Inventory Management for Commerce Anywhere · • Maintains the supplier-item-location relationship...
Transcript of Inventory Management for Commerce Anywhere · • Maintains the supplier-item-location relationship...
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Inventory Management for Commerce Anywhere
Ramesh Cidambi Senior Vice President - I.T and Logistics Dubai Duty Free Carla Anderson Solution Market Director RGBU September 29, 2014
Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |
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Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Safe Harbor Statement
The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.
Oracle Confidential – Internal/Restricted/Highly Restricted 2
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Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Today’s Consumer Has Changed
will not wait for products to come into stock 87%
will search online or try another retailer to find the product they want
More than half want accurate inventory
31% have used click and collect for the first time
93
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Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Dubai Duty Free Ramesh Cidambi, Senior Vice President - I.T and Logistics
• Dubai Duty Free has grown into becoming the world’s largest airport retailer with sales approaching $2 billion USD
• Oracle E-business suite along with Oracle Commerce and Retail applications, in conjunction with an automated distribution center.
• These solutions support the extraordinary growth in its airport retail business; Serving 70 million passengers traveling through Dubai Airport.
Oracle Confidential – Internal/Restricted/Highly Restricted 4
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September 29th, 2014
RAMESH CIDAMBI
Senior Vice President - IT & Logistics
Dubai Duty Free
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AGENDA • Airport Retailing
• Dubai Duty Free and Oracle • Oracle E-Business Suite and Point-of-Sale
• Oracle Retail and Warehouse Automation
• DDF Online with Oracle Commerce
• The Future
• Technology
• Logistics
• Airport Development
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AGENDA • Airport Retailing
• Dubai Duty Free and Oracle • Oracle E-Business Suite and Point-of-Sale
• Oracle Retail and Warehouse Automation
• DDF Online with Oracle Commerce
• The Future
• Technology
• Logistics
• Airport Development
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Travel Retailing by Channel – 2013
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Travel Retailing by Region – 2013
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Travel Retailing in 2012 : $ 55 Billion
Dubai Duty Free is the single largest airport retailer in the world
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Dubai Airport
Terminals 1,2 and 3 Concourses A, B, C,F and D under construction
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Retail in Concourse C (1)
Serves Other Airlines (OAL). 22.6% of total sales. Opened April 2000
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Serves Emirates Airlines 37% of total sales
Retail in Concourse B (2)
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Concourse A – Liquor & Tobacco
Serves Emirates Airlines and especially A380s 21% of total sales
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Retail in Concourse F (Terminal 2)
Serves Fly Dubai and other budget airlines 7.5% of total sales, and fastest growing
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Terminal 1 Arrivals
Arrivals airside in all three Terminals are 9.7% of sales
Landside retail under 2%
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Dubai World Central
• Opened on 27th October of 2013 with 1.2% of total sales
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Concourse D – Opening Q1 2015
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Sales – 1984 to 2013
17% compounded growth over 29 years
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Sales Contribution – 2007 to 2013
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AGENDA • Airport Retailing
• Dubai Duty Free and Oracle • Oracle E-Business Suite and Point-of-Sale
• Oracle Retail and Warehouse Automation
• DDF Online with Oracle Commerce
• The Future
• Technology
• Logistics
• Airport Development
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DDF Technology Evolution
Timeline of Dubai Airport and Dubai Duty Free Expansion
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Point-of-Sale Features
• 550 NCR Dynakey Point-of-Sale Terminals
• Custom-built software to support airport retailing, including functionality for multi-currency, LAGs, and Flight data capture
• Robust application for running processing 25 million transactions a year
• Integration of credit card authorization with sale transaction (Visa, MasterCard, American Express, Diners, JCB and Union Pay)
• Supports ‘Chip and Pin’ to EMV standard
• Dynamic Currency Conversion (DCC) for Visa and MasterCard
• Digital advertising on Customer facing screens
• Payment Card Industry Data Security Standard (PCI/DSS) compliant, with encryption-decryption of credit card data using pin-pads
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Oracle E-Business Suite
Role of Oracle E-Business Suite
• Sales of USD 250 million in 2001, quadrupling to a 1 billion USD by 2008
• Oracle EBS supported the growth by:
– Maintaining tight integration within applications
– Robust database and technology in a 24x7 business
– Superior functionality in Financials, Payroll, Purchasing, Inventory Control and Business Intelligence
– Leading to improvement in business processes across functional areas
– Reducing time taken to close books each month from two weeks to 4 working days
– Minimal growth in ‘back-office’ employees
– Providing good quality data across the organization
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Oracle Retail
• Oracle Retail Applications added to the Oracle E-business suite within the applications stack
• Better management of master data
• Visibility and accuracy of stocks within the warehouse and across the organization
• Better management of price changes and promotions
• Increased efficiency in invoice matching
• Improved stock replenishment process
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Oracle Retail
Retail Merchandising System(RMS)
• Holds foundation data
• Maintains the supplier-item-location relationship for the life cycle of the product
• Well defined product hierarchy
• Allows better data analysis at all levels
• User Define Attributes (UDAs) allows to extend the hierarchy for deeper analysis
• Retail Organizational Hierarchy (Terminal 3 - Concourse A - Shop 1) helps in better data analysis as retail expands
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Oracle Retail
Retail Merchandising System(RMS) • Clear visibility of stocks at different buckets (on-hand, on-order, reserved, expected, in-
transit etc.)
