Inventory Management for Commerce Anywhere · • Maintains the supplier-item-location relationship...
Transcript of Inventory Management for Commerce Anywhere · • Maintains the supplier-item-location relationship...
Inventory Management for Commerce Anywhere
Ramesh Cidambi Senior Vice President - I.T and Logistics Dubai Duty Free Carla Anderson Solution Market Director RGBU September 29, 2014
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Today’s Consumer Has Changed
will not wait for products to come into stock 87%
will search online or try another retailer to find the product they want
More than half want accurate inventory
31% have used click and collect for the first time
93
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Dubai Duty Free Ramesh Cidambi, Senior Vice President - I.T and Logistics
• Dubai Duty Free has grown into becoming the world’s largest airport retailer with sales approaching $2 billion USD
• Oracle E-business suite along with Oracle Commerce and Retail applications, in conjunction with an automated distribution center.
• These solutions support the extraordinary growth in its airport retail business; Serving 70 million passengers traveling through Dubai Airport.
Oracle Confidential – Internal/Restricted/Highly Restricted 4
September 29th, 2014
RAMESH CIDAMBI
Senior Vice President - IT & Logistics
Dubai Duty Free
AGENDA • Airport Retailing
• Dubai Duty Free and Oracle • Oracle E-Business Suite and Point-of-Sale
• Oracle Retail and Warehouse Automation
• DDF Online with Oracle Commerce
• The Future
• Technology
• Logistics
• Airport Development
AGENDA • Airport Retailing
• Dubai Duty Free and Oracle • Oracle E-Business Suite and Point-of-Sale
• Oracle Retail and Warehouse Automation
• DDF Online with Oracle Commerce
• The Future
• Technology
• Logistics
• Airport Development
Travel Retailing by Channel – 2013
Travel Retailing by Region – 2013
Travel Retailing in 2012 : $ 55 Billion
Dubai Duty Free is the single largest airport retailer in the world
Dubai Airport
Terminals 1,2 and 3 Concourses A, B, C,F and D under construction
Retail in Concourse C (1)
Serves Other Airlines (OAL). 22.6% of total sales. Opened April 2000
Serves Emirates Airlines 37% of total sales
Retail in Concourse B (2)
Concourse A – Liquor & Tobacco
Serves Emirates Airlines and especially A380s 21% of total sales
Retail in Concourse F (Terminal 2)
Serves Fly Dubai and other budget airlines 7.5% of total sales, and fastest growing
Terminal 1 Arrivals
Arrivals airside in all three Terminals are 9.7% of sales
Landside retail under 2%
Dubai World Central
• Opened on 27th October of 2013 with 1.2% of total sales
Concourse D – Opening Q1 2015
Sales – 1984 to 2013
17% compounded growth over 29 years
Sales Contribution – 2007 to 2013
AGENDA • Airport Retailing
• Dubai Duty Free and Oracle • Oracle E-Business Suite and Point-of-Sale
• Oracle Retail and Warehouse Automation
• DDF Online with Oracle Commerce
• The Future
• Technology
• Logistics
• Airport Development
DDF Technology Evolution
Timeline of Dubai Airport and Dubai Duty Free Expansion
Point-of-Sale Features
• 550 NCR Dynakey Point-of-Sale Terminals
• Custom-built software to support airport retailing, including functionality for multi-currency, LAGs, and Flight data capture
• Robust application for running processing 25 million transactions a year
• Integration of credit card authorization with sale transaction (Visa, MasterCard, American Express, Diners, JCB and Union Pay)
• Supports ‘Chip and Pin’ to EMV standard
• Dynamic Currency Conversion (DCC) for Visa and MasterCard
• Digital advertising on Customer facing screens
• Payment Card Industry Data Security Standard (PCI/DSS) compliant, with encryption-decryption of credit card data using pin-pads
Oracle E-Business Suite
Role of Oracle E-Business Suite
• Sales of USD 250 million in 2001, quadrupling to a 1 billion USD by 2008
• Oracle EBS supported the growth by:
– Maintaining tight integration within applications
– Robust database and technology in a 24x7 business
– Superior functionality in Financials, Payroll, Purchasing, Inventory Control and Business Intelligence
– Leading to improvement in business processes across functional areas
– Reducing time taken to close books each month from two weeks to 4 working days
– Minimal growth in ‘back-office’ employees
– Providing good quality data across the organization
Oracle Retail
• Oracle Retail Applications added to the Oracle E-business suite within the applications stack
• Better management of master data
• Visibility and accuracy of stocks within the warehouse and across the organization
• Better management of price changes and promotions
• Increased efficiency in invoice matching
• Improved stock replenishment process
Oracle Retail
Retail Merchandising System(RMS)
• Holds foundation data
• Maintains the supplier-item-location relationship for the life cycle of the product
• Well defined product hierarchy
• Allows better data analysis at all levels
• User Define Attributes (UDAs) allows to extend the hierarchy for deeper analysis
• Retail Organizational Hierarchy (Terminal 3 - Concourse A - Shop 1) helps in better data analysis as retail expands
Oracle Retail
Retail Merchandising System(RMS) • Clear visibility of stocks at different buckets (on-hand, on-order, reserved, expected, in-
transit etc.)
