COVID-19 and social distancing impact on Retail Customer Experience: KPMG vision & approach for Large Retail Chains
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
COVID-19 and social distancing impact on
Retail Customer Experience:
KPMG vision & approach for Large Retail Chains
Digital Transformation for Shut-in Economy
Business Re-modelling
© 2020 KPMG Advisory S.p.A., an Italian limited liability share capital company and a member firm of the KPMG network of independent member firms affiliated with KPMG Int
Agenda
COVID-19 outbreak: key figures and forecast
SHUT-IN COVID-19 contagious and social distancing: new
ECONOMY AND retail customer journey & pain points
BUSINESS KPMG Approach to COVID-19 Retail Customer
Experience and Quick Wins
REMODELLING:
Beyond the quick-wins: redesign the business models
How Customer against shut-in economy paradigm
Experience and
Operational Models
must evolve to deal
with the situation
Covid-19 impacts Consumer’s wishes, along with several changes in the post lockdown
Thinking to tomorrow: back to normal, Italian
wishes after the “lockdown” Our everyday life will be radically impacted in the post Covid-19 world
39% Go out to eat and drink Social More Products &
Distancing Retailers online
36% Meet loved ones and family
In the post lockdown world, social Online retailers are experiencing an
interaction will never be the same. extraordinary growth.
33% Meet friends People will have to keep the distance
each-other, avoiding gathering and
Consumers will shift more and more
their purchasing on the online
crowded places, to prevent the new channel.
Go for a walk in the city centre
26% or in the countryside/parks
virus widespread Be online will be an imperative for all
retailers
25% Go to the beach or lakeside
Entertainment Distant Learning
revolution & Working
15% Go to the hairdresser or
beautician
Sports, theatres, museums will have Several new platforms for distance
13% Go shopping to reimage the interaction their
audience and visitors reinventing the
learning have been implemented.
“Smart working” is now the new
entertainment experience normal. In the future, working and
13% Go to work or to school learning habits will evolve thanks to
the “lockdown” experience
© 2020 KPMG Advisory S.p.A., an Italian limited liability share capital company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. 3
Source: Ipsos Survey “Italiani & Coronavirus” March 2020, KPMG elaboration
Social distancing wil influence our lives for next two years
Definitions
SOCIAL DISTANCING
FLUID SITUATION The amount of social distancing needed to curb the noun - Sociology
MAKES PREDICTIONS Covid-19 epidemic in the context of seasonally varying
HARD Social distancing, is a set of non-pharmaceutical
transmission remains unclear
interventions or measures taken to prevent the
spread of contagion disease by maintaining a physical
distance between people and reducing the number of
times people come into close contact with each other.
It involves keeping a distance of at least two-metres
Harvard’s Research team assessed that one-time
NOT A ONE-TIME from others and avoiding gathering together in large
interventions will be insufficient to maintain Covid-19
INTERVENTION
prevalence within the critical care capacity. Seasonal groups. Time distancing is also a form of Social
APPROACH distancing, wherein everyone is a separated by
variation in transmission may facilitate the resurgence
of the virus periodically different time slots to avoid meeting each other
SOCIAL DISTANCING Without relevant intervention but social distance (e.g.
IN 2022 AS GLOBAL vaccine) this scenario may drag itself 'til 2022.
