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Order Management:
Home Delivery




                    © 20112011 Corporation
                        © IBM IBM Corporation
Our Vision


     To help our customers…

     Connect                            Customers

     Communicate                        Partners

     Collaborate                        Suppliers


                          …and do it better than anyone else

2                                                    © 20112011 Corporation
                                                         © IBM IBM Corporation
                 2
Sterling Selling and Fulfillment Suite


 Improve customer satisfaction and loyalty
                                                                                    Supplier
 by enhancing the customer experience with
 seamless cross
 channel e-commerce
                                                  Retailer

 Deliver a rich customer and partner
 experience by extending a common set of
 business services across all points of
 interaction

 Effectively manage orders across
 the extended enterprise and optimize
 complex order fulfillment and logistics                                       Distributor
 processes




           Capabilities available in a variety of delivery models fit for purpose
                          (on premises, as-a-Service or hybrid)
                                                                                     © 20112011 Corporation
                                                                                         © IBM IBM Corporation
                       3
Sterling Commerce Enables Seamless End-To-End
Cross-Channel Execution



                                                                                                           Consumers                 Corp.
                                                                    ERP                       Stores                                 Accts.
                                                                   Legacy
                                                                    BOB
                                                        Sterling   Systems
                                                         WMS/                                                   Call
                   Sterling                             Yard Mgt                         MFT                   Center
                 Collaboration
                   Network                                                                                                Kiosk/
                                                                                                                          Mobile
            Interconnect                                                                  Sterling
              Networks                                                                     Order
                                                                                            Mgt
                                                                                                                        Web
                                                                                  Sterling                                     Sterling
                                                                                 Integrator                                   Configure/
                                                                                                                                Price/
                                                                                                                                Quote
 Service
 Partners
                                                                                                                 Portal

                                                                             Sterling
  Suppliers                                                                   TMS               Supply Chain
                                                                                                  Visibility
                                                                                                                           Small
                                                                                                            Small         Carriers
              Financial Services
                 Government           Carriers/3PL                                                         Suppliers
                                   Freight Forwarders
Community
 4
                                    Customs Brokers
                                                                                                                  © 20112011 Corporation
                                                                                                                      © IBM IBM Corporation
Sterling Commerce Sales Plays for Retailers:


    Reducing Out-of-Stock
     – Enables cross-channel inventory access via POS, Web, Kiosk or Mobile Device
     – Offers available to promise and fulfillment options

    Enabling Cross-Channel Order Management
    – Provide Cross-Channel Selling, Sourcing, Distribution and Fulfillment
    – Deliver seamless customer experience by any channel


    Optimize Cross-Channel Inventory
     – Orchestrates inventory and order fulfillment across all channels
     – Enables returns processing

    Improving Supply Chain Visibility
     – Integrates Cross-Channel inventory visibility with all business partners
     – Optimizes partner integration from connectivity and community




5
5                                                                                 © 20112011 Corporation
                                                                                      © IBM IBM Corporation
Customer Challenges/Solution Capabilities
Challenges/Pain                  Solutions/Capabilities Needed
Customer wants an item that’s • Provides real-time integration with back-end systems to locate ATP inventory at
out of stock in a store            stores, DCs, and more
                                 • Determines optimum shipping location (for ship-to-home or ship-to-store) or
                                   best store (for alternate-store-pickup or store-to-store transfers)
Store associates have no         • Provides real-time look-up of ATP inventory at all eligible fulfillment locations
efficient means of quickly       • Recommends 1st, 2nd, and 3rd fulfillment locations by preferred fulfillment
locating ATP inventory of out-     method
of-stock items                   • Immediately reserves inventory at the designated fulfillment location
Store associate has no efficient • Provides process-driven screens to walk the store associate through the
means of capturing the             information-collection process
customer’s order for the out-of- • Seamlessly interfaces with existing POS to handle completion of financial
stock item                         transaction
                                 • Gets and logs confirmation of completed financial transaction from POS
Retailer does not want to tie up • Provides a mobile user interface for use by store associates using an iPhone,
limited POS terminals while        iTouch, or iPad to perform all inventory lookup, order capture, fulfillment trigger,
looking up ATP inventory,          and fulfillment tracking functions without involving POS
collecting consumer fulfillment
information, etc.
Store associate has no efficient • Automatically triggers integrated pick/pack/ship notice to the designated
means of triggering fulfillment    fulfillment location for ship-to-home or ship-to-store fulfillment
by the designated location       • Automatically triggers pick-and-hold, pick-and-transfer, or pick-and-ship
                                   instructions for alternate-store fulfillment