• Easy to track stock movements
• Helps stock assortment planning
• Sophisticated auto-replenishment function
• Options to set min/max qty., delivery days, display stock qty.
• Cost management at location level for better control
• Grouping tools for easy creation of item-location assortment
• ‘Like-Store’ functionality simplifies item location to a new store
Warehouse Management
Warehouse Management System (WMS) from Oracle Retail
• Absolutely necessary for an automated warehouse
• Management of receiving yard and put-aways
• Processes over 450 orders a day from retail outlets
• Segregates picks depending on which part of the warehouse item is available
• Consolidates items from different warehouse pick locations for shipment to outlets
• Interfaces with Material Handling and Control System (for automated warehouse) and other Oracle Retail applications
• Limited reporting within application
Warehouse Automation
• Why Automate
• High Density Storage of palletized and tote items
• Efficient put-away process
• Fast Picking (190,000 picks in December) with both ‘picker to item’ and ‘item to picker’ options
• Ability to manage peaks (10,825 picks on December 18th with 396,307 units)
• Total of 1.9 million picks for 60 million units in 2013
• Average in 2013 was 6,000 picks
• Perpetual Count of inventory
Warehouse Automation
First retailer with automated storage and retrieval system in region
Storage for 8160 pallets in Phase I and 12,464 in Phase II for total of 20,624
85% occupancy in pallet warehouse
41% of all picks in Phase I and 17% in Phase II
Fast mover Pick Locations (1,440 and 32%)
Item to picker in pallet storage area
Slow Mover Picking – 19,184 and 25%
Tote storage – 10,400 totes with 97% occup.
Tote Picking – 11% of picks
Shuttle for Totes – 17,280 totes with 73% occup
Shuttle System Picking – 31% of picks (2,139 daily)
Issuing Area – 600 pallets a day sent
DDF Online with Oracle Commerce
DDF Online with Oracle Commerce
Cataloging
Cataloging • Need to get the online hierarchy right
• Clear definition of the product attributes
• Defining data quality standard for images and attributes
• Catalog service provider must have
• Strong experience in online cataloging
• Technical expertise and the resources to aggregate data and deliver quality results in time
• Professional photography experience to custom shoot products
Challenges • Integrating with multiple catalog data providers using different methods
• Aggregating data from different source in different formats
• Getting approval from brand owners for the catalog data
• Standardizing image for size variants
• Sourcing data for new arrivals, travel retail exclusives
Inventory Management and Fulfilment
Inventory • Items classified as ‘pre-orderable online’ or ‘In-store purchase’
• One single online catalog across all terminals
• Wider range of products for online customers
• Easy to manage
• No physical inventory set aside for online shop
• Online inventory is 10% of the shop stock
• Guaranteed stock availability for online customers
• Inventory rules can be set at category level
• Stocks refreshed periodically from Oracle Retail Merchandising System
• Price periodically refreshed from Oracle Retail Price Management
Inventory Management and Fulfilment
Fulfilment • Fulfilment done from airport shops
• Special picking procedure for airport environment
• Custom developed Order Fulfilment Module
• Integrated with Oracle Retail for stock updates
Challenges • Stocks not always distributed across airport locations
• Fulfilment across terminals operationally demanding
• Increases the possibility of partially fulfilled orders
• Difficult to improve the fulfilment window
• knowing the exact collection point at the time of pre-order
• Change of collection points due to unplanned flight changes
• Results in increased number of uncollected orders
Payment Gateway
Online Payment • Implemented Cyber Source payment gateway
• Cyber Source has enhanced fraud monitoring system
• Understanding needed of the rules in detail before deployment
• Impact analysis of enabling the rules helps
• Custom procedure to handle rejects due to fraud screening
Challenges • Change of payment gateway from MIGS2 to CyberSource
• Handling rejects from customers who were trusted earlier due to new rules
• Migrating FS & MM customers from legacy system
