Case Study: How an Omnichannel Retail Company Overcame their Operations and Supply-Chain Management Problems with Data Visualization

Case Study: How an Omnichannel Retail Company Overcame their Operations and Supply-Chain Management Problems with Data Visualization

  Nov 06, 2020 13:32:00  |    Joseph C V   Retail analytics, Data Analytics, Data visualization, Omnichannel Data Analytics, Retail

About the Company

The client is a UAE based retail company running across 9 countries in the Middle East with 1800+ stores. They went omnichannel three years back for serving customers better. Their customer-facing and inventory management processes like order management, inventory keeping, and shipment are available via the website, mobile, kiosk, and instore.

The organization triggered its online retail 5 years back. Now they log approx. 20% of sales via online channels.

The omnichannel presence made the company one of the customers’ favorites and a successful retail giant. However, this scaling made operations and supply-chain data difficult to manage and analyze.

Challenges

Major hurdles for the client to read and analyze the data were:

Diverse Data Channels

Since the data was pouring in from various online channels scattered across several nations, the teams couldn’t get a holistic view of the operations. This hindered them from analyzing the inventory, delivery, and order stats.

Unclear Store Contribution

The company enabled the options to browse from one channel, buy from another, and pick up or return from a third channel.

This multichannel shopping approach made stores play a vital role in instigating the online sales that contributed nearly 20% to the total sales. But the teams faced issues in connecting the dots between direct online and store-driven online sales.

The Scale of Operation and Diverse Product Sets

The company divided its business internally into various concepts equating to 20+ in numbers. Each concept unit had a separate site per country and was functioning in English and the local language.

The variety in the products mounted the diversity in data. The scale at which the retail brand was operating and growing was not manageable for the existing solution.

Objective

Logesys team analyzed the problem areas and came up with a couple of focused objectives for the solution.

One of the tasks was to consolidate the data across the channels. The solution should give the operations team a comprehensive view to optimize the orders, inventory, shipment, and deliveries. Another task was to monitor the current sales and forecasted demand for fulfilling the expected orders. And the final goal was to optimize the last-mile delivery.

Solution

Logesys team analyzed the existing solution and proposed QlikView as the visualization and analytics tool. The tool is capable of handling massive data inputs while refreshing the dashboards quickly.

Design and Dashboards

The solution offered 3 dashboards that are customizable at the run time. These dashboards ruled out the requirement of analytics experts for data consumption and analysis.

Customer Behavior Supply Chain Performance Last-Mile Delivery
  • Bird’s-eye view of customers across the various shopping stages
  • Minute details like hourly trends on site visits and purchases
  • Loyalty, returning, and new customer stats
  • Customer behavior insights like order cancelation, exchange, returns, and voucher usage
  • Specific reasons for order cancelation and return
  • Turnaround time in processing the refunds for returned and damaged products
  • Scrutiny on cancelations, returns, and exchanges
  • Insights on order fulfillment pattern by distribution centers and stores and room for optimization
  • Turnaround time analysis of an order lifecycle
  • Warehouse and inventory review for low stock and stock out
  • Short pick and partial shipment at the order or item level and order pendency information
  • Performance of delivery modes
  • Aging analysis of the undelivered courier
  • Pattern analysis of non-delivery returns by region, city, and courier combination
  • Reasons for non-delivery returns and turnaround time for receipt of returns back to the warehouse
  • Performance scrutiny of courier companies
  • The hidden expense and loss analysis in delivery processes
  • Discovery of extra charges during delivery and pickup

Benefits

The dashboards proved to be quite insightful to the client’s operations team. These are the significant advantages of the system we developed:

Functional Advantages

  • Customizable dashboards to understand 360° view from all aspects
  • Secured data, only available on the company’s intranet
  • Eye-appealing and easy to understand visuals
  • Automated online reports with real-time data
  • Round the clock support by Logesys team

Hidden Insights for Decision Making

  • Customer behavior analysis
  • Performance examination of courier partners
  • Clear visibility of order flow across all channels and geographies
  • Identification of bottleneck in various stages of order fulfillment
  • Operational and financial overheads in inventory and warehouse management and delivery processes

Results

The project proved to be highly effective for the client. Logesys team completed the complex project in 10 months and delivered reports in 3 phases.

The visualizations are available on tablets, laptops, and iPads, making them highly accessible. The dashboards enabled the operations team to optimize their processes and save finances that slipped through the cracks.

More than any number, satisfaction in the customer’s team speaks volumes about this project’s success and worthiness.