• Easy to track stock movements
• Helps stock assortment planning
• Sophisticated auto-replenishment function
• Options to set min/max qty., delivery days, display stock qty.
• Cost management at location level for better control
• Grouping tools for easy creation of item-location assortment
• ‘Like-Store’ functionality simplifies item location to a new store
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Warehouse Management
Warehouse Management System (WMS) from Oracle Retail
• Absolutely necessary for an automated warehouse
• Management of receiving yard and put-aways
• Processes over 450 orders a day from retail outlets
• Segregates picks depending on which part of the warehouse item is available
• Consolidates items from different warehouse pick locations for shipment to outlets
• Interfaces with Material Handling and Control System (for automated warehouse) and other Oracle Retail applications
• Limited reporting within application
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Warehouse Automation
• Why Automate
• High Density Storage of palletized and tote items
• Efficient put-away process
• Fast Picking (190,000 picks in December) with both ‘picker to item’ and ‘item to picker’ options
• Ability to manage peaks (10,825 picks on December 18th with 396,307 units)
• Total of 1.9 million picks for 60 million units in 2013
• Average in 2013 was 6,000 picks
• Perpetual Count of inventory
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Warehouse Automation
First retailer with automated storage and retrieval system in region
Storage for 8160 pallets in Phase I and 12,464 in Phase II for total of 20,624
85% occupancy in pallet warehouse
41% of all picks in Phase I and 17% in Phase II
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Fast mover Pick Locations (1,440 and 32%)
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Item to picker in pallet storage area
Slow Mover Picking – 19,184 and 25%
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Tote storage – 10,400 totes with 97% occup.
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Tote Picking – 11% of picks
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Shuttle for Totes – 17,280 totes with 73% occup
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Shuttle System Picking – 31% of picks (2,139 daily)
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Issuing Area – 600 pallets a day sent
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DDF Online with Oracle Commerce
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DDF Online with Oracle Commerce
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Cataloging
Cataloging • Need to get the online hierarchy right
• Clear definition of the product attributes
• Defining data quality standard for images and attributes
• Catalog service provider must have
• Strong experience in online cataloging
• Technical expertise and the resources to aggregate data and deliver quality results in time
• Professional photography experience to custom shoot products
Challenges • Integrating with multiple catalog data providers using different methods
• Aggregating data from different source in different formats
• Getting approval from brand owners for the catalog data
• Standardizing image for size variants
• Sourcing data for new arrivals, travel retail exclusives
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Inventory Management and Fulfilment
Inventory • Items classified as ‘pre-orderable online’ or ‘In-store purchase’
• One single online catalog across all terminals
• Wider range of products for online customers
• Easy to manage
• No physical inventory set aside for online shop
• Online inventory is 10% of the shop stock
• Guaranteed stock availability for online customers
• Inventory rules can be set at category level
• Stocks refreshed periodically from Oracle Retail Merchandising System
• Price periodically refreshed from Oracle Retail Price Management
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Inventory Management and Fulfilment
Fulfilment • Fulfilment done from airport shops
• Special picking procedure for airport environment
• Custom developed Order Fulfilment Module
• Integrated with Oracle Retail for stock updates
Challenges • Stocks not always distributed across airport locations
• Fulfilment across terminals operationally demanding
• Increases the possibility of partially fulfilled orders
• Difficult to improve the fulfilment window
• knowing the exact collection point at the time of pre-order
• Change of collection points due to unplanned flight changes
• Results in increased number of uncollected orders
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Payment Gateway
Online Payment • Implemented Cyber Source payment gateway
• Cyber Source has enhanced fraud monitoring system
• Understanding needed of the rules in detail before deployment
• Impact analysis of enabling the rules helps
• Custom procedure to handle rejects due to fraud screening
Challenges • Change of payment gateway from MIGS2 to CyberSource
• Handling rejects from customers who were trusted earlier due to new rules