WORST CASE Increasing critical care capacity could reduce the duration
SCENARIO of the Covid-19 epidemic while ensuring that critically ill
patients receive appropriate care
Source:”Social distancing strategies for curbing the COVID-19 epidemic” - Department of Epidemiology, Harvard
© 2020 KPMG Advisory S.p.A., an Italian limited liability share capital company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. 4
Anthropology of a new customer: emerging lifestyles & personal values
The CODIV-19 health emergency and the related measures to contain the epidemic are leading to a rapid transition towards new lifestyles and new
personal values strongly guided by the new paradigm of social distancing
EMERGING LIFESTYLES EMERGING PERSONAL VALUES
FUNCTIONAL/SAFETY COMPONENT
NEW PURCHASING BASKET MIX
In interacting with brands there is no longer the obsessive
Greater interest in packaged and canned products rather than
search for speed and personalization, but mostly security and
easily perishable fresh products, such as fruit and vegetables
safety
FOOD AS A WELLNESS VEHICLE PLAYFUL/EXPLORATIVE COMPONENT
Recovery on the concept of food as a wellness vehicle COVID-19 is forcing us to deal with new processes and
(distance relationships, solidarity, ways of connecting people, people are increasing the propensity to explore, while
…) seeking the playful component
ASPIRATIONAL/EXISTENTIAL COMPONENT
HOME RE-DISCOVERY
The pandemic is accelerating the review of aspirational
Rediscovery of the home as an hearthstone and greater aspects and the meaning of individuals' lives
attention to family relationships in everyday life
and therefore their identity (less status and more identity)
The psychological aspects are now acquiring greater importance than other profiling variables (eg. socio-demo or channel usage
beause of a channel shift that is quite obliged); more than ever, it is essential to communicate to people with the right languages
to gain attention, trust, engagement and loyalty
© 2018 KPMG Advisory S.p.A, an Italian limited liability share capital company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss
entity. All rights reserved.
5
Italian Retail Customer is shifting to online due to COVID-19 impacts
COVID-19 impacts are foreseen to shift consumer demand to the online channels. This may irreversibly change customer behavior, as once
people get into the habit of shopping online, it becomes a routine and it is hard to get away from it easily, forcing companies to escalate their
online presence
BEFORE NOW NEW APPROACH TO RETAIL
PHYSICAL STORE
Experiential cornerstone where to: Mandatory stop where to: Stores could be adapted to their new
role as soon as possible, by re-
• Take the adequate time while shopping • Get essential products which, for multiple
designing:
• Enjoy multiple touchpoints with the reasons, cannot be bought online
• In-store traffic management and route
brand • Spend as less time as possible to avoid
optimization
• Look for diversion and get away from direct contact with people
• Store layout gravitational path
indoor activities
• Visual merchandising and product
displaying evolution
ONLINE CHANNEL
Innovation of online customer experience
Time & effort reducer, where to: Unique channel for diversion
to encourage home-bound consumers to
• Shop in a fast and immediate way • Online channel is meant to (almost) purchase their products:
• Gathering the most information in the become independent from the physical one
• AR/VR to engage the customer and convey
littlest time (encompassing the entire commercial
information
funnel)
• Look for best prices • UX/UI optimization to meet new customers
• Due to COVID-19 limitations, online
incoming on digital channel for purchasing
channels is the brand touchpoint where
jourmey (not only discovery and social
consumers can spend most of their time
engagement) in a fully digital journey
• Personalized engagement and gamification
© 2020 KPMG Advisory S.p.A., an Italian limited liability share capital company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. 6
FMCG sales has been growing since the beginning of Covid-19 crisis, especial y online
Fast moving consumer goods sales by channel in Italy in the first 12 weeks of 2020 (Variation by
value vs previous year in the same period – March 2020)
From the beginning of Pre COVID-19 First 5 weeks of
142,3%
Covid-19 crisis in Italy COVID-19 emergency
sales of Fast Moving
Consumer Goods rose
steadily compared to
97,2%
the same period of 2019.
