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1
OUR WORK WITHIN THE
RETAIL SECTOR
May 2016
2
Trade compliance and quality
Retail operations
Supply chain and logistics
Omni-channel delivery
Our work in….
3
OMNI-CHANNEL
New ecommerce platform
Online fulfilment optimisation
Multi-channel customer service
Click and collect
Mobile channels
Digital advertising
Online substitutions
Search and navigation
4
“PA’s support has been invaluable
to us through the launch of our
new website and development of
new functions. They have been fully
integrated into our Online IT and
Business teams and have worked
tirelessly alongside JL Partners to
achieve our £1 billion online target
ahead of schedule and online sales
that are around 30% of total John
Lewis revenues.”
Paul Coby, IT Director, John Lewis
NEW ECOMMERCE PLATFORM DELIVERY
We provided ‘invaluable’ support to help John Lewis
launch their new website and achieve a £1 billion
sales target ahead of schedule.
5
Our client wanted to support and improve the
efficiency of fulfilling online orders which were
experiencing a 20% year on year growth and
were forecast to continue growing
significantly.
We helped increase staff picking productivity
by 50% at dedicated online fulfilment centres
and across supermarkets by designing a
scalable order picking solution.
The solution enabled fulfilment centre
warehouses to take load off neighbouring
supermarkets improving the load distribution
of online orders.
In-store picking operation costs were reduced
by 10%
5
ONLINE FULFILMENT OPTIMISATION
We supported growth ambitions by designing a
solution for online fulfilment centres and
improving supermarket-based fulfilment
66
Customer service was impacted by the
use of separate solutions to manage
orders and service cases in digital and
non-digital channels.
We developed a customer service
solution which brings together orders
and customer service issues from
multiple systems, including in-store
baskets and groceries online.
The solution provides consistent
business processes across channels, and
gives colleagues the data they need to
make good customer service decisions.
One coherent view is presented to
colleagues, including digital and in-store
orders, and contact history across email,
social and telephone.
MULTI-CHANNEL CUSTOMER SERVICE
We improved customer service by creating a coherent,
multi-channel view of sales and customer service interactions
77
CLICK AND COLLECT
Our client wanted to review its complex
click and collect processes to ensure that
they remained mapped, efficient and
ready for its busiest peak trading period.
Using our expertise in business process
modelling, PA conducted a detailed
review, creating a reference that the
client expects to use for a number of
years to come.
Amongst other things, this helped the
client achieve its most successful online
peak trading period in its history and its
best ever week for online sales.
We prepared a major UK retailer for peak trading
by optimising their click and collect processes
88
GROCERIES ONLINE MOBILE APPLICATION
Our client had no native mobile
application development capability
which led to their mobile presence
receiving poor customer reviews putting
them behind their competitors.
We developed an architecture to enable
the rapid creation of cost-effective,
omni-channel mobile applications by
using a mobile application development
platform.
We initiated a vendor selection process
for a mobile platform to enable an
objective and appropriate choice.
We recommended a mobile architecture to enable the rapid
development of online shopping and other mobile applications
99
DIGITAL ADVERTISING ROADMAP
We identified $100m+ savings over 5 years.
We worked with the client team to create a
vision and set of requirements for new digital
advertising.
We completed a gap analysis, a competitive
analysis of existing digital advertising
technologies and built a technology roadmap
and project plan for new digital advertising.
We developed the business case and the roadmap for a
new digital advert to supplement and complement
existing paper inserts
1010
This leading UK retailer’s existing
substitutions process did not offer
customers a fair deal when an item is
unavailable
Customers were charged the price of the
substitute, which may be higher than the
price of the requested item
Promotional offers may not be applied to
the basket because an offer was
invalidated by a substitution
We designed a solution to ensure
customers get a fair deal when
substitutions are made in their online
order. We worked across numerous
systems to ensure the solution was
feasible and did not require wholesale
changes to existing functionality
ONLINE SUBSTITUTIONS PRICE PROMISE
We designed a tactical solution that minimized the
impact of higher value substitutions in online orders
1111
This leading retailer decided to put in
place a newer, optimised search and
navigation solution for its successful
online presence to increase customer
satisfaction and provide a cutting edge
over customers.
We ran the project from initiation,
through delivery to go-live, putting in
place specialist delivery managers with
e-Commerce experience.
