COMMERCE TRENDS MORE THAN OMNICHANNEL - Crocs finds the perfect fit Fenix Outdoor: premium service for premium brands - Manhattan Associates
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A Manhattan Associates Magazine 2021/2022 COMMERCE TRENDS MORE THAN OMNICHANNEL Crocs finds the perfect fit Fenix Outdoor: premium service for premium brands What Groupe Dynamite, PVH and At Home say
MANHATTAN ACTIVE ® COMMERCE
OMNI TRENDS
A Manhattan Associates Magazine 2021/2022
Henri Seroux,
Senior Vice President EMEA
Manhattan Associates
More
During Momentum Connect in May, our CEO,
Eddie Capel, talked about shops that had been
‘put to sleep’ during various lockdowns and how
they were ‘beginning to awaken’ from their
than retail
enforced slumber again. It is not only the shops
that have awoken, but also the shopper that is in
all of us. How nice it is to go into town again; to
walk into a shop prepared or not, to try on a new
shirt; to have a chat during the checkout and to eat
a sandwich on the way home. After the hardships,
I sense around me a great urge to go out and
meet people.
It’s lucrative 22
I also sense this urge in myself, especially
professionally. In previous years, we would have
omnichannel
met in person around this time of year at our
annual event in one of Europe’s vibrant cities.
8
capabilities
Instead, we have been meeting through digital
events for a year and a half now. A lot of
knowledge has been shared, not only by us but
also by our customers, and many retailers,
wholesalers, brand owners and ecommerce
specialists have been informed and been inspired
Manhattan Active® 4
by these digital connections.
Omni is a cloud-based For many, our work also took place primarily via
suite of platforms that are digital channels. Hundreds of sales calls, product
always current and fully demonstrations, contract negotiations, software
implementations, product strategy discussions and
extensible, maximising your user training sessions were all conducted remotely
retail resources. via computer. Despite travel restrictions and social
distancing measures, there have been a number of
noteworthy results, including a record number of
10 14 global go-lives.
To learn more, visit
manh.com/active/omni
While we will not stop using this digital approach
completely, I have noticed a desire within our
business development, product and project teams
TABLE OF CONTENTS to meet people again. Perhaps not all the time, but
hopefully at regular intervals to bring extra energy
Unifying controls for a unified customer experience 4 into the collaboration process with our customers
Crocs and Manhattan find the perfect fit 8 and partners. That we, too, are going to meet each
Heads in the cloud 10 other again is clear. How exactly, we do not know
Warehouse technologies making their in-store debut 12 yet. Probably not at big international events across
Together in electric dreams 14 the capital cities of Europe, but rather at smaller,
What customers say about Manhattan Active® Omni 16 more intimate events nearer you. The opportunity
Five reasons to rethink your OMS 18 to catch up and exchange ideas in person will be
Next-Level business intelligence for retail supply chains 20 here soon and I am looking forward to it.
Fenix Outdoor: Premium service for premium brands 22 What about you?
The quiet revolution happening in your supply chain… 24
Wholesale success: supply chains make the difference 26
2021/2022 - COMMERCE TRENDS 3
UNIFYING CONTROLS FOR A
UNIFIED CUSTOMER EXPERIENCE “CONSUMERS NO LONGER WANT TO EXPERIENCE Microfulfilment centres
A DIFFERENCE BETWEEN THE PHYSICAL AND More recently, large investment programmes
DIGITAL SHOP. THEY WANT A UNIFIED, FRICTIONLESS have been set up to expand and improve the
The last 18 months have certainly shown how important EXPERIENCE ACROSS BOTH.” supply chain functionality needed to support the
developments in the changing view of commerce.
adaptability is. What makes the difference between Seroux mentions the rise of microfulfilment
W
success and failure is the unification of people, ith cautious consumer optimism, our centres near urban areas: “these form a new layer
high streets seem to be returning to in the distribution network between the central,
processes and technologies in the pursuit of one some kind of bustling normality. Seroux large-scale fulfilment centres and inner-city shops.
goal: a positive customer experience. Henri Seroux, added that he sensed a great collective urge for Microfulfilment centres make it possible to deliver
people to meet each other again. “Consumers quickly to consumers, perhaps even on the same
Senior Vice President EMEA at Manhattan Associates, enjoy the fact that they can shop again, walk into day.”
commented: “Our warehouse management and a shop with little hesitation and talk to people. To
ask for specific advice or just to have a chat about However, this extra layer in the distribution network
transportation management systems really deliver cross- a product. We really noticed during the pandemic, creates new challenges. Retailers cannot afford to
business value when deployed simultaneously.” just how important human contact is.” allow the total stock within the entire supply chain
to increase exponentially. “It’s not just about quick
At the same time, Seroux notes that retailers and and efficient execution in the supply chain, but
brand owners have achieved nothing short of also about stock optimisation. For example, where
miracles in terms of keeping commerce moving should I put my stock to serve the customer quickly
and customers engaged with the help of digital and most efficiently?
technology. “Retailers saw what consumers nee- “It is no longer enough to reserve one part of the
ded and responded to it brilliantly. They mobilised stock for the shops and another part for ecom-
their people, resources and stock and set up new merce. Perhaps we should also reserve part of the
propositions at lightning speed to meet these new shop stock for online orders that are prepared
and constantly evolving consumer needs. That is there in-store? A smart stock strategy leads to
not only really cool, but it’s impressive too.” better positioning of stock, shorter lead times, less
abandoned baskets and higher conversion rates.”
Unified experience
Much of the change that retail has experienced Agile supply chain
over the past year looks to be permanent. A stag- Above all, today’s supply chains need to be agile.
gering 80% of consumers who have tried new Manhattan CEO, Eddie Capel addressed retailers
shopping and delivery options want to continue at Momentum Connect, in May 2021, starting his
using them, and retailers will need to continue to keynote. “Boy, how we’ve learned to adapt to
offer popular propositions like curbside pickup. anything and everything. We’ve learned that spikes
“The majority of consumers have experienced the in demand can hit us at completely unexpected
great convenience that online shopping offers. times and be triggered in very unusual ways.
