|Exam Name||:||Assessment: Retail Store Solution Sales V4|
|Questions and Answers||:||65 Q & A|
|Updated On||:||April 17, 2019|
|PDF Download Mirror||:||Pass4sure A6040-752 Dump|
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It’s complicated. agents today are deploying omnichannel capabilities including ship-from-shop (SFS), buy on-line/pickup in-save (BOPIS), store-the-sale, buy online/return in-keep (BORIS) and different services that eliminate the average wall between online and brick-and-mortar operations. Yet, they battle to profitably mix their typical mannequin of transporting bulk shipments from distribution centers (DCs) to shops—which is never going away—and the a great deal less effective model of moving “eaches” to fulfill e-commerce orders. The can charge-to-serve omnichannel consumers may also be thrice more than traditional fulfillment, in line with IBM’s purchaser Expectations analyze.
using this primary shift are consumers who more and more are expecting dealers to supply one seamless "store anywhere, ship anywhere" journey, and sellers are in no place to disregard this demand in this kind of aggressive atmosphere.
Take, as an example, Eileen Fisher Inc., which operates 50 distinctiveness stores and an e-commerce web site that includes ladies's sustainable trend attire, shoes and accessories. since getting into e-commerce, the company turned into at the start managing its on-line, retail and wholesale companies as separate monetary entities, each and every with its personal stock administration techniques.
"We knew our guide procedures effectively would not scale any additional, which became inserting the brakes on salary boom," Keir McIntyre, director of direct to purchaser expertise at Eileen Fisher, explains in a case look at. "We set out on an omnichannel retail transformation—and we all started our seek a global-classification order management system (OMS)." Eileen Fisher as a result selected IBM Order administration, as well as IBM save Engagement and IBM name center.
McIntyre noticed global inventory visibility because the first ability the OMS should enable, and that first phase was accomplished within six months. "however our work with the platform is only beginning, remarks from the company has been extraordinarily wonderful," he says. "We're confident that we'll see an growth in productiveness and an increase in customer pride."The better the optimization, the more suitable the impact
As Eileen Fisher strikes down its OMS implementation route, it will realize incremental merits, as agents previous it are proving.
"The more optimized capabilities a retailer offers, the stronger the merits it receives from every means," in response to "Put achievement on the coronary heart of the consumer experience," a Forrester Consulting idea management paper commissioned by using IBM.
to come to that conclusion, Forrester surveyed 300 omnichannel success resolution makers at retail and electronics companies in North the usa and Europe. according to the number of omnichannel success capabilities they'd optimized, respondents had been split into two businesses—larger-optimized and fewer optimized—of 159 and 141 participants, respectively.
bigger-optimized businesses were up to 4 times greater doubtless than less optimized ones to file a large fantastic have an impact on on their salary from individual capabilities. for instance, 38% of better-optimized corporations noticed a favorable affect from BOPIS, in contrast to only 15% of the reduce community, and fifty four% of the bigger community saw profits positive factors from SFS, versus 33% of much less-optimized businesses.
Survey individuals had been asked how quite a lot of omnichannel capabilities affected customer pride, and respondents within the greater-optimized group had been as a whole lot as 2.2 times greater prone to report a large nice have an impact on. BORIS, for example, had a big client satisfaction have an effect on for fifty six% of companies on the bigger-optimization level and for just 25% of those less optimized.
whether they were enormously optimized or much less optimized, Forrester survey respondents tended to use similar Key efficiency indications (KPIs). These included client satisfaction (50%), profitability (47%), the can charge of doing company (forty four%), income/new enterprise (forty three%) and manufacturer position (forty one%).
For every KPI, although, those at the bigger-optimization stage had been as much as twice as likely to see a huge fantastic impact. for example, 58% of the enormously optimized noticed a huge affect on consumer pride, versus 36% of the less optimized, and 48% of the hghly optimized mentioned a big have an impact on on income/new enterprise, twice the percentage of the much less optimized (24%).advanced capabilities empower stores and the HQ
not best does the course to omnichannel supply chain implementation have diverse steps, however also has diverse tiers, in line with "The Omnichannel Maturity evaluation" developed by Forrester. once a retailer is comfortable with its execution of the capabilities mentioned past—SFS, BOPIS, retailer-the-sale and BORIS—it may well start providing superior capabilities that join shoppers to a fuller latitude of choices offered via the retailer, every now and then in tandem with choose carrier partners.