• Migrating FS & MM customers from legacy system
• Login issues due to old passwords not conforming to new standard
• Facilitating customer adoption to the new site
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DDF Online - Logical Flow
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Oracle Commerce Integration
Integration by application
• XML based using HTTP, SOAP based services
• ATG – Brand Bank (for Beauty, Liquor, Watches products)
• ATG – CNET ( for Technology products)
• ATG – Oracle Retail (for inventory, pricing, promotions)
• ATG – OFM ( for customer order details and status update)
• OFM – Oracle Retail ( for stock updates)
• OFM – Airport Systems ( for flight data)
• ATG – “ Win with DDF” ( for Finest Surprise & Millennium Millionaire)
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Hosting using OMCS
Oracle Managed Cloud Services (OMCS) • Server infrastructure and technology stack managed by Oracle
• Client must understand the environment in the fullest detail possible
• One production and two non-production instances
• PCI compliant with periodic reviews
• Well established administrative procedures
• Controlled production deployment
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Hosting using OMCS
Oracle Managed Cloud Services (OMCS) • DDF needed to engage Oracle Commerce deployment specialist
• Feedback to OMCS Management on:
• Preview instance for cataloging
• Read- only access to production logs
• Needed for first level trouble – shooting
• Need to raise SR to request for logs
• Problem resolution time increases correspondingly
• Need for read-only access to production database
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DDF Online with Oracle Commerce
Soft launch on Apr 28th , 2014 • To DDF staff and selected customers
• Included migration of Finest Surprise & Millennium Millionaire from corporate site
• DDF had an opportunity to
• Review feedback from customers and staff
• Smoothen FS & MM migration and stabilize
• Review and refine new fraud management rules with respect to payment
• Review and improve catalog assortment and data quality
• Review and refine the Order Fulfilment process
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DDF Online with Oracle Commerce
Public launch on Sep 21st, 2014 • Online catalog has over 2800 items from eight categories
• ‘Reserve and Collect’ service for passengers
• Departures - Concourse A, Concourse B Concourse C, Terminal 2
• Arrivals - Terminal 1, Terminal 2, Terminal 3
• Customers can place orders from 7 days to 48 hours prior to travel
• Payment for items made at the time of collection
• LAG restrictions and allowances will apply at the point of collection
• Sale of Finest Surprise and Millennium Millionaire tickets using CyberSource Payment Gateway
• 25,000 tickets sold, USD 6 million sales since the soft launch till 23-Sep-2014
• Average tickets per day - 175, average sales per day - USD 40,000
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DDF Online - The Next Steps
• ‘DDF Online’ primarily a customer service initiative
• Print campaign launched to advertise service
• Launch of online campaign imminent
• Build customer database
• Continue to expand the online assortment
• Explore possibilities of additional revenue stream
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Business Applications
Application Architecture
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AGENDA • Airport Retailing
• Dubai Duty Free and Oracle • Oracle E-Business Suite and Point-of-Sale
• Oracle Retail and Warehouse Automation
• DDF Online with Oracle Commerce
• The Future
• Technology
• Logistics
• Airport Development
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The Future
Technology • Financials, HR & Payroll
• Online Payments to suppliers
• Self-service applications for staff
• RFID for asset tracking
• Retail Operations
• EDI initiatives(eg. PO, Invoice) to increase supply-chain efficiency
• RFID inventory for better tracking and accuracy
• Location based mobile initiatives to better target in-store customers
• In-store kiosks for price checking and other services
• Point-of-Sale
• Mobile Point-of-Sale to improve customer service
• Real time inventory look-up
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The Future
Technology • DDF Online
• Accepting payments online
• Integration of promotions
• Option to shop from airport lounges
• Mobile apps for iOS and Android users
• Incorporate social media into DDF Online
Logistics • Expansion of tote warehouse, shuttle system
• High density, efficient AS/RS for very small items
• New initiatives
• Advanced vehicle tracking using e-Seal
• Improving supplier compliance levels
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The Future
Airport Development • Development at Dubai Airport
• Development at Dubai World Central • New USD 32 billion airport development
• 135 million passenger capacity in phase I
• Support facility to match passenger capacity
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Questions and Answers