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C2050-219 - IBM Sterling Order Management V9.1 Deployment - BrainDump Information

Vendor Name : IBM
Exam Code : C2050-219
Exam Name : IBM Sterling Order Management V9.1 Deployment
Questions and Answers : 104 Q & A
Updated On : January 22, 2019
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C2050-219 exam Dumps Source : IBM Sterling Order Management V9.1 Deployment

Test Code : C2050-219
Test Name : IBM Sterling Order Management V9.1 Deployment
Vendor Name : IBM
Q&A : 104 Real Questions

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IBM IBM Sterling Order Management

Cloud Computing: IBM Acquires Sterling Commerce | killexams.com Real Questions and Pass4sure dumps

by way of PR Newswire

Article score:

August 27, 2010 02:45 PM EDT



IBM on Friday introduced the closing of its acquisition of Sterling Commerce. The company expands IBM's skill to aid valued clientele accelerate their interactions with shoppers, companions and suppliers through dynamic enterprise networks the use of either on-premise or cloud beginning fashions.

corporations are looking for methods to create greater clever networks of enterprise partners, purchasers and suppliers with a view to raise efficiency and profitability. These interactions are expanding dramatically due to the proliferation of electronic enterprise transactions, from banks exchanging transaction information and producers sourcing raw substances electronically, to sellers automating inventory replenishment and managing orders online.

Sterling Commerce gives application for cross-channel commerce and integration of consumer, associate and agency networks across a big range of industries. The combination of IBM and Sterling Commerce allows for the integration of key enterprise strategies throughout channels and among trading companions - from advertising and marketing and selling to order management and success.

"We now offer an entire platform for multi-enterprise enterprise transactions," pointed out Craig Hayman, universal manager, IBM trade options. "In mixture with IBM's latest offerings, Sterling Commerce, Coremetrics and Unica are increasing IBM's capacity to assist agencies automate, manipulate and accelerate core enterprise processes throughout advertising, selling, order management and achievement."

With the acquisition of Sterling Commerce, IBM advances its means to aid customers integrate and automate enterprise strategies, leading to more suitable demand generation, consumer adventure and fulfillment. using the combined applied sciences of IBM and Sterling Commerce, valued clientele have the pliability to manage these methods - and their networks of company partners - via public or inner most cloud computing environments.

on account that IBM introduced its intent to acquire the company in can also, Sterling Commerce has considered continued momentum with valued clientele in each its company integration and commerce solutions organizations. Sterling Commerce these days introduced that Hostess brands has carried out its B2B integration options each on-premise and as a provider to enhance Hostess' supply chain performance. In June, Cengage studying went live with the latest edition of Sterling Multi-Channel promoting to take skills of recent market segmentation and stronger promotions functionality that increase the customer journey of its award-profitable web site, CengageBrain.com.

"We view the IBM acquisition of Sterling Commerce as a good move," spoke of Charles Qian, manager of eCommerce systems at Cengage gaining knowledge of, a number one global company of imaginitive instructing, getting to know and research solutions. "Our fresh implementation changed into seamless, and achieved under a good timeframe. I are expecting the wonderful solutions we've received from Sterling Commerce will handiest be more desirable under IBM."

in addition to enhancing IBM's integration and commerce choices, Sterling Commerce software additionally complements IBM's industry-concentrated utility including the business's frameworks helping the retail, manufacturing, communications, health care and banking industries.

more than 18,000 international shoppers count on Sterling Commerce's choices, including gigantic organizations comparable to Boston Market, Honeywell, Monsanto and Pitney Bowes. backyard the us, Sterling Commerce's consumer list contains leading manufacturers like Toshiba and exact marketers such as Auchan and John Lewis.

The acquisition builds on IBM's starting to be portfolio of industry utility options designed to help organizations automate, manage and speed up core business procedures across advertising, selling, ordering and success. IBM's contemporary acquisitions of Sterling Commerce and Coremetrics and the meant acquisition of Unica will increase the enterprise's ability to help shoppers' needs in this starting to be market.

With the closing of this acquisition about 2,500 Sterling Commerce personnel join IBM. according to IBM's utility approach, IBM will continue to aid Sterling Commerce's valued clientele whereas allowing them to take knowledge of the broader IBM portfolio.

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GSA goes with IBM cloud to enrich acquisition services | killexams.com Real Questions and Pass4sure dumps

Cloud Computing

GSA goes with IBM cloud to enrich acquisition functions
  • by using Frank Konkel
  • Oct 21, 2013
  • The accepted services Administration is getting desirous about deliver chain management, settling on IBM to deliver the cloud infrastructure and whole end-to-end services within GSA global deliver, which gives $1 billion price of business items and features annually to government consumers worldwide.

    As part of the 5-12 months, $30 million contract announced Oct. 21, GSA will set up IBM's SmartCloud for government to address some 5.5 million annual orders. whereas cloud hosting is a vital part of this deal, it be the extra services IBM will supply GSA that make it a huge victory for large Blue.

    GSA international give will make use of a few cloud-based solutions from IBM starting in early 2014, together with its Sterling Order management and Sterling B2B Integrator, enabling GGS a single view of order management for demand, stock and supply across its global give chain networks. GSA will also make use of IBM's analytics utility, using purchase data and different large facts to determine developments, order patterns and employer studies.

    Leveraged with IBM's SmartCloud for govt, these and other features are anticipated to support GSA streamline its enterprise mannequin over the subsequent 5 years.

    "The GSA is displaying giant leadership for different executive corporations by using moving their order management system to the cloud," stated Anne Altman, usual supervisor of IBM's federal division.

    "IBM SmartCloud will raise visibility into GSS channel operations and make feel of big information within, however also optimize stock and supply considerable manner innovation, resulting in improved company procedures to manipulate the agency's big give chain and logistics operations," Altman stated. "this could reduce charges; creating extra effective results for GSA consumers, and subsequently translate right into a benefit for the taxpayer."

    for most of 2013, IBM has been locked in a warfare with Amazon net functions for the correct to increase a $600 million cloud computing infrastructure for the CIA. Yet notwithstanding AWS eventually win that deal -- as looks seemingly in response to contemporary felony proceedings -- it won't be a bad year for IBM.

    big Blue's cloud computing profits exceeded $1 billion all over the third-quarter – the primary time that has happened – and within the first three quarters of 2013, its cloud profits jumped 70 p.c over remaining yr. that is despite the enterprise taking a third-quarter revenue hit of more than $1 billion -- $23.seventy two billion in comparison to remaining year's $24.74 billion -- in huge part due to weak efficiency from the enterprise's hardware division.

    when it comes to normal cost, IBM landed its largest public sector cloud contract up to now in August, securing an interior department deal value as much as $1 billion over 10 years. IBM officers predict its SmartCloud for executive solution to gain Federal chance and Authorization administration program (FedRAMP) compliance by means of year's conclusion as neatly, which means it's going to agree to the govt's rigorous cloud computing protection requisites.