 6
 6                                                                                                   © 20112011 Corporation
                                                                                                         © IBM IBM Corporation
The True Cross Channel Customer Experience


              Research                                 Schedule Delivery Check Status                   Schedule      Initiate/Track
Call Center              Create Order   Change Order      or Pickup                     Cancel Order
               Product                                                                                 Store Pickup       Return




              Research                                 Schedule Delivery Check Status                   Schedule      Initiate/Track
  Mobile       Product   Create Order   Change Order      or Pickup                     Cancel Order   Store Pickup       Return




              Research                                 Schedule Delivery Check Status                   Schedule
   Web         Product   Create Order   Change Order      or Pickup                     Cancel Order   Store Pickup




              Research                                    Schedule       Check Status                                 Initiate/Track
  Store                  Create Order   Change Order      Delivery                      Cancel Order     Pickup
               Product                                                                                                    Return




                    Buy Online Ship to Home                                             Complex Orders

                                              Buy Online Pickup at Store

       Delivery and Install Service                                  Drop Ship Direct from Vendor
               Scheduling
                                   Buy Anywhere Return                            Save the Sale in Store
                                        Anywhere
                                                                                                                          © 20112011 Corporation
                                                                                                                              © IBM IBM Corporation
There are Lots of Participants




                                                          Customer Channels


               Call Center                    Kiosk                   eCommerce           Mobile                   Store




                       Distribution Centers           Drop Shippers               3PL’s            Store Network
 Enterprise                                                                                                                External
Applications                                                                                                               Services




                                                          Fulfillment Network.




                                                                                                                   © 20112011 Corporation
                                                                                                                       © IBM IBM Corporation
Everyone has High Expectations
                                                                          Customer Channels


                             Call Center                      Kiosk                   eCommerce           Mobile                   Store




                                                Can We Set Accurate Expectations with the Customer?




                                                                                                                                                     Performance Management?
Global Visibility ?




                                            What Steps are Required to Fulfill each Specific Order Line?
                         Enterprise                                                                                                External
                        Applications           How do we Coordinate these Steps Across Applications?                               Services

                                               What are the Fulfillment Rules for a Specific Order Line?
                                                   How do we Best Leverage the Fulfillment Network?
                                                  How do we Remain Flexible to Enable New Business
                                                                    Initiatives?

                                       Distribution Centers           Drop Shippers               3PL’s            Store Network




                                                                          Fulfillment Network.



                                                                                                                                   © 20112011 Corporation
                                                                                                                                       © IBM IBM Corporation
This Can Get Complex
                                                    Customer Channels


       Call Center                      Kiosk                   eCommerce           Mobile                   Store




   Enterprise                                                                                                External
  Applications                                                                                               Services




                 Distribution Centers           Drop Shippers               3PL’s            Store Network




                                                    Fulfillment Network.



                                                                                                             © 20112011 Corporation
                                                                                                                 © IBM IBM Corporation
Order Management Engine – Handling All Order Types


                                                       Enterprise


                                                             Requisitions
                                                             Replenishment Orders
                                                             Transfer Orders
                                                             Work Orders




                                                                       Outsourced
         Customers                       Suppliers                                            Carriers
                                                                        Providers
        Sales Orders                   Quotes                        Drop Ship Orders        Shipments
     Continuity Orders             Purchase Orders                Value-Added Services         Loads
        Return Orders                Blanket POs                   Contract Mfg. Orders
      Exchange Orders               Planned POs                  Service & Delivery Orders
  Service & Delivery Orders



                         Warehouses                     Stores

                        Release Orders               Pickup Orders



11
 11                                                                                            © 20112011 Corporation
                                                                                                   © IBM IBM Corporation
Sterling Provides a Seamless End-to-End Cross-Channel Experience Through
Distributed Order Management