Many sellers sell items that require functions, reminiscent of instant plans for smartphones or birth and installing for a washer and dryer, points out Jeff Geoffroy, world product advertising supervisor for IBM Watson provide Chain. Logistical considerations in scheduling these features can make a client draw back and lengthen a purchase; as soon as shoppers stroll away, there is a risk they will purchase the items in other places.
With technology equipment to tackle such details, save buddies have a more suitable probability of closing the sale and delighting the customer, and the retail enterprise can gain a significant capabilities over the competitors as it turns into called a one-stop-store for client comfort. The retailer can additionally enable customers to enter their online profile or contact the name middle to examine the repute of their orders and make changes as essential—casting off more barriers to finishing the sale and reducing returns or cancellations.
much more essential from a fiscal viewpoint is the skill to optimize every order with an advanced OMS powered by using artificial Intelligence (AI), equivalent to IBM Watson Order Optimizer, Geoffroy emphasizes. distinct elements come into play when pleasurable an order, and they can all change from second to second. Watson Order Optimizer gives the retailer with a true-time, omnichannel view of all achievement parameters and skills stock places, so each order can move as successfully as possible.
for instance, pleasant an online order from a local save could usually be greater can charge effective than the use of the e-commerce DC, however that may trade if there is a blizzard or a toll road closure. In yet another circumstance, there can be a save in a different vicinity of the country that is set to mark down that product 50% to get rid of it, so transport it from that save to sell it at full fee to the e-commerce client may be extra profitable.
manual processes just can't keep up with the particulars involved in fulfilling millions of pleasing orders profitably, Geoffroy adds, noting that AI can evaluate and make selections practically immediately and learns faster when it has greater information to work with.
there is a broad horizon forward as OMSs become "a vital lynchpin in a strategic, omnichannel distribution world," in keeping with "IDC MarketScape: international allotted Order Orchestration for commercial enterprise agents 2018 supplier evaluation."
"Order orchestration across distribution aspects has turn into a competitive necessity in today's retail panorama," accompanied Victoria Brown, analysis director, IDC Retail Insights, within the record. "not is it suited for retailers to make do with stock because it is positioned."
The insight partners provides ‘Retail Analytics Market’ to its keep, which furnishes a skillful and deep analyze of critical business developments and upcoming Retail Analytics market enhancement anticipations, key drivers and moderation, accounts of huge market rivals, categorization and foretell.
Retail Analytics Market to 2025 – A complete research file created via extensive basic analysis (inputs from industry specialists, businesses, and stakeholders) and secondary analysis, the record aims to present the analysis of international Retail Analytics Market - North america, Europe, South the us, Asia-Pacific, center East and Africa. The document intends to deliver slicing-part market intelligence and assist determination makers take sound investment assessment. besides, the report additionally identifies and analyses the rising developments along with foremost drivers, challenges and alternatives in the global Retail Analytics market. moreover, the document additionally highlights market entry options for a number of companies throughout the globe.Retail analytics is anticipated to supply its purchasers with personalized services that could peculiarly be valuable to the banking sectors, as banks can make the most of the enterprise intelligence and consumer suggestions to deliver with advantageous options according to the economic wants of each individual account holder. North america is projected to emerge as a great regional market due to high deployment expense of analytics options due to urbane programs and obtainability of high working capital at the clearance of a couple of marketers in a province. Retail analytics acceptance fee is rising in Asia Pacific, Europe, South america and Africa because of expanding consciousness aspiring to digitalization. APAC is expected to peer excessive growth in following few yr.