    The GSA deal, despite the fact, highlights how a whole lot of IBM's increase within the cloud market is because of the end-to-conclusion functions it offers on desirable of the cloud infrastructure itself. IBM has lengthy provided companies with knowledgeable consulting and different B2B options that many cloud infrastructure suppliers would need to subcontract out.

    "The explanation why IBM turned into chosen here is we couldn't most effective supply [GSA] the cloud device, but the conclusion-to-end capacity – the analytics and new ways to examine business and efficiency," talked about Luann Pavco, managing companion for IBM Public Sector services. "There truly is a change between IBM and a primary cloud infrastructure issuer."

    concerning the writer

    Frank Konkel is a former workforce creator for FCW.

    IBM captures GSA contract to manage $1B in transactions | killexams.com Real Questions and Pass4sure dumps


    IBM captures GSA contract to manage $1B in transactions
  • by way of Frank Konkel
  • Oct 23, 2013

    EDITOR's observe: A version of this text first looked on FCW.com.

    IBM has landed a $30 million cloud computing contract with the universal services Administration to deliver end-to-end capabilities to the GSA world give.

    global provide provides $1 billion price of commercial goods and services yearly to govt consumers international every yr.

    As part of the 5-year contract introduced Oct. 21, GSA will use IBM's SmartCloud for government to handle some 5.5 million annual orders. whereas cloud internet hosting is an important a part of this deal, it be the further functions IBM will deliver GSA that make it a big victory for large Blue.

    GSA world deliver will make use of several cloud-based mostly solutions from IBM starting in early 2014, together with its Sterling Order administration and Sterling B2B Integrator, giving GSA a single view of order administration for demand, inventory and provide throughout its international provide chain networks. GSA will also make use of IBM's analytics utility, the usage of buy statistics and different big statistics to identify traits, order patterns and agency reviews.

    Leveraged with IBM's SmartCloud for government, these and different functions are anticipated to aid GSA streamline its company model over the subsequent five years.

    "The GSA is displaying significant leadership for other government organizations by way of moving their order administration gadget to the cloud," talked about Anne Altman, frequent supervisor of IBM's federal division.

    "IBM SmartCloud will raise visibility into GSS channel operations and make experience of massive information within, however additionally optimize stock and provide appreciable technique innovation, leading to greater business strategies to manipulate the company's enormous give chain and logistics operations," Altman pointed out. "this could reduce costs; growing extra productive consequences for GSA purchasers, and subsequently translate into a advantage for the taxpayer."

    for many of 2013, IBM has been locked in a struggle with Amazon web capabilities for the correct to improve a $600 million cloud computing infrastructure for the CIA. Yet even though AWS in the end win that deal -- as looks seemingly based on contemporary felony lawsuits -- it might not be a foul 12 months for IBM.

    big Blue's cloud computing earnings surpassed $1 billion all through the third-quarter – the first time that has came about – and within the first three quarters of 2013, its cloud salary jumped 70 % over closing year. it is despite the company taking a third-quarter salary hit of greater than $1 billion -- $23.72 billion compared to remaining yr's $24.seventy four billion -- in massive part as a result of susceptible efficiency from the business's hardware division.

    in terms of overall price, IBM landed its largest public sector cloud contract thus far in August, securing an indoors department deal worth as much as $1 billion over 10 years. IBM officials are expecting its SmartCloud for government answer to obtain Federal risk and Authorization administration application (FedRAMP) compliance by year's conclusion as well, that means it is going to agree to the government's rigorous cloud computing security necessities.

    The GSA deal, besides the fact that children, highlights how plenty of IBM's boom in the cloud market is as a result of the conclusion-to-end capabilities it provides on exact of the cloud infrastructure itself. IBM has lengthy supplied agencies with expert consulting and other B2B solutions that many cloud infrastructure providers would have to subcontract out.

    "The explanation why IBM turned into chosen right here is we couldn't simplest deliver [GSA] the cloud gadget, however the conclusion-to-end potential – the analytics and new methods to look at business and efficiency," referred to Luann Pavco, managing associate for IBM Public Sector functions. "There in reality is a change between IBM and a fundamental cloud infrastructure issuer."

    concerning the creator

    Frank Konkel is a former staff creator for FCW.

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    IBM Sterling Order Management V9.1 Deployment

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    PFSweb's (PFSW) CEO Mike Willoughby on Q3 2018 Results - Earnings Call Transcript | killexams.com real questions and Pass4sure dumps

    PFSweb, Inc. (NASDAQ:PFSW) Q3 2018 Earnings Conference Call November 8, 2018 5:00 PM ET


    Cody Slach – Investor Relations-Liolios

    Mike Willoughby – Chief Executive Officer

    Tom Madden – Chief Financial Officer


    Jason Kreyer – Craig-Hallum

    Kara Anderson – B. Riley FBR


    Good afternoon everyone, and thank you for participating in today’s conference call to discuss PFSweb’s Financial Results for the Third Quarter Ended September 30, 2018. Joining us today are PFSweb CEO, Mr. Mike Willoughby; the company’s CFO, Mr. Tom Madden; and the company’s outside Investor Relations Advisor, Cody Slach with Liolios. Following their remarks, we will open the call for your questions.

    I would now like to hand the conference over to Mr. Slach for some introductory comments.

    Cody Slach

    Thanks, Lisa. Before we go further, I would like to make the following remarks concerning forward-looking statements. All statements in this call, other than historical facts are forward-looking statements. The words anticipate, believe, estimate, expect, intend, will, guidance, confidence, target, project and other similar expressions typically are used to identify forward-looking statements. The full disclaimer relating to forward-looking statements as well as certain non-GAAP metrics used in our filings, and this presentation can be found in the Investors section of the PFSweb website under Safe Harbor statement.

    I’d like to remind everyone that this call will be available for replay through November 22, 2018 starting at 8:00 PM Eastern tonight. A webcast replay will also be available via the link provided in today’s press release, as well as available on the company’s website at pfsweb.com. Any redistribution, retransmission or rebroadcast of this call in any way without the express written consent of PS – PFSweb is strictly prohibited.

    Now, I would like to turn the call over to the Chief Executive Officer of PFSweb, Mr. Mike Willoughby. Mike?

    Mike Willoughby

    Thank you, Cody, and good afternoon to everyone. Before getting into our business and financial update, as you listen to the call today, you will hear us provide additional insight into our two business segments, through which we deliver our end-to-end e-commerce service offering. As a reminder, our PFS segment provides operations services, including order fulfillment, customer care, order management technology, payment services and fraud management activities. This business is normally characterized by monthly recurring revenue, multi-year engagements and gross margins generally in the 20% to 30% range.