                     Sterling Multi-Channel Selling & Fulfillment
                           Order Configuration    Order Negotiation   Order Fulfillment
     Catalog and Pricing
                              and Capture           and Quoting        Orchestration




12
12                                                                           © 20112011 Corporation
                                                                                 © IBM IBM Corporation
Sterling Order Management



                                                Order Capture (Channels)



                                        Sterling Order Management
                                   Source                     Fulfill                          Serve

                          Dynamic sourcing              Delivery promising           Drop shipments
                          Real-time availability        Service scheduling           Returns mgmt.
                          (ATP)                         3rd party coordination       Invoice and settle
                          Inventory visibility          Multi-step fulfillment       Real-time track

                      Brand A               Brand B          Division I          Division II           Acquisition 1




        Distribution Networks       Service Provider Network              Supplier Networks                  Other Networks


       Internal        3rd party

                                                      Fulfillment Network


13
 13                                                                                                                           © 20112011 Corporation
                                                                                                                                  © IBM IBM Corporation
Order Orchestration - Business Process Modeling provides Flexibility




                                           Leverage existing systems
                                           Rapidly incorporate business process
                                           changes without any programming
                                           effort
                                           Control and monitor external activity
                                           data flow and communication
                                           Real-time visual business process
                                           and event management
                                           Quickly adapt to changing business
                                           models




14                                                                 © 20112011 Corporation
                                                                       © IBM IBM Corporation
                    14
Central Order and Inventory Repository


 Database
    Designed for Distributed Order Fulfillment
    Optimized for High Transactional Usage        Service Layer
    Stores Transactional Data
    Stores Configuration Data
    Enterprise Specific
 Service Layer
                                                       Orders
                                                          f
    Over 1000 Business Services (APIs)           Supply and Demand
    Create / Modify / Details / etc                Business Rules
    Secure
    Synchronous / Asynchronous
    Exposed via Any Protocol
    All Interaction is Done via a Service




                                                                     © 20112011 Corporation
                                                                         © IBM IBM Corporation
Inventory / Capacity Consolidation for ATP

      ATP               Sourcing         Supply           Demand


         Sterling's Global Inventory and Capacity Visibility



            Internal Systems                   External Systems


Replenishment
    DC’s
                                      Supplier Stock      Partner Stock
                          Stores        Locations          Locations
    eFC’s



            Sterling's Inventory Monitors & Synchronization


                                                                  © 20112011 Corporation
                                                                      © IBM IBM Corporation
Complex Sourcing and Scheduling

Sourcing Rules derive a set of
possible options to fulfill an order
based on…
   Fulfillment Channel (ship, pick-
   up, etc)
   Sourcing Classification
   Item Attributes
   Geography - Ship To Location



Scheduling Rules, or constraints,
are applied to possible options…       Intelligent sourcing engine determines
   Optimize by Date                    the most optimal location
   Optimize by Node Priority           Enable transfers in stock-out
   Optimize by number of               situations
   shipments                           Select new location if inventory is
   Optimize by Landed Cost             not available
                                       Source or drop ship from
                                       channel partner




                                                                             © 20112011 Corporation
                                                                                 © IBM IBM Corporation
Complete Order Orchestration

Model Transactional Order Flows
  •   As many as are required, store pickup, drop ship, deliver/install, etc
Line Level Orchestration
  •   Multiple Ship To Addresses
  •   Multiple Fulfillment Sources
Trigger and Track Related Orders
  •   Drop ship, procure to order, build to order, return/exchange, etc
Coordinate with External Service Providers
  •   Pricing, Tax, Address Verification, Fraud, Payment Processing, etc
Coordinate with Enterprise Applications
Monitor Order Execution
  •   Proactive / Reactive / Milestones
React to Specific Business Events
  •   Define hold scenarios, effects and resolution
Reverse Logistics / Returns




                                                                               © 20112011 Corporation
                                                                                   © IBM IBM Corporation
Event Management

Registration of events
   Within business process
   System Management related
   Integration Services related

Configure events at any point in a
business process
   in response to a specific business
   situation
   in response to a status monitor
   in response an approaching
   date/time of a relevant business
   milestone

Event handlers can invoke any
service
   e-mail, exception alert, wireless
   device, fax…
   Publish XML to external
   queues/systems
   Invoke custom components (Web
   Service, Java, EJB, HTTP, COM+…)




                                        © 20112011 Corporation
                                            © IBM IBM Corporation
Visibility for All Channels

     In-Store                                                             On Line




                                           Sterling OMS




     Call Center                                                       Mobile
Enable single face to customer with access to information about any order from any channel or
division to be available where and when a customer needs it.