Get unique copy of pattern file at bit.ly/2UWRvXV
essential questions the file answers:• where will all these trends take the trade within the mid to long run?• What are the principal end clients of Retail Analytics?• What are the software areas of the Retail Analytics?• that are the primary Retail Analytics players?
main Retail Analytics market avid gamers are profiled in the document with key facts, product portfolio, business efficiency, and strategic initiates. The challenges confronted via them and the factors they're in that position is explained to support make a well-advised choice. aggressive panorama of the Retail Analytics market is given featuring distinct insights into the enterprise profiles together with trends reminiscent of merges &acquisitions, collaborations, joint ventures, new construction, expansions, and SWOT analysis.
agencies Profiled in this Retail Analytics Market report contains--Oracle agency-Adobe device-IBM company-SAP AG-SAS Institute
Our analysis content material is primarily concentrated on the quantification of market tendencies in terms of market sizing and forecasting. Studding company actions support design the competitive landscape, and forecast market numbers at regional and degree. the field is experiencing a substantial transformation which has augmented the boom tempo of the field. The profitable growth opportunities for this sector can be profited of through guaranteeing on-going procedure enhancements and keeping up economic flexibility to position elements into the choicest methodologies
This market intelligence document on Retail Analytics market evaluates and presents a global market state of affairs along with market estimates, insights and projections for a timeframe of 2017 to 2025. This examination the market dynamics which are foreseen to have an effect on the market boom in a coming couple of years. also, the file clarifies the impact of the key elements like drivers and restraints for market building. Future traits and alternatives in the global Retail Analytics market have also been mentioned within the look at.
Get Tables and records of Figures at bit.ly/2UYRvXh
table OF CONTENTS
Chapter 1 government summary
Chapter 2 Abbreviation and Acronyms
Chapter three Preface3.1 research Scope3.2 research Methodology3.2.1 facts Collection3.2.2 facts Analysis3.2.three data Validation3.3 analysis Sources3.3.1 simple Sources3.three.2 Secondary Sources3.three.3 Assumptions
Chapter four Market Landscape4.1 Market Overview4.2 Classification/Types4.3 application/conclusion clients
Chapter 5 Market fashion Analysis5.1 Introduction5.2 Drivers5.three Restraints5.4 Opportunities5.5 Threats
Chapter 6 trade Chain Analysis6.1 Upstream/Suppliers Analysis6.2 Retail Analytics Market Analysis6.2.1 expertise Analysis6.2.2 can charge Analysis6.2.three Market Channel Analysis6.3 Downstream patrons/conclusion users
Chapter 7 latest Market Dynamics7.1 latest News7.2 Merger and Acquisition7.3 planned/Future Project7.four policy Dynamics
Browse comprehensive research study at bit.ly/2UYRG4T
About Us - The perception partners is a one stop trade analysis company of actionable intelligence. We assist our shoppers in getting options to their research necessities through our syndicated and consulting analysis functions.
Contact us –Contact adult : Sameer JoshiPhone : +1-646-491-9876Email identification : email@example.comWebsite: www.theinsightpartners.com
This free up turned into published on openPR.
March 20, 2019 Alex Woodie
There comes a time in every software’s existence when its owner have to take a hard look at its persisted viability and ask the challenging query: Will the application continue to fulfill the business’s evolving wants, or should still the entire issue be scrapped for something new? These enterprise and expertise assessments may also be principally complicated when the utility runs on the IBM i server.
Many groups this present day wish to modernize their ageing IT techniques within the hopes of gaining extra agility and adaptability. whether you name it digital transformation or software modernization, the desires are sometimes an identical: Simplify the underlying code base, enhancing code maintainability, and making it simpler to implement new performance or combine with outdoor programs.
in lots of situations, these modernization/transformation efforts call for getting rid of the monolithic codebases that typically described purposes developed in the 80s and 90s. instead of advanced classes composed of millions of intertwined traces of RPG or COBOL code, groups are seeking to damage up spaghetti code into more discrete chunks, which will also be exposed as microservices, frequently generated in more modern languages, like Java, Python, or php. This step by myself can enhance the agility of the utility engineering group by way of making the code less difficult to maintain and run (no longer to mention allowing the HR branch to pick from an even bigger pool of IT applicants).
The IBM i platform, as a result of its legendary steadiness and reliability, runs more than its share of monolithic legacy codebases, which means that it’s commonly the goal of modernization/transformation initiatives. technology consultant bill Kleyman has been in a couple of such technology assessments, together with one recent engagement that worried migrating an getting old IBM i-primarily based company utility to the cloud.