    Our LiveArea segment provides professional services, including commerce and digital experience strategy, creative and digital marketing, and technology platform development and integration. While LiveArea does have recurring revenue characteristics from digital marketing and managed services retainers, as well as a high level of re-occurring projects with existing clients, it is primarily driven by project engagements that are discrete in nature. We generally target gross margins in this business to be between 40% and 50%.

    Now moving on, during the fourth quarter, we continued to focus on – third quarter, we continued to focus on higher margin engagement, and execute on our profitability initiatives set in 2017. As a result, this was our sixth consecutive quarter of year-over-year service fee gross margin expansion. Similar to last quarter, our PFS business outperformed our expectations, while we experienced softness in our LiveArea segment.

    For our LiveArea segment, we performed at a high level for our client, successfully sold a number of projects to current clients, and continued to benefit from a higher level of retainer agreement activity with both new and existing clients. However, we continued to experience lower-than-expected sales of e-commerce platform implementation projects for new clients.

    We also continued to experience delays with a couple of large implementation project launches, that we expected to begin during the quarter, and now expect to be delayed into the early part of next year. Although, these delays and lower bookings have impacted the top line, we’ve responded accordingly with prudent cost management and more efficient utilization of our LiveArea resources, as reflected by a 65 basis point improvement in LiveArea’s adjusted EBITDA margin.

    For PFS, we carried over the strong momentum from the first half of the year as we experienced record third quarter volumes, shipping more than 3.8 million orders across the globe. We also continued to generate significant improved gross margins in this segment. Subsequent to the quarter, we opened a new fulfillment distribution center in Southampton, England, building upon our existing European DC footprint in Liege, Belgium. Over the past week, we have begun operations in this facility, supporting an existing European client relationship that required a UK presence and we expect to add more existing and new client relationships to this site, as we go forward.

    We have also made significant progress with our Fulfillment-as-a-Service or FaaS initiative, bringing one new offering completely to market with another exciting new offering moving into the final testing phase during Q4 of this year. I’ll now turn the call over to Tom, to provide further financial insight for the quarter. And then I will come back and provide commentary on our operational results, as well as progress with our business development activities, exciting developments with our FaaS initiative, as well as our preparations for the upcoming holiday season. Tom?

    Tom Madden

    Thanks, Mike, and good afternoon everyone. Let me provide some financial highlights of the results for Q3. For the third quarter, we saw a minor year-over-year reduction in our consolidated service fee equivalent revenue, which decreased to $53.3 million, compared to $55.1 million in the prior year period. However, our gross margin performance was at 37%, which was up 250 basis points versus the prior year quarter, primarily related to improvements in our PFS segment, which I will discuss later.

    Also note that this gross margin performance was higher than our overall targeted gross margin range of 30% to 35%. Although we continue to expect that our margins will be more in line with the targeted range as we go forward, due to the reduced benefit from both PFS client project work and other activity, although we do hope to perform at the higher end of the range. From an adjusted EBITDA standpoint, we generated $5.5 million for the quarter, which was generally in line with our prior year performance and slightly better than our sequential Q2 2018 results.

    Turning to the balance sheet at September 30, 2018, cash and cash equivalents totaled $14.3 million and total debt was $43.2 million, resulting in a net debt position of approximately $28.9 million, which compares to a net debt position of $28.2 million at December 31, 2017. Overall, we continue to expect to generate cash flow from operations during calendar year 2018 of between $6 million and $10 million.

    As announced earlier this week, we finalized and amended $60 million revolving credit facility with a syndicate of bankers led by Regions Bank, replacing our existing revolver and term loan credit facilities at more favorable terms. The amended agreement also provides an accordion feature to borrow an additional $20 million for a total of up to $80 million. The agreement provides a better rate structure and an extended maturity date to further strengthen our balance sheet and support our working capital needs. This facility also provides us with greater financial flexibility to support our targeted growth across both our LiveArea and PFS business segments.

    Our PFS segment generated $32.5 million of service fee equivalent revenue for the quarter with a service fee gross margin of 29.6%. This compares to $31.3 million of SFE revenue in the third quarter of last year with 23.0% of gross margin. The strong PFS gross margin was due to several primary factors, including improved operational efficiency through enhanced warehouse technology capabilities, a focus on higher-margin offerings including project work, and the transition of certain lower-margin client engagements, which did not meet our profitability objectives and were discontinued.

    Our LiveArea segment generated service fee revenue of $20.8 million in the third quarter with service fee gross margin of 48.3%. This compares to $23.8 million of service fee revenue and 49.2% in gross margin during the third quarter last year. The LiveArea revenue decline is primarily due to lower project activity as a result of the continued delays in new project launches that we expected to begin in the third quarter as well as lower LiveArea bookings of new client projects. In response to the LiveArea revenue softness, we have trimmed our SG&A expenses in this business segment, which decreased by $1.6 million versus the prior year.

    In addition to the business segment data, we also have cost reported as corporate SG&A. These include costs that are not directly attributable to one of the two business segments. Our adjusted costs related to corporate SG&A has declined slightly in Q3 of 2018 as compared to the prior year. We are continuing to evaluate our allocations of costs among the business units with the expectation that in the future additional costs may be reclassified from the corporate SG&A bucket into one of the two business segments and certain costs that may have historically been considered within our direct operating expense may be classified into cost of fees in the future.

    Moving on to our 2018 outlook. While our PFS activity continues to be solid as a result of lower-than-expected new client project revenue from our LiveArea business segment, we currently anticipate that our consolidated SFE revenue will be somewhat lower than previously targeted. We now expect our 2018 service fee revenue to range from $229 million to $233 million as compared to our prior guidance of $237 million to $247 million. The makeup of this is that we expect the PFS segment to be between $149 million to $151 million and our LiveArea segment to be between $80 million to $82 million.

    While we are reducing our consolidated SFE revenue guidance, we are maintaining our previous guidance for adjusted EBITDA, which we are targeting to be between $24 million to $26 million on a consolidated basis, reflecting up to 13% growth from 2017. This concludes my prepared remarks and I’ll turn the call back over to Mike, Mike?

    Mike Willoughby

    Thanks, Tom. Looking specifically at our LiveArea segment, our long-term service fee revenue growth rate target for this segment is 10% to 15% with sustainable gross margins in the 40% to 50% range. We continue to experience gross margins at the high end of this range for the quarter, continuing the trend from the first half of the year. We’ve also continued to improve our adjusted EBITDA margins as a percentage of service fee revenue, primarily resulting from continued improvements in our utilization rate and effective cost controls in the business.