81,0% 82,3%
The online shopping
rose as people became 56,8%
increasingly interested 44,1% 46,2% 45,6% 45,0% 44,0%
42,8%
in reducing their 38,0%
exposure to others, as
16,4%
the virus appears to be 10,5% 8,3%
12,2% 11,0%
5,4%
spread via coughs and -0,9% 1,4% 0,2% 0,5% 0,7% 1,1%
sneezes
W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12
© 2020 KPMG Advisory S.p.A., an Italian limited liability share capital company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. 7
Source: Nielsen eCommerce tracking, total Italy online and offline
COVID-19 contagious and social distancing: Offline Retail Customer Journey & Pain Points
Shopping Expedition Plan Store Access In-Store life Return home
BRIEF
The customer gains awareness about The customer enters, buys what he The customer comes back home and
The customer goes to supermarket
the need to buy groceries needs and exits the store consumes his products
DESCRIPTION
The customer leaves the house and The customers enters the supermarket
The customer becomes aware that the The customers packs up the products
waits in the line outside the and starts to look for the items on his
fridge is empty and so he makes a list purchased in his apartment and starts
supermarket respecting the safety list and then goes to the cash register
of what he needs to buy to consume some of them
distance to pay
1. Leaving the house 1. Long queues 1. Exposure to potential infection 1. Infected products packaging
2. PPE (Personal Protective 2. Risk to be exposed to potential sources, including shelf products 2. Caring actions to customer
CURRENT CUSTOMER
Equipment) availability infection sources and carts 3. Remote customer support*
3. Potential queue to get inside the 2. Walking through corridors may 4. Customers sensible to perceived
PAIN POINTS
supermarket be time-inefficient for customers or real disservices, with high
4. Poor visibility of product 3. Slow product scan and payment probability of posting complaints
availability in store with money \ cards potentially on social media and generate
exposed to risks falls in Brand-reputation
4. Image merchandising of non-
food retailers is often not
effective
© 2020 KPMG Advisory
Advisory S.p.A.,
S.p.A., an
an Italian
Italian limited
limited liability
liabilityshare
sharecapital
capitalcompany
companyand
andaamember
memberfirm
firmofofthe
theKPMG
KPMGnetwork
networkofofindependent
independentmember
memberfirms
firmsaffiliated with
affiliated KPMG
with International
KPMG Cooperative
International Cooperative("KPMG
("KPMGInternational"),
International"),aaSwiss
Swissentity.
entity.AllAllrights
rightsreserved.
reserved. 8
*All the suggested mitigations shall be addressed to a digital customer base that is used to deal with digital devices; ** Not specific for GDO
COVID-19 contagious and social distancing: Online Retail Customer Journey & Pain Points
Need Awareness Retail Screening & Selection On-line Purchase Order Fulfillment
BRIEF
The customer gains awareness about The customer looks for an online The customer select the products,
The customer receives the products
the need to buy groceries grocery provider delivery time and pays the bill
DESCRIPTION
The customer receive the products at
The customer becomes aware that the The customer selects the products he
The customer scout the different home, packs up the products purchased
fridge is empty and so decided to do the needs, chooses the delivery time and
website/app for doing the online grocery in his apartment and starts to consume
grocery online pays the bill
some of them
1. Website performance issues in terms
of browsing speed and accesses
CURRENT CUSTOMER
2. Available delivery time slots (often 1. Longer / not respected delivery times
1. Multitude of unstructured marketing 1. Complex selection of best retailer in
none) shown at the end of checkout
PAIN POINTS
communications by many Retailers terms of product ranges & delivery 2. Picking and delivery processes as
process potential sources of risk (e.g.
