PA in Retail
- 1. 1 OUR WORK WITHIN THE RETAIL SECTOR May 2016
- 2. 2 Trade compliance and quality Retail operations Supply chain and logistics Omni-channel delivery Our work in….
- 3. 3 OMNI-CHANNEL New ecommerce platform Online fulfilment optimisation Multi-channel customer service Click and collect Mobile channels Digital advertising Online substitutions Search and navigation
- 4. 4 “PA’s support has been invaluable to us through the launch of our new website and development of new functions. They have been fully integrated into our Online IT and Business teams and have worked tirelessly alongside JL Partners to achieve our £1 billion online target ahead of schedule and online sales that are around 30% of total John Lewis revenues.” Paul Coby, IT Director, John Lewis NEW ECOMMERCE PLATFORM DELIVERY We provided ‘invaluable’ support to help John Lewis launch their new website and achieve a £1 billion sales target ahead of schedule.
- 5. 5 Our client wanted to support and improve the efficiency of fulfilling online orders which were experiencing a 20% year on year growth and were forecast to continue growing significantly. We helped increase staff picking productivity by 50% at dedicated online fulfilment centres and across supermarkets by designing a scalable order picking solution. The solution enabled fulfilment centre warehouses to take load off neighbouring supermarkets improving the load distribution of online orders. In-store picking operation costs were reduced by 10% 5 ONLINE FULFILMENT OPTIMISATION We supported growth ambitions by designing a solution for online fulfilment centres and improving supermarket-based fulfilment
- 6. 66 Customer service was impacted by the use of separate solutions to manage orders and service cases in digital and non-digital channels. We developed a customer service solution which brings together orders and customer service issues from multiple systems, including in-store baskets and groceries online. The solution provides consistent business processes across channels, and gives colleagues the data they need to make good customer service decisions. One coherent view is presented to colleagues, including digital and in-store orders, and contact history across email, social and telephone. MULTI-CHANNEL CUSTOMER SERVICE We improved customer service by creating a coherent, multi-channel view of sales and customer service interactions
- 7. 77 CLICK AND COLLECT Our client wanted to review its complex click and collect processes to ensure that they remained mapped, efficient and ready for its busiest peak trading period. Using our expertise in business process modelling, PA conducted a detailed review, creating a reference that the client expects to use for a number of years to come. Amongst other things, this helped the client achieve its most successful online peak trading period in its history and its best ever week for online sales. We prepared a major UK retailer for peak trading by optimising their click and collect processes
- 8. 88 GROCERIES ONLINE MOBILE APPLICATION Our client had no native mobile application development capability which led to their mobile presence receiving poor customer reviews putting them behind their competitors. We developed an architecture to enable the rapid creation of cost-effective, omni-channel mobile applications by using a mobile application development platform. We initiated a vendor selection process for a mobile platform to enable an objective and appropriate choice. We recommended a mobile architecture to enable the rapid development of online shopping and other mobile applications
- 9. 99 DIGITAL ADVERTISING ROADMAP We identified $100m+ savings over 5 years. We worked with the client team to create a vision and set of requirements for new digital advertising. We completed a gap analysis, a competitive analysis of existing digital advertising technologies and built a technology roadmap and project plan for new digital advertising. We developed the business case and the roadmap for a new digital advert to supplement and complement existing paper inserts
- 10. 1010 This leading UK retailer’s existing substitutions process did not offer customers a fair deal when an item is unavailable Customers were charged the price of the substitute, which may be higher than the price of the requested item Promotional offers may not be applied to the basket because an offer was invalidated by a substitution We designed a solution to ensure customers get a fair deal when substitutions are made in their online order. We worked across numerous systems to ensure the solution was feasible and did not require wholesale changes to existing functionality ONLINE SUBSTITUTIONS PRICE PROMISE We designed a tactical solution that minimized the impact of higher value substitutions in online orders
- 11. 1111 This leading retailer decided to put in place a newer, optimised search and navigation solution for its successful online presence to increase customer satisfaction and provide a cutting edge over customers. We ran the project from initiation, through delivery to go-live, putting in place specialist delivery managers with e-Commerce experience. Against a challenging schedule and alongside the client’s team, the new search solution landed into trials on time and remains on track to deliver on time and budget. SEARCH AND NAVIGATION We helped deliver a new search and navigation solution to drive-up customer satisfaction
- 12. 12 TRADE COMPLIANCE AND QUALITY Trade compliance Product specification management
- 13. 1313 We helped guard our client against pricing and promotion compliance issues TRADING COMPLIANCE The possibility of human errors relating to pricing and promotions potentially caused compliance issues for our client. We reduced the risk of errors which may lead to compliance issues by designing a solution that automates the checking of pricing and promotions across our client's entire store estate. The solution implemented rules that check the geographical spread of promotions and go beyond the legal guidelines, avoiding any brand damage.