    Further, we continued to generate strong retainer bookings this quarter, which have remained at record levels year-to-date. Retainer engagements, which are at least 12 months in length, generate favorable recurring revenue for the segment, but generally recognize revenue at a slower rate than project bookings, which are often completed in less than six months. However, given lower than expected project bookings from new clients this year and delays with several client program launches, we are expecting continued revenue headwinds in this segment for the remainder of the year.

    As a reminder, our new bookings for LiveArea consist of expected revenues related to one-time projects for new and current clients and also include average annual contract value for new retainers where we have a contract to provide services on a recurring basis to clients.

    Total Q3 bookings for LiveArea were approximately $12 million with around $5 million in retainer bookings and around $7 billion in project bookings. Total year-to-date bookings for LiveArea as of the end of Q3 were approximately $42 million compared to year-to-date bookings at the end of Q3 of 2017 of about $39 million. Q3 2018 year-to-date retainer bookings of approximately $15 million were substantially higher compared to the Q3 2017 year-to-date retainer bookings of about $4 million.

    However, as previously noted, the LiveArea segment continues to experience lower than expected project sales to new clients and as a result, Q3 year-to-date project bookings were approximately $27 million compared to Q3 2017 year-to-date project bookings of about $35 billion.

    For a little color on the bookings for the quarter, during the quarter, we were pleased to announce on our LiveAreacx.com website, our engagement with The Entertainer, high growth independently owned multi-channel toy retailer in the UK. As part of our long-term relationship with The Entertainer, we worked with the toy retailer to launch their new e-commerce store, on SAP Hybris Version 6, featuring a leading edge mobile-first user experience.

    Following the completion of the project during the quarter, we entered into a managed services agreement with The Entertainer to provide development services and technical support for their e-commerce solution. I’m also very excited to announce a new project for a current LiveArea client to deploy IBM’s Sterling Commerce Order Management System or OMS in support of their omni-channel initiative in North America.

    We’ve had a long-term engagement with this client in support of their Salesforce Commerce Cloud-based program and I believe because of our in-depth knowledge of their program, we were a natural choice to implement this new OMS for them as they integrate their stores into their e-commerce user experience. We also expect to expand our managed services agreement with this client to include support for Sterling after launch. This is our first opportunity to work on the Sterling OMS platform. And I believe this first project, could open a lucrative new service category for LiveArea, leading to additional projects and managed services engagements.

    As of the end of Q3, our LiveArea segment had 97 active global client engagements. I expect this metric to continue to fluctuate quarter-to-quarter, and will likely reflect the seasonality and one-time nature of the project revenue. But I believe it is one important indicator of the scale of our LiveArea segment. Now despite the lower new client project bookings in Q3, we had another solid quarter of performing at a high level for our current clients and executing on the retainer agreements signed earlier this year.

    Our client partner organization continues to be a very effective in managing engagements with current clients, resulting in a high level of referenceability and brand recognition for LiveArea. One tangible result of our positive reputation in the industry is the inclusion of LiveArea in Forrester’s Report, Now Tech: Commerce Service Providers, Q2 2018, which was published earlier this year. I’m also looking forward to reading the upcoming Forrester commerce specialist service providers wave report, which will evaluate the top providers in our industry.

    We’ve been working hard to establish LiveArea as a strong competitor to our much larger competition, and I’m personally very excited for LiveArea to be included in this elite group of professional services organizations, included in Forrester’s Now Tech Report, and under consideration for their prestigious Wave Report.

    Moving onto the PFS segment. Our long-term SFE revenue growth rate target is 5% to 10% for this segment. However, our primary objective in 2018 has been improved profitability, through a focus on higher margin engagements and improved efficiency with our service offerings.

    From a margin perspective, our focus on profitability continues to be evident in our results, as we once again came in at the high end of our 20% to 30% gross margin target range this quarter. Hopefully, most of you have had a chance to read our recent press release, announcing the opening of our new fulfillment center in Southampton, England. This new 106,000-square foot fulfillment center, will help us expand our European operations by offering localized order fulfillment throughout the UK, building upon our current Central European, DC in Liege, Belgium.

    Our plan is to utilize this new facility to not only pursue new clients in the UK market, but also offer our existing U.S. and EU fulfillment clients, an option to expand directly into the UK. As I mentioned earlier, we are already operational in the site, supporting one of our existing European clients that desired a UK fulfillment presence to minimize shipping and other costs. We look to have success winning incremental business in this UK market with other existing clients that we support in Europe today, as well as new clients.

    In other PFS client news, we recently launched a previously announced B2B fulfillment solution for an existing health and beauty client. We are now conducting both direct-to-consumer, and business-to-business fulfillment for this client. I believe our ability to service our clients, brand, DTC programs and large scale B2B programs from the same inventory and facilities footprint is a key differentiator for PFS. This program expansion will be a great case study, and demonstration platform for our capabilities, and should help us compete for and win deals requiring branded DTC and B2B fulfillment services. The PFS pipeline remains strong, and is gaining momentum as we transition into the 2019 selling season.

    For context, we’ve doubled our sales pipeline value since the end of July. At the end of the third quarter, we maintained 84 active client programs, representing 68 different brands. For the second quarter in a row, we set a quarterly record for activity in our fulfillment centers. During the third quarter, we shipped more than 3.8 million orders, a 41% increase year-over-year. This increase continues to be driven by organic growth across several client, as well as the benefit of new client implementations from earlier in the year. And we’re very encouraged by these strong order volumes, especially given the upcoming peak holiday season.

    Speaking of the peak holiday season, there are 33 shopping days between Thanksgiving and Christmas, which is the longest number possible, which provides consumers more time to shop and receive product to be a standard delivery, while providing retailers more opportunities for special holiday promotions. We anticipate the longer shopping season will provide more opportunities for higher volumes spread across that longer season.

    You also may recall from last year’s holiday, that we introduced a new initiative for our PFS segment called Fulfillment-as-a -Service or FaaS, where we bundle our fulfillment technology, lightweight portable infrastructure, and operations management oversight to solve order fulfillment challenges for our clients. The first FaaS solution we’ve been working to bring to market is, the pop-up fulfillment center concept we first piloted with one of our clients last year during the 2017 holiday peak. I’m excited to announce that our FaaS pop-up fulfillment center solution is now in production and a formal part of our product offering.

    Our first production deployment of a FaaS pop-up is scheduled for operation in the Toronto metro area, in support of an existing jewelry client, seeking to better serve their Canadian customers and reduce freight costs, during the 2018 holiday period.

