The Omnichannel Challenge for Supply Chain Management. Ton de Kok
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1 The Omnichannel Challenge for Supply Chain Management Ton de Kok
2 L-Pad Case: Global Supply Chain AFM on Omnichannel
3 L-Pad Case: Omnichannel AFM on Omnichannel
4 Agenda E&Y survey research E&Y omnichannel key questions E&Y omnichannel key success factors Operational control challenges in the omnichannel supply chain B2B and omnichannel AFM on Omnichannel
5 Agenda E&Y survey research E&Y omnichannel key questions E&Y omnichannel key success factors Operational control challenges in the omnichannel supply chain B2B and omnichannel AFM on Omnichannel
6 Companies are struggling to adapt Can omni-channel be profitable? Which consumers should be served with what product portfolio? What is the role of bricks-and-mortar? What are the barriers to omnichannel success? AFM on Omnichannel
7 Consumer goods and retail companies must re-engineer the supply chain if omni-channel is to be profitable AFM on Omnichannel
8 Defining omni-channel The consumer just wants to shop An omni-channel strategy is one that provides a seamless and consistent shopping experience across different channels and devices. From a supply chain perspective, this means that there is complete visibility across channels, along with a holistic, unified view of the path to purchase. AFM on Omnichannel
9 Omni-channel erodes profit margins AFM on Omnichannel
10 Key barriers Respondents highlighted five key barriers preventing companies from maximizing the benefits of an omnichannel supply chain strategy: 1. Lack of dedicated resources and capabilities 2. Level of investment required to succeed 3. Challenge of supply chain complexity 4. Limitations of siloed organizational structures 5. Lack of senior leadership support AFM on Omnichannel
11 Agenda E&Y survey research E&Y omnichannel key questions E&Y omnichannel key success factors Operational control challenges in the omnichannel supply chain B2B and omnichannel AFM on Omnichannel
12 Strategy What does the consumer really want products/service/channels)? Is omni-channel a strategic imperative rather than a me too strategy? Are we really thinking end-to-end with one view of the consumer? AFM on Omnichannel
13 Agility Which customers should be served with which product? Where must we provide supply chain efficiency vs. agility? How will the supply chain network design need to adapt with increasing omni-channel fulfillment? AFM on Omnichannel
14 Visibility Are you collaborating with key suppliers and customers to share forecast and sales data? Is the data available being properly exploited to provide real consumer insights and purchasing preferences and to enhance forecasts? Is the data and IT being combined to provide a single view of the consumer and provide seamless fulfillment? AFM on Omnichannel
15 Agenda E&Y survey research E&Y omnichannel key questions E&Y omnichannel key success factors Operational control challenges in the omnichannel supply chain B2B and omnichannel AFM on Omnichannel
16 Key factors for success: Strategy Focus on the real needs of the consumer and don t over engineer the omni-channel offer Dedicate resources to prioritize omni-channel and collaborate across channels to remove silo behavior Embed a continuous improvement mindset to keep up with fast-changing technology platforms and behaviors Design products and packaging for the requirements of omni-channel AFM on Omnichannel
17 Key factors for success: Agility Plan for supply chain needs of the future, not today, or you will always be behind Segment the supply chain to meet the different product and channel demands Sweat existing assets in a creative way to support the omni-channel need Get click and collect right as a priority over home delivery AFM on Omnichannel
18 Key factors for success: Visibility Incentivize data sharing to get an end-to-end view of the value chain Move beyond traditional sales forecasting to sense and shape demand Use your data to create a single view of the customer across all channels including returns Leverage advanced analytics platforms to drive granular detail on cost to serve in order to understand real profit drivers AFM on Omnichannel
19 Agenda E&Y survey research E&Y omnichannel key questions E&Y omnichannel key success factors Operational control challenges in the omnichannel supply chain B2B and omnichannel AFM on Omnichannel
20 Operational management of Omnichannel Supply Chain Select end-items for each channel Define customer-item combinations Define service policy for each customer-item combination Lead time and lead time reliability Create forecast for each customer-item combination Define allocation/priority mechanisms at customer-item decoupling points in order to differentiate between stock replenishments and customer orders and differentiate between different customer-item combinations Determine safety stocks and times in the supply chain to ensure service levels are achieved Link operational customer order management to S&OP process Link operational customer order management to MPS and production planning AFM on Omnichannel
21 Agenda E&Y survey research E&Y omnichannel key questions E&Y omnichannel key success factors Operational control challenges in the omnichannel supply chain B2B and omnichannel AFM on Omnichannel
22 B2B and omnichannel B2B differentiates between key and non-key customers B2B faces global markets with different shipment lead times and different requirements The same resources and materials are used for different customer-item combinations B2B is facing the omnichannel challenges for many years Allocation Prioritization Different customer lead times Different CODP s AFM on Omnichannel
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