with negative impacts on Brand availabilities
considerations 3. Dissatisfaction sources not properly exposure to infection)
2. Complex interactions for non digital-
monitored by traditional analytics 3. Higher sensitiveness to disservice
2. Not proper customers awareness savvy people
solutions perception, causing complaints on
solicitation by relevant and timely 3. Ineffective image merchandising of
communications 4. Low visibility of food product best- social media and falls in brand-
non-food retailers
before dates reputation
5. Traditional non-engaging
electronics/furniture product images
© 2020 KPMG Advisory S.p.A., an Italian limited liability share capital company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. 9
Tech driven Non tech driven
How Quick Wins address emerging off-line customer pain points
Shopping Expedition Plan Store Access In-Store life Return home
1. Leaving the house 1. Long queues 1. Exposure to potential infection sources, 1. Infected products packaging
including shelf products and carts
2. Caring actions to customer
PAIN POINTS
2. PPE (Personal Protective Equipment) 2. Risk to be exposed to
CUSTOMER
availability potential infection sources 2. Walking through corridors may be time- 3. Remote customer support*
inefficient for customers
3. Potential queue to get inside the 4. Customers sensible to perceived or real
supermarket 3. Slow product scan and payment with money disservices, with high probability of
\ cards potentially exposed to risks posting complaints on social media and
4. Poor visibility of product availability
4. Image merchandising of non-food retailers is generate falls in Brand-reputation
in store
often not effective
1. App/website feature for store visit 2. Provide Gloves, wipes/gel; carts 4. Adopt user-friendly Voice of Customer
self booking & engagement handlers disinfection gathering tools
QUICK WIN
3. Optimize store layout, leveraging in- 5. Implement Social listening / Crisis
store Analytics in gravitational path detection solutions (sentiment analysis)
in order to keep social distancing
always on and keep customers safe
© 2020 KPMG Advisory S.p.A., an Italian limited liability share capital company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. 10Tech driven Non tech driven
How Quick Wins address emerging on-line customer pain points
Need Awareness Retail Screening & Selection On-line Purchase Order Fulfillment
1. Multitude of unstructured marketing 1. Complex selection of best retailer in 1. Website performance issues in terms of 1. Longer / not respected delivery times
browsing speed and accesses
CUSTOMER PAIN
communications by many Retailers with terms of product ranges & delivery 2. Picking and delivery processes as
negative impacts on Brand availabilities 2. Available delivery time slots (often none) potential sources of risk (e.g. exposure to
shown at the end of checkout process
POINTS
considerations 2. Complex interactions for non digital- infection)
2. Not proper customers awareness savvy people that are reaching the new 3. Dissatisfaction sources not properly 3. Higher sensitiveness to disservice
solicitation by relevant and timely channel (in march 75% on ecommerce monitored by traditional analytics solutions perception, causing complaints on social
communications orders made by new adopters) 4. Low visibility of food product best-before media and falls in brand-reputation
3. Ineffective image merchandising of non- dates
food retailers 5. Traditional non-engaging
electronics/furniture product images
1. Conversational commerce and 3. Psychometric analytics in addition 1. Click&Collect and Store-to-Home
customer proactive caring to help to traditional web analytics solutions improvement (e.g inventory
digital sales browsing Chat\ chatbot re-layout, stock optim.)
to facilitate user's possibility to be 4. Clear communication of the
2. Clear communication about safety
QUICK WIN
reached by CS for proactive support product BBD policies on the
website procedures as top priorities, to be
(e.g. “do you need help?”) respected by all the actors involved
2. Automated content evaluation in the fulfillment
systems for maximum 3. Adoption of user-friendly Voice of
effectiveness of visual Customer collection tools + Social
merchandising (image memorability) listening / Crisis detection solution
tools (sentiment analysis)
© 2020 KPMG Advisory S.p.A., an Italian limited liability share capital company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. 11QUICK WIN AND POSSIBLE COME-UPS: OVERVIEW
KPMG Approach to COVID-19 Retail CX App/website for store Optimized store layout
RETAIL STORES
visit self-booking and identified by in-store
2 quick solution engagement Analytics
addressing
Changes in
people in-store
behaviors and
QUICKWIN very long queue
times for stores
Activities to be taken by the end of the first
month (t+1) with impacts within 3 months (t+3)
DIGITAL PURCHASE
A comprehensive Automated Clear User-friendly
Psychometric
set of as-a- content evaluation communication Voice of
analytics &
service solutions systems for image of the product Customer
User insights
can be effectiveness AR/VR gathering tools
considered to
Among aforementioned optimize the
Brands’ digital
solutions, we are focusing on properties
those able to deal with the
ECOMMERCE
main Covid-related
phenomena
Covid-19
outbreak has Click & Collect Home delivery
introduced the
SUPPLY CHAIN
improvement Empowerment
need to leverage
different logistic
approaches to
ensure business
continuity and
provide supplies
to customers and
population overallCOVID-19 impacts: quick-win program ZEROCODA RETAIL APP
Among aforementioned mitigations,
we are focusing on one of the main
Social Distancing impacts on
Customer and Business:
Very long queue times for stores
People is experiencing this discomfort
every day, with several negative
aspect on the quality of life:
Huge waste of time
The social exposition is still
considerable, with the related
COVID-19: contamination risks
the Age of Queues Few alternatives since Online
delivery lead-times have been
dramatically increasedZeroCoda solution –Medium to Long-term prospective capabilities INTEGRATED MOBILE APP
The app provides a new user-friendly touchpoint for the end-customers and enables the offline channel to leverage on typical
online features, improving the overall end-to-end CX and allowing to turn a threat (COVID-19 limitations) into a relevant
opportunity to improve CRM strategies
CUSTOMER ENGAGEMENT & LOYALTY CX MEASUREMENT (VoC)
• Reinforce Customer relationship and increase the Brand’s value • Through the app, Customers can be actively asked to provide
through simple Gamification logics. feedbacks and participate surveys.
