Multi Channel Management & Building the B2C Supply Chain...

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Multi Channel Management & Building the B2C Supply Chain for E-Commerce

Transcript of Multi Channel Management & Building the B2C Supply Chain...

Page 1: Multi Channel Management & Building the B2C Supply Chain ...tpeselforum.sitec.com.my/wp-content/uploads/2017/04/IStore-ISend.pdfData analytics across all channels to provide a more

Multi Channel

Management & Building

the B2C Supply Chain for

E-Commerce

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Who Are We & What We Do

LEAN & MEAN

30-40 head count

3,500 Items / Day

OMNI CHANNEL Proprietary Cloud Base

Technology Developed In-

house, Agile & Integrated

(with various marketplaces)

60,000 SKU 99.95% Accurate!

10X Better than

Competitor

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Record integrated SALES channel

Before

1 Online Channel

After

6 Online Channels + Growing

First 3 Months

Immediate Results

400%

Growth

Cosmetics

Brand X

Marketplace X

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Record COST savings

Average Logistics

Cost Per Item

Average Logistics

Cost Per Item

Before After

By aggressively consolidating multiple items into single

shipments, we have successfully help our clients reduce their

overall logistics cost. These savings scales in accordance to

basket size and value.

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Record order SIZE : 36 different Items!

Steady Increasing trend in order size from

average of 2.40 to 3.56, 48.33% increase

in the complexity of the orders

Larger Orders =

Longer time to

process

Pick + Pack = More

Time Consuming

Largest Basket

36 different SKU

Maintaining SLA even with

increasingly complex order

baskets

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How We Do It : Technology Driven Approach

OMS

TMS

Orders from (Omni Channel)

1. Online marketplaces

2. Shopping Carts

3. Offline Sales

Consolidate

1. Digitised warehouse activity for measurable

performance and control

2. Custom Designed “Picking Cart”

• System guided picking via

route optimisation + job allocation

= maximise labour efficiency / cost

• Incorporate “Pick To Light”,

reduce human decision making

= minimise human error and pick time

System distributes orders to

“best” warehouse via system

algorithm

Data analytics across

all channels to provide

a more complete view

and business

intelligence

WMS

1. Collects all delivery data for all parcels

shipped out

2. Monitoring & Management of delivery

success rates and statistics

3. Ability to sort shipments based on zones

and shipment type, reducing work load and

increasing speed of parcel sortation

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Core Technology Ecosystem

WMS

Warehouse Management

System

OMS

Order Management

System

TMS

Transport Management

System

Integrated

Cloud Base

Architecture

Marketplace Verticals

Web

Stores/Catalo

gue

Physical

Outlets

Telephone

Sales Direct Sales

Mobile Social Media

Departmental

Stores

Specialty

Stores

Events /

Promotion

Omni Channel Kiosk /

Vending

Chat App

Flash Sales

Loyalty

Programme

Self Pickup

Parcel lockers Bulk

Deliveries

Parcel

Deliveries

Shopping

Carts

Cross Docking

Status

Tracking B2C

B2B

Hardware

Integration

Wave

Picking

Stream

Picking

YMS

Route

Optimisation

Labour

Management

Consolidation Order

Slotting

Returns

Management

Inventory

Management Cold

Deliveries

Expedited

Deliveries

COD

Cross Border

Cost

Optimisation

Core

Functions

Temperature

Sensitive

High Value

Items Robotics /

IoT

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The Story So Far

Fulfilment Centre 1 (Headquarters)

• 20,000 sq.ft (30mins from city centre)

• Utilisation : 30%

• 100-200 items/day

Operational Q3,2013

Main volume has been shifted to the

newer facility, mainly used for returns, R&D

and selected clients

Fulfilment Centre 2 (TPG)

• 60,000 sq.ft (60mins from city centre)

• Utilisation : 25%

• 2,000 items/day

• 15 Warehouse Headcount

Operational Q1,2015

Main hub for Malaysia.

Projected to last till 2018

Fulfilment Centre 3 (Singapore)

• 5,000 sq.ft (30mins from city centre)

• Utilisation : 100%

• 800-1,000 items/day

• Headcount : 10

Operational Q3,2015

Temporary setup, to expand to 10,000

sq.ft,moving into larger facility by 2017

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The Story So Far

Data Analysis

Rigorous data analytics of

clients’ distribution data

allows us to unlock value

for clients, allowing for

cost optimization and

serve untapped markets

Customer Focus

Flexible technology and

processes allows us to

collaborate with clients

on new distribution

channels and market

opportunities

Client Integration

Full seamless integration

of proprietary WMS with

clients uniquely allows

clients to reduce costs

and redundancies

Industry Leader

Every step of the

logistics process is

digitally tracked and

benchmarked, resulting

in the lowest shrinkage

levels in the region

Focus on Technology

Optimization and Integration

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Our Facilities

• 60,000 Sq.ft of Space

• 4 full floors of pick faces

• 250,000 - 500,000

SKU Capacity

• 10,000 Orders / Day Capacity

• Employing modern technology to

digitise supply chain activities

• Integrated with dozen’s of last mile

services, parcel lockers & on-demand

State of the art

facilities & technology

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Agnostics and Flexible

Standard Courier, Next Day On Demand Same Day

Cash on Delivery Pick Up Points

Reverse Logistics

Returns Management

Cross-Border

Fully Integrated with

Last Mile Services:

Real-time tracking

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Our Vision : ASEAN Integrated Warehouse

• By leveraging on the

volume and physical facility

we have, we will be able to

facilitate cross border

logistics effectively.

• Providing a single Gateway

for clients to enter into the

ASEAN market

• Opening up the massive

opportunity to help ASEAN

brands to tap into ASEAN

market.

• Helping to integrated

ASEAN through commerce

and logistics.

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Sharing

Insights

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Share 1 : The Next Day Promise

Successful Delivery Lead Time

Next Day First

Attempt

• Can be improved by enhancing

communication with recipient

via a host of API functions to

provide real time data

What happened

to next day

delivery promise?

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Average Delivery Lead Time

Anticipate spikes and managing recipients expectation

Delivery SLA

becomes erratic

during festive season

and ability to spread

the load across

multiple providers

reduces risk and help

maintain predictable

service level

Share 2 : Predicting Spikes & Peak

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Share 3 : Working it Smart through Data

Data in Action

• Customisable Dashboard

• Easy and direct way to monitor key

performance indexes defined.

• Highlight on actionable data points to

execute preventive actions before

critical events happens

• Real time data flow enable easy

planning for critical supply chain

adjustments

• Monitor Age / Turn of SKU to optimise

your future stock purchase,

maximising cash flow & reducing

inventory risks