Kleyman tells IT Jungle that this particular business, which he declined to identify, had in the past tried emigrate faraway from this crucial IBM i ambiance in 2015 and failed. In 2018, the enterprise – which is based in Canada and helps greater than 600 retailers and places around North the united states – engaged Kleyman’s old employer, EPAM methods, and succeeded in migrating a important IBM i-primarily based software to the cloud.large Cloud Migration
This certain migration became large and worried 15 to 18 agile teams working in one-week sprints over the course of a few year, while the application continued to be used through the business’s 25,000 or so personnel.
according to Kleyman, the migration worried reverse engineering 6 million lines of Synon and RPG code; rewriting them in Java the usage of a micro-services based approach; migrating greater than 1,000 database tables in Db2 for i to MariaDB; rewriting well-nigh 200 integration elements; moving from a normal waterfall-trend release cycle into an agile methodology, backed by means of Jenkins; and developing a new HTML5-based UI to change 5250 displays (developed in a “like for like” method in order now not to disrupt the clients).
The stage of technical complexity changed into high. Kleyman and his colleagues at EPAM – a 28,000-grownup IT consulting enterprise based mostly in Pennsylvania – needed to create customized code-analysis equipment just to doc the historic code before running it through a code-generation gadget to provide the brand new Java.
“There’s no boilerplate to make this occur,” he says. “You’re going for a swim right here, man. It’s now not an easy task — no longer by way of any sense. It’s advanced. It’s surgical. It comprises numerous crew members, from facts scientists to agile crew contributors to individuals who're RPG builders.”
The IBM i platform hasn’t been completely eradicated from the enterprise, and there are on-going efforts to proceed refactoring different pieces, Kleyman says. but successfully relocating the enterprise’s core business software to the cloud has been a true game-changer for the business and spread out new on-line company opportunities that otherwise don't have been opened, he says.
“This become no longer a simple venture,” Kleyman says. “however when it took place, you saw the unification of the entire enterprise. rapidly, this company that had this legacy IBM AS/four hundred ecosystem just created their personal digital groundwork, a basis that will also be integrated with the ecommerce programs and cloud. Their DevOps group isn't any longer afraid of free up cycles. they've so a great deal extra handle over data and records analytics, and the skill to integrate with other forms of records intelligence methods.”
The company runs the brand new Java-based mostly utility on the Google Cloud Platform (GCP), and experienced as much as 50 p.c enhanced efficiency and enhanced uptime, Kleyman says.
“should you remove legacy IBM programs, which can be very static and resource commanding, and put a few of those micros-features in the cloud, where swiftly you've got consumption-based architecture the place you handiest consume what you want – it’s a complete paradigm shift,” he says.enterprise assessment
while the technical bits may also be difficult, Kleyman said the biggest hurdle to efficaciously complementing migrations comprises individuals.
“this is going to sound foolish,” he says. “the hardest half isn’t necessarily the refactoring. the hardest part is convincing americans to do that. as a result of, let’s be honest the upfront can charge can also be very scary, man. It may also be frightening. The enterprise is going to assert, ‘We simply put in X quantity of dollars last year to assist these kinds of environments.’ You type of must ask the query, what’s going to happen 5 years from now?”
whereas the legacy utility may additionally now not be “broken,” forward-looking groups will agree with the lost possibility expenses which are inherent when an present device is not agile sufficient to support new alternatives and initiatives.
“You’re going to must have the dialog where that you could’t combine with cloud at all, otherwise you can’t integrate with facts analytics, otherwise you’ve failed to do cognitive gadget and your competitors are because RPG can’t aid these things?” Kleyman says. “however just because it’s working doesn’t suggest always it’s bringing price back to the business.”
It’s easy for an govt to establish problems when servers are down, the utility is throwing error, and the daily company is being impacted. It’s lots more durable for the government to be able to establish the techniques through which a legacy system could put bog down boom sooner or later.