    Moving forward, we can deploy FaaS pop-ups in support of a variety of short-term or even longer-term special events or in response to seasonal peaks, requiring the temporary expansion of the clients’ fulfillment network. The portable nature of the pop-up solution allows us to quickly and cost effectively deploy a temporary fulfillment operation in almost any space where Internet services and access to shipping dock, including short-term rented space, empty big box retail centers, a portion of the clients B2B warehouse, or even in partnership with a traditional B2B third-party logistics firm, or transportation provider. There are many potential applications for this pop-up solution, and I’m very excited to have this new product in our portfolio, as another high-margin way to grow our PFS business, as we look to the future.

    I’d also like to touch on a separate FaaS initiative that we’ve been working on. Earlier this year, we partnered with a global real estate firm that specializes in the ownership of premier shopping, dining, entertainment and mixed-use destinations to market a differentiated omni-channel strategy for their mall-based retailers. The product we’ve created is called RetailConnect, which is designed to cost effectively solve store order fulfillment challenges for a mall-based stores without requiring retailers to allocate valuable retail space, adjust staffing and store operations, or implement any additional in-store hardware or software.

    The first aspect of RetailConnect involves technically enabling the online sale of store inventory. The second aspect is the collection, transaction and transfer of the store merchandise to a centralized depot retail space within the mall. It is here that the orders are prepared for shipping to the consumer. Future versions of RetailConnect will include same-day home delivery, in-store pickup, and curbside delivery or central pickup within the mall retail centers.

    We are completing production testing of the complete solution through a pilot RetailConnect program with one of our current clients, taking place in the Dallas-Fort Worth area this holiday season. Our plan is to launch this product into 6 to 10 of our partners premium malls throughout 2019, providing participating retailers with a cost-effective, low effort, national ship from mall solution prior to the 2019 holiday peak.

    Strategically speaking, this product announcement confirms our ability to innovate out of our core set of PFS operation services, and create new retail solutions targeted at solving strategic business problems our clients face. From a financial perspective, we expect offerings from our FaaS initiative, to have more of the characteristics of SaaS technology products, with much higher gross margin targets, long-term recurring revenue streams, and an addressable market that is not limited by our deployment of facilities and hourly labor.

    As we continue to rollout more FaaS offerings, we may be able to adjust our growth rate and profitability targets for the PFS segment. We also anticipate generating more cross-sell opportunities between PFS and LiveArea from RetailConnect, which could lower our LiveArea cost-of-sale and provide new dependable streams of new client project revenue.

    We’re thrilled to announce this new product development today and look forward to sharing details on more FaaS initiatives like this in the coming months. For more details on RetailConnect, please visit our website at pfscommerce.com/retailconnect. Overall, we remain well positioned to continue to perform at a high level for our clients this holiday across both our LiveArea and PFS segment. We will also continue our prudent cost management practices and more efficient utilization of resources to offset the delay in new project launches and lower Live Area bookings to deliver another record year of adjusted EBITDA.

    As we look forward to 2019, we’re optimistic about our ability to grow our overall business through our many world-class LiveArea and PFS client relationships. We are also increasingly optimistic about the opportunity to continue to innovate within the PFS segment to bring higher margin products to market such as the FaaS products mentioned today in order to further accelerate our growth.

    Clearly, we have work to do on the LiveArea side to adjust our sales model, to reduce our exposure to the new client project volatility we’ve experienced this year. As we finalize our 2019 plans and budget, we are also re-evaluating our sales plan in light of our corporate distinctiveness and where we believe we have the right to win in our industry.

    Based on the strength of our brand and the unique competencies we have, particularly through the combination of LiveArea and PFS, I believe LiveArea has the ability to grow at a healthy rate on a long-term basis. We are committed to translating our addressable market opportunities into specific action plans that will make a difference in 2019 and produce a better LiveArea top line performance, while we work to maintain the profitability progress we’ve made within that business segment.

    Tom and I look forward to engaging with all of our investors to answer questions and communicate our exciting story. We hope to have opportunities to meet with you over the next several months. And as always, we’re happy to make ourselves available by phone. Lisa we’re now going to open up the call for questions and answers.

    Question-and-Answer Session


    Thank you, sir. [Operator Instructions] We’ll go first to George Sutton with Craig-Hallum.

    Jason Kreyer

    Hey, gentlemen, good afternoon, it’s Jason on for George. Mike, can you talk through some of the headwinds that you’re experiencing on the LiveArea side, as we’ve talked over the last quarter or so some of this was related to specific platform challenges. So, I was wondering if you could maybe walk through what you’re seeing on a platform basis if that’s actually where you’re seeing some of the delayed projects?

    Mike Willoughby

    Sure. Jason, I’ll provide some color. I think for me the issue is really the number of at-bats that we’ve had this year as far as opportunities to engage in these platform implementation projects. And our experience and guess the color that we’re receiving from other competitors in the market and our channel partners to an extent is that it’s just been a slower year this year for these kind of large new implementations. I think there’s a variety of reasons for that, probably different reasons for each partner, but the result has just simply been a slower year for us in signing the new implementations.

    When you look at some of the specifics we talked earlier in the year about Adobe’s acquisition of Magento, I think that’s caused some people to kind of pause and wait to see what happens there. We talked earlier in the year about the continued integration of Demandware into the Salesforce organization and some of the organizational changes there.

    I just think there has been several different things that kept kind of come together to create this moment in time change. I would expect that based on what we’re seeing with our pipeline and the word at various conferences that we’ve attended that things would return more to normal next year, but I think we’ve learned from this year that we don’t want to just rely on that kind of lead flow to drive our results.

    So, we are going to be looking at opportunities that we may have to be less reliant on the big new implementations in order to grow the business, not that we ever want to turn that business away. We so definitely want that to be part of the mix. But as I mentioned in my prepared comments, we’re going to be looking into 2019 at ways in which we can control our destiny to a greater extent and be less dependent on the big implementations to drive a significant portion of our LiveArea revenue.

    Jason Kreyer

    So on that point, some of those deals that you’ve already booked at that just or maybe not booked, but things that you expected to occur, that have been pushed out, are those the large implementations that you’re talking about? And then, is there anything you can do there to kind of influence that to get those moving forward for customers, or you just kind of at their mercy a little bit on what the rollout time frame looks like?

    Mike Willoughby

    Right. Well, I think the delays, is just one component of that overall revenue softness. The reason that we called it out is because it’s a bit unusual to have a couple of large wins that once signed would kind of go into a delay mode. It’s much more typical, almost universal that signing a contract means that we’re immediately beginning to work on the project and spending up resources to work on it. So the fact that we actually have more than one that’s doing that I think is unusual, and we felt like it deserved some comment.

    As far as what we have control over, the individual situations vary a little bit in one case, it is a large implementation, it’s a fairly complex digital transformation project that we’re working on and the client has just spent much more time in sort of design phase as they have been planning for the deployment. So that certainly generates some activity for us, but not nearly the activity that will come from the actual project of deploying the e-commerce platform and so that is just stretched out much longer than we would have expected and as I said in my comments, we really now expect to not really get into the real project work until early 2019.