The number of orders they place through the
various digital channels will only increase,” “We have learned that spreading out peaks
continued Seroux. over longer periods of time can help reduce the
workload in the supply chain. And, we have
Thanks to propositions such as curbside pickup learned that the increasing demand for home
and ship-from-store, online and offline channels deliveries has put a lot of pressure on last-mile
have converged – a sign of the progress retailers carriers. But more than anything, we have learned
are making. “Consumers no longer want to that agility is critical to being able to respond to
experience a difference between the physical and whatever happens next.”
digital shop. They want a unified, frictionless
experience across both. An agile supply chain requires excellent commu-
nication and cooperation, through the unification
“Just look at the stats from our research. 21 per- of people, processes and technologies. “We are
cent of consumers expect shop assistants to be all connected as people. So why are we still using
able to check whether a sold-out product is in so many disconnected systems for sales, service,
stock in a neighbouring shop. 21 percent also fulfilment, distribution, automation and transport?
want to receive that product at home or pick it That disparate approach stands in the way of a
up in-store, while 17 per cent choose to order reliable, efficient, greener and more profitable
it online.” supply chain.” >
4 COMMERCE TRENDS - 2021/2022 2021/2022 - COMMERCE TRENDS 5
“IT CAN NEVER AGAIN HAPPEN THAT A NEW
FUNCTION IN THE TMS IS UNUSABLE BECAUSE AN
THE ABILITY TO FULFIL ONLINE GROWTH OUTDATED VERSION OF THE WMS BLOCKS IT.”
The pandemic had a catalytic effect on ecommerce growth, which looks set to
continue, albeit at a slower rate of 14.3% in 2021 globally.
So, the most important trend retailers must respond to is their ability to fulfil Scalable and versionless technology
online orders, both flexibly, efficiently and profitably. Manhattan responds to this with the Manhattan
Active® Platform, a suite based on the latest
microservice architecture that makes optimal use
CONSUMER EXPECTATIONS: RETAILER CAPABILITIES: of the possibilities of cloud-native technology.
As a result, the individual solutions within the
78% 57% platform are scalable, extensible, versionless and
of consumers consider home delivery to be one of the most of retailers report home delivery as their most popular therefore always current.
important delivery services when shopping online, through a customer delivery option, followed by click & collect 30%
catalogue, via mobile app or through a call centre and contactless/ curbside pickup 12% It all started in 2017 with the introduction of
Manhattan Active Omni supporting order
55% 44% management and point-of-sale, among other
abandon online orders before checkout due to high delivery can fulfil an online order from available shop stock things. Last year, it was the launch of Manhattan
costs for collection and shipping Active Warehouse Management and Spring
2021 saw the launch of Manhattan Active
34% 37% Transportation Management: a system that
would like to have a choice of couriers and delivery dates to 37% fulfil their orders from regional distribution can calculate eighteen million feasibility If a truck is about to leave late, supervisors can
fulfil the online order centres via their own trucks, or via a courier 33% considerations per second and adjusts its own click on an order to find out which tasks in the
parameter settings. warehouse are causing the delay and intervene by
18% 17% increasing the priority of those tasks. Conversely,
would like a choice of couriers with different cost options fulfil orders from available shop stock for The union of TMS and WMS if there is a delay in the order picking process,
collection only The Manhattan Active Platform means there is no supervisors can immediately check whether the
longer any need for integration. Architected on promised delivery time needs to be adjusted.
microservices and on the Google Cloud Platform
means all solutions are interconnected. Unified control
There are positive comments about the WMS and
SINGLE VIEW OF INVENTORY “The problem with integrating two systems is the TMS from customers and experts alike. “These are
lack of a common language,” commented two state-of-the-art solutions that really deliver
The store’s role will continue to expand, as more consumers shop online and expect Brian Kinsella, who is responsible for product value when they are implemented and used
a choice of flexible fulfilment options that can also extend the value of store-based management at Manhattan. “After all, a location simultaneously. Activities in warehousing and
assets. This only makes the need for single inventory visibility more pressing in the TMS is very different from a location in the transport can now be optimised and adjusted
than ever. With inventory visibility, retailers can optimise what is available online WMS. Without a common language, it is almost right up until the very last moment. For example,
without having to compromise on-shelf store availability. impossible to fully integrate these two systems. they can release picking orders in the warehouse
With Manhattan Active, we not only have a earlier because the result of the transport
common nomenclature, but also common planning from the TMS is immediately known in
CONSUMER EXPECTATIONS: RETAILER CAPABILITIES: components and architecture. As a result, the TMS the WMS. And a last pallet or roll container can
and WMS work symbiotically.” be added to the cargo moments before the truck
40% 81% leaves,” added Seroux
of consumers search online for the best offer of retailers’ in-store and online operations are interconnected Seroux explained the advantages: “users always
have the latest version of TMS and WMS, meaning Seroux recounts a recent conversation with a
38% 67% it can never again happen that a new function in supply chain director about the new
look to find out more about a product provide a network-wide view of inventory to store associates the TMS is unusable because an outdated version developments. “The unified control over the
via handheld devices of the WMS blocks it.” supply chain with real-time visibility over activities
35% in the warehouse and routes in transport is a great
check stock availability 40% Staying on top of change improvement. They can now switch faster and
of retailers allow customers to order a product online if it is The symbiosis of Manhattan Active Warehouse react to developments in the market more quickly,
21% out of stock in the store, 48% provide advice on fulfilment Management and Manhattan Active all made possible by the industry’s first truly
would like a shop assistant to check on an out-of-stock options, 48% offer buy online and return in-store, or buy Transportation Management enables companies unified supply chain execution offering.”
product to see if it is available at a nearby store in-store and return online 41% to address challenges for which solutions did not
exist previously. For example, until now, it was
21% 34% “THE UNIFIED CONTROL OVER
virtually impossible for customers to change or
THE SUPPLY CHAIN WITH REAL-
would like to order it to be delivered at home or in-store of retailers put returned products back on the shop floor or cancel an order after it was released by the WMS
TIME VISIBILITY OVER ACTIVITIES IN
make them available for picking in the warehouse. Now, this can be
17% THE WAREHOUSE AND ROUTES IN
done up until the moment the truck doors close
would like to order it online at home 9% TRANSPORT IS A GREAT IMPROVEMENT.”
and the driver departs the loading bay.
ship returns back to a distribution centre first
Source: report on meeting and exceeding customer expectations
6 COMMERCE TRENDS - 2021/2022 2021/2022 - COMMERCE TRENDS 7
“IN ORDER TO KEEP UP WITH THE INCREASING DEMAND WE NEED A PARTNER THAT
HELPS US THINKS SMARTER AND WORKS FASTER WHILE MAINTAINING EFFICIENCY
AND ACCURACY.” Dennis Boor, Senior Director of Distribution and Logistics, Crocs Europe BV
by the company’s own websites and those of other
CROCS AND etail partners. “The number of online orders has
increased tenfold in five years. Processing those
orders can be very labour-intensive. We have to
MANHATTAN change gears quickly and continuously work on
process improvement and capacity expansion in
order to be able to absorb the online growth,”
FIND THE says Dennis Boor, Senior Director Distribution and
Logistics at Crocs Europe BV.
