1. …real time CRM
Supply chain optimisation
© Invite CRM, Ltd, 02/2011

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Reasons for broaden cooperation. Why now?
• Market
– Increased diversity of customers
– Understanding shopping behaviour – segmentation
– Tracking trends
– Increased margin pressures – need for higher effectiveness
• Supply chain optimisation
– Electronic data exchange
– Assortment optimisation
– Logistics optimisation
– Forecasting and replenishment
– Campaign management
Optimisation run since
80s in food retail –
Wal-Mart and P&G,
Tesco and ClubCard,
non-food is falling
back for now, but…

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Levels of cooperation – benefits for supplier
Supply chain optimisation
De/listing
Document management
Stock management
Deal clearing
Market data exchange
Basic sales data – categories, SKUs
Sales data combined with customer (data from loyalty program)
Complex data – substitutes, associations (transaction and market data)
Joint planning and management
Assortment management
ATL and BTL campaigns management
Event management

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Supply chain optimisation – detail
• Interface connects product catalogue with
POS, stock and accounting system on
both sides
• Supplier inputs its products in predefined
structure, consequently confirmed by
retailer – both sides view the same, actual
data – no duplicates, errors etc.
• Optimisation run in following areas
– De/listing
– Ordering
– Acceptance protocol
– Goods transfer – stores, DC
– Invoicing
– Goods sold in commission
– Possibility to connect to current EDI
Benefits:
• Single view at catalogue for
both sides – less errors
• Faster product list inputs –
de/listing process
• reduction in transaction costs
with key accounts with high level
of automation
• Reduction of cash levels bind in
slow moving stock
• More precise invoicing reflecting
in lower number of dispute items
and transaction costs
Transaction costs reduction (upto 80%)
Dispute invoice items reduction (upto 90%)
Manual process errors reduction (upto 80-90% according to level of automation)

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Effective supply chain model
purchasingportal
productcatalogue
supplier retailer
de/listing
pricing
clearing
campaignmanagement
ERP
distribution
sales
promotions
cash register
e-shop
warehouse

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Effective supply chain data flows

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Listing and maintenance process

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Market data exchange – detail
• Data exchange runs on 3 levels using the
same data interface as purchasing, only
extended by further data (content)
• Content is graduated according to
richness with adequate fee structure
• Basic rough data can be extended by
trends, basket data, data mining, decision
trees, cognitive maps etc.
• Thanks to Memrb participation data
interpretation, ad hoc projects is possible
Benefits:
• Supplier gets online view on
sales in required structure or
structure agreed with retailer
• Promo and campaign data are
available too
• Historical data are included,
later extended by predictions –
assortment and stock forecasting
• Sales data are combined with
customer perspective to optimise
marketing strategy
• As result achieving more
effective sales and brand building
• We expect full toy market
representation as other toy chains
will enter the panel
Data interpretation – VAS and ad hoc services
Complex data – substitutes, associations
(transaction and market data)
Sales data combined with customer (loyalty
program, promo reactions)
Basic sales data – categories, SKUs

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Data sources
Consolidated DB
Transactional data
Cash registers
E-shop
E-procurement
Research data
Primarily market data
Qualitative
Quantitative
Online behaviour
Corporate web
Community web
Public web
Market data
Sector data
Promo analyses

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What data will be available – examples
Over 100 types of analyses identified for more effective purchase and sales
• Social-demographic characteristics
• Interest profile
• Visit frequency
• Purchase value
• Basket structure – in different periods, occasions – Xmas, birthday, other
• What is purchased together – associations
• Relationship between age and toy preferences
• Purchase trajectory through store – reactions to display
• Main (destination) and supplementary items
• Substitute items (brands)
• Price sensitivity measurements
• Campaign reactions
• Event participation
• Responses to questionnaires – evaluation of brands, heroes, products etc.
• …

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Joint planning and management – detail
• Assortment management
– Aligning view at categories – as new
customer perspective
– Reflected upto store level
– More targeted positioning (why) of chain,
categories and correct understanding of
their roles
• ATL and BTL campaigns management
– Joint campaign planning based on
purchase decision knowledge and segment
expectations (obtained thanks to data
exchange)
– More targeted „value proposition“, higher
response rate, more effective retailer and
supplier brand building
• Event management
– Exploiting store floor space – entertainment
shopping, brand experience, active brand
building with target group participation
– Brand experience extension outside store –
loyalty program, customer portal
Benefits:
• Joint definition of „customer
value“ – what different customer
groups expect, how to present it,
how to communicate with them –
segmented approach
• Feedback on supplier marketing
strategy impact – target group x
marketing message x customer
reaction
• Better assortment planning,
campaign and results prediction –
lower stock, higher turnover
• More effective brand building –
involving all channels, including
point of sale events – „brand
experience“ concept coming alive

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Different views at categories…
Purchase perspective
• Toys
• Cars
• RCM
• Textile
• Jackets
• …
• Baby goods
• Nannies
• …
Reporting perspective
• Material
• Plastic
• Metal
• Wood
• SW
• Deal type
• Commission
• Direct sale
• …
• Topic
• Thomas
• Spiderman
• Barbie
• Lego City
• Lego Atlantis
Customer perspective
• Plush
• Pets
• Training
• Gifts
• Heroes
• …
• Family
• Social
• Games (Wii)
• …