Omnichannel Success Factors Supply Chain Parfümerie Douglas Dr. Michael Krings DHL Omnichannel Day 2017
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1 Omnichannel Success Factors Supply Chain Parfümerie Douglas Dr. Michael Krings DHL Omnichannel Day 2017 Troisdorf, DHL Innovation Center, May 4th 2017
2 Douglas is the driver of the beauty market: innovative shopping and service experience with a touch of luxury, always emotional and close to customers Introduction of Douglas Market leader in the selective beauty market in Europe with Approx parfumeries 1 in 19 countries and employees 2 More than 17 mill. people in Europe own a Douglas or Nocibé loyalty card 3 Assortment range of more than products (online), with many exclusive brands which are only at Douglas available Comprehensive services in the stores e.g. Day Spa, Douglas Hair Design, manicure, Complete and seamless omni channel services of parfumeries, online shop and mobile app 1 As of 31st March 2015; including freanchisees 2 Annual average in the pafumerie business (without trainees) in BY 2013/ mio. Douglas loyalty card holders and 7 mio. Nocibé loyalty card holders as of 31st March
3 Douglas Supply Chain Management covers the entire supply chain: all value chain levels, channels and transports are included Douglas Supply Chain Supplier level Distribution level Customer level Private Label / Exclusive Brands- Zossen E-Commerce s (Cross Channel ) Ship to customer A C Ship to store B A C Douglas Stores Suppliers of selective brands B D C BCD A B C range of control 3
4 Douglas has increased its logistical infrastructure consequently over the last years core element is the modular SAP LES platform Basic concept of SAP LES One step X-Dock One step X-Dock One step X-Dock One step X-Dock Bulkbreakto-zero PL&EB* PL&EB E-Com PL&EB E-Com Basic strategy: Cross Docking Focus on supplier management and collaboration Standardised, scalable processes Comprehensive process transparency Flexible options of development KPI based, permanent optimization * PL & EB: private label and exclusive brands 4
5 Supply chain development has to be sychronized with customer requirements a four step process leads to a close link between the channels Phases of development of the omni channel supply chain Indipendency Alignment Synergies Omni Channel Separate development of e-commerce and stationary logistics Common development and alignment of solutions Operations of logistics under one roof Utilization of best practice services depending on the customers requirements Status Douglas 5
6 The offer of omni channel services follows the customers needs and will be increased and internationally implemented Services for the customer journey Pre-sales info Availability Information Payment Delivery Omni channel vouchers Guided selling partner / Douglas beauty tab Mobile payment On line shop order Returns to store Store and event finder Online appointment Ship to Online stock information Online product reservation Store vouchers Same Day Delivery Indivual shipping schedule * Pilot phase Source: Parfümerie Douglas, Cross Channel & Business Development, as of 6/2016 6
7 A flexible step-by-step approach leads to higher customer satisfaction while delivery quality stays a distinctive success factor Approach to higher delivery quality Low picking costs Low returns No minimum order value Guaranteed next day delivery Late order cut off (> 20 p.m.) Near SDD / silent upgrading Time Slot delivery Regional structure Loyalty card Innovative services High order frequency 3. Mai
8 Situative shopper behaviour requires a modular, fully integrated and transparent supply chain concept: omni channel logistics is obligatory Summary Shopper behaviour defines the retail landscape of tomorrow: customers decide by situation which shopping location they want to use Logistics must face its challenges: capability to perform omni channel logistics is obligatory. Therefore logistics achieves more strategic relevance. It is the objective to cover all requirements by a modular concept which allows increasing integration and strong capability to control all supply chain processes A modular stepwise approach will lead to high customer satisfaction 8
9 Summary: the requirements of omni channel logistics are increasing constantly we are prepared for (almost) each and everything! Thank you for your attention! Now would you please be so kind and wait some ten minutes in order to take those parcels right back with you Source: Online Handel
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