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01/22/2015Thought Leadership Conference 2015 Mobile Channels and Supply Chain Mobile Channels and Supply Chain Thought Leadership Conference 2015 01/22/2015.

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Presentation on theme: "01/22/2015Thought Leadership Conference 2015 Mobile Channels and Supply Chain Mobile Channels and Supply Chain Thought Leadership Conference 2015 01/22/2015."— Presentation transcript:

1 01/22/2015Thought Leadership Conference 2015 Mobile Channels and Supply Chain Mobile Channels and Supply Chain Thought Leadership Conference /22/2015 Ram Janakiraman Subodha Kumar Kelli Hollinger Texas A&M University Wendi McGowan-Ellis Brierley+Partners Baohong Sun Cheung Kong Graduate School of Business

2 Center for Retailing Studies Thought Leadership Conference 2015 Mobile Channels and Supply Chain 2 Agenda Characteristics of mobile channels Research opportunities in the area of mobile channel and supply chain Pure online retailers/players Pure offline retailers Multichannel/Omni channel players Discuss current issues, short-term and long-term strategies

3 Center for Retailing Studies Thought Leadership Conference 2015 Mobile Channels and Supply Chain 3 Reach of Mobile Channels The expected number of mobile subscriptions by 2016 is 8.5 billion Mobile subscriptions outnumber fixed lines 7:1 (more so in developing nations) Mobile broadband outnumbers fixed broadband 3:1 There are 14 countries in the world with over 100 million mobile subscriptions, ranging from China with 1.2 billion to Mexico with million Source : MobiForge.com

4 Center for Retailing Studies Thought Leadership Conference 2015 Mobile Channels and Supply Chain 4 Characteristics of Mobile Channels Ubiquitous Contextual Personalized Geo-location sensitive (eg. Uber, iBeacon) Real-time (e.g. Yahoo Finance, AccuWeather) Higher involvement of consumers because of positive externalities from other apps. (e.g. social aspect) Knowing/measuring consumer intent to purchase Online-to-Offline channel intergration Continuous radical innovation in the mobile space

5 Center for Retailing Studies Thought Leadership Conference 2015 Mobile Channels and Supply Chain 5 Opportunities in Mobile Channel Retailing Mobile technology is changing consumer behavior and expectations. Apple’s Siri app for the iPhone, for example, can make recommendations that consumers may not have even heard of. Providing consumers accurate information about product availability in local stores, retailers can draw in people who might otherwise shop online. Availability information, the ability of consumers to shop online and pick up products in local stores have combined to make retailing landscape increasingly competitive.

6 Center for Retailing Studies Thought Leadership Conference 2015 Mobile Channels and Supply Chain 6 Research Opportunities in the Intersection of Mobile Channels and Supply Chain

7 Center for Retailing Studies Thought Leadership Conference 2015 Mobile Channels and Supply Chain 7 Summary of Main Issues: Mobile Channels and Supply Chain Integration of online and offline channels Management of product assortment and availability Management of product returns Match inventory with customer expectations (minimize “fit” costs) Integration of pricing strategies between mobile and offline channels

8 Center for Retailing Studies Thought Leadership Conference 2015 Mobile Channels and Supply Chain 8 Current Status Web Order Mobile Order Call Center Order POS Pickup In Store Ship From Warehouse

9 Center for Retailing Studies Thought Leadership Conference 2015 Mobile Channels and Supply Chain 9 Mobile Optimized Supply Chain Web Order Mobile Order Call Center Order POS In Store Order Pickup In Store Ship From Warehouse Ship From Store Transfer from Store A/Whse to Store B for Pickup in Store B When Your Customers are Getting This from Your Competition?

10 Center for Retailing Studies Thought Leadership Conference 2015 Mobile Channels and Supply Chain 10 In store Retailing and Online Retailing In-store RetailOnline/Mobile Retail Retailer’s job is assortment selection to fill limited shelf space, cut long tail Long-tail or virtually unlimited assortment is a key value proposition of online retail Inventory exists at up to three levels: distribution center, regional distribution center, and store Inventory only exists at one level: distribution center Lower number of orders, stable throughputHigh number of orders, high throughput growth Often company-owned fleet that delivers between distribution centers and to stores Freight carrier picks up large number of shipments from distribution center Return to store can create reverse logistics complexity Return by mail (or store for some multichannel players) returns item faster to sellable inventory Source :

11 Center for Retailing Studies Thought Leadership Conference 2015 Mobile Channels and Supply Chain 11 Research Questions and Data Challenges Specific Research Questions Optimize the assortment levels in store and online channels. Assortment in one channel may affect traffic and sales in other channel. Optimize the service level in store. The service level in store may impact online traffic and sales. Analyze the impact of reducing inconvenience in online channel on the overall profit. How to optimize the services provided in online channel? Data Challenges! Measurement of performance of supply chain at the “unit” level How to measure online and offline integration?

