E-COMMERCE FUTURE PROOFED

Create the supply chain of the future where customers are assured that what they order online will be delivered first time, on time, every time

CHALLENGE: SUPPLY CHAIN INNOVATION

Dairy Farm, a leading pan-Asian retailer that operates more than 9,700 outlets, and employs more than 230,000 people, generated total annual sales in excess of US$21 billion in 2018.  To stay relevant with customers and market trends, Dairy Farm invites students across Southeast Asia to come up with innovative, data-driven solutions to address this challenge:

 

 

To provide a better shopping experience - how can Dairy Farm improve the accuracy of stock availability information so customers are certain that the products they order online are available and will be delivered as promised?

RESOURCES

Here you will find suggestions on things to consider as you begin your journey to create innovative, data-driven solutions for Dairy Farm to improve its inventory management system.

CONSUMERS IN TODAY'S DIGITAL AGE

> E-commerce sales globally are tipped to top US$4 trillion by 2020

> Asia’s population is young, fast-growing, increasingly online and mobile-first

> Rising consumer expectations for fast, if not immediate, order delivery

> Disruption in the retail sector has enabled niche online retailers to get a foothold

> Good UX design of online platforms is rising in importance

> Easy and secure payment methods

SUPPLY CHAIN OF THE FUTURE

> What factors prevent inventory management systems providing an accurate and reliable real-time view?

> Large established companies have legacy systems – how equipped are they for the IoT age?

> What is the upside to reduce stockouts and overstocked items?

CUSTOMERS

Here you will find suggestions on things to consider as you begin your journey to create innovative, data-driven solutions for Dairy Farm to improve its inventory management system.

HAPPY CUSTOMERS: HELLO SALES

Real-time access to inventory levels enables Dairy Farm to make quick decisions, swiftly sell and deliver products to meet the needs of its evolving – and increasingly digitally-connected and prosperous – customers.

Beyond customer satisfaction, the success of major retailer operations like Dairy Farm hinge on the accuracy and efficiency of inventory management systems to handle thousands of products daily including perishable items with a limited shelf-life.

THE RISK: OVERPROMISE AND UNDERDELIVER

Dairy Farm’s customers, vendors and colleagues are frustrated by past incidences where discrepancies arose between the stock level that the e-commerce platform thinks is available for people to buy online, vs the actual amount of available stock in the warehouse that is ready for immediate dispatch.

Discrepancies are problematic, particularly stockouts. Customers increasingly won’t tolerate a broken promise for on-time delivery if a product is discovered to be unavailable, and vendors are annoyed if Dairy Farm can’t support them during peak-demand periods and promotional campaigns. On the other hand, overstocks – where more stock lies in the warehouse than what the e-commerce platform knows to allow customers to order – can lead to food waste and lost margins.

DATA-DRIVEN SOLUTIONS TO IMPROVE THE SUPPLY CHAIN

Dairy Farm wants to find ways to leverage the power of big data and analytics to improve its inventory management system through better oversight on stock levels, fewer stockouts, reduced waste and improved asset utilisation.

If you are motivated to help an industry giant discover new and better, data-driven ways to deliver improved online experiences for customers, get a team together to compete in The E-Commerce Future Proofed Challenge. 

HANDY HINT

You will need to go back to basics to address demand and supply variables at the heart of the supply chain and help Dairy Farm to create the digital supply chain of the future.

DATA AVAILABILITY:

The data set would only be provided to selected teams on the first day of the hackathon. Applicants can study the optional reading selected by Dairy Farm in the following section to get inspiration of how technology and innovation are being implemented by other organisations and develop your own strategy.

ADDITIONAL RESOURCES

Optional Readings

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