Duane Gomes – Principal Architect Enterprise Technology – Kmart Group

1. Smart Digital Receipts
OnePass
Confluent Data in Motion Event
30th
May 2023 – Sydney / 1st
Jun 2023 -
Melbourne
Presented By :
Duane Gomes – Principal Architect Enterprise Technology – Kmart
Group
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2. Contents
1. What are the business objectives?
2. What were the challenges?
3. What was the chosen solution?
4. Some of the finer details
5. What have we gained?
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3. What were the business objectives
Kmart Australia has introduced digital ‘smart’ receipts for in-store and Online purchases where customers get a digital copy of the transaction
receipt on their mobile through SMS or through the Onepass Digital Wallet application.
By switching to digital smart receipts, we are able to give our customers a more seamless shopping experience, by taking away the stress of needing
to keep hold of a physical printed receipt, which is important to us as we continue to work through ways, we can reduce our environmental impact.
By introducing digital smart receipts, we aim to deliver a more enjoyable and convenient shopping experience to those customers who prefer to use
technology to manage their receipts, however a paper receipt will continue to remain available for those customers who instead prefer a printed
copy of their receipt. Establish an interactive feedback loop or cross and upsell opportunities.
We have over 300 stores in our stores network and 3 Digital Channels thru which our customers can interact with Kmart, its products and services
and have a complete shopping experience with us. This means that all of these channels will originate a purchase transaction which will entail a
receipt that needs to be printed for that transaction.
Digital Receipts, by the very definition allow us as a business to be free from space constraints of paper and we can add metadata about transactions
that will allow us to do 3 things.
1. Free the transaction data from the Stores / Digital Channel domains and make it available internally to other business domains
2. Allow for better customer personalization and offers based on transaction fidelity of data in real time
3. Allow for better analytics for product and ranging options as well as for Stock and Inventory planning.
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4. What were the business objectives
Performance required to support the following criterion led to us deciding on Confluent Kafka as the core mechanism to move data in
flight
• We generate over 15 Million transactions per month from our 300 Au Stores, all of which need to be able to offer the Digital Smart Receipts to
customers.
• We generate 1000 transactions per second across our Store network, all of which need to flow from the stores to Confluent in real time.
• We apply 3-5 transformations to each event as it is enriched once it reaches Confluent Kafka and before it can be dispatched upstream to
OnePass
• We apply security measures end to end from Stores thru to OnePass and that requires 3 separate authentications and encryption flows.
• We need to ensure we complete the above end to end process from a customer transaction to a Digital smart receipt in the OnePass Wallet
within 10 second.
• Be able to focus the team on the business functionality at hand and abstract away the heavy lifting of any underpinning technology stack.
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5. What was the solution chosen?
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3 Producers:
∙ Store System
∙ Website or Online system
∙ Snowflake
3 Consumers:
∙ Slyp
∙ Onepass
∙ Snowflake
In our solution we used Confluent Kafka, as it is a managed
service, we don’t have to worry about cluster maintenance
and uptime. We focus more on creating solutions than
maintaining the infrastructure.
Coming back to the solution, we had to
∙ Enrich the payload
∙ Transform the payload
∙ Standardize the payload based on consumer
To achieve all of this we make use of Kafka Streams
application
∙ Overall Latency – 10 Secs. Customer receives the digital receipt in less than 10 seconds
∙ Throughput – 1000 messages/sec. This architecture can process up to 1000 messages/sec. However, the
transit, network bandwidth and token exchanges make it up to 10 sec to deliver the message to
customer.

6. What was the solution chosen?
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❖ Numerous Raw Partitions typically up to 64 at times.
❖ Intermediary topics required for each transformation step
❖ Multiple transformation steps with Ktables requiring disk I/O and consumer lag
❖ Multiple Re Partitioning and rebalancing required
❖ A single Global Table
❖ In Memory no I/O
❖ Local to each consumer
❖ Better throughput

7. What were the gains we got with digital
receipts?
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1. Saves cost- Millions of dollars are saved from switching to digital receipt from a paper-based receipt
2. Improves marketing-As we store the digital footprint of the data in our data warehouse, this is used to study OnePass
customer behavior, send personalized messages along with receipt and know about our customer better. Digital receipt also
features link to Kmart websites which can contribute to more customer conversions.
3. Easier storage- Paper receipt consumes lot of physical space in our establishment, customer also can lose many receipts or fade
in time. Digital receipt solves this problem by storing all the receipt in cloud, both customer and retailer can access them at any
point of time.
4. Free delivery- Customer can subscribe to OnePass to enjoy free delivery on thousands of eligible items at Kmart with no
minimum spend limit.
5. E-Receipts Offer Instant Customer Feedback-Getting feedback from customers can improve your customer retention rate.

8. Thank you!