Mobile presentation for retail connections slideshare

Retail Mobility
Convergence is NOW! It is REAL!
Are you READY?

Supply
Chain
Insights

BRICKS Book
Publishes

Matter
in August
2012

The Role of Supply Chains
in Building Market-Driven
Differentiation

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

2000-2004 2005-2009 2010-2012
eCommerce
15.7% 16.0% 26.6%
Retailer
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%


Revenue Per Employee
Revenue per Employee
1200
Revenue per Employee (K$)

1000

800

600

400

200

0
1990- 1995- 2000-
2005 2006 2007 2008 2009 2010 2011 2012
1994 1999 2004
eCommerce 343 456 549 758 848 1016 998 1073
Grocery 198 182 425 479 475 520 612 611 572 518 504
Mass 112 144 253 348 379 617 487 474 533 464 348
Specialty 296 384 414 458 479 527 534 282 312
Source: Supply Chain Index Analysis from Annual Reports 1990-2012
Mean values utilized excluding outlier data


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 POS Data Panel Data

Enrichment Data
Social 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
Revenue per Store (million USD)

8
TJX
Gap
Toys R Us
6 Limited
Ross
Talbots
4 Abercrombie & Fitch
Footlocker
Dick's Sporting Goods

2

Footlocker
1.4

0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Year

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
Concept: pilot, under $75K
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


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

Virtual
Currency
Reviews:
Building an Runway
Army of
Reviews:
Advocates
Experts
Degree of Gaming
Difficulty Storytelling

Open
Sourcing
Ask and
Answer Action
Buttons

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?
Using the ShareThis
Reviewing products Uploading photos
functionality
Writing and/or editing a
Asking and answering questions Joining groups
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 WHAT
• OBJECTIVE: To understand the current state • Survey topics included:
of mobile in the retail extended supply chain. • Mobile strategy – presence and elements of
• HYPOTHESIS: The use of mobile in retail is strategy, barriers, use of IT systems
just beginning. • 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 • 40 completed surveys
May 16 – June 18, 2012 • Work in the Retail industry
• Conducted in partnership (Specialty, Grocery, Mass, Convenience, Other)
with Retail Connections .
• 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


Definition

Structured • Transactional
Challenges:
Data • Time phased data

• Social Volume
Unstructured • Channel
Data • Customer Service
• Warranty

• Temperature Velocity
Sensor • RFID
Data • QR codes
• GPS

Variability
New • Mapping and GPS
• Video
Data • Voice
Types • Digital Images


Big Data: What is it all About?

Downstream Data EDI Sentiment Text
Cold Chain Call
Analysis Analytics
Center Logs
eCommerce Social What-if Models Hadoop
Learning Systems
Geolocation Data Visualization
Ratings &
Reviews
RFID Facebook Scorecards Rules-Based
Photographs Map Reduce Ontology
Video
T-Log Data Twitter
R Forecasting
Weblogs Warranty Returns Digital Path To Constraint-
Information
Sensors Mobile Applications 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/lora-
cecere/0/196/573 (2300 in the network)


Mobile presentation for retail connections slideshare

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