mobile presentation for retail connections slideshare

Supply Chain Insights

Retail MobilityConvergence is NOW! It is REAL!

Are you READY?

BRICKSMatterThe Role of Supply Chains in Building Market-Driven Differentiation

LORA M. CECERE CHARLES W. CHASE JR.

BookPublishes in August

2012

Supply Chain Insights LLC Copyright © 2012, p. 3

Agenda

Overview

Definitions

Mobile Survey

Implications

Wrap-up


Study Insights

Mobile Applications

A dedicated group to improving mobility

Struggle to get the right talent

Years working on a mobile strategy

Convergence is the central theme

1.6

35%

1.3

!

42%


2000-2004 2005-2009 2010-2012

eCommerce Retailer 15.7% 16.0% 26.6%

Drug Retailer 14.8% 19.7% 9.5%

Grocery Retailer 12.2% 21.5% 19.6%

Mass Merchant 30.6% 9.6% 9.1%

Specialty Retailer 14.7% 12.2% 3.0%

Struggle for Growth


1990-1994

1995-1999

2000-2004

2005 2006 2007 2008 2009 2010 2011 2012

eCommerce

NaN NaN 343.09821573893

2

455.82322184244

8

549.35711669921

7

758.40384928385

3

848.30227661132

6

1016.2521057128

9

998.48733520507

7

1073.2823486328

1

NaN

Grocery

197.66727663333

3

182.42270665714

3

424.51644165604

2

478.66342206434

8

475.07786840959

519.72557456152

9

612.0607266696

610.86592366145

2

572.42064453125

518.07959238688

3

503.89105224609

3

Mass

111.531258

6

143.587382

4

252.77049342572

2

348.13922174952

2

378.84717362577

3

616.60869811562

9

486.97209019814

8

474.46172598636

5

533.31497862844

8

463.61525573730

5

348.44249979655

Specialty

NaN NaN 295.67612169279

384.31348812580

2

413.83267235756

458.27304815738

8

478.62063006965

5

527.32440307617

3

534.01690254211

5

282.31685002644

9

312.05143394470

2

100

300

500

700

900

1100

Revenue per Employee

Re

ve

nu

e p

er E

mp

loye

e (

K$

)

Revenue Per Employee

Source: Supply Chain Index Analysis from Annual Reports 1990-2012Mean values utilized excluding outlier data


Bar codes were first used at Marsh Supermarket in 1968


For Suppliers

Weather Data

Retail Warehouse Withdrawal Data

Syndicated Data POS DataLoyalty Data

Coupon Redemption

Panel Data

Social Data Distributor DataEnrichment Data

Web Click-through Data

Contract Data

Orders Shipments

Market-survey Data

Returns

T-Log DataRatings and Reviews


Revenue Per Store/Grocery


Revenue per Store - Specialty

Source: Supply Chain Index Analysis from Annual Reports 2000-2010

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100

2

4

6

8

10

12

Footlocker1.4

Dick's Sporting Goods

9.2

TJX

Gap

Toys R Us

Limited

Ross

Talbots

Abercrombie & Fitch

Footlocker

Dick's Sporting Goods

Year

Rev

enu

e p

er S

tore

(m

illi

on

US

D)


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?

Shifts


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

Overview

Definitions

Mobile Survey

Implications

Wrap-up


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

Digital Path to Purchase (#DP2P)


Campaign Objectives:

Reduce Out of Stocks at targeted retailers by 5%

Increase Shopper satisfaction and brand

loyalty

“Where’s My Bud” Viral Campaign

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 in-store technical capabilities

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


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

http://www.budweiser.com/







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


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


• Extension of eCommerce

• When it is about YOU! Yelling and Controlling the Message.

• Does Not Improve the Brand Experience.

Losers in Social Commerce


Techniques Vary by Product

ApparelCosmeticsGrocery Electronics

Reviews: Building an Army of Advocates

Reviews: Experts

Open Sourcing

Gaming

Ask and Answer

Degree of Difficulty

Runway

Action Buttons

Virtual Currency

Storytelling


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 Using the ShareThis functionality

Asking and answering questions Joining groups 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


#Future15SB @bwdumars

Newell Rubbermaid


Agenda

Overview

Definitions

Mobile Survey

Implications

Wrap-up


WHY WHAT• OBJECTIVE: To understand the current state

of mobile in the retail extended supply chain.

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

• 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 WHO• Online interviews were conducted between

May 16 – June 18, 2012

• Conducted in partnership with Retail Connections

• 40 completed surveys

• Work in the Retail industry (Specialty, Grocery, Mass, Convenience, Other).

• Primary positions include CIO, IT, COO

Study Overview


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

Overview

Definitions

Mobile Survey

Implications

Wrap-up


Big Data will be the NEW Foundation of the Future

Supply Chain


Big Data Plans & Expectations


Definition

Challenges:• Transactional• Time phased data

Structured Data

• Social• Channel• Customer Service• Warranty

• Temperature• RFID• QR codes• GPS

• Mapping and GPS• Video• Voice• Digital Images

Unstructured Data

SensorData

NewDataTypes

Volume

Velocity

Variability


Big Data: What is it all About?

Downstream DataCold Chain

GeolocationRFID

Social

Ratings & Reviews

T-Log Data Twitter

Facebook

Call Center Logs

VideoPhotographs

Warranty Information

ReturnsWeblogs

eCommerce

EDI

Data Mining

Forecasting

Sentiment Analysis

What-if Models Hadoop

Rules-Based Ontology

Constraint-based Planning

Data VisualizationLearning Systems

R

Text Analytics

Scorecards

Sensors

Map Reduce

Digital Path To Purchase

Mobile Applications


Agenda

Overview

Definitions

Mobile Survey

Implications

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.

Wrap-up


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: [email protected]

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/lora-cecere/0/196/573 (2300 in the network)

mobile presentation for retail connections slideshare

Business

supply chain index analysis

realtime data

center store

data orders shipments

credit card

annual reports

mobile applications

mobile strategy