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Supply Chain Revolution for "Omni Channel"

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Page 1: Supply chain management revolution

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w

The Supply Chain Management Systems Revolution An new Logistics Approach for Omni-Channel

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Page 2: Supply chain management revolution

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LAThe Supply Chain Management Systems Revolution An new Logistics Approach for Omni-Channel Hunter - Gatherer

Page 3: Supply chain management revolution

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LAThe Supply Chain Management Systems Revolution An new Logistics Approach for Omni-Channel Wheel

Page 4: Supply chain management revolution

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LAThe Supply Chain Management Systems Revolution An new Logistics Approach for Omni-Channel Internet

Page 5: Supply chain management revolution

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LAThe Supply Chain Management Systems Revolution An new Logistics Approach for Omni-Channel Impacts

D-Impact

E-Impact

M-Impact

S-ImpactT-Impact

Page 6: Supply chain management revolution

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LAThe Supply Chain Management Systems Revolution An new Logistics Approach for Omni-Channel Omni-Channel

Single Chann

el

Multi Chann

el

Cross Chann

el

Omni Chann

el

Customers interact via the different channels

Page 7: Supply chain management revolution

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LAThe Supply Chain Management Systems Revolution An new Logistics Approach for Omni-Channel Omni-Channel Experience

Order from Anywhere

Fulfill from Anywhere Call Center

Tablet/MobilePhone

WebsitesBrick & Mortar Stores

Catalogs

Flash Sales

Retail DC(s)

E- Commerce DC(s) Outlet Locations Brick & Mortar StoresPop – up Stores

Kiosk

Page 8: Supply chain management revolution

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LAThe Supply Chain Management Systems Revolution An new Logistics Approach for Omni-Channel Fulfillment Paths

Direct to Customer – Ship from DC Online Order – Store Pickup In-Store-Home Delivery Reserve Online – Pick up In-Store In-Store Purchase – Online Inventory Online Order – Store Pick Up – Ship from DC Reserve Store Inventory- Pick Up In-Store Store to Store Transfer – Pick Up In-Store Drop Ship to Store Drop Ship to Customer

Page 9: Supply chain management revolution

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LAThe Supply Chain Management Systems Revolution An new Logistics Approach for Omni-Channel The heart

Page 10: Supply chain management revolution

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LAThe Supply Chain Management Systems Revolution An new Logistics Approach for Omni-Channel Challenge

Classic New Load Type FTL,LTL Pieces Customer Strategic Un Known Demand Push Pull Stock/Order Movement One way Two way Average Order Value >1000$ <100$ Financial Responsibility A party in chain All the chain

Page 11: Supply chain management revolution

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LAThe Supply Chain Management Systems Revolution An new Logistics Approach for Omni-Channel Challenge

If one channel is out-of-stock, when should you borrow from another channel?

What if that other channel has an urgent order pending?

Order from Anywhere

Fullfill from Anywhere

Call Center

Tablet/MobilePhone

Websites Brick & Mortar Stores Catalogs

Flash Sales

Retail DC(s)

E- Commerce DC(s)

Outlet Locations Brick & Mortar Stores

Pop – up Stores

Kiosk

No Static Zones, every where in supply chain is a warehouse and any customer is delivered from any warehouse

Page 12: Supply chain management revolution

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LAThe Supply Chain Management Systems Revolution An new Logistics Approach for Omni-Channel Challenge

Are your information systems set up for inventory sharing?

Can you postpone product packaging so you can share inventory that is normally packaged by channel (in a box, poly-bagged and on a hanger)?

Order from Anywhere

Fullfill from Anywhere

Call Center

Tablet/MobilePhone

Websites Brick & Mortar Stores Catalogs

Flash Sales

Retail DC(s)

E- Commerce DC(s)

Outlet Locations Brick & Mortar Stores

Pop – up Stores

Kiosk

Page 13: Supply chain management revolution

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LAThe Supply Chain Management Systems Revolution An new Logistics Approach for Omni-Channel Challenge

If you combine the volume from two channels, could you get transportation savings? Order from

Anywhere

Fullfill from Anywhere

Call Center

Tablet/MobilePhone

Websites Brick & Mortar Stores Catalogs

Flash Sales

Retail DC(s)

E- Commerce DC(s)

Outlet Locations Brick & Mortar Stores

Pop – up Stores

Kiosk

Page 14: Supply chain management revolution

www.la.com.tr

LAThe Supply Chain Management Systems Revolution An new Logistics Approach for Omni-Channel Challenge

Every where in supply chain is a warehouse and any customer is delivered from any warehouse

If a store associate places an online order for a customer, which channel gets credit for the sale?

If two customers order the same product online which order allocated first?

Order from Anywhere

Fullfill from Anywhere

Call Center

Tablet/MobilePhone

Websites Brick & Mortar Stores Catalogs

Flash Sales

Retail DC(s)

E- Commerce DC(s)

Outlet Locations Brick & Mortar Stores

Pop – up Stores

Kiosk

Page 15: Supply chain management revolution

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LAThe Supply Chain Management Systems Revolution An new Logistics Approach for Omni-Channel IT Infrastructure

Cloud computing Independent web based user interface Full service oriented architechure Rapid development enviroment Supply chain synergy

Page 16: Supply chain management revolution

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LAThe Supply Chain Management Systems Revolution An new Logistics Approach for Omni-Channel Leading Capabilities

Multi-Tier, Multi-Party Fulfillment Order Orchestration Global Inventory Visibility / Accuracy Global Order Visibility In Store Fulfillment Ship From Store Omni-channel Analytics Omni-channel Forecasts

Page 17: Supply chain management revolution

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LAThe Supply Chain Management Systems Revolution An new Logistics Approach for Omni-Channel Who will help us?