                                                                                     © 20112011 Corporation
                                                                                         © IBM IBM Corporation
IBM / Sterling Order Mangement Will Enable...


 Complete Order Orchestration
 Accurate Inventory and Service Capacity Promising
 Communication of Information Around Key Business Events
 End to End Visibility Through the Fulfillment Process
 A Single View of Customer Activity
 Leverage Existing Technology Investments
 Support for New Business Initiatives


        ... Across All Brands and Channels




                                                           © 20112011 Corporation
                                                               © IBM IBM Corporation
Recent Customer Wins


       Selling

      Order
   Management

    Logistics
   Management

        B2B
    Integration

        B2B
      Services

      Managed
    File Transfer


                         © 20112011 Corporation
                             © IBM IBM Corporation
                    22
Recent Customer Go-Lives


       Selling

      Order
   Management

    Logistics
   Management

        B2B
    Integration

        B2B
      Services

      Managed
    File Transfer


                           © 20112011 Corporation
                               © IBM IBM Corporation
                    23

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Gestión de órdenes en despacho a domicilio (Sterling Commerce)

  • 1. Order Management: Home Delivery © 20112011 Corporation © IBM IBM Corporation
  • 2. Our Vision To help our customers… Connect Customers Communicate Partners Collaborate Suppliers …and do it better than anyone else 2 © 20112011 Corporation © IBM IBM Corporation 2
  • 3. Sterling Selling and Fulfillment Suite Improve customer satisfaction and loyalty Supplier by enhancing the customer experience with seamless cross channel e-commerce Retailer Deliver a rich customer and partner experience by extending a common set of business services across all points of interaction Effectively manage orders across the extended enterprise and optimize complex order fulfillment and logistics Distributor processes Capabilities available in a variety of delivery models fit for purpose (on premises, as-a-Service or hybrid) © 20112011 Corporation © IBM IBM Corporation 3
  • 4. Sterling Commerce Enables Seamless End-To-End Cross-Channel Execution Consumers Corp. ERP Stores Accts. Legacy BOB Sterling Systems WMS/ Call Sterling Yard Mgt MFT Center Collaboration Network Kiosk/ Mobile Interconnect Sterling Networks Order Mgt Web Sterling Sterling Integrator Configure/ Price/ Quote Service Partners Portal Sterling Suppliers TMS Supply Chain Visibility Small Small Carriers Financial Services Government Carriers/3PL Suppliers Freight Forwarders Community 4 Customs Brokers © 20112011 Corporation © IBM IBM Corporation
  • 5. Sterling Commerce Sales Plays for Retailers: Reducing Out-of-Stock – Enables cross-channel inventory access via POS, Web, Kiosk or Mobile Device – Offers available to promise and fulfillment options Enabling Cross-Channel Order Management – Provide Cross-Channel Selling, Sourcing, Distribution and Fulfillment – Deliver seamless customer experience by any channel Optimize Cross-Channel Inventory – Orchestrates inventory and order fulfillment across all channels – Enables returns processing Improving Supply Chain Visibility – Integrates Cross-Channel inventory visibility with all business partners – Optimizes partner integration from connectivity and community 5 5 © 20112011 Corporation © IBM IBM Corporation
  • 6. Customer Challenges/Solution Capabilities Challenges/Pain Solutions/Capabilities Needed Customer wants an item that’s • Provides real-time integration with back-end systems to locate ATP inventory at out of stock in a store stores, DCs, and more • Determines optimum shipping location (for ship-to-home or ship-to-store) or best store (for alternate-store-pickup or store-to-store transfers) Store associates have no • Provides real-time look-up of ATP inventory at all eligible fulfillment locations efficient means of quickly • Recommends 1st, 2nd, and 3rd fulfillment locations by preferred fulfillment locating ATP inventory of out- method of-stock items • Immediately reserves