Boor relies heavily on WMOS. “First of all because
PERFECT FIT it is a very reliable and stable system, but also
because of the ease with which we can control all
those different flows. As clients’ expectations rise
and our flows and processes change as a result,
Crocs, Inc., recognised around the world for their iconic Classic Clog, entered the Covid-19 we can easily adjust the configuration in WMOS.
pandemic with incredible momentum. That momentum was not only maintained but increased Configuring and optimising With its intuitive use, it is easy to train new
in 2020, recording a record annual revenue of $1.4 billion USD. Demands for the iconic footwear In order to be able to pivot quickly, Boor’s employees and have them up to speed quickly.”
team remains in close contact with the Stenger has seen how the relationship with
continue to accelerate, as partnerships with a range of collaborators – from luxury fashion brands commercial team. Their forecast provides insight Manhattan has developed since the start with
and musicians to cultural icons – are helping drive interest. As a result, more and more consumers into the expected demand and is prepared WMOS in 2007. From a software provider like
for those demand spikes by utlising Supply many others, Manhattan has grown into a strategic
are discovering the importance of being comfortable in their own shoes. Chain Intelligence, an add-on from Manhattan partner. “We use their cloud services, managed
Associates. “With this tool we can analyse the services and premier support. In addition, WMOS
data from the WMOS and make data-driven is an extremely reliable and stable system. At the
T
he brand’s current and anticipated Manhattan helped us with selection and decisions. For example, what does the demand most critical moments, the system never lets us
acceleration demands the utmost from implementation, reducing an 8-12-month project mean for our fast movers and slow movers? down. “
Crocs’ supply chain. The Manhattan to one of 2 to 3 months. That speed provides us We also use Manhattan’s labour management
Warehouse Management Open Systems with a great competitive advantage.” solution to gain insight into the performance and Super stable
(WMOS) plays a crucial role in this dynamic competences of employees. This is crucial to be Boor also emphasised high availability and stock
supply chain. “We are looking for global partners Different flows able to respond quickly, now and in the future. accuracy of the system. “Whatever we think we
who understand our markets and consumers. What makes the supply Because of the rapid growth and dynamics in the can sell from stock is actually in stock. And when
Manhattan Associates has a team of experienced chain even more complex is market, we have to keep monitoring whether we we receive an order, the chance of missing it is
professionals who know how to use technology the large number of can still manage the workload, and if necessary very small, making our operation efficient and
to solve problems in retail, ecommerce and different flows that the distribute the workload better. Our supervisors reliable.” WMOS serves as a more important
distribution. It is partners like Manhattan distribution centres handle. and team leaders have real-time information at ‘enabler’ for Crocs’ success, explains Boor.
Associates who help us to be flexible and create The European distribution their fingertips with Labour Management.” “The reason for the success is that we have been
the distribution network needed to facilitate our centre supplies national The ease of use is contributing to the effici- able to quickly convert all parts of the company
growth. Faster than we thought possible,” says distributors in Southern ency, says Karen Stenger, Senior Manager of IT to the new world with new methods of selling and
Mike Feliton, Senior Vice President and Chief and Eastern Europe, Applications at Crocs. “That is one of the biggest different order profiles. To keep up with the
Information Officer, Crocs. internationally operating advantages of WMOS. This is especially true for growing demand, we needed a partner that would
WMOS plays an important role in the digitalisation retailers, local shopkeepers the employees on the floor, who interact the most help us work smarter and faster while maintaining
of the supply chain. The integration with Dematic and Crocs retail stores with the system via their handheld terminals. We efficiency and quality. As we grow, Manhattan
shuttles, 6 River Systems robots and the handheld across the region. can create consistent workflows with WMOS, which grows with us.”
terminals from Zebra has resulted in a completely The digital channel is leads to standardised, measurable processes.
paperless operation. Feliton: “We did not have becoming increasingly
any experience with automation and robotisation. important, which is formed
CHALLENGE: SOLUTION: RESULTS:
Crocs is growing at Manhattan Warehouse With new distribution
a tremendous pace. Management for Open centres in North
The brand needed a Systems (WMOS) America and Europe,
“TOGETHER WITH THE MANHATTAN TEAM WE REGULARLY DISCUSS
warehouse management enables Crocs to driven by WMOS, Crocs
VISION AND STRATEGY. THEY UNDERSTAND THE CHALLENGES
system that is agile and expand its distribution is ready for the next
IN OUR SECTOR LIKE NO OTHER. AND THEIR KNOWLEDGE OF
flexible enough to keep network and adapt to spike in demand.
WAREHOUSE MANAGEMENT IS UNPARALLELED.”
up with the company’s the rapidly changing
Mike Feliton, Senior Vice President and Chief Information Officer, Crocs
accelerated growth. demands of a dynamic
market.
