes belemmeren flexibiliteit

Geen standaardisatie in supply chains waardoor track &trace moeilijk is

Levertijden naar online klanten moet steeds korter

Geen invloed Enigszins invloed Redelijk wat invloed Veel invloed

All stock available and transparant for all channels (on and off line)

Increase in off shore production costs

Off shore production lead times will limit flexibility

Lack of standards increases complexityfor tracking & tracing

Decreasing lead times towards online customers

No impact Limited impact Considerable impact Major impact

1

2

3


Information CollaborationFlexibility

Sourcing Inventory &planning Handling Transport Returns ‘Leftovers’

integral revenues and cost

Required capabilities


Collaboration: where to add value

12

Sourcing Inventory &planning

HandlingTransport Returns ‘Left overs’


Flexibility: on time delivery at low cost

13

Collies Items Baskets / ParcelsManufacturer

Logistics Service Provider

Manufacturer Store

Retail Distribution Centre

WholesalerManufacturer

Manufacturer

Manufacturer

Manufacturer

E-Store

Consumer

E-fullfilment centre

Parcel service

Pick up point


Information

14


HandlingReturns ‘Left overs’

Productdata

Parcel delivery

Transport

Stock accuracy

6098


Product data

15


Example: Product data at batch level

16


Parcel delivery: need for standards

• Collaboration can reduce costs

• Cross border delivery costs obstruct

Single Digital Market in Europe

- More transparancy in delivery

costs needed

- Lower switching costs needed

17

• Market is dominated by postal

companies with their own

interoperatebility system

• Many E-retailers act local

• Many E-retailers have a limited

number of parcel delivery services

• return processes


Building the omni-channel supply chain

18

InformationCollaboration

Flexibility


Handling Transport Returns ‘Leftovers’

integral revenues and cost


Omni-channel retail and GS1

19

More granular, unique

everlastingauthenticatedidentification

Last miledelivery

standards

GS1 Standards&

Services

Product data

EDIAPI

RFID


Summary

• Omni-channel supply networks: More parties, increased complexity

• Collaboration, Flexibility, Information are required key capabilities

- Identification: unique, everlasting, authenticated and more granular,

- Product data: more data, more data quality

- Last mile delivery: need for standards

20

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