For instance, non-monetary rewards such as the On-time For instance: “Do you think the safety distance was enough? Are
badges (eg:“Thanks for arriving in time, you unlocked the on-time you satisfied by the assortment you found in store?”
badge on your profile!”) can be earned through the app • Incentives to customer participation is through dedicated
• Dedicated integrations with Company-specific Loyalty programs rewards (eg: Contributor badge earned when providing feedbacks)
can be developed (eg: “Each On-time badge will grant you 10 • Collected information further enriches the Customer DB and
loyalty points”) provides additional inputs to measure CX and satisfaction
PERSONALIZED PROMOTIONS EASY BOOKING
• The solution supports personalized promotions and coupons User-friendly slot booking SOCIAL MONITORING & ALERTING
triggered by specific events, such as: from multiple sources:
• Providing feedbacks or answering surveys webApp and SMS • Real time monitoring on how and when people are talking about
• Having earned specific badges the company
• Doing checkout on app when exiting the store (eg: get 5% • Significant insights in real-time about any product, topic or
discount on your preferred product to leverage on the next visit) content
• Promotions can be also granted by customer segment, • Measure and optimize social media strategy and determine
preferences, stores and orders. Specific integrations with Company which content and campaigns work
system can be developed to ensure promotion alignment.
A NEW KEY TOUCHPOINT FOR CUSTOMER VALUE MANAGEMENT
© 2020 KPMG Advisory S.p.A., an Italian limited liability share capital company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. 14Quick Win ZeroCoda solution – Supported Customer Journeys
Below the Customer Journeys supported by ZeroCoda WebApp in the Quick Win scenario
Console for Store Administrators: 5 Days from Green Light to Go-Live!
Digital Journey Date and Time availability
Priority calculation
Monitoring and Real Timecomms
Physical Journey
Select the Receive booked time
Store to visit via email and SMS
Select date and time
basing on availability
Check Point 5 minutes
Online before entry
Registration
Store
Store
Access
Customer A
Zero Coda Check Point 5 minutes
Store before entry
WebApp
Customer B Shop Assistants help Receive booked time
customers to register via email and SMS
Select online and book a slot
Point of Selling
© 2020 KPMG Advisory S.p.A., an Italian limited liability share capital company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. 8Quick Win ZeroCoda solution - KPMG Service Offer
KPMG brings a strong value added in ZeroCoda adoption by leveraging a strong Customer Experience expertise
WHERE KPMG BRING DISTINCTIVE VALUE
THROUGHOUT ZEROCODA ADOPTION
Map Customer Journeys on App- CRM & Marketing Automation Systems
enabled Scenarios and drive Use
Cases definition • Integrated with Company CRM systems to enhance ZeroCoda
effectiveness and dramatically enrich legacy customer data
• Integrated Client’s legacy Marketing Automation solutions to
Draft the Communication Plan to further convey traffic to ZeroCoda and vehiculate its enabled
support the App Launch promotions, discounts, and engagement initiatives
Provide Training and Change Company Loyalty Program
Management support to Client • Integration with Client-specific Loyalty Management Systems and
related Loyalty Programs.