• Login issues due to old passwords not conforming to new standard
• Facilitating customer adoption to the new site
DDF Online - Logical Flow
Oracle Commerce Integration
Integration by application
• XML based using HTTP, SOAP based services
• ATG – Brand Bank (for Beauty, Liquor, Watches products)
• ATG – CNET ( for Technology products)
• ATG – Oracle Retail (for inventory, pricing, promotions)
• ATG – OFM ( for customer order details and status update)
• OFM – Oracle Retail ( for stock updates)
• OFM – Airport Systems ( for flight data)
• ATG – “ Win with DDF” ( for Finest Surprise & Millennium Millionaire)
Hosting using OMCS
Oracle Managed Cloud Services (OMCS) • Server infrastructure and technology stack managed by Oracle
• Client must understand the environment in the fullest detail possible
• One production and two non-production instances
• PCI compliant with periodic reviews
• Well established administrative procedures
• Controlled production deployment
Hosting using OMCS
Oracle Managed Cloud Services (OMCS) • DDF needed to engage Oracle Commerce deployment specialist
• Feedback to OMCS Management on:
• Preview instance for cataloging
• Read- only access to production logs
• Needed for first level trouble – shooting
• Need to raise SR to request for logs
• Problem resolution time increases correspondingly
• Need for read-only access to production database
DDF Online with Oracle Commerce
Soft launch on Apr 28th , 2014 • To DDF staff and selected customers
• Included migration of Finest Surprise & Millennium Millionaire from corporate site
• DDF had an opportunity to
• Review feedback from customers and staff
• Smoothen FS & MM migration and stabilize
• Review and refine new fraud management rules with respect to payment
• Review and improve catalog assortment and data quality
• Review and refine the Order Fulfilment process
DDF Online with Oracle Commerce
Public launch on Sep 21st, 2014 • Online catalog has over 2800 items from eight categories
• ‘Reserve and Collect’ service for passengers
• Departures - Concourse A, Concourse B Concourse C, Terminal 2
• Arrivals - Terminal 1, Terminal 2, Terminal 3
• Customers can place orders from 7 days to 48 hours prior to travel
• Payment for items made at the time of collection
• LAG restrictions and allowances will apply at the point of collection
• Sale of Finest Surprise and Millennium Millionaire tickets using CyberSource Payment Gateway
• 25,000 tickets sold, USD 6 million sales since the soft launch till 23-Sep-2014
• Average tickets per day - 175, average sales per day - USD 40,000
DDF Online - The Next Steps
• ‘DDF Online’ primarily a customer service initiative
• Print campaign launched to advertise service
• Launch of online campaign imminent
• Build customer database
• Continue to expand the online assortment
• Explore possibilities of additional revenue stream
Business Applications
Application Architecture
AGENDA • Airport Retailing
• Dubai Duty Free and Oracle • Oracle E-Business Suite and Point-of-Sale
• Oracle Retail and Warehouse Automation
• DDF Online with Oracle Commerce
• The Future
• Technology
• Logistics
• Airport Development
The Future
Technology • Financials, HR & Payroll
• Online Payments to suppliers
• Self-service applications for staff
• RFID for asset tracking
• Retail Operations
• EDI initiatives(eg. PO, Invoice) to increase supply-chain efficiency
• RFID inventory for better tracking and accuracy
• Location based mobile initiatives to better target in-store customers
• In-store kiosks for price checking and other services
• Point-of-Sale
• Mobile Point-of-Sale to improve customer service
• Real time inventory look-up
The Future
Technology • DDF Online
• Accepting payments online
• Integration of promotions
• Option to shop from airport lounges
• Mobile apps for iOS and Android users
• Incorporate social media into DDF Online
Logistics • Expansion of tote warehouse, shuttle system
• High density, efficient AS/RS for very small items
• New initiatives
• Advanced vehicle tracking using e-Seal
• Improving supplier compliance levels
The Future
Airport Development • Development at Dubai Airport
• Development at Dubai World Central • New USD 32 billion airport development
• 135 million passenger capacity in phase I
• Support facility to match passenger capacity
Questions and Answers