8 COMMERCE TRENDS - 2021/2022 2021/2022 - COMMERCE TRENDS 9
HEADS IN THE CLOUD THE FIRST
In an increasingly digital, globalised world, where real-time data MAJOR
and consumer expectations fuel the need for immediate results,
organisations today are faced with an often-confusing myriad of
CLOUD-NATIVE
challenges when it comes to meeting brand promises: not least, WMS
how to source, purchase, and deploy applications to support According to Gartner’s latest assessments,
Manhattan Associates “has rewritten its
critically important supply chain operations. WMS and TMS using a microservices
architecture that allows continuous
innovation, updates and extensibility in a
A
round the world, no two organisations MOST ORGANISATIONS cloud native environment.” Ultimately,
are undergoing digital transformation for TODAY ARE STILL offering the only true, unified supply chain
the exact same reasons; each journey, LIMITED IN THEIR ABILITY execution offering currently available
while similar, will ultimately be unique, making the TO ADAPT AT PACE today.
ability to pivot, innovate and scale in one’s desired AND DELIVER AGILE
direction so important. Some organisations will SOLUTIONS TO EVOLVING The fact that we have been recognised
be looking to exploit new market opportunities or CHALLENGES. as the leader in the WMS space for 13
deliver better experiences, while others may be consecutive Gartner Magic Quadrants, and
reacting to the increasing pace of innovation or the first major vendor to rewrite WMS
responding to competitive disruption. Some will onto a microservices multitenant cloud
likely want to address all of these points and more. architecture (fully supporting composbility,
Despite the multiple and varied reasons driving integrated platforms on a common architecture’ extensibility and zero upgrades) is
change, all organisations do share areas of approach. A legacy portfolio approach is one that affirmation of our commitment to the Gartner’s survey of supply chain professionals
commonality; not least, the compelling need to offers multiple functional applications that might platform-first approach to supply chain shows that most organisations are focused on
address the accelerating pace of business change, share some elements such as single sign-on, convergence and the concept of the integration across core supply chain processes
as well as the requirement to be more effective but which are for the most part still stand-alone composable enterprise more widely. and the extended value chain -in other words,
when it comes to delivering new business applications with their own unique process and supply chain convergence. According to the
opportunities. Most organisations today, however, data models, not written on a common shared same survey, analysts Dwight Klappich and
are still limited in their ability to adapt at pace architecture. Christian Titze suggest that organisations are
and deliver agile solutions to evolving challenges. An integrated converged approach (commonly showing strong signs of wanting to engage with
This is primarily due to the state of application built on cloud-native, microservice architected fewer supply chain vendors, thus reducing the
portfolios, which are often unnecessarily platforms), by contrast is one that has all of complexity and work involved in implementation,
complicated, outdated, difficult to change its applications built on a shared technical integration, support and maintenance; essentially
and often still aligned to older, now redundant unfractured architecture; from the data and endorsing the modern platform-first vision,
technology strategies. process modelling, right through to the actual elegantly embodied by the Manhattan Active
user experience itself. Supply Chain suite of solutions, encompassing
Seamlessly integrated WMS, TMS and OMS on the same platform.
To deliver on the true value of digital Platform-first approach
transformation, organisations need applications Manhattan Active Warehouse Management Unified execution
that can be assembled, reassembled, extended along with the most recently launched Manhattan As we set our sights on 2022, the convergence of
and operated at the pace of business change. Active Transportation Management solution supply chain applications across single platforms
They need applications that can work effectively brings TMS and WMS functionality is going to become increasingly important for
interoperably, seamlessly and provide any under the same platform ‘roof’, allowing for a fully organisations across all verticals. To deliver on the
member of the team with the full transparency, transparent view of inbound and outbound goods true promise of digital transformation within the
extensibility and levels of personalisation needed from the warehouse environment to the front Gartner Magic Quadrant for WMS supply chain space, 21st century organisations
to immediately affect change. door of the end customer. This game-changing need to be agile, responsive, scalable and fast. In
Gartner outlines two contrasting (some would approach to previously siloed areas of supply order to deliver this however, they will also need
argue philosophical) architectural models for chain execution, highlights the elegance of supply technology architecture and applications that
supply chain applications: it ultimately comes chain convergence and underlines the Manhattan can be assembled, reassembled and extended to
down to a simple discussion around a ‘loosely commitment to a platform-first approach to remain competitive.
coupled portfolio of solutions’ versus ‘seamlessly supply chain execution.
10 COMMERCE TRENDS - 2021/2022 2021/2022 - COMMERCE TRENDS 11
However, most store staff aren’t currently trained
on picking or know where every item is in store.
And how do staff pick orders, rushing around
the store to meet deadlines, while customers
shop? The last thing retailers want is to aggravate
customers. So what’s the solution?
Six warehouse technologies
For good retailers to survive the ‘new normal’, a
change in mindset needs to take place. Stores
need to rapidly adapt and technology strategies
need to follow suit. The good news is that proven
technologies already in use in the supply chain can
be migrated to stores to help associates quickly
become comfortable with new processes and new
retail environments.
These technologies serve retailers’ brick and
mortar workflows and systems well, even if a level
of optimisation may be needed during integration.
For example:
4 Augmented reality (AR) addresses many use
1 Pick-to-light is a solution typically found in
warehousing but is now ideal for use in retail,
cases in the store environment. An AR-enabled
device can show alerts or flags on a screen to
adding speed and flexibility in picking while help associates find the items they need to pick.
eliminating errors in the process. It leverages It can address the picking workflow and also
technology such as electronic shelf labels (ESL) identify issues at the shelf. New technologies and
which have seen a varied uptake in warehousing applications such as this engage younger workers,
environments, mainly due to the inability to and motivate/enable them to be more productive.
WAREHOUSE TECHNOLOGIES demonstrate a return on investment (ROI).
However, ESLs are now facing a resurgence in
retail. A store associate clicks on the item to be
5 Another technology to consider are ‘cobots’,
which are collaborative robots that help
MAKING THEIR IN-STORE DEBUT picked on their mobile computer, triggering the
ESL to blink red indicating the location of the item.
The item can then be found quickly and easily.
associates move picked items to the packing or
staging station. This helps associates to be more
productive while protecting them from injury,
This technology could also be used by shoppers important at a time when companies are facing
The pandemic has forced many stores to become part showroom/part who want to find items fast by being built into a labour shortages and increasing labour costs.
retailer’s loyalty app.
distribution centre practically overnight, increasingly blurring the lines between
what was ‘traditional’ retail and an environment that looks more like a warehouse. 6 Location sensing technology is also a highly
2 Heads-up displays - smart glasses - paired
with small finger-mounted ring scanners often
effective option in ‘new retail’. The picker uses a
handheld device to select a product to be picked.