Forecasting

Optimization

Visibility

Execution

Page 18: Supply chain management revolution

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LAThe Supply Chain Management Systems Revolution An new Logistics Approach for Omni-Channel Forecasting & Stock Optimization

Demand forecasting Social media connected More supply points, more

demand points New statistical functions Tight time intervals

Page 19: Supply chain management revolution

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LAThe Supply Chain Management Systems Revolution An new Logistics Approach for Omni-Channel Route Optimization

Route Optimization More cross docks More horizontal movements More movements Home delivery Delivery time slots

Page 20: Supply chain management revolution

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LAThe Supply Chain Management Systems Revolution An new Logistics Approach for Omni-Channel Visibility/Availability/Accuracy

Visibility/Available inventory Inventory Sharing

Page 21: Supply chain management revolution

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LAThe Supply Chain Management Systems Revolution An new Logistics Approach for Omni-Channel Visibility/Availability

Shop

Distr.

ProdRW

Customer Regional DC/ Stores Main DC ProductionSupplier

Outbound Inbound

Page 22: Supply chain management revolution

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LAThe Supply Chain Management Systems Revolution An new Logistics Approach for Omni-Channel Available To Delivery

ATP Level 3

ATP Level 1

ATP Level 2

ATP Level 4

ATP Level 5

ATD Level 6

Receiver

Receiver

Stock

• Production Plan• Purchase Order

• Transit Stock• Transport Order• Trip • Transit Stock

• Stock• Warehouse Issue Order

• Transit Stock• Transport Order• Trip

• Transit Stock• Stock• Warehouse Issue Order

• Transit Stock• Transport Order• Trip

Visibility, Availability, Accuracy

Page 23: Supply chain management revolution

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LAThe Supply Chain Management Systems Revolution An new Logistics Approach for Omni-Channel Warehouse & Transportation

Warehousing & Transportation Structure of WH Picking policy Putaway policy Transparent Learning systems

Page 24: Supply chain management revolution

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LAThe Supply Chain Management Systems Revolution An new Logistics Approach for Omni-Channel Warehouse & Transportation

• ERP Plan• Warehouse Based• Transportation -Infinite Resources• One Day Demand

• Logistics Plan• Transportation Based• Transportation - Finite and Expensive Resources• N Days Demand

War

ehou

sing

Cost

Transportation Cost

Service Level

• Picking pattern based on vehicle load plan• Picking pack type based on vehicle load plan• Scheduling picking waves based on vehicle departure

times• Group picking pattern for LTL and FTL trips• Order based picking for LTL and Cargo

Page 25: Supply chain management revolution

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LAThe Supply Chain Management Systems Revolution An new Logistics Approach for Omni-Channel Warehouse & Transportation

Designed for the new challenge - B2A B2C B2B B2S POP C2C B2Any

Page 26: Supply chain management revolution

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LAThe Supply Chain Management Systems Revolution An new Logistics Approach for Omni-Channel Warehouse & Transportation

Any2Any

Page 27: Supply chain management revolution

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LAThe Supply Chain Management Systems Revolution An new Logistics Approach for Omni-Channel Warehouse & Transportation

Logistics Center

Warehouse

Sector

Column

Level

Location

Level

Location

Column

Level

Location

Level

Location

Sector

Mobile CarsMobile Cars

Mobile CarsMobile CarsMobile Cars

Mobile Racks

Mobile Business Cells

Mobile Business Cells

Mobile Racks

Page 28: Supply chain management revolution

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LAThe Supply Chain Management Systems Revolution An new Logistics Approach for Omni-Channel Warehouse & Transportation

Load balanced jobs Sort then pack auto

suggestion Sort and pack with

item code only User based cell

creating and design

Page 29: Supply chain management revolution

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LAThe Supply Chain Management Systems Revolution An new Logistics Approach for Omni-Channel Warehouse & Transportation

Smart(Learn by Experience, analyzer) Seamless(Any2Any, UI independent) Technology connected Quick Response time Logistics cells in WH WH Control System Social Warehousing

Page 30: Supply chain management revolution

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LAThe Supply Chain Management Systems Revolution An new Logistics Approach for Omni-Channel Warehouse & Transportation

Sorters come in a variety of types (cross-belt, tilt tray, bomb bay, shoe, etc.)

Goods-to-person technologies vary as well (carousel, AS/RS, etc.)

“What is the value of moving order cut-off time one hour later?” and “What is the value of getting 1% closer to the perfect order?”

Page 31: Supply chain management revolution

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LAThe Supply Chain Management Systems Revolution An new Logistics Approach for Omni-Channel Warehouse & Transportation

So to get to the right answer, you need to let your unique data guide you to the right answer for your business. Someone else’s DC design will not do.

Page 32: Supply chain management revolution

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The Supply Chain Management Systems RevolutionAn new Logistics Approach for Omni-Channel

www.la.com.tr

Erhan MUSAOĞLU Managing Director+90 216 [email protected]

Gözde CUMHUR Marketing Director+90 216 [email protected]