workforce
• This integration will allow a real-time ZeroCoda alignment on
Customer’s loyalty points balance, earnings and redeeming events with
Provide L1 support to workforce and a further enhancement its engagement effectiveness and CX benefits
interact with L2 vendor support
Customer Experience Measurement
• Integrate ZeroCoda with the legacy Company CX Measurement
Supporting the future App technologies, both in-store (access counters, shelf sensors, path analyzers)
and on digital properties (legacy website and mobile app analytics) to get a
Integrations roadmap with: full 360 Customer Experience measurement
© 2020 KPMG Advisory S.p.A., an Italian limited liability share capital company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. 16COVID-19 impacts: quick-win program PEOPLE ANALYTICS
Among aforementioned mitigations,
we are focusing on some of the main
Social Distancing impacts on
Customer and Business:
changes in people in-store
behaviors
Currently, people want to avoid
physical contact and exposure to
other customers as much as
possible
Global pandemic has changed the
way consumers want to interact
inside the physical store
COVID-19:
the age of in-store
Overall time spent in store for
shopping has become a key priority
social distancing
for the customerHow social distancing is impacting in-store Customer Experience
NEW CUSTOMERS DESIDERATA ABOUT
IN-STORE JOURNEY
Understand how to optimize
In order to meet customer's key current product display/shelfing
priority of spending the littlest amount of time allowing customers to have
while shopping in store, it is necessary to immediate access to the most Understand how to optimize in-
address 4 major in-store elements: frequently purchased items store routes for the customers,
allowing the littlest time spent in
store and the littles exposure to other
customers
Product display
Visual
merchandising
Store traffic
Understand how to optimize
in-store traffic, allowing for
Understand how to optimize the littlest exposure to other
In-store routes visual merchandising to effectively people
direct customers attention towards
frequently purchased items
© 2020 KPMG Advisory S.p.A., an Italian limited liability share capital company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. 18COVID-19 impacts: quick-win program E-COMMERCE
Among aforementioned mitigations,
we are focusing on some of the main
Social Distancing impacts on
Customer and Business:
shift consumer demand to the
online channels
People get into the habit of
shopping online, it becomes a
routine and it is hard to get away
from it easily
Online channel is meant to (almost)
become independent from the
physical one (encompassing the
COVID-19: entire commercial funnel)
the age of channel
Due to COVID-19 limitations, online
channels is the brand touchpoint
shift
where consumers can spend most of
their timeIntroduction on Online Quick-wins
A comprehensive set of as-a-service solutions can be considered to optimize the Brands’ digital properties:
User Insight
Get
Voice of Customers
Purpose: monitor the online
users’ interests, preferences Purpose:
and personalities, in addition To get users feedbacks and
to typical web analytics tool’s opinions about the brand
metrics digital properties and services,
(e.g: product categories that by user-friendly surveys
most attract the customer
interest, emotional profile of
the browsing visitor)
Virtual & Image Effectiveness
Augmented Reality Analytics
Purpose: create Augmented
Reality experiences bringing Purpose: evaluate images
the product physical qualities effectiveness by objectively
in a three-dimensional measuring their memorability
environment. and impact on browsing
(e.g: check how a product visitors and customers
would suit in your living room)SUPPLY CHAIN RESHAPING
COVID-19 impacts: quick-win program Among aforementioned mitigations, we
are focusing on some of the main Social
Distancing impacts on Customer and
Business:
The Disruption of the
Store Experience
People are not able to receive food and
supplies by the eCommerce channel
and new models were introduced
everyday:
Lately it’s not possible to buy through
eCommerce and receive goods due to
supply chain constraints
The discomfort is stronger when
thinking to the most fragile side of the
COVID-19: population (i.e. people in quarantine)
the Age of Pick-Up
Few alternatives to reduce Online delivery
lead-times and ensure online business
continuity / New operating modelsSupply Chain is a key lever to support the Online Sales and to grasp current opportunities
Selecting the right approach to support online sales was critical before Covid-19 to set up and break even costs.