There are six warehouse technologies that could make it to the store. used in warehousing are now also relevant in The device and locationing technology shows
retail, dramatically improving picking speed and them the most efficient route to locate and pick
C
onsumer attitudes toward retail have The picking conundrum accuracy. Workers ‘see’ the item they need to the item, making it a faster, more streamlined and
changed at a record rate. Some customers Today’s customers are far more discerning pick in their field of vision and quickly scan it as less tiring experience for the associate.
are keen to get out to brick-and-mortar compared to 18 months ago when people were they place it in their basket or trolley. Picking is a
stores for experiential retail therapy. Others simply grateful to receive some kind of click and hands-on task. So, by making it handsfree using What about data?
are inclined to continue online shopping. As a collect service or door drop delivery. One bad a ring scanner, retailers save time and reduce the In order to implement any new technologies
result, retail stores are adopting processes and experience can make all the difference when physical impact on the staff member. in your retail environment you’ll need clear
technologies that were previously only used in it comes to customer loyalty. Repetitive issues performance data to calculate the ROI. Advanced
Mark Delaney,
warehouses to meet new consumer demand.
Meanwhile, store associates have had to adapt
will damage a retailer’s reputation and influence
all those who hear about them through word of
3 Another fulfilment approach is the dark store,
which essentially turns a store into a distribution
analytics can tell you where certain technologies
make sense and reduce the time needed to trial
Retail Industry to picking and packing items for the new tranche mouth and social media. Both online and in-store centre. Customers aren’t allowed in and pickers them. Regardless of vertical, it is hard - likely
Consultant, of online shoppers, as well as continuing to customers can now be negatively impacted by can pick what they need quickly and easily impossible - to make margin if you’re using old
Zebra stock shelves for in-store customers. Inventory order pickers’ actions and a retailer’s overall without customers getting in the way. It’s ideal for technologies and workflows. Customers now
Technologies receiving, put away, returns, reshelving, and price ecommerce operations. underperforming stores with years left on their demand more speed and accuracy regardless
management were always part of brick-and-mortar lease - making the most of the retail space they of the way they shop, so having the right
retail operations. Picking, packing and quality have available. It also enables zone picking, so technologies and data in place to support
control inspections were not. pickers can focus on one specific area. changing demands is critical.
12 COMMERCE TRENDS - 2021/2022 2021/2022 - COMMERCE TRENDS 13
Challenges in transport Need to rethink sustainability
TOGETHER IN management The majority of global companies need to rethink the way
they look at sustainability within their supply chain. “While
ELECTRIC DREAMS Electrifying transportation leads to new challenges in
transport management. “Accelerating the switch to
electric goes beyond simply buying new vans more
companies that are moving fleets from petrol and diesel
to electric are leading the way, many companies may not
have private fleets, or the private fleets make up only a
quickly. Final mile delivery fleets also need to adapt their percentage of all of the freight that company is
fleet management systems to maintain operational responsible for”, says Christian Piller, Vice President
efficiency while transitioning at speed”, says David Quin, Research and Sustainability at Project44.
Strategic Partnerships Director at Trimble MAPS.
“There are three high-level challenges that must be
“Although electric vehicles are generally well-suited to solved prior to truly rethinking supply chain sustainability.
high density deliveries in an urban area, their introduction The first is accurate and real-time fuel consumption,
may require revised operational planning, route weight, and emissions data. The second challenge is
optimisation based on range constraints and the ability decreasing inefficiencies that cause trucks to idle and
to include charging stops during a working day.” pickup and delivery. And last but not least: companies
need to create the ability for planning systems to
contemplate emissions in addition to cost and lead time.”
Manhattan Partner Manhattan Partner Project44
Trimble MAPS provides connects, automates and
cloud-based route provides visibility for ship-
optimisation, mapping pers and third party logistics
In order to move towards net zero carbon emissions, more and more and in-vehicle navigation firms into key transportation
technology for many of processes to accelerate
companies are looking at electrifying their fleets. A competitive spirit insights and shorten the
Europe’s leading parcel
emerges amongst food retailers on the road to transport sustainability. and home delivery fleets. time it takes to turn those
insights into actions.
UK
supermarket chain Asda said the commitment of individual businesses and the From a transportation perspective, the big electric transportation to ferry
in July that its fleet of staff whole UK to net zero carbon emissions by 2050, in grocers operate the largest distribution fleets – its click and collect orders from
vehicles will comprise only line with the Paris Accord climate goals. and they are all battling to make their collection stores to pick-up points.
electric company cars by 2025, as the retailer The move is driven from within too, with Asda of vehicles more sustainable, which would make a
accelerated its sustainable transport plans amid saying the change comes after 85% of its significant difference to retail’s overall impact on Electric avenue
the environmental awakening taking place in the workforce who opted for a company car as part of the environment as it moves goods from A to B. At the turn of the millennium,
world of commerce. The grocer’s switch away from their benefits package chose to go electric. Companies are acknowledging the seriousness the grocers were involved in
Ben Sillitoe, diesel and petrol to electric is expected to remove Petrol and diesel vehicles will be off Asda’s of the climate crisis, which is motivating them into a highly competitive race for
Founder and 2,411 tonnes of CO2 from its operations over the fleet by June 2025 – five years before the UK action. However, it seems the UK’s grocers’ space - as the number of super-
Editor of Green next four years – all important when considering government’s general ban on new petrol and perennial competitive spirit is also a factor in markets in the UK ballooned
Retail World diesel vehicles comes into force – in evidence bringing about change. and different formats
the retailer is taking this particular transportation materialised. Now the race
policy very seriously indeed. Other retailers appears to be centred on who
Tesco is aiming to fully electrify its home delivery can electrify their transportation quickest.