Against a challenging schedule and
alongside the client’s team, the new
search solution landed into trials on time
and remains on track to deliver on time
and budget.
SEARCH AND NAVIGATION
We helped deliver a new search and navigation solution to drive-up
customer satisfaction
12
TRADE COMPLIANCE
AND QUALITY
Trade compliance
Product specification management
1313
We helped guard our client against
pricing and promotion compliance issues
TRADING COMPLIANCE
The possibility of human errors relating to pricing
and promotions potentially caused compliance
issues for our client.
We reduced the risk of errors which may lead to
compliance issues by designing a solution that
automates the checking of pricing and promotions
across our client's entire store estate.
The solution implemented rules that check the
geographical spread of promotions and go beyond
the legal guidelines, avoiding any brand damage.
1414
We provided our client with
improved product specification
management, supply chain
traceability and integrated
artwork management
Our client's existing product specification management tool was
rapidly reaching end-of-life and did not support key functionality
required by the business for reporting against corporate
commitments.
We designed a replacement product specification management
solution whilst defining a cost saving approach for migrating
data into it.
The solution improved our client's ability to monitor progress
against their corporate commitments, protect their brand values
and maintain their product quality by providing supply chain
traceability and extended breadth and depth of captured
product specification data.
PRODUCT SPECIFICATION MANAGEMENT
15
RETAIL OPERATIONS
Service orientated architecture
Flexible payment architecture
16
We are helped a Tier 1 supermarket
build applications as modular and
reusable enterprise assets
SERVICE ORIENTED ARCHITECTURE
Our client’s existing application landscape did
not promote asset re-usability and cluttered the integration
landscape
We helped this Tier 1 retailer improve their application
landscape by mobilising an Service Orientated Architecture
(SOA) culture and service catalogue
We provided interim leadership to their service-oriented
architecture centres of excellence, creating and managing
a growing portfolio of services
We enabled the client to consistently represent data
across the application landscape by creating their first ever
enterprise-wide definitions of common data formats
17
We designed a strategic, flexible architecture
for payment taking for online channels
FLEXIBLE PAYMENTS ARCHITECTURE
Our client had no reusable payment service
that provided the capabilities to authorise and
settle transactions
This Tier 1 UK retailer’s transaction processing
system was tightly coupled to the payment
provider; this resulted in costly change requests
whenever any changes to the payment provider
or payment flow were needed
We developed an architecture to integrate with
the new payment provider in a service oriented
manner, so the third-party transaction processor
was decoupled from the new payment provider,
giving the client agility they desired to make
payment related changes
Our architectural designs provided the client
with a reusable service for payment taking that
could be used by a number of digital initiatives
17
18
SUPPLY CHAIN
AND LOGISTICS
Product availability monitoring
Supply chain optimisation
19
We designed a solution that provided our client with near
real-time monitoring of product availability across all of
their store estate and product range
PRODUCT AVAILABILITY MONITORING
Our client's old product availability monitoring
solution relied on expensive manual audits, which
provided a limited, simplistic view of availability as
deduced from only 50 product lines.
We improved the depth and breadth of product
availability monitoring to all products across all
stores on an hourly basis by designing an
automated availability monitoring solution.
The solution allowed our client to improve
customer satisfaction, improve the accuracy and
efficiency of store performance management,
and reduce the operational cost of stock
monitoring by £2M per annum.
19
20
We helped enable product inventory to
be held at an expiry date level
EXPIRY DATE LEVEL PRODUCT INVENTORY
We enabled stock management process
improvements by helping design a solution
that automatically prompts operators when
products have expired for de-ranging and
disposal and improves the accuracy of
calculated reduction percentages provided
to operators.
We minimised the cost and impact of the
business process changes by proposing a
phased approach to implementing the solution.
We identified impacted systems for the
foundation phase of the project as well as the
effort required to modify them by conducting a
full system audit.
21
We helped our client
reduce their logistics
operations cost by 10%
LOGISTICS COST REDUCTION
Our client specialises in
convenience food retail. They
identified the need to reduce
their logistics operating cost by
10% over two years.
We reviewed the operations at
all sites and identified a long list
of cost reduction opportunities,
which were worked through with
the client management to focus
on the major opportunities.
