GARANTIRE LA DISPONIBILITÀ DEL PRODOTTO E IL GIUSTO ASSORTIMENTO IN TEMPO DI ECOMMERCE

Bologna, 26 Marzo 2015

Garantire la disponibilità del prodotto e il giusto assortimento in tempo di ecommerce. Francesco Stolfo Partner - Sales Director ToolsGroup Italy

Company Confidential All Rights Reserved 2 Company Confidential All Rights Reserved

EUROPE Amsterdam Milan Munich Barcelona London Stockholm

AMERICA Boston(*) Ontario Mexico D.F.

ASIA Malaysia India Japan

MIDDLE EAST Israel AFRICA Cape Town

Our Vision

Accelerating Business Performance through

Market Driven Demand Analytics and Supply

Chain Optimization

Our Mission

To be the leading provider of

“Powerfully Simple” software solutions that

deliver business value in

complex, demand driven environments

Our Approach

Best practices leveraging

quantitative and qualitative data

to deliver predictive demand signals

to enhance the effectiveness of

the planning process

2013 - Winner of European Supply Chain Excellence Award Category: Technology www.supplychainexcellenceawards.com

(*) HQs

Company Confidential All Rights Reserved 3

Customer References

Consumer Durables

250+ customer businesses in 31 countries loyalty greater than 95%

Food-CPG

Healthcare | Pharma | Chemical

Fashion & Apparel

Retail & Wholesale

Automotive & Aftermarket

TLC | Steel | Engineering

Demand Planning Inventory Planning & Optimization Replenishment Planning

Company Confidential All Rights Reserved



Twin Towers



Dot-com Bubble



13.200.000 copies in 2000 “No strings attached” (the second studio album by American boy band *NSYSNC



List of world’s best-selling albums

From Wikipedia, the free encyclopedia



Chi ha ucciso gli album di successo?



nel 2006 elencava già:

400 generi musicali (nicchie musicali) disponibili (ognuno con una propria top 10 o micro Hit)



Chris Anderson 2004

3D Robotics

2015



2006



Spending-power Revolution

From Mass Markets to Million of Niches



Selling Less of More. from 80-20 to 50-50 ratio

From Mass Markets to Million of Niches

Chris Anderson: The Long Tail



Most models used in “traditional methods” have proven to be clearly inadequate when demand patterns become so irregular and “noisy”.

The “long tail” problem is mainly due to: - increasing product ranges (same sales volume reached only with higher number of SKUs) - increased number of stocking points (forecasts required by DC’s/Customers) - shorter time-slots (daily/weekly replenishments rather than weekly/monthly)

Long Tail Problem: from a logistics point of view



How Many (More) Products Does Amazon Sell?

http://export-x.com/2014/08/14/many-products-amazon-sell-2/

An average of 75,000 new products added every day during the past nine months.



0

5

10

15

20

25

30

35

40

191

618

3127

4636

6145

7654

9164

0673

2182

3691

511

006

61

098

11

189

61

281

113

726

146

41

155

56

164

71

173

86

1830

11

921

62

013

12

104

62

196

12

287

62

379

12

470

625

621

265

36

274

51

283

66

292

81

3019

63

111

1

LO per day

95% of SKUs

55% of Sales Revenue

SKU sorted by AOL/day

Ave

rage

Ord

er

Lin

e p

er

day

by

SKU

Italian Distributor of Electrical & Electronic Components (35.000 SKS)



• ToolsGroup owns a unique Inventory Modeling technology, which was developed

to overcome many of the shortcomings of traditional inventory theory.

• The main relationship between service and inventory is modeled through

proprietary STSTM (“stock-to-service”) curves, where the service level (fill-rate)

is expressed as a function of the “average inventory” level (“coverage”) and

another dozen parameters, such as:

• Demand volume and probability distribution

• Order-line frequency and distribution

• Order-line size distribution

• Lead-time and supply uncertainty (delays)

• Minimum and Incremental lot sizes

• Optimal replenishment frequency

• Cost, cube, storage need, shelf-life, …

• Margin and lost sales probability

• Upstream service level / stochastic delay

Service Level (% fill-rate)

0 20 40 60 80 100

ToolsGroup: Inventory Modelling & Optimization



Supply Chain distribution intensive industries

CPG Sales Mktg.

Manufacturing

Comprehensive Statistical Model

ERP/SCP/SCE

Demand Planning

Demand Modelling

Statistical Forecasting

Promo, media, NPI

Demand Sensing

Demand Collaboration Hub

Inventory Optimization

Inventory Modeling

Service Planning

Mix, Stage & Lot Size Optimization

Multi-Echelon

Replenishment Planning

Dynamic Min/Max projected requirements

SC Monitoring & Visibility

Level Loading

VMI

Supply Collaboration Hub

Transportation Plan

Comprehensive Statistical Model

Predictive Demand Analytics

Market clustering Segmentation

Trade Promotion Optimization

Media event and trend indicators

ROI

Production Planning and Scheduling

Mill allocation

Finite capacity plan

ATP

Production Scheduling

MES

The ToolsGroup Solution.



• Largest online retailer of home goods in the U.S.

• Headquartered in Boston, Massachusetts

• Founded in 2002

• 422.000 SKUs

• 5,000 suppliers

• Key product categories include:

• Furniture

• Patio & Garden

• Kitchen & Dining

• Bed & Bath

• 1 Warehouse located in Ogden, UT (serving the western US)

• 1 Warehouse located in Hebron, KY (serving the eastern US)

Home goods (422.000 SKS)



RS Components is the World’s Largest Distributor of Electronics & Service Parts • Number of Items: 500,000 • Number of Customers: 1.5 Million • Number of WHS: 17 All over the world. • Daily deliveries: 40,000 same day shipments • Annual revenues: $2.5 Billion • Demand Patterns: Extremely Intermittent

Changing Requirements in Volatile Environment: •During downturn went from 9% growth to 17% decline •During upturn back to 25% growth overnight •Scale from UK focus to Global focus •From 5000 new products per year to 5000 per month •Include the 30% of items that had never been forecast before

ToolsGroup’s service-driven inventory optimization & Demand Sensing solution, to:

•Maximize Customer Service Levels

•Minimize Working Capital & Operating Cost

•Improve forecast accuracy and Safety Stocks

SO99+ Implementation duration:

•6 months

In less than three months from the project kick-off:

•$3.4 Million reduction in inventory

•Service Level has reached 99.8% (on time, in-full) “SO99+ does not require you to be an expert in statistics in order to use it, which is most critical.” Andrew Lewis, Head of Global Supply Planning, RS Components

https://www.youtube.com/watch?v=X1JiNEE6l3Q&index=2&list=PLA1692B42BC308804

Largest Distributor of Electronics & Service Part (500.000 SKS)





Q&A



Thank you for your attention

GARANTIRE LA DISPONIBILITÀ DEL PRODOTTO E IL GIUSTO ASSORTIMENTO IN TEMPO DI ECOMMERCE

Business

Transcript of GARANTIRE LA DISPONIBILITÀ DEL PRODOTTO E IL GIUSTO ASSORTIMENTO IN TEMPO DI ECOMMERCE