inventory at the designated fulfillment location Store associate has no efficient • Provides process-driven screens to walk the store associate through the means of capturing the information-collection process customer’s order for the out-of- • Seamlessly interfaces with existing POS to handle completion of financial stock item transaction • Gets and logs confirmation of completed financial transaction from POS Retailer does not want to tie up • Provides a mobile user interface for use by store associates using an iPhone, limited POS terminals while iTouch, or iPad to perform all inventory lookup, order capture, fulfillment trigger, looking up ATP inventory, and fulfillment tracking functions without involving POS collecting consumer fulfillment information, etc. Store associate has no efficient • Automatically triggers integrated pick/pack/ship notice to the designated means of triggering fulfillment fulfillment location for ship-to-home or ship-to-store fulfillment by the designated location • Automatically triggers pick-and-hold, pick-and-transfer, or pick-and-ship instructions for alternate-store fulfillment 6 6 © 20112011 Corporation © IBM IBM Corporation
  • 7. The True Cross Channel Customer Experience Research Schedule Delivery Check Status Schedule Initiate/Track Call Center Create Order Change Order or Pickup Cancel Order Product Store Pickup Return Research Schedule Delivery Check Status Schedule Initiate/Track Mobile Product Create Order Change Order or Pickup Cancel Order Store Pickup Return Research Schedule Delivery Check Status Schedule Web Product Create Order Change Order or Pickup Cancel Order Store Pickup Research Schedule Check Status Initiate/Track Store Create Order Change Order Delivery Cancel Order Pickup Product Return Buy Online Ship to Home Complex Orders Buy Online Pickup at Store Delivery and Install Service Drop Ship Direct from Vendor Scheduling Buy Anywhere Return Save the Sale in Store Anywhere © 20112011 Corporation © IBM IBM Corporation
  • 8. There are Lots of Participants Customer Channels Call Center Kiosk eCommerce Mobile Store Distribution Centers Drop Shippers 3PL’s Store Network Enterprise External Applications Services Fulfillment Network. © 20112011 Corporation © IBM IBM Corporation
  • 9. Everyone has High Expectations Customer Channels Call Center Kiosk eCommerce Mobile Store Can We Set Accurate Expectations with the Customer? Performance Management? Global Visibility ? What Steps are Required to Fulfill each Specific Order Line? Enterprise External Applications How do we Coordinate these Steps Across Applications? Services What are the Fulfillment Rules for a Specific Order Line? How do we Best Leverage the Fulfillment Network? How do we Remain Flexible to Enable New Business Initiatives? Distribution Centers Drop Shippers 3PL’s Store Network Fulfillment Network. © 20112011 Corporation © IBM IBM Corporation
  • 10. This Can Get Complex Customer Channels Call Center Kiosk eCommerce Mobile Store Enterprise External Applications Services Distribution Centers Drop Shippers 3PL’s Store Network Fulfillment Network. © 20112011 Corporation © IBM IBM Corporation
  • 11. Order Management Engine – Handling All Order Types Enterprise Requisitions Replenishment Orders Transfer Orders Work Orders Outsourced Customers Suppliers Carriers Providers Sales Orders Quotes Drop Ship Orders Shipments Continuity Orders Purchase Orders Value-Added Services Loads Return Orders Blanket POs Contract Mfg. Orders Exchange Orders Planned POs Service & Delivery Orders Service & Delivery Orders Warehouses Stores Release Orders Pickup Orders 11 11 © 20112011 Corporation © IBM IBM Corporation
  • 12. Sterling Provides a Seamless End-to-End Cross-Channel Experience Through Distributed Order Management Sterling Multi-Channel Selling & Fulfillment Order Configuration Order Negotiation Order Fulfillment Catalog and Pricing and Capture and Quoting Orchestration 12 12 © 20112011 Corporation © IBM IBM Corporation
  • 13. Sterling Order Management Order Capture (Channels) Sterling Order Management Source Fulfill Serve Dynamic sourcing Delivery promising Drop shipments Real-time availability Service scheduling Returns mgmt. (ATP) 3rd party coordination Invoice and settle Inventory visibility Multi-step fulfillment Real-time track Brand A Brand B Division I Division II Acquisition 1 Distribution Networks Service Provider Network Supplier Networks Other Networks Internal 3rd party Fulfillment Network 13 13 © 20112011 Corporation © IBM IBM Corporation