Build back better fleet for its dotcom business by 2028. Currently, The good news is that with environmental
I’m not one for government slogans in general, the UK’s largest retailer operates just over 5,000 benefits attached to such strategies, we’re all
but the ‘build back better’ mantra that has gained vehicles, of which only a small percentage are victors in this particular battle. We’ll then hope to
traction among politicians following the easing electric-powered. Co-op procured its first electric see that competitive spirit continues in other areas
of pandemic lockdown measures in the UK is one vehicles for online home delivery, last December, of transportation strategy, such as warehouse and
I support. Particularly, the push for a greener and aims to replace its fleet of fossil-fuel powered distribution efficiency, which will also go a long
economy within that wider call to action. And it home delivery vans with electric alternatives by way to making retail a more sustainable industry.
appears many retailers are on board with it too, 2025. Sainsbury’s, meanwhile, claims to be the first
highlighted by their propensity in recent months UK grocer to introduce fully electric refrigerated Green Retail World is an online trade title monitoring best
to kick start new environmental drives, embed trucks to its delivery fleet, which it says do not practice in greener retailing, and covers stories ranging
more eco-conscious processes into operations, emit carbon or particulate matter such as dust, from retailer recycling strategy to sustainable retail supply
and appoint dedicated directors of sustainability dirt, soot or smoke into the air. In addition to its chain practice. Take a look at https://greenretail.world/
strategy. company car policy, Asda has also turned to
14 COMMERCE TRENDS - 2021/2022 2021/2022 - COMMERCE TRENDS 15
Groupe Dynamite:
WHAT CUSTOMERS SAY ABOUT Personalised shopping
experience
MANHATTAN ACTIVE® OMNI Groupe Dynamite, owner of the popular Dynamite
and Garage fashion brands, creates, designs,
markets and distributes a constantly evolving
collection to more than 300 retail stores in the U.S.
Manhattan Active Omni is a first-of-its-kind, unified commerce application designed and built and Canada. The retailer has selected Manhattan
Active® Point of Sale to deliver a more modern,
to profitably deliver on the omnichannel customer experience promise. Born in the cloud with customer-centric shopping experience.
a microservices architecture, its order management system (OMS) is the most advanced order “We wanted to add the latest fulfilment methods,
like buy online pickup in store and ship from store
orchestration and optimisation solution ever built. Manhattan’s OMS gives retailers complete, capabilities, but were limited by a legacy POS “Groupe Dynamite leverages Manhattan Active
real-time control of customer transactions, inventory visibility and availability, and orchestration with an inflexible architecture,” said Marie-Soleil Omni’s robust Order Management, Store
Tremblay,Senior Vice President Sales, Operations Fulfilment and Store Inventory Management
of orders across the enterprise. What do our customers say about Manhattan Active Omni? & RPI, Groupe Dynamite Inc. “Manhattan’s POS functionality. We are so pleased to be able to add
solution will give our retail associates the state-of- a leading point of sale solution, with its advanced
the-art tools they need to provide a modern and omni-cart and clienteling functionality, to this
personalised shopping experience.” powerful application suite,” continued Tremblay.
“MANHATTAN’S POS SOLUTION WILL GIVE OUR
RETAIL ASSOCIATES THE STATE-OF-THE-ART
TOOLS THEY NEED.”
PVH: Access to in-store the problem. In just three weeks, fulfilment
inventory processes were rerouted, expanding capacity for
ecommerce sales and increasing the available
PVH is one of the most admired fashion and assortment for online shoppers. PVH is now incor-
lifestyle companies in the world with a portfolio porating ship-from-store efforts into its regular fulfil-
that includes the iconic Calvin Klein, TOMMY ment model to maximise sales and meet customer At Home Group: Agile “Our success has been driven by three key
HILFIGER, Van Heusen, IZOD, ARROW, Warner’s,
Olga and Geoffrey Beene brands, as well as the
expectations for fast, convenient shopping. “Clearly
our agility was a great tool as we tried to mitigate
fulfilment network competitive advantages: a differentiated home
décor concept, a highly efficient operating model
digital-centric True&Co. As the COVID-19 pande- the business impact of the pandemic. Our store At Home Group Inc., is a home décor superstore and a deep understanding of our customers,”
mic spread, PVH’s stores were temporarily closed operations played a vital role by quickly adopting with 225 locations in the United States focused on said Julie Coffman, At Home’s Vice President of
to comply with governmental orders. Demand new procedures to pick, pack and ship online orders providing the broadest assortment of products to Ecommerce and Omnichannel.
through digital channels grew exponentially, to consumers. These efforts are a proof point of our suit every room, every style and every budget. “Implementing Manhattan’s OMS will enhance our
driving the need to access in-store inventory to overall ability to adjust to shifts in behaviour to best To enhance its already successful retail operations, performance in all three of these areas and allow
expand consumer options and enable fulfilment serve the consumer now and into the future,” At Home recently selected Manhattan’s OMS At Home to build an agile, powerful and fully
of orders. PVH leveraged its longtime partnership according to Eileen Mahoney, EVP and CIO, PVH. solution to provide a more modern omnichan- optimised fulfilment network tailored to the needs
with Manhattan Associates, and the flexibility of nel customer experience and improve in-store of our customers.”
Manhattan Distributed Order Management, to solve fulfilment.
“OUR STORE OPERATIONS PLAYED A VITAL ROLE BY QUICKLY “MANHATTAN’S OMS WILL ALLOW AT HOME
ADOPTING NEW PROCEDURES TO PICK, PACK AND SHOP TO BUILD AN AGILE, POWERFUL AND FULLY
ONLINE ORDERS TO CONSUMERS.” OPTIMISED FULFILMENT NETWORK.”
16 COMMERCE TRENDS - 2021/2022 2021/2022 - COMMERCE TRENDS 17
THE LAUDED
FIVE REASONS TO HERO OF
RETHINK YOUR OMS DIGITAL
BUSINESS
Faced with the challenges of national lockdowns and Overnight, fulfilment options (like ship-
from-store and curbside pickup) became
the subsequent shifts in consumer behaviour towards the difference between survival and
ecommerce, curbside collection and ebookings, many collapse in the face of sudden shifts in
consumer needs and mandated limitations.
brands have had to get creative and accelerate their The demands of the time have forced
journey towards digital services over the last 18 months. retailers to innovate at an unprecedented
pace. Delivery must be personalised how
Scaling up to provide these new types of service doesn’t and when consumers desire – at home or
happen over-night however, and a modern, future- in-store, today or tomorrow. Fulfilment
strategies, sales and support must be
ready order management system (OMS), capable of consistent.
integrating flows of data from multiple channels into one
Manhattan is proud to have
manageable work stream is a key for today’s retailers. been named the only leader
in The Forrester Wave™:
Order Management Systems,
Q2 2021. By receiving among
the highest scores in the
1 OPTIMISING ORDER SOURCING
Optimising order sourcing is one of the great
criteria of enterprise inven-
tory management, fulfilment,
strengths of an effective OMS, allowing brands to and pre-purchase customer
use the stock present throughout an entire experience, Manhattan has
network, wherever it is located. For example: solidified its place at the top
retailers could use physical stores in urban areas of omnichannel capabilities and is a best fit
to offer same/next day delivery; while at the same for well-resourced enterprises with complex
time, favoring warehouse stock for less time- needs that require a mature solution.
sensitive orders.
