digital supply chain and transformation michael tung
TRANSCRIPT
© DKSH© DKSH
Digital Supply Chain and Transformation
Michael Tung
Senior Executive Manager,
Centre of Excellence, SCM
DKSH
© DKSH
• Transformation never stop in the last 150 years, it just gets faster with Internet
• DKSH’s digital solution suite
• DKSH’s approach to Omni Channel
• Results and key learnings
Contents
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A 150+ years of journey
© DKSH
…Transformation never stops, it just goes faster with
Digital and Internet of Things
Experience in Asia dates back to the
1860’s when our founders ventured to Asia
Market Expansion
Services provider
Specialized services
providerTrading companies
1865 20172002
We have built sustainable relationships with
international companies and local business
communities
Now we are the No. 1 Market Expansion
Services provider with a focus on Asia
© DKSH
Access to internet changes brand interactions
Increased access to the internet and the
rise of mobile technology are dramatically
changing the way that consumers are
interacting with brand owners.
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© DKSH
…with a comprehensive, tailor-made portfolio
of services
Market Expansion Services goes beyond offering individual services – it is about
the integration of many different services to meet the needs of business partners
Clie
nts
Custo
mers
After-sales
services
Distribution
and logistics
Marketing
and sales
Market
analysis and
research
Sourcing
Tailor-made, integrated service portfolio
Backflow of information from customers to clients
enabled by fully integrated and centralized IT platform
© DKSH
We link business partners and add value to
businesses
Consumer goods, healthcare products
Specialty chemicals and ingredients, analytical
instruments, capital investment goods
We support our clients in marketing,
selling and distributing products, provide
after-sales services and market insight in
new and existing markets
We support our customers in getting the
best raw materials, products and brands
at the best price and we provide them
with knowledge and market insights
Market insightsRetailer
Manufacturer
Manufacturer
Client Customer
B2B/B2C
B2B
Market insights
© DKSH
Our current solutions and services
1. Digital Marketing
2. Online Channel Management
3. E-Fulfillment
4. Data Analytics
© DKSH
1. Digital Marketing
Provide strategic direction
Execute digital marketing campaigns
Search marketing
Email marketing
Video marketing
Social media marketing
Display marketing
Content marketing
Introduction and application of data analytics
Agency partners
© DKSH
2. Online Channel Management (1/2)
Product
onboarding and
management
<
Order
management
Returns
manage-
ment
Customer care
Order fulfillment
and delivery
Inventory
transfer and
management
Technical
monitoring
Price and
promotion
manage-
ment
Financial
reconciliation
Channel
strategy and
consultation
Fulfillment facilitiesTechnology
integration
© DKSH
2. Online Channel Management (2/2)
SAP plays primary role for Management of Product Information, Price & Promotions, Orders, Inventory, Warehouse, Billing, Accounting
SelluSeller plays primary role in Product Content Management, Order Status Management, Interfacing with 3rd Party Marketplaces
Products
• SKU
• Retail Price
• Promotions
• Available Stock
Orders
• Sales
• Returns
• Billing
Reporting
• Client
• Internal
• Listings Management
• Inventory Allocation
• Order Consolidation
• Reporting and Analytics
Q3
Q3
Q3
Q4
Q4
DKSH
Online Channel
Management
© DKSH
3. E-Fulfillment
Distribution Center
B2C fulfillment area
• Same facility
• Different pick and pack process
• Last mile orchestration
© DKSH
4. Data Analytics
Data and Insights from Channel Partners Data and Insights by DKSH
DKSH’s approach to Omni Channel
© DKSH
Through DKSH Connect, we empower our
business partners to manage and grow their
businesses at their convenience – 24 hours a
day, seven days a week
DKSH’s online customer engagement platform
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© DKSH
DKSH Connect is an online tool. It enables you to:
Browse our
catalog of
products
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Place
orders
Track
shipping
Make payments
and view
statements
© DKSH
It’s available anytime, anywhere with any device
© DKSH
Increased visibility and access of our client’s products,
back by seamless supply chain for efficient consumer
response
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Key learnings
© DKSH
Results and key learnings
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5
42
13
Consumer
centricity
Data-drivenOmni-channel BD
value proposition
One DKSH
Strategic channel
partnership
1. After 3 years, DKSH is selling 400 brands online in 9 Asian countries.
2. Omni-channel business development value proposition to our clients
3. Client expects DKSH to operates as ONE services provider in agility
4. Build strategic channel partnerships in the region
5. Consumer centricity – know the needs and ensure superior shopping experiences both
online and offline
6. Turning data into valuable asset, strengthened by digital transformation
© DKSH
Business partners can be both competitors and
complementors
Source: McKinsey
Complementor Competitor
Fast-changing and more complex relationships Future scenarios for online ecosystem in SEA
Online channel
partner
Platform to sell
directly to
consumers
Outsourcing
partner
Offering e-MES
services
CBT partnerPlatform to sell
directly to
consumers
The industry is still being shaped as players change their strategies constantly – DKSH needs to
build strategic relationships with key players
Channel
consolidation
Infrastructure
efficiencies
China
fast track
scenario
Status
quo
China
slow track
scenario
Local
heroes
scenario
© DKSH
Thank you for your attention
© DKSH
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provide accurate and up-to-date information. Nevertheless, this presentation may be subject
to technical inaccuracies, information that is not up-to-date or typographical errors
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Disclaimer
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