  • 14. Order Orchestration - Business Process Modeling provides Flexibility Leverage existing systems Rapidly incorporate business process changes without any programming effort Control and monitor external activity data flow and communication Real-time visual business process and event management Quickly adapt to changing business models 14 © 20112011 Corporation © IBM IBM Corporation 14
  • 15. Central Order and Inventory Repository Database Designed for Distributed Order Fulfillment Optimized for High Transactional Usage Service Layer Stores Transactional Data Stores Configuration Data Enterprise Specific Service Layer Orders f Over 1000 Business Services (APIs) Supply and Demand Create / Modify / Details / etc Business Rules Secure Synchronous / Asynchronous Exposed via Any Protocol All Interaction is Done via a Service © 20112011 Corporation © IBM IBM Corporation
  • 16. Inventory / Capacity Consolidation for ATP ATP Sourcing Supply Demand Sterling's Global Inventory and Capacity Visibility Internal Systems External Systems Replenishment DC’s Supplier Stock Partner Stock Stores Locations Locations eFC’s Sterling's Inventory Monitors & Synchronization © 20112011 Corporation © IBM IBM Corporation
  • 17. Complex Sourcing and Scheduling Sourcing Rules derive a set of possible options to fulfill an order based on… Fulfillment Channel (ship, pick- up, etc) Sourcing Classification Item Attributes Geography - Ship To Location Scheduling Rules, or constraints, are applied to possible options… Intelligent sourcing engine determines Optimize by Date the most optimal location Optimize by Node Priority Enable transfers in stock-out Optimize by number of situations shipments Select new location if inventory is Optimize by Landed Cost not available Source or drop ship from channel partner © 20112011 Corporation © IBM IBM Corporation
  • 18. Complete Order Orchestration Model Transactional Order Flows • As many as are required, store pickup, drop ship, deliver/install, etc Line Level Orchestration • Multiple Ship To Addresses • Multiple Fulfillment Sources Trigger and Track Related Orders • Drop ship, procure to order, build to order, return/exchange, etc Coordinate with External Service Providers • Pricing, Tax, Address Verification, Fraud, Payment Processing, etc Coordinate with Enterprise Applications Monitor Order Execution • Proactive / Reactive / Milestones React to Specific Business Events • Define hold scenarios, effects and resolution Reverse Logistics / Returns © 20112011 Corporation © IBM IBM Corporation
  • 19. Event Management Registration of events Within business process System Management related Integration Services related Configure events at any point in a business process in response to a specific business situation in response to a status monitor in response an approaching date/time of a relevant business milestone Event handlers can invoke any service e-mail, exception alert, wireless device, fax… Publish XML to external queues/systems Invoke custom components (Web Service, Java, EJB, HTTP, COM+…) © 20112011 Corporation © IBM IBM Corporation
  • 20. Visibility for All Channels In-Store On Line Sterling OMS Call Center Mobile Enable single face to customer with access to information about any order from any channel or division to be available where and when a customer needs it. © 20112011 Corporation © IBM IBM Corporation
  • 21. IBM / Sterling Order Mangement Will Enable... Complete Order Orchestration Accurate Inventory and Service Capacity Promising Communication of Information Around Key Business Events End to End Visibility Through the Fulfillment Process A Single View of Customer Activity Leverage Existing Technology Investments Support for New Business Initiatives ... Across All Brands and Channels © 20112011 Corporation © IBM IBM Corporation
  • 22. Recent Customer Wins Selling Order Management Logistics Management B2B Integration B2B Services Managed File Transfer © 20112011 Corporation © IBM IBM Corporation 22
  • 23. Recent Customer Go-Lives Selling Order Management Logistics Management B2B Integration B2B Services Managed File Transfer © 20112011 Corporation © IBM IBM Corporation 23