2 COST-EFFECTIVE OMNICHANNEL OFFERINGS
A smarter OMS can give a brand the confidence
5 MOVING TO THE CLOUD
The global pandemic has brought about
to communicate a precise delivery promise to a dramatic changes in the retail sector and the
customer very early in the customer journey, with ability to adapt, evolve and pivot has meant the
research showing that (source: UPS) conversion difference between staying in business or folding
rates increase up to 30% when a brand for many. If retailers are to continue to innovate
communicates a precise promise and date on and meet continually shifting consumer expectati-
a product page. ons then they must consider the potential benefits
a cloud-based OMS can offer.
3 TRANSFORMING YOUR STORES AND
ASSOCIATES
4 MAKING RETURNS A POSITIVE CUSTOMER
TOUCH POINT Takeaways
A modern OMS will typically have some form of An OMS can help customer service teams to A smarter OMS is no longer a ‘nice to have’ for
customer engagement add-on module which can transform the returns process. Products in good retailers, it is a ‘must’. Modern, cloud-based order
be used by both customer service and in-store condition can be immediately integrated back into management systems have the capabilities to
teams. Combining the interactions between the the global stock pool, making them available for support retailers by transforming how stores are
brand and its customers via website, app, social sale again, while also making the whole refunds used, empower associates to drive richer customer
networks or physical in-store visits, makes for a far process far more transparent and communicable experiences, and they can also help turn tricky
more engaging and enjoyable brand experience to customers – a boon for brand advocacy returns processes into powerful brand differentia-
for customers. and loyalty. tors too.
18 COMMERCE TRENDS - 2021/2022 2021/2022 - COMMERCE TRENDS 19AS A RETAILER RUNNING A COMPLEX SUPPLY CHAIN, YOU DON’T NEED TO STICK
WITH THE STATUS QUO. YOUR TRANSFORMATION CAN BE ACHIEVED BY LEVERAGING
DATA TO POWER INDIVIDUALISED PROCESSES, WHICH WILL SET YOUR COMPANY
APART FROM THE PACK.
• Supply network design: retailers are using this flexible, lightweight unified data platform to sup-
process to make decisions on the distribution port thousands of users with minimal
network and the recycle and return process. maintenance, and can be hosted in any cloud or
on-premises.
Supply Chain Monitoring • Integrated actionable insights: BigQuery
• Track & Trace: most retailers have only a enables you to operationalise machine learning
connection to their direct suppliers, but lack and predict business outcomes easily without
information on their suppliers’ suppliers and their the need to move your data from the data
locations. Building an effective track & trace platform. Looker offers an out-of-the-box BI
process requires a network of companies sharing application and APIs to power custom data
information, with technology such as satellite applications and integrate insights into
NEXT-LEVEL information for deforestation, water, agriculture
and mining efforts, which can enable an ongoing
monitoring process.
downstream workflows.
BigQuery and Looker can also help you unlock
BUSINESS • Analytics & Reporting: collecting all this
information requires a scalable data lake and
the integration of many data sources.
benefits using custom data experiences:
• Accelerate time to value: save 70% of your
analysts’ time by leveraging Looker’s modern
INTELLIGENCE Supply Chain Operations
• Risk prediction: having the data available
modeling to understand customer behaviour
faster1.
• Significantly lower costs: lower your
FOR RETAIL enables the possibility of predicting risks. This
information can be used to determine inventory
levels and a much faster response to increasing
organisation’s total cost of ownership by 26-34%
in three years2.
• Democratise insights: empower employees to
SUPPLY CHAINS risk levels.
• Disruption management: currently retailers are
only making short term decisions based on cost
answer their own questions without asking an
analyst, to enable data-driven decision making
across the bank.
impacts. Disruption management needs to take
risk management and sustainability information Leveraging data
into account to guide supply chain professionals. In addition, Manhattan Active® Supply Chain
leverages the power of Google Cloud to also solve
Actionable insights for a resilient and sustainable supply chain.
As digital activity in this industry rises, it leads Manhattan Active Supply Chain is a single,
The world of supply chain and logistics is rapidly growing and building resilient and sustainable to an explosion of data across multiple cloud-native application, built on Google
organisational functions. This data is often siloed Cloud, that includes Manhattan Active
supply chains has become a key priority for companies in every industry, and every region of the and imperfect, making it difficult for retailers to Warehouse Management, Manhattan Active
world. The COVID-19 pandemic, along with extreme weather patterns, and other challenges, make the most accurate and best business Labour Management and Manhattan Active
decisions. The goal is to build next-level business Transportation Management to help drive true
pushed existing supply chains to the brink and exposed the weakness of current designs and intelligence on a scalable, secure, and integrated system convergence across every element of
execution. What does it take to create resilient and sustainable supply chains? data platform. That means capturing data and distribution and transportation.
break down silos with a serverless, highly scalable
data warehouse, creating actionable insights to As a retailer running a complex supply chain,
T
he retail industry in particular has seen Supply Chain Design make better decisions and managing and you don’t need to stick with the status quo. Your
challenges with worker availability, • Product innovation: this process has by far the governing data and insights in an integrated transformation can be achieved by leveraging
distribution, safety and health mandates biggest impact on building a resilient and platform. data to power individualised processes, which will
and customer journey digitalisation. When sustainable supply chain. It starts with the set your company apart from the pack.
creating a resilient and sustainable supply chain decisions on which (reusable) materials/ Google Cloud’s BigQuery and Looker solution can
the following should be taken into account: ingredients/components are being used, what help drive actionable insights and support better
packaging material is required, where to source business decisions: Sources:
from and finally it determines the production • Scalable, secure & governed: BigQuery is a 1 Based on internal Looker benchmarks,
Alex Rutter, process and therefore the energy consumption. highly scalable, fully managed enterprise data last updated Q1 2020.