12 Center for Retailing Studies Thought Leadership Conference 2015 Mobile Channels and Supply Chain 12 Three types of players Pure online retailers (e.g. Netflix, Zulily, Groupon) Pure brick-and-mortar retailers (e.g. Restaurants, Local Gym) Multi/omnichannel retailers (e.g. Warby Parker, Walmart, Macy’s)

13 Center for Retailing Studies Thought Leadership Conference 2015 Mobile Channels and Supply Chain 13 Opportunities in Mobile Channel Retailing Mobile technology is changing consumer behavior and expectations. Apple’s Siri app for the iPhone, for example, can make recommendations that consumers may not have even heard of. Providing consumers accurate information about product availability in local stores, retailers can draw in people who might otherwise shop online. Availability information, the ability of consumers to shop online and pick up products in local stores have combined to make retailing landscape increasingly competitive.

14 Center for Retailing Studies Thought Leadership Conference 2015 Mobile Channels and Supply Chain 14 Research Agenda Current Issues Long term Strategies Short- Term Strategies Pure Online Retailers Pure Brick and Mortar Retailers Multi/ omnichannel Retailers

15 Center for Retailing Studies Thought Leadership Conference 2015 Mobile Channels and Supply Chain 15 Current Issues: Online Retailers Timely delivery of products/information Access to consumer information to better manage inventory How to better manage the effect of WOM? Social shopping through social channels (instant gratification) Regional distribution channels to plan for demand

16 Center for Retailing Studies Thought Leadership Conference 2015 Mobile Channels and Supply Chain 16 Short-Term and Long-Term Strategies Online Retailers Short term strategies Same day delivery Issues of seller trust? Provide information to alleviate concerns How to attract new customers? (Issue of long tail in the market) Match your inventory with your recommendations (Netflix) Long term strategies How to create dynamic experience/ entertainment factor ? Purchase more products Less product returns Long-term/proactive management of customer feedbacks and reviews Better co-ordination and information sharing between information providers and backend retailers across supply chain.

17 Center for Retailing Studies Thought Leadership Conference 2015 Mobile Channels and Supply Chain 17 Current Issues: Offline only Retailers Pure brick-mortar retailers - A traditional "street-side" business that deals with its customers face to face in an office or store that the business owns or rents. E.g. Local Gym, Local Boutiques, Restaurants. Issue of “discoverability” Managing traffic: Demand/Supply coordination Uncertainty due to new information or lack of information: “shocks” to the supply chain Customer Service provider matching based on customer preferences

18 Center for Retailing Studies Thought Leadership Conference 2015 Mobile Channels and Supply Chain 18 Short-Term and Long-Term Strategies for Pure Brick- Mortar Retailers Short term strategies Mobile optimized websites/applications – A website that will reformat itself for a list of handheld or tablet devices. Product recommendations for up-selling and cross- selling Long term strategies Analytics of customer transaction and mobile data for better decisions Context specific factors to better understand customer behavior and intent Better management of inventory and customer specific factors(e.g. satisfaction, repeat purchase)

19 Center for Retailing Studies Thought Leadership Conference 2015 Mobile Channels and Supply Chain 19 Current Issues: Omnichannel Retailers Retailers that started out as purely online/digital and then subsequently opened at offline locations(e.g. Amazon, EBay) Transmedia engagement model Screen agnosticism – Content should be available/accessible across all channels. Mobile payment issues. Move from warehouse/supply model to retail issues “New” returns issues Manage product assortment issues. Retailers that started out as purely offline and then subsequently went online (e.g. Walmart, Macy’s) How to leverage the mobile medium as a platform builder (ISP)?

20 Center for Retailing Studies Thought Leadership Conference 2015 Mobile Channels and Supply Chain 20 Short-Term and Long-Term Strategies: Omni Channel Retailers Short term strategies How to leverage analytics and manage change in foot traffic? How to maintain the level of customer experience Long term strategies Adapt to introduction of new technologies Short term strategies Management of customer expectations given the customer segmentation How to incorporate UGC feedback/rating for product planning and supply issues? Long term strategies Manage Omni-channel supply chain issues Retailers that started out as purely online/digital and then subsequently opened at offline locations(e.g. Amazon, EBay) Retailers that started out as purely offline and then subsequently went online(e.g. Walmart, Macy’s)

21 Center for Retailing Studies Thought Leadership Conference 2015 Mobile Channels and Supply Chain 21 Thanks! Q and A


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