The savings were targeted in
warehouse productivity, service
definition and execution, energy
procurement and slow-mover
management.
21
22
We helped our client
drive-up availability
leading to a £12m
increase in revenues
within a year
DRIVING-UP AVAILABILITY
Our client faced persistent
issues in driving-up availability
of stock within their Food
business. PA worked with the
client to review forecast
accuracy and drive
improvements in seasonality,
waste estimation and in the use
of weather data to drive-up
availability. Working closely
with the client’s supply chain
teams in both business and IT,
we helped deliver £12m in
additional revenue with minimal
impact on waste.
22
23
We helped our client
reduce stock-outs
across the Food
portfolio by an
average of 30%,
REDUCING STOCK-OUTS
Our client faced severe
problems delivering
enhancements to their
forecasting, allocation and
ordering platform. PA
transformed performance of
the programme by introducing
scaled agile techniques and
through rigorous prototyping to
deliver the programme in five
months shorter duration to
greater quality. The net result
of the improvements delivered
was an average of 30%
reduction in stock-outs.
23
24
Corporate headquarters
123 Buckingham Palace Road
London SW1W 9SR
United Kingdom
Tel: +44 20 7730 9000
paconsulting.com
This document has been prepared by PA
on the basis of information supplied by the
client and that which is available in the public
domain. No representation or warranty is given
as to the achievement or reasonableness
of future projections or the assumptions
underlying them, management targets,
valuation, opinions, prospects or returns,
if any. Except where otherwise indicated,
the document speaks as at the date hereof.
© PA Knowledge Limited
All rights reserved.
This document is confidential to the
organisation named herein and may not
be reproduced, stored in a retrieval system,
or transmitted in any form or by any means,
electronic, mechanical, photocopying or
otherwise without the written permission
of PA Consulting Group. In the event that
you receive this document in error, you
should return it to PA Consulting Group,
123 Buckingham Palace Road, London
SW1W 9SR. PA accepts no liability
whatsoever should an unauthorised recipient
of this document act on its contents.
2015.
We are an employee-owned firm of over 2,500 people,
operating globally from offices across North America,
Europe, the Nordics, the Gulf and Asia Pacific.
We are experts in energy, financial services, life sciences,
healthcare, manufacturing, government and public services,
defence and security, consumer, transport and logistics.
Our deep industry knowledge together with skills in
management consulting, technology and innovation
allows us to challenge conventional thinking and
deliver exceptional results with lasting impact.
1965-57

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PA in Retail

  • 1. 1 OUR WORK WITHIN THE RETAIL SECTOR May 2016
  • 2. 2 Trade compliance and quality Retail operations Supply chain and logistics Omni-channel delivery Our work in….
  • 3. 3 OMNI-CHANNEL New ecommerce platform Online fulfilment optimisation Multi-channel customer service Click and collect Mobile channels Digital advertising Online substitutions Search and navigation
  • 4. 4 “PA’s support has been invaluable to us through the launch of our new website and development of new functions. They have been fully integrated into our Online IT and Business teams and have worked tirelessly alongside JL Partners to achieve our £1 billion online target ahead of schedule and online sales that are around 30% of total John Lewis revenues.” Paul Coby, IT Director, John Lewis NEW ECOMMERCE PLATFORM DELIVERY We provided ‘invaluable’ support to help John Lewis launch their new website and achieve a £1 billion sales target ahead of schedule.