Covid-19 outbreak has introduced the need to leverage different logistic approaches to ensure
business continuity and provide supplies to customers and population overall
Possible approaches to grasp
Customer
– Evaluate the possibility – Assess the possibility to – Assess the possibility to Mobility
to manage inventory and open In-Store location to open Near-Store
TO BOOST E-COMMERCE
prepare pre-set boxes to allow customers the location to allow
CLICK & COLLECT fulfill custom orders picking of supplies customers the picking of
supplies
QUICK WINS
– Evaluate the possibility – Ensure the Best – Dynamically review the
to leverage on logistic Product Mix in detailed customer
partners / employees the store according to demand by
HOME DELIVERY to reach the nearer local demand customer/product/area
customers – Ensure the Wider to ensure the
(focus on Last Mile) possible Product Mix in replenishment Retailer
the warehouse
Mobility
Both approaches must be adopted and differentiated by Area/Store * Medium-term win considering IT-integration
© 2020 KPMG Advisory S.p.A., an Italian limited liability share capital company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. 22The “New Normal” Distribution approach – Re-Layout Toolkit
KPMG Vademecum for layout simulations to drive the implementation of alternative distribution models in the new context
Revise current processes and organize new flow, reschedule resources to assign responsibilities on priorities (i.e. orders preparation)
ILLUSTRATIVE ONLY CENTRAL WH TO HOME Sanitizing area set-up
as eCom primary lever
* • Introduction of a section equipped with hand sanitizers and
disposable gloves distribution to comply with new hygiene
INTERNAL WH norms – both entrance and exit
Shipping area organization
• Conversion of a back-end area into a dedicated place for
operations and logistics outbound activities
• Optimize space for goods storage
• Set-up a space for pre-set boxes preparation
Pick-up area for click & collect
in drive-through mode
• Set-up a location to facilitate customers in picking up goods
by car under safe conditions
Picking area to enable customer click & collect
and store to home collection
• Set-up a location to facilitate customers in picking up goods
by foot under safe conditions – in-store or near-store
• Enabling facility (ie. Locker) for store to home of lighter supplies
/ neighbourhood delivery
Logistic partner to enable store to home
LOGISTIC
delivery
• Ideally, near store light products delivery can leverage on local
PARTNER EXIT + ENTRANCE ENTRANCE partners, part-time employees, city partners.
CLICK & COLLECT ONLY • Heavier supplies and consolidation of orders must take place
from internal WH to partners (trucks) on the loading bay side
© 2020 KPMG Advisory S.p.A., an Italian limited liability share capital company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. 23
Order Size should differ by service (Minimum Order Size by approach) *Quick Win Supply Chain – Service Offer
KPMG brings a strong value added in the Supply Chain support by promoting robust Operating Model expertise
WHERE KPMG BRING DISTINCTIVE VALUE
Click & Collect - Start-Up & Industrialization
THROUGHOUT THE SUPPLY CHAIN SUPPORT • Click & Collect Toolkit: starting-up of new features to extend
customer Online to Offline experience; set-up of operating
models, determine rules to efficiently manage inventory and
Quick assessment of preparing pre-set boxes to fulfil custom orders on time
Customer Stores & Logistic Footprint to • Re-Layout configuration solution: re-organization of In-Store
space to meet the needs of the evolving context; selection of
define the Painpoints the best In-Store location for customers picking
Management & Monitoring of booming volumes
• Stock Management, Replenishment & Distribution model: tools and
Driving Logistic & Supply Chain Use methods to ensure the replenishment of warehouses, to prevent stock-
Cases with focus on quick wins and out, to react real-time to distribution-to-stores issues and to manage
considering constraints increasing volumes while leveraging new models (Click&Collect)
• Service Level resilience solution: tools and models to constantly
monitor service KPIs (i.e. order filling rate) to assure the highest service
level to customer despite the rapid increase of online orders
Quick & Dirty assessment of the
opportunity to leverage on Partners to Dynamic Performance Management
