Post on 31-Oct-2014
description
Logistics for Marketing
This copyrighted document is the property of OOO Kupishoes and is disclosed in confidence. It may not be copied, disclosed to others, or used for manufacturing, without the prior consent of OOO Kupishoes.
Liubomir Kuchuk 5th of June 2014
Content
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4
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1 Lamoda background
Why we need to do own Logistics?
Implications of technology on the business model
What does that mean to customers?
Lamoda is backed by experienced investors…
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Globally renowned investors
Press Clippings
… and has access to unique global knowledge and experience in e-‐commerce through companies founded by our investors
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E-‐commerce companies founded by our investors
Q4 2013
Q3 2013
Q2 2013
Q4 2012
Q1 2013
Q3 2012
Q2 2012
Q1 2012
Q4 2011
Q3 2011
Q2 2011
Lamoda’s growth has been exponential, covering already all key markets in CIS
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Partners who trust us
Reaching customers across Russia and CIS
Present nowTo be launched shortly
Goal -‐ #1 in Russia and CIS
>80k# SKUs~1000# brands
Volume Number of orders
Kazakhstan
Ukraine
Content
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1 Lamoda background
Why we need to do own logistics?
Implications of technology on the business model
What does that mean to customers?
Logistics infrastructure is the main challenge for ecommerce in Russia
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Germany
China
USA2x
2x
50x
Existing courier firms not tailored for fashion e-‐commerce
Supply challenge
▪ Not customer experience focused
▪ Relatively slow ▪ Relatively expensive
Demand challengeCustomers expect highest service level▪ Try on at door ▪ Cash on delivery ▪ Next day delivery ▪ Friendly and timely
couriers
How to deliver superior customer experience to demanding customers across 17.000.000 km2?
When launched in 2011, Lamoda partnered with the most successful companies…
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Leading international freight agent, used for delivering goods to Russia
Well known European 3PL provider with facilities in Russia
Leading international express delivery agent
One of biggest players in Russia
WH and fulfillment
Inbound freight
Delivery to customers
Call Center
Initial Setup
… but customer needs were not met
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Long lead-‐time in delivery of goods from suppliers at high cost
Long lead-‐time in all WH processes Low quality of stock Not efficient usage of space
Long lead time of delivery Non traceable orders Customer lower satisfaction
Low SLA Low understanding of our products Not familiar with business model
Inbound freight
Call Center
WH and fulfillment
Delivery to customers
Challenges
Hence Lamoda has developed its own, integrated ecommerce platform
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Inhouse import team to bring inventory online first in the season
Lamoda Distribution Center in Moscow focused on fast fulfillment and attractive cut-‐off times for customers (e.g. 24h Moscow for next day)
Lamoda Express as the fastest B2C delivery company in Russia/Kazakhstan (next day delivery in >50 cities, e.g. Almaty, Ekaterinburg)
Lamoda Call Center with highest service level for inbound and outbound operations
Inbound freight
Call Center
WH and fulfillment
Delivery to customers
Market-‐specific Solution
Content
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1 Intro – Lamoda background
Why we need to do own logistics?
Implications of technology on the business model
What does that mean to customers?
Customer experience that we offer is reflected in every step of the value chain…
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Call Centre !!
Distribution Centre !!!
Own fashion delivery
99.98% items availability in the DC
99% of calls originated within first 5 minutes from order creation
Trained sales reps to support in choosing the right
goods
DC in Moscow where
40% of market is located
90% of calls are answered within 20
seconds Next day delivery in >50 cities
Next day delivery in Moscow when ordered before
Midnight
64 delivery methods
99.99% outbound service
level
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Lamoda Distribution Center, October 2012
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Lamoda Distribution Center, November 2012
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Lamoda Distribution Center, December 2012
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Lamoda Distribution Center, May 2013
Customer experience that we offer is reflected in every step of the value chain…
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Call Centre !!
Distribution Centre !!!
Own fashion delivery
99.98% items availability in the DC
99% of calls originated within first 5 minutes from order creation
Trained sales reps to support in choosing the right
goods
DC in Moscow where
40% of market is located
90% of calls are answered within 20
seconds Next day delivery in >50 cities
Next day delivery in Moscow when ordered before
Midnight
64 delivery methods
99.99% outbound service
level
… and results in massive impact on economics
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Quick confirmation calls reduce cancellation rate
Fast delivery reduces rejection rate
Our high quality delivery service reduces rejection rate
Our high quality delivery service increases repurchasing rate
-‐35%
10+ min5-‐10 min1-‐5 min<1 min
+6%
6 month3 month1 month
Lamoda Express
Other courier companies
-‐17%
Other courier companies
Lamoda Express
-‐10%
4+ days3 days2 daysnext day
Our efforts resulted in significant improvement of customer experience over last year
Net promoters score (NPS) % of satisfied customers
Promoters, %
Detractors, %
NPS, %
86817876
3555
83767371
Q2 2013
Q3 2013
Q4 2013
Q1 2014
89848285
Satisfied and fully satisfied
Website
91848282
Delivery
94878782
Customer Care
Q2 2013
Q3 2013
Q4 2013
Q1 2014
From -‐100% to+100%
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Content
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1 Lamoda background
Why we need to do own logistics?
Implications of technology on the business model
What does that mean to customers?
In distribution center, internal movements are supported by improved technology which resulted in increased quality100% control and track of internal movements…
…increased quality
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Hand free scanner
Transport solutions
Zebra label printer
18 months ago
13 times
Today
1,5 mistake out of
10.000 orders
Relative number of mistakes in distribution center
Further improvements will come from implementation of technology in process automation
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LoadingDispatchingPackagingSortingPicking
Additionally, last mile delivery will be supported by sophisticated software for tablets to improve performance
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Operational efficiency
• Instant status update in ERP • Delivery interval hit/miss control • Real-‐time fleet management • Complete transparency for customer care
centre
Customer Services
• Client orders on screen with rich media and suggestions
• Order specific information • Unlimited opportunity for upselling • Deep integration with CRM
Sales ForceManagement
• Real-‐time tracking of KPIs • Team ranking to build competition and drive
performance • Gamification to motivate personnel
Thank you!
This copyrighted document is the property of OOO Kupishoes and is disclosed in confidence. It may not be copied, disclosed to others, or used for manufacturing, without the prior consent of OOO Kupishoes.