RETAIL SUPPLY CHAIN CONFERENCE 2015 Title Sponsor

Transcription

1 Real People. Real Experiences. Real Education. RETAIL SUPPLY CHAIN CONFERENCE 2015

2 RETAIL IN A PROGRESSIVELY MOBILE WORLD RETAIL SUPPLY CHAIN CONFERENCE 2015

3 Panelists: Debbie Fortnum Senior Vice President, Supply Chain Belk, Inc. Rod Halsell Vice President, Supply Chain & Distribution AutoZone, Inc. Ronald Link Senior Vice President, Logistics CVS Health

4 Christina Bowman Michigan State University Blake Helmke Auburn University Walter Hutto Georgia Southern University RETAIL SUPPLY CHAIN CONFERENCE 2015

5 Ann Simmons John Brown University Daniel Montanez California Polytechnic State University S. Mohammad Mahmood Ryerson University Jiaxing Tao (Tommy) SUNY Maritime College

6 Consumer Expectations of the Virtual Supply Chain RETAIL SUPPLY CHAIN CONFERENCE 2015

7 Mission Statement To provide insight into the consumer s perspective and expectations of the virtual supply chain.

8 Data Collection Online Survey Auburn University, Michigan State University, Georgia Southern University, John Brown University, California Polytechnic State University, Ryerson University, SUNY Maritime College 240 Respondents Average age 23.1 years old 56% Male, 44% Female

9 We Live in a Progressively Mobile World Million Users, Million Users, Million Users Average Cell Phone User checks their phone 150 times per day. - Business Insider

10 In-Store Consumers Question: Approximately what percentage of retail purchases do you make in-store vs. online? In-Store Online 32% 68%

11 In-Store Consumers 67.8% of the time consumers prefer to see an item firsthand before purchasing. I am able to see the item and get a hands on explanation of the good and bad things about the item. Survey response Mobile purchases increased 23% from Q to Q2 2014, up to 7.3 billion. Forrester Research

12 Factors That Affect Online Purchases Question: Rank the following elements that might be part of an online purchase Same Price 2. Inventory Visibility 3. Delivery Tracking 4. No Return Charge 5. Delivery Day Choice 6. Pick up at Store 7. Combine Multiple Orders 8. Select Carrier of Choice

13 Factors That Affect Online Purchases Question: When considering an Online Purchase it is important to me...

14 Mobile Purchases Question: I expect to make more mobile purchases in the future than I do today... 4% 11% Strongly Agree 19% Agree Neutral Disagree Strongly Disagree 25% 41%

15 Mobile Purchases Hesitation towards mobile devices. 23% Strongly Disagree/Disagree Consumers are not unified in how they feel about using mobile devices. When asked if using a mobile device is the same as a personal computer: 43.3% Strongly Agree/Agree 35.5% Strongly Disagree/Disagree

16 Key Takeaways Today, retailers use devices as a way to attract consumers to the store. Retailers will have to evolve their strategies to serve the millennial consumers Mobile must become part of every retailer s DNA. - Retail Systems Research (2015) Why is there still hesitation? Changes to attract mobile consumers Digitally connect physical stores with consumers devices Create a mobile-optimized website Mobile Device POS

17 Omni-Channel Initiatives Implemented by Retailers RETAIL SUPPLY CHAIN CONFERENCE 2015

18 Data Collection Purpose: To identify omni-channel initiatives currently used by retailers Sample: 27 Retailers Data Collection: Website Analysis Retail Size by Annual Revenue

19 Current Mobile Offerings in Retail Does the retailer provide mobile capabilities? Mobile Ordering Mobile Order Status Updates 7% 44% 56% 93% Basic Yes Functionality No Advanced YesFunctionality No

20 Current Mobile Offerings in Retail Basic Functionality Mobile Ordering Common feature demanded by customer Advanced Functionality Mobile Order Status Updates Live updates of exact transit location Customers find it important to have exact location of their product

21 Current Mobile Offerings in Retail What order features are offered online/mobile?

22 Current Order Tracking & Fulfillment Offerings What options are offered for customers to check delivery status of an order? Website Order Tracking Notification Customer initiative 88.9% 75% 41.7% 5.6% SMS 2.8% Mobile app Retailer initiative Mobile Finding: Proactive customer notifications on mobile are significantly behind what has been offered through retailer websites for some time.

23 Current Order Tracking & Fulfillment Offerings Order fulfillment / pick-up options? Deliver to an address 91.7% Store pick up 69.4% Others (Download online, etc.) 8.3% Alternative location pick up 44.4% Finding: 8.3% of companies choose to offer other order fulfillment channels to complement their current ways.

24 Innovative Omni-Channel Initiatives in Retail Image Search Technology Connected Fitting Rooms

25 Innovative Omni-Channel Initiatives in Retail Drive-Through Pick-Up Grocery Reserve Online, Pay In-Store

26 Customer Expectations vs. Services Provided Select Delivery Date 8% Overall Rank: 5 Pickup Instore 69% Select Carrier 6% Overall Rank: 6 Overall Rank: 8

27 Conclusion 32% of millennial consumers surveyed prefer purchasing online Retailers should focus on features being offered Inventory availability Order tracking Free returns Innovative offerings

28 Complete the session survey! Scroll down to find the survey button on the session s page Answer the survey questions & submit!