  • 5. 5 Our client wanted to support and improve the efficiency of fulfilling online orders which were experiencing a 20% year on year growth and were forecast to continue growing significantly. We helped increase staff picking productivity by 50% at dedicated online fulfilment centres and across supermarkets by designing a scalable order picking solution. The solution enabled fulfilment centre warehouses to take load off neighbouring supermarkets improving the load distribution of online orders. In-store picking operation costs were reduced by 10% 5 ONLINE FULFILMENT OPTIMISATION We supported growth ambitions by designing a solution for online fulfilment centres and improving supermarket-based fulfilment
  • 6. 66 Customer service was impacted by the use of separate solutions to manage orders and service cases in digital and non-digital channels. We developed a customer service solution which brings together orders and customer service issues from multiple systems, including in-store baskets and groceries online. The solution provides consistent business processes across channels, and gives colleagues the data they need to make good customer service decisions. One coherent view is presented to colleagues, including digital and in-store orders, and contact history across email, social and telephone. MULTI-CHANNEL CUSTOMER SERVICE We improved customer service by creating a coherent, multi-channel view of sales and customer service interactions
  • 7. 77 CLICK AND COLLECT Our client wanted to review its complex click and collect processes to ensure that they remained mapped, efficient and ready for its busiest peak trading period. Using our expertise in business process modelling, PA conducted a detailed review, creating a reference that the client expects to use for a number of years to come. Amongst other things, this helped the client achieve its most successful online peak trading period in its history and its best ever week for online sales. We prepared a major UK retailer for peak trading by optimising their click and collect processes
  • 8. 88 GROCERIES ONLINE MOBILE APPLICATION Our client had no native mobile application development capability which led to their mobile presence receiving poor customer reviews putting them behind their competitors. We developed an architecture to enable the rapid creation of cost-effective, omni-channel mobile applications by using a mobile application development platform. We initiated a vendor selection process for a mobile platform to enable an objective and appropriate choice. We recommended a mobile architecture to enable the rapid development of online shopping and other mobile applications
  • 9. 99 DIGITAL ADVERTISING ROADMAP We identified $100m+ savings over 5 years. We worked with the client team to create a vision and set of requirements for new digital advertising. We completed a gap analysis, a competitive analysis of existing digital advertising technologies and built a technology roadmap and project plan for new digital advertising. We developed the business case and the roadmap for a new digital advert to supplement and complement existing paper inserts
  • 10. 1010 This leading UK retailer’s existing substitutions process did not offer customers a fair deal when an item is unavailable Customers were charged the price of the substitute, which may be higher than the price of the requested item Promotional offers may not be applied to the basket because an offer was invalidated by a substitution We designed a solution to ensure customers get a fair deal when substitutions are made in their online order. We worked across numerous systems to ensure the solution was feasible and did not require wholesale changes to existing functionality ONLINE SUBSTITUTIONS PRICE PROMISE We designed a tactical solution that minimized the impact of higher value substitutions in online orders
  • 11. 1111 This leading retailer decided to put in place a newer, optimised search and navigation solution for its successful online presence to increase customer satisfaction and provide a cutting edge over customers. We ran the project from initiation, through delivery to go-live, putting in place specialist delivery managers with e-Commerce experience. Against a challenging schedule and alongside the client’s team, the new search solution landed into trials on time and remains on track to deliver on time and budget. SEARCH AND NAVIGATION We helped deliver a new search and navigation solution to drive-up customer satisfaction
  • 12. 12 TRADE COMPLIANCE AND QUALITY Trade compliance Product specification management
  • 13. 1313 We helped guard our client against pricing and promotion compliance issues TRADING COMPLIANCE The possibility of human errors relating to pricing and promotions potentially caused compliance issues for our client. We reduced the risk of errors which may lead to compliance issues by designing a solution that automates the checking of pricing and promotions across our client's entire store estate. The solution implemented rules that check the geographical spread of promotions and go beyond the legal guidelines, avoiding any brand damage.