    In another situation, it’s more of a budget situation where the client for budgetary reasons simply put the project on hold until they get new budget allocation that the first of the year. So in that case, there’s really nothing that we can do to accelerate that we just go on hold and wait for them to re-kick off the project in the first part of the year. So, there’s different situations there, obviously, we’re going to do everything we can to work to bring those projects back in the case of the one where the discovery time is lengthening, we’re obviously working with the clients to try to answer the questions and get prepared. So that’s the color I have on that.

    Jason Kreyer

    Great color. Thank you, Tom. One for you, just trying to dissect the margins a little bit here. The last few quarters have all been nicely above the gross margin range that you provided and given that there is a little bit slower returns on the LiveArea side, which is the higher margin segment that would lead me to believe that should provide a benefit to margins once that re-accelerates kind of in the 2019 time frame. So just wondering if you can break that down in terms of in why we’d stay in the 30% to 35% range, why we couldn’t still kind of continue at the 35% to 37% that it’s been at?

    Tom Madden

    So, for the last couple of quarters it has been operating closer to the 37% range. We have had some benefit in those quarters applicable to incremental project work and a few higher-margin offerings that we hope to see continue into next year, but I just want to be a little bit careful there. I believe my comments are valid in that – in our real objective, while we’ve got a little bit of a larger rates there, that 30% to 35%. Our objective based on our outlook today would be toward the high end of that range and I feel comfortable with that. But again, it’s kind of the timing and the recurring miss of the project work and some of the one-off types of opportunities out there are little bit harder to predict.

    So, I think it’s a little bit more appropriate to reflect that type of range. In addition, as we look at Q4, you will see a higher percentage of our overall service fees coming from that profession – PFS Operations business, and as a result, just from a revenue mix standpoint that gross margin is generally a little bit lower on an overall basis, because of that revenue mix.

    Jason Kreyer

    Okay. Thanks guys.


    [Operator Instructions] Up next, we’ll go to Kara Anderson, B. Riley FBR.

    Kara Anderson

    Hi, good afternoon.

    Mike Willoughby

    Hi, Kara.

    Kara Anderson

    I just actually kind of wanted to jump back on the margin talk. So I’m just wondering, can you talk a little bit about the service fee margin for the PFS Operations segment in the fourth quarter, since I don’t think we’ve seen the fourth quarter broken out yet. Obviously, I know as you said, Tom, that total margins are impacted by the shift, but what’s the dynamic within the segment with the higher volume that flows through in the holiday period?

    Tom Madden

    Again, I would – I guess – think that as we look at Q4, we would expect to be towards the high end of that consolidated service fee gross margin range, and not quite all the way up to that 37% that we’ve been performing at. So I think it could probably be a little bit, towards the high end of that range would be my current expectation.

    Kara Anderson

    So, if I look at the margin that we saw in the first part of the year, sort of for that PFS Operations, I think you called it out, it’s almost near 30%, just above the 20% to 30% target you’re saying that, for the holiday period, you would expect also to stay sort of in that range with that volume?

    Tom Madden

    In that range, yes. The guidance range we have on that Operations side is kind of targeted 20% to 30% range. We have been at the high end of that range. I would expect that we would continue to stay at the high end of that range during Q4.

    Kara Anderson

    Okay, thanks. And then on – can you talk a little bit about the trim to SG&A in LiveArea, what particular items or actions you took?

    Tom Madden

    So a lot of it is just ensuring that the utilization rate of our team members is stronger than where we have been in the past. And we also adjusted some of our – just ongoing SG&A costs, for the management, etcetera, in order to more prudently manage that business as we go through this revenue softness that we’re currently experiencing.

    Kara Anderson

    Okay. And then on the Fulfillment-as-a-Service offering that you’re deploying for the holiday period, because this is something new and it’s only been piloted at this point, is there execution risks that could materially impact your bottom line in fourth quarter?

    Mike Willoughby

    So – I don’t think so. One of the reasons that we went through the very diligent process of piloting the concept, and then what we didn’t talk about on the prepared comments, is that we’ve actually kind of operated sort of in this mode within our production environment this year, where even though we were in a single facility, we were really effectively distributing orders between two different environments. It’s almost picking up the environment that we have today in a production facility, and effectively moving it to a temporary facility.

    All of the processes, equipment is fully utilized in this part of our production, sort of state-of-the-art. And we actually have that now deployed in Toronto, ready to go. So I really don’t think there is execution risk associated with the production pop-up that we’d operate. Or if we look kind of to the future, doing these additional pop-ups for special events or other seasonal peaks in other geographies, I think we’ve engineered this with the portability and the modularity to deploy without execution risk.

    Kara Anderson

    Got it. Thank you so much.

    Mike Willoughby

    You’re welcome. Thank you.


    At this time, there are no further questions, so I’ll hand the conference back to our speakers for any additional or closing remarks.

    Mike Willoughby

    Okay. Thank you, Lisa. I’d like to thank everyone that attended the call today, and we look forward to speaking with our investors and analysts, as we report our fourth quarter results in March. Obviously, we continue to be very excited about some of the developments within the business, particularly the FaaS initiatives, and look forward to talking about those in more detail over the next few months as well.

    Tom Madden

    Thank you, everybody.


    Ladies and gentlemen, that does conclude today’s conference. We would like to thank you all for your participation. You may now disconnect.


    Is your DC struggling with fulfillment? Consider DOM software | killexams.com real questions and Pass4sure dumps

    Home > Technology > Is your DC struggling with fulfillment? Consider DOM software

    Technology May 14, 2012

    Column | techwatch

    "Distributed order management" applications determine the best fulfillment location for a particular order.

    By James A. Cooke

    The days when consumers did most of their shopping at stores are long gone. Today's shopper is just as apt to order an item online or with a mobile phone as walk into a shop, and that's creating big headaches for some retailers. In particular, many are struggling to make sure they have the right inventory on hand and in the right places to keep the customer happy.

    That's why a number of retailers have begun using a type of software known as "distributed order management" (DOM). Distributed order management applications determine the best fulfillment location for a particular order. Essentially, they provide visibility into inventory holdings on a network-wide basis—at distribution centers, in stores, and even at supplier sites—so the retailer can decide where to pull the product from. For instance, the app might indicate that the retailer's best option for filling an online order would be to pull the item from a store, rather than the e-commerce site's fulfillment center.

    "A lot of retailers grew up using different systems and serving different channels," says Chad Hooker, senior director of supply chain solutions at the Oxford Consulting Group. "With DOM, you get the visibility as to what the customer is doing across all channels."