Director & Head Currently no company is capable of considering warehouse solution with gigabyte- to 2 ESG, The Economic Advantages of Google BigQuery versus
of Retail, CPG & all these constraints holistically and therefore petabyte-scale storage and SQL queries. Alternative Cloud-based EDW Solutions, September 2019
Travel, Google only makes point decisions. It secures data with access controls and
Cloud UK & compliance assurance support. Looker is a
Ireland
20 COMMERCE TRENDS - 2021/2022 2021/2022 - COMMERCE TRENDS 21PREMIUM SERVICE
“A THOROUGH SOLUTION AND MARKET KNOWLEDGE ARE THE DETERMINING FACTORS TOWARD
ACHIEVING PEAK PERFORMANCE IN WAREHOUSE MANAGEMENT, NOW AND IN THE FUTURE.”
Marcel Gerrits, Global Supply Chain Director Fenix Outdoor
FOR PREMIUM BRANDS
Pouch sorter For shipping orders, a link was made to SendIT’s
Fenix first chose to implement Manhattan SCALE carrier management system.
in Louisville, Colorado, its 11,000-square-foot What appeals to Fenix is the ease of configuring
manual warehouse near Denver. Within six Manhattan SCALE. “We process different flows in
months, the standard version of the WMS was our warehouses, all with their own order
implemented without additional customisation. patterns and specifications. If we
Fenix used the experience in Louisville to get an additional requirement that
implement Manhattan SCALE in its warehouse in requests us to add an extra step
Ludwigslust, 120 kilometres southeast of Hamburg. to the process, we can modify the
Ludwigslust is a brand new 30,000-square-meter WMS ourselves without seeking
automated warehouse. The warehouse is used to help from Manhattan Associates.
deliver online orders and the supply of its stores in We can control how an order flows
Germany and Scandinavia. There are 50,000 articles through the warehouse, so we can
in stock at this location, and the 100 employees switch quickly and operate flexibly.”
ship 4.5 million items annually.
The heart of the warehouse is a long pouch sorter, Big future plans
which connects six order picking zones on three Fenix has big plans for the
mezzanine floors. “This pouch sorter makes batch Ludwigslust facility in the future.
picking possible,” says Gerrits. “Manhattan SCALE After commissioning the first hall in
supports the entire order picking process. The 2019, the warehouse has now been
WMS intelligently composes the batches, so the expanded twice. Gerrits does not
pickers have to travel as little as possible. Using expect it to stop there. “Initially, the
barcode scanning, each pick is validated and focus in the warehouse was mainly
processed in the WMS. But not all items fit in the on supplying our own stores.
Fenix Outdoor International AG is building a supply chain that supports multiple distribution pouches. Large items are located elsewhere in the Now that that is going well, we
warehouse and picked differently. The WMS want to move the stock of even more brands to
channels, from wholesale and retail to omnichannel and ecommerce. Manhattan SCALE™ ensures that all items are consolidated by order Ludwigslust and integrate other flows from our
provides Fenix Outdoor International AG with a modern warehouse management system at the end of the order picking process,” Gerrits wholesale and ecommerce activities. Ultimately,
explains. Ludwigslust should grow into our European hub.”
(WMS) that efficiently runs their manual and automated warehouse operations.
Returns handling The warehouse management software from
F
rom a brisk walk in the woods to a multi-day Fenix’s supply chain includes several Another significant advantage is the handling of Manhattan Associates will continue to play an
trek through the Scandinavian highlands, warehouses, of which those in Aurora returns. “Efficiently handling returns is enormously important role in this. “Manhattan Associates
Fenix Outdoor International AG supplies (Colorado) and Ludwigslust important in retail and ecommerce. The pouch is a renowned company that knows how retail
clothing and equipment through their own brands (Germany) are the largest. From sorter in combination with the WMS makes this and wholesale works. A thorough solution and
Fjällräven, Hanwag, Brunton, Primus, Tierra and these warehouses, goods go to the possible.” The WMS also communicates flawlessly market knowledge are the determining factors
Royal Robbins. Shoppers can find these popular distribution centres of internationally with the warehouse control system that controls toward achieving peak performance in warehouse
products in their 70 owned stores in Scandinavia operating retailers, local outdoor the pouch sorter, conveyors, elevators and other management, now and in the future.”
and Germany with names like Globetrotter, stores and consumers who have systems of warehouse designer SSI Schäfer.
Naturkompaniet, Partioaitta and Friluftsland, but placed an order online. This results
also in thousands of other outdoor stores around in complex operations with flows
the world. that vary significantly in terms of the
number of order lines, volumes and
Premium s ervice packaging. CHALLENGE SOLUTION RESULT
The supply chain plays an important role in Fenix’s Fenix relies on Manhattan SCALE Fenix was looking for a With Manhattan The new WMS
strategy. “We are building a supply chain that allows to control the operations in these single WMS to oversee SCALE, Fenix is able facilitates Fenix’s rapid
us to handle the flow of goods and information as warehouses. Thanks to its wealth of all of its warehouse to efficiently route growth. Thanks to
effectively and efficiently as possible. That enables functionality, Manhattan operations worldwide, different flows, the ease of use, the
us to offer premium brands a premium service. To SCALE offers more optimisation as well as a system each with their company can adjust
do this, we use efficient, fast and competitive pro- possibilities. Manhattan SCALE is that was also capable own characteristics, the configuration
cesses that allow us to operate flexibly, reliably and built on a Microsoft platform and of controlling complex throughout the itself and therefore
proactively. And of course, sustainability plays an is highly integrated with Dynamics processes with a high warehouse. quickly respond to
important role in all of this,” says Marcel Gerrits, AX09 / AX12 R3, which was an degree of automation. new opportunities and
global supply chain director at Fenix. essential requirement for Fenix. developments.
22 COMMERCE TRENDS - 2021/2022 2021/2022 - COMMERCE TRENDS 23You can also read