overcome / mitigate constraints of Logistic Partners
• Courier evaluation system: algorithm ensuring the most efficient
workload balance amongst a selected subgroup of providers ensuring
the service level;
Supporting the definition of Business • Partnership for renting third-part lockers: assessment and selection of
and Operating priorities and the pick-up points and locations on the demand forecast
Scale Up process in the New Normal
© 2020 KPMG Advisory S.p.A., an Italian limited liability share capital company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. 24Agenda
SHUT-IN
ECONOMY AND
BUSINESS
REMODELLING:
Beyond the quick-wins: redesign the business models
How Customer against shut-in economy paradigm
Experience and
Operational Models
must evolve to deal
with the situation
© 2020 KPMG Advisory S.p.A., an Italian limited liability share capital company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. 25Beyond the quick-wins: SHUT-IN ECONOMY AND NEW BUSINESS MODELS:
THE DIGITAL TRANSFORMATION FOR SAVING AND
redesign the business RE-BOOSTTHE BUSINESS IN COVID-19AGE
models against shut-in DIGITAL BUSINESS
TRANSFORMATION DESIGN
economy paradigm BUSINESS RE-MODELLING
STRATEGY
Design of new business
model leveraging on KPMG
Our approach is aimed to redesign Connected Enterprise model
the Business and Relationship
DISCOVERY Define the new competitive • Brand, Product Portfolio and
models with the customers. business strategy for ensuring Pricing model innovation
business continuity and growth • Customer Experience redesign
• New brand purpose and value • On-line reshaping and seamless
proposition to client commerce design
Our business transformation Discovery of long term shut-in
• New customer personas • Responsive Supply Chain and
addressed and target Operations reshaping
approach will be tailored on the economy impacts on company customer experience strategy
business model by: • New Partnership, Alliances, and
Social Distancing paradigm, and • New on-line strategy Vendor Management
• Consolidating forecasts on
will be strongly enabled by the duration and intensity of main • New multi-media • Organization Alignment and
communication strategy
implementation of a complete set shut-in economy restrictions People Capability upgrade
on the specific industry • New value chain & operations
of both traditional and cutting edge key foundations and
• Advanced Analytics and AI new
• Identifying the whole social ecosystem design
Digital Solutions. distancing impact cases suite
partnerships
• New Technology Architecture
affecting the business model • New internal way of working
and Enablement design
and employee experience
Advisory S.p.A.,
© 2020 KPMG Advisory S.p.A., an
an Italian
Italian limited
limited liability
liabilityshare
sharecapital
capitalco
company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. 26
2 weeks 2 weeks 8 weeks
mpany and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. 10A Global KPMG Task force to respond to the Crisis
A Global Crisis Deserve a Global Response A Panel of Global Experts…
The COVID-19 health emergency represents a global Julio Roberto
unexperienced discontinuity in economic, social and Hernandez Giovannini
geopolitical terms. At this stage, the main priority is Partner Partner
the protection of human health. Head of Customer Head of Consumer &
Advisory (US) Industrial Markets
But it looms also a very severe economic impact
following the "lockdown" imposed by the authorities.
KPMG is not immune to the dramatic circumstances
Rene Massimo
of the moment. We have converted all our operations
and thanks to "smart working" we are able to ensure Vader Curcio
Partner Associate Partner
the continuity of our professional services. We are
Head of Consumer Business Consulting CIM
determined to help the many industrial companies & Retail (France) Customer Advisory Leader
part of the "Made in Italy" and we want to do it to the
best of our ability and with an authentic spirit of Alessandro
service. Paul Manzo
Martin Associate Partner
Our goal is to stand with entrepreneurs and Partner Business Consulting CIM
managers, keeping an open dialogue with them Head of Retail (UK) Retail Supply Chain Leader
and offering availability, skills and solutions, to
react together to the crisis.
…Jointly with Italian Experts
© 2020 KPMG Advisory S.p.A., an Italian limited liability share capital company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. 27You can also read