    Although retailers are currently the main users of DOM software, industry experts believe that other sectors struggling with order fulfilment across multiple channels may soon begin turning to these apps as well. Hooker notes that the government is showing an interest in this type of software, while Gartner analyst Jessica O'Brien says that the life sciences industry has started looking into its use.

    Despite the recent surge of interest, DOM software is not new. These applications have been around for more than a decade. But they've been gaining traction in the retail sector in the past two years as more merchants struggle with multi-channel fulfillment. Interest in this application is "largely driven by retail and the need to support all-channel commerce seamlessly without busting the budget," explains Jim Le Tart, director of marketing at RedPrairie, one vendor of this type of software.

    In addition to RedPrairie, a number of well-known vendors provide DOM software, including Manhattan Associates, Sterling (IBM), Oracle, and Softeon. Other software companies in this space include Jagged Peak, IMI, OrderMotion, and VendorNet.

    Prior to the changes in consumer shopping behavior, companies were hesistant to invest in this kind of software because of the integration work involved. DOM software must connect to multiple systems, including warehouse management systems, front-end e-commerce systems, merchandising systems, order management systems, point-of-sale systems, and customer relationship management systems.

    Because of the amount of tie-in work required, installation and deployment of DOM systems are expensive undertakings. Although the actual cost depends on the order volume and the complexity of the integration, Gartner analyst O'Brien says installation of this type of software can easily reach $1 million. "They are definitely not cheap projects," she says.

    Despite the huge capital investment for this software, a lot of retailers would rather deploy a DOM system than upgrade their existing systems or install new ones. "They look to use their current [information technology] infrastructure without having to rip out and replace existing systems," explains O'Brien. "They can have a layer of inventory visibility and enable intelligent order sourcing throughout their distribution network."

    The payback for users comes about from the savings in improved inventory management. "You're not stockpiling inventory," says Hooker, "because instead of having the stores just pulling from the store DC and the dotcom pulling from the dotcom DC, you can pull from the entire network."

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    INTERVIEW Alex Alexander of Yoox Net-A-Porter on innovation | killexams.com real questions and Pass4sure dumps

    It is only two years since the merger of Yoox and Net-a-Porter but since then much has been done to integrate these two fashion retailers, which sell luxury in-season fashion and out-of-season discounted goods as well as developing flagship ecommerce sites for luxury brands. Listed on the Milan stock exchange, the Yoox Net-a-Porter Group has headquarters in Bologna, Italy – where Yoox is based – as well as in London, where Net-a-Porter has its roots. Commercial and tech teams are based in both locations. The Group has a turnover of almost £2bn and set its sights on double-digit growth through to 2020.

    As well as boosting sales through its multi-brand in-season Net-a-Porter and Mr Porter sites the Group aims to increase sales of multi-brand off-season luxury fashion from its original Italy-run Yoox.com and the Net-a-Porter launched site, The Outnet. Its expertise in luxury content and customer service will further be brought to the fore through partnerships with luxury brands for which it designs and operates flagship ecommerce stores. It currently operates 40 flagship stores for brands including Armani and Chloe using technology from the Yoox arm of the business.

    It plans to deepen the digital opportunity for these brands through development of omnichannel capabilities, native apps services, editorial content, tailored customer service, and further creative and digital projects.

    Core platform

    Since the merger, the group has been reorganising its operations around three distinct parts of the business – in season, off season and flagship stores. A core cloud-based platform has been developed with IBM using Yoox’s proprietary software and IBM WebSphere Commerce. This will provide a robust and scalable foundation for the different ecommerce sites within the business as well helping to ease post-merger systems integration. Running all of the businesses on one platform also provides a single focal point for in-house technology development.

    In addition, working with IBM gives YNAP access to the IBM Innovation Lab and the Fashion & Luxury Innovation Committee. The core commerce platform is underpinned by product information management, IBM Sterling Order Management and back-end systems including ERP and warehouse management systems. “Decoupling the front end from the platform means we can create the differentiators and maintain the DNA of the brands while we focus on the platform to just expose the services, so if you look at Net-a-Porter or Moncler they are pixel perfect but they are all different, but that is all experience, UI and UX,” says Alex Alexander, CIO, Yoox Net-a-Porter Group. He adds: “They all use the same sort of capability but not all brands want the same features, certain payment methods or checkout features.” Aspects such as these are determined at the brand level, based on the features they want to enable for customers, along with regional aspects such as payment methods.

    UI and UX can further localise the experience. The idea is to build only once with a set of APIs enabling the core functionality and features to be used many times in different ways across the various brands. This enables brands to differentiate and provide the desired experience for their own customer base, whether it is via a mobile app, m-web, smart watch or in-car device. In addition, the front-end customer experience can be differentiated by country or even by customer. One core global platform also means that the tech teams can develop solutions for specific brands with functionality added into the core platform and then made available to all.

    Funding this five-year growth plan is an investment of more than £462m (€500m) in technology and logistics across the group, including a new Tech Hub in London which opened at the end of June.

    The Tech Hub

    The Tech Hub, in London’s White City, brings together 500 developers from two separate offices in the capital, with space for a further 100 recruits, Alexander explains. It works closely with the group’s other tech hub in Bologna, which also has 500 developers. They work on projects across the business but each has its own areas of expertise: Bologna is a centre of excellence for fulfilment optimisation, warehouse management tools and techniques, and omnichannel, order management and ERP, while London focuses on mobile, content, visual merchandising and artificial intelligence (AI). Each area of functionality has a lead, such as the owner of payments functionality, but the team working on it may be spread across both locations.

    Data is a global team effort, for example, but some of the niche smart data elements are being worked on in London. AI’s initial base was in the capital, but Alexander believes that within 2 years it will be applied across every part of the business as niche technology uses are matured in one centre and then migrated to the rest of the organisation. For the past two years, the two Tech Hubs have been working closely together on a number of projects and co-locating project teams between Bologna and London. Alexander explains: “We tried to encourage face-to-face working in the early days of 2015/16. It was essential to building a global team you have to know people and interact with them.” He adds that some projects were deliberately chosen in 2016 to ensure people from both locations had to work together. A mobile initiative, for example, was set up in a similar way to a start-up so the team had to work out their own co-location arrangements and complete the product development at the earliest possible time.

    The group has invested heavily in video and conferencing tools at the London hub, as well as in collaboration apps and unified communications tools, to enable continued close working across project teams wherever they are located. “We tried to encourage face-to-face in the early days but now the teams are effectively working as a global team so we can use collaboration tools and video tools to maintain that collaboration,” says Alexander “The notion of one team is so important to me,” he adds. “Because as a global team, unless we think and act as one team, we won’t be effective to support a global business, and that is one of my key priorities, to continue to reinforce this one team mindset.”