- 14. 1414 We provided our client with improved product specification management, supply chain traceability and integrated artwork management Our client's existing product specification management tool was rapidly reaching end-of-life and did not support key functionality required by the business for reporting against corporate commitments. We designed a replacement product specification management solution whilst defining a cost saving approach for migrating data into it. The solution improved our client's ability to monitor progress against their corporate commitments, protect their brand values and maintain their product quality by providing supply chain traceability and extended breadth and depth of captured product specification data. PRODUCT SPECIFICATION MANAGEMENT
- 15. 15 RETAIL OPERATIONS Service orientated architecture Flexible payment architecture
- 16. 16 We are helped a Tier 1 supermarket build applications as modular and reusable enterprise assets SERVICE ORIENTED ARCHITECTURE Our client’s existing application landscape did not promote asset re-usability and cluttered the integration landscape We helped this Tier 1 retailer improve their application landscape by mobilising an Service Orientated Architecture (SOA) culture and service catalogue We provided interim leadership to their service-oriented architecture centres of excellence, creating and managing a growing portfolio of services We enabled the client to consistently represent data across the application landscape by creating their first ever enterprise-wide definitions of common data formats
- 17. 17 We designed a strategic, flexible architecture for payment taking for online channels FLEXIBLE PAYMENTS ARCHITECTURE Our client had no reusable payment service that provided the capabilities to authorise and settle transactions This Tier 1 UK retailer’s transaction processing system was tightly coupled to the payment provider; this resulted in costly change requests whenever any changes to the payment provider or payment flow were needed We developed an architecture to integrate with the new payment provider in a service oriented manner, so the third-party transaction processor was decoupled from the new payment provider, giving the client agility they desired to make payment related changes Our architectural designs provided the client with a reusable service for payment taking that could be used by a number of digital initiatives 17
- 18. 18 SUPPLY CHAIN AND LOGISTICS Product availability monitoring Supply chain optimisation
- 19. 19 We designed a solution that provided our client with near real-time monitoring of product availability across all of their store estate and product range PRODUCT AVAILABILITY MONITORING Our client's old product availability monitoring solution relied on expensive manual audits, which provided a limited, simplistic view of availability as deduced from only 50 product lines. We improved the depth and breadth of product availability monitoring to all products across all stores on an hourly basis by designing an automated availability monitoring solution. The solution allowed our client to improve customer satisfaction, improve the accuracy and efficiency of store performance management, and reduce the operational cost of stock monitoring by £2M per annum. 19
- 20. 20 We helped enable product inventory to be held at an expiry date level EXPIRY DATE LEVEL PRODUCT INVENTORY We enabled stock management process improvements by helping design a solution that automatically prompts operators when products have expired for de-ranging and disposal and improves the accuracy of calculated reduction percentages provided to operators. We minimised the cost and impact of the business process changes by proposing a phased approach to implementing the solution. We identified impacted systems for the foundation phase of the project as well as the effort required to modify them by conducting a full system audit.
- 21. 21 We helped our client reduce their logistics operations cost by 10% LOGISTICS COST REDUCTION Our client specialises in convenience food retail. They identified the need to reduce their logistics operating cost by 10% over two years. We reviewed the operations at all sites and identified a long list of cost reduction opportunities, which were worked through with the client management to focus on the major opportunities. The savings were targeted in warehouse productivity, service definition and execution, energy procurement and slow-mover management. 21
- 22. 22 We helped our client drive-up availability leading to a £12m increase in revenues within a year DRIVING-UP AVAILABILITY Our client faced persistent issues in driving-up availability of stock within their Food business. PA worked with the client to review forecast accuracy and drive improvements in seasonality, waste estimation and in the use of weather data to drive-up availability. Working closely with the client’s supply chain teams in both business and IT, we helped deliver £12m in additional revenue with minimal impact on waste. 22
- 23. 23 We helped our client reduce stock-outs across the Food portfolio by an average of 30%, REDUCING STOCK-OUTS Our client faced severe problems delivering enhancements to their forecasting, allocation and ordering platform. PA transformed performance of the programme by introducing scaled agile techniques and through rigorous prototyping to deliver the programme in five months shorter duration to greater quality. The net result of the improvements delivered was an average of 30% reduction in stock-outs. 23
- 24. 24 Corporate headquarters 123 Buckingham Palace Road London SW1W 9SR United Kingdom Tel: +44 20 7730 9000 paconsulting.com This document has been prepared by PA on the basis of information supplied by the client and that which is available in the public domain. No representation or warranty is given as to the achievement or reasonableness of future projections or the assumptions underlying them, management targets, valuation, opinions, prospects or returns, if any. Except where otherwise indicated, the document speaks as at the date hereof. © PA Knowledge Limited All rights reserved. This document is confidential to the organisation named herein and may not be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying or otherwise without the written permission of PA Consulting Group. In the event that you receive this document in error, you should return it to PA Consulting Group, 123 Buckingham Palace Road, London SW1W 9SR. PA accepts no liability whatsoever should an unauthorised recipient of this document act on its contents. 2015. We are an employee-owned firm of over 2,500 people, operating globally from offices across North America, Europe, the Nordics, the Gulf and Asia Pacific. We are experts in energy, financial services, life sciences, healthcare, manufacturing, government and public services, defence and security, consumer, transport and logistics. Our deep industry knowledge together with skills in management consulting, technology and innovation allows us to challenge conventional thinking and deliver exceptional results with lasting impact. 1965-57