  • 14. 1414 We provided our client with improved product specification management, supply chain traceability and integrated artwork management Our client's existing product specification management tool was rapidly reaching end-of-life and did not support key functionality required by the business for reporting against corporate commitments. We designed a replacement product specification management solution whilst defining a cost saving approach for migrating data into it. The solution improved our client's ability to monitor progress against their corporate commitments, protect their brand values and maintain their product quality by providing supply chain traceability and extended breadth and depth of captured product specification data. PRODUCT SPECIFICATION MANAGEMENT
  • 15. 15 RETAIL OPERATIONS Service orientated architecture Flexible payment architecture
  • 16. 16 We are helped a Tier 1 supermarket build applications as modular and reusable enterprise assets SERVICE ORIENTED ARCHITECTURE Our client’s existing application landscape did not promote asset re-usability and cluttered the integration landscape We helped this Tier 1 retailer improve their application landscape by mobilising an Service Orientated Architecture (SOA) culture and service catalogue We provided interim leadership to their service-oriented architecture centres of excellence, creating and managing a growing portfolio of services We enabled the client to consistently represent data across the application landscape by creating their first ever enterprise-wide definitions of common data formats
  • 17. 17 We designed a strategic, flexible architecture for payment taking for online channels FLEXIBLE PAYMENTS ARCHITECTURE Our client had no reusable payment service that provided the capabilities to authorise and settle transactions This Tier 1 UK retailer’s transaction processing system was tightly coupled to the payment provider; this resulted in costly change requests whenever any changes to the payment provider or payment flow were needed We developed an architecture to integrate with the new payment provider in a service oriented manner, so the third-party transaction processor was decoupled from the new payment provider, giving the client agility they desired to make payment related changes Our architectural designs provided the client with a reusable service for payment taking that could be used by a number of digital initiatives 17
  • 18. 18 SUPPLY CHAIN AND LOGISTICS Product availability monitoring Supply chain optimisation
  • 19. 19 We designed a solution that provided our client with near real-time monitoring of product availability across all of their store estate and product range PRODUCT AVAILABILITY MONITORING Our client's old product availability monitoring solution relied on expensive manual audits, which provided a limited, simplistic view of availability as deduced from only 50 product lines. We improved the depth and breadth of product availability monitoring to all products across all stores on an hourly basis by designing an automated availability monitoring solution. The solution allowed our client to improve customer satisfaction, improve the accuracy and efficiency of store performance management, and reduce the operational cost of stock monitoring by £2M per annum. 19
  • 20. 20 We helped enable product inventory to be held at an expiry date level EXPIRY DATE LEVEL PRODUCT INVENTORY We enabled stock management process improvements by helping design a solution that automatically prompts operators when products have expired for de-ranging and disposal and improves the accuracy of calculated reduction percentages provided to operators. We minimised the cost and impact of the business process changes by proposing a phased approach to implementing the solution. We identified impacted systems for the foundation phase of the project as well as the effort required to modify them by conducting a full system audit.
  • 21. 21 We helped our client reduce their logistics operations cost by 10% LOGISTICS COST REDUCTION Our client specialises in convenience food retail. They identified the need to reduce their logistics operating cost by 10% over two years. We reviewed the operations at all sites and identified a long list of cost reduction opportunities, which were worked through with the client management to focus on the major opportunities. The savings were targeted in warehouse productivity, service definition and execution, energy procurement and slow-mover management. 21
  • 22. 22 We helped our client drive-up availability leading to a £12m increase in revenues within a year DRIVING-UP AVAILABILITY Our client faced persistent issues in driving-up availability of stock within their Food business. PA worked with the client to review forecast accuracy and drive improvements in seasonality, waste estimation and in the use of weather data to drive-up availability. Working closely with the client’s supply chain teams in both business and IT, we helped deliver £12m in additional revenue with minimal impact on waste. 22
  • 23. 23 We helped our client reduce stock-outs across the Food portfolio by an average of 30%, REDUCING STOCK-OUTS Our client faced severe problems delivering enhancements to their forecasting, allocation and ordering platform. PA transformed performance of the programme by introducing scaled agile techniques and through rigorous prototyping to deliver the programme in five months shorter duration to greater quality. The net result of the improvements delivered was an average of 30% reduction in stock-outs. 23
  • 24. 24 Corporate headquarters 123 Buckingham Palace Road London SW1W 9SR United Kingdom Tel: +44 20 7730 9000 paconsulting.com This document has been prepared by PA on the basis of information supplied by the client and that which is available in the public domain. No representation or warranty is given as to the achievement or reasonableness of future projections or the assumptions underlying them, management targets, valuation, opinions, prospects or returns, if any. Except where otherwise indicated, the document speaks as at the date hereof. © PA Knowledge Limited All rights reserved. This document is confidential to the organisation named herein and may not be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying or otherwise without the written permission of PA Consulting Group. In the event that you receive this document in error, you should return it to PA Consulting Group, 123 Buckingham Palace Road, London SW1W 9SR. PA accepts no liability whatsoever should an unauthorised recipient of this document act on its contents. 2015. We are an employee-owned firm of over 2,500 people, operating globally from offices across North America, Europe, the Nordics, the Gulf and Asia Pacific. We are experts in energy, financial services, life sciences, healthcare, manufacturing, government and public services, defence and security, consumer, transport and logistics. Our deep industry knowledge together with skills in management consulting, technology and innovation allows us to challenge conventional thinking and deliver exceptional results with lasting impact. 1965-57