    Alexander aims to put YNAP at the forefront of technology innovation in luxury retailing and to create a team that’s able to develop in a sustainable way wherever particular project teams are based – and that may extend to further tech hubs in different locations in the future. He comments: “I want to have more technology hubs because of the diversity of the talent and the speciality we can get from different locations is key. We have cracked the notion of creating a global technology team and the next focus is execution.

    Innovating with AI

    “AI is one of the technologies which will transform our business. Every decade there is a game-changing technology which comes to the landscape and I see AI as one of those game changers which will help us give our customers a personalised experience and not look at customers as a segment but as an individual,” says Alexander. YNAP plans to use AI in areas such as returns optimisation, pricing optimisation and targeted marketing enhancement and its focus this year is natural language search.

    Three pillars

    The tech hubs are concentrating on three pillars for the business growth: personalisation, omnichannel and mobile. Underlying much of this is machine learning and AI. “Personalisation is key to creating inspiration for the customer,” says Alexander explaining how the Group plans to enable one-to-one personalisation of every aspect of customer interaction, be it on web, mobile, apps or other touchpoints. He believes that true personalisation means understanding each customer, their location and their mission.

    His stated goal is to enable one-to-one personalisation in terms of assortment, outfit curation, experience, content and pricing. “The way we are trying to achieve our personalisation objective is through AI and machine learning and key to that is smart data,” he adds. The Group has view of lots of data on customers from its own sites, in the form of how they behave and their searches, as well as from external sources, including the images they viewed on Instagram. However, as Alexander points out: “Only AI and machine learning can actually process all kinds of data because that data is partly structured. But the majority of it is unstructured data and putting all of that together is what our AI and personalisation strategy is all about. That is the key game changer for us in being able to create the personalised experience for our customers.” Further external data, such as the weather, the customer’s current location and the location of the occasion for which they are buying attire can be combined with this data to give a fully personalised outfit recommendation experience. He comments that there is no point sending someone an offer for a fur coat when they are spending Christmas in Australia.

    YNAP is using IBM Watson to build, train and test a natural language engine which will allow customers to speak or type into a mobile app without having to adhere to specific rules. Alexander gives examples of a customer wanting to buy a skiing outfit from a specific brand or someone saying they want to buy a gift for their husband. “We’re building the engine and testing it and this can then be exposed to the front end,” he says. How the different sites utilise the technology will be up to them. Another feature being developed with AI is an outfit builder which uses personalisation data held by the company, such as the customer’s clothes size and preferred brands. The outfit builder can be triggered by a retailer, personal shopper or by the customer themselves with different forms of interaction added at the front end. Visual search is also being investigated. This enables a shopper to upload an image of someone and say that they want to purchase a similar outfit. The engine will then build them an outfit based on that photograph offering garments sold by the retailer or the brand.


    Omnichannel development is providing opportunities for the flagship stores to fulfil customers’ need for speedy omnichannel solutions and enabling them to pick up items from anywhere in the world and return them either to the same store or to another one in a different country. Customers will also be able to order certain brands from Net-a-Porter and pick up their purchase from the brands’ own shops. This ‘omni-stock programme’ uses IBM Sterling Order Management to provide the Group with a single, global view of stock across the distribution centres of Yoox, Net-a-Porter and the brands’ own stores. Distribution centres across the Group are being repurposed in line with the in-season and off-season businesses, and a hub and spoke model implemented so stock efficiencies can be increased as well as growing the level of full-price sell-through. The model also future proofs the movement of goods against possible post-Brexit customs duties.

    The omnichannel functionality will in addition enable more flexible fulfilment options and services, including same-day delivery in New York, London, Milan, Dubai, Shanghai and Tokyo. It will also enable the flagship stores to have a better view of customers and link their online and offline behaviour. Yoox and the flagship stores have already migrated to IBM Sterling Order Management with Valentino becoming the first brand to go live with the first phase of omnichannel functionality in September. Net-a-Porter and Mr Porter have moved across to the Yoox Group’s ERP and will migrate to the new OMS in 2018, when they also move to the full commerce platform. The Outnet will migrate to the full platform at the end of this year. Italian brand Moncler was the first of the flagship stores to run on the commerce and content part of the platform when it went live this July.


    Mobile apps are becoming increasingly important for YNAP. The number of brands selling via apps is growing every financial quarter and now accounts for 50% of all sales, compared with last year’s 40%. The company is investing in iOS and Android apps to meet the varying demands of customers in all the countries in which it does business. “We can really deliver an inspirational experience through mobile,” says Alexander.

    The company has recently added messaging via mobile apps and screen sharing, whereby a personal shopper can share information with a customer. YNAP has ambitious plans for the future as it moves towards becoming a mobile-only company, investing in mobile frameworks – to enable speedier deployment and faster apps as well as new services for existing apps – and developing AI and natural language capabilities. For example, customers when travelling will be able to ask what’s trending and what the weather is like at their destination and then collect their order from the closest store. The Group’s Tech Hubs need to balance innovation and the core platform with the needs of each individual company as well as having an understanding of the end customers. If a number of sites are experiencing similar issues, a single functionality can be developed for the core platform but deployed in different ways to match customer behaviour on the individual sites.

    The level of cart abandonment, for example, was lowered through subtle messaging which showed the shopper the items that had been left in the basket the next time they visited the app. “The tone of the message was such that it was not seen as a random message,” Alexander says. An R&D team is looking further ahead to explore technologies which have yet to be commercially proven, such as augmented reality and shopping from physical shop windows when the store is closed. It is also investigating new use cases for proven technology such as visual recognition in warehouses. “It’s a fail-fast approach,” Alexander comments.

    As new technologies and business uses are developed, refined, tested and proven, they are added to the core platform and so made available to all of the retailers and brands. Integration plans and cross-group working certainly seem to be working for the business. In the first half of its financial year its net revenues hit £923m (€1bn) for the first time, an increase of 19.5% on an organic basis compared with £828m (€897m) in the first half of 2016. YNAP has successfully launched Moncler as the first online flagship store on the new front-end platform as well as signing a multi-year global agreement for the new Ferrari online flagship store. Over the same period it recorded 400 million site visits, compared with 342.7 million in the first half of 2016, and 4.5 million orders (3.9 million) with the average order value increasing by €10.

    Active customers are on the rise, too, hitting the 3 million mark in the first half of 2017 (2.6 million). With more parts of the business migrating onto the new platform and the synergies that brings, along with optimisation, innovation and engagement, the Group is set to further establish itself in the minds of its customers worldwide, while new markets and the rise of personalised experience on mobile devices ensure its sites remain close at hand.

    A longer version of this interview first appeared in InternetRetailing Magazine in September. Click here to explore the series of magazines.

    Image author: Gabriel de la Chapelle

    Image courtesy of Yoox Net-A-Porter

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