“actually that’s probably the most best methods, when things aren’t on hearth, to birth asking some of those tricky questions,” Kleyman says. “It’s sort of like in a relationships. When every little thing’s going first rate, you don’t need to convey up any sore aspects. however realistically talking, you don’t wish to beginning arguing when everything’s incorrect and also you delivery convey up the pain elements.”Platform Vs. application
Doing a technological evaluation to check the lengthy-term feasibility of important IT accessories is essential for any business, no matter if its gadget runs on an IBM i servers or lives in the Amazon cloud. but, for superior or for worse, the technological discussion is slightly cloudier for the IBM i customer, because the legacy software so frequently gets tied up with the platform that it runs on.
isolating the IBM i server from software functions is a difficult project. whereas we know that they are various things – one is a laptop platform while the different is a software that runs on the platform – they regularly get twisted up right into a single ball in our minds. The attributes of a selected software will get superimposed onto the platform itself, to the element where decision-makers view them as one and the same element.
When companies say they’ve turn into disillusioned with the AS/four hundred – basically the IBM i platform — they frequently have a particular application or a gaggle of functions in mind. in lots of situations, the applications are reasonably historic, haven't been up to date for years, and do really pose a legal responsibility for the lengthy-time period viability of the business and its latest method.
These organizations commonly identify the IBM i server because the issue and migration from the platform as the answer, when in reality the true culprit is the legacy RPG or COBOL utility that’s working on the platform. here's unfortunate, but it surely’s reasonably commonplace. (The indisputable fact that they name it “the AS/400” is a big clue that they are not aware how up to date nowadays’s IBM i platform truly is.)
There are circumstances the place the platform itself is the roadblock. No other platform uses RPG, which translates into a constrained pool of developer skill obtainable on the open market (most IBM i functions are written in RPG). IBM i applications also don't run on public cloud environments, corresponding to GCP and AWS. if your company strategy calls for that you just run within the cloud – which brings very true company advantages in the sort of simpler facts and software integration – then the IBM i server certainly isn’t for you.
but for these groups that have invested millions of dollars into their AS/four hundred-iSeries-system i-IBM i purposes but are dealing with misplaced possibility charges sooner or later and/or mounting technical debt, it’s price considering the fact that the whole latitude of alternatives that can be found. most of the advantages that Kleyman helped his Canadian client attain – a cleaner, extra manageable code base and a more agile DevOps deployment methodology – definitely will also be done on the IBM i platform.
You don’t must ditch the IBM i platform for the cloud to interact in digital transformation. There are superb companions, application carriers, and solution suppliers in the IBM i ecosystem that can support you investigate the state of your present code base and script a modernization roadmap that may (expectantly) get you the place you should be.
All that’s required is the braveness to attain out for a little help from your chums.connected studies
wanted: enjoyable New Publicist for Boring old Server
Fifty Years Of working IBM systems
The Eighties had been super, simply not for business computers, apparently
The issue With ERP
retain Your IBM i baby, now not The Bathwater
Squeeze Your ERP a little more durable earlier than Ditching It
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‘Artificial Intelligence can account for more factors and complicated nonlinear and correlated dependencies of data much better than humans. They can do a proper risk assessment and find optimal decisions, leading to improvement in decision making.’
This is what Michael Feindt – Founder & Chief Scientific Officer of Blue Yonder, Inventor of NeuroBayes® Algorithm at CERN and Professor at the Karlsruhe Institute of Technology – firmly believes in. Ironically it was a bad decision with his own finances, leading to losses at the equity exchange, which led Feindt – a pure physicist –to realise the full potential of Artificial Intelligence (AI) and Machine Learning (ML).
“After I lost the money, I started to analyse in my free time whether one can predict equity prices with the help of an algorithm called NeuroBayes® that I wrote for CERN. This neural network can predict complete probability distributions for single observations, and for many observations. It can also be individualised, because for each observation, there are many, many input variables. I did this for physics, but then I realised, I can do this for other sectors too apart from physics,” says Feindt.
Starting Blue Yonder
Feindt started working towards his dream in 2001. Scientific work incorporating the largest data quantities in the world motivated him to find out if he could bring the same added value to business–with impressive results. In 2008, he founded Blue Yonder, a leading provider of AI and ML solutions that enable retailers, consumer products and other companies to intelligently transform their operations and make more profitable, automated business decisions that deliver higher profits and optimized customer experiences.
Before the company started specializing in retail, they worked in various sectors. The company worked with about 100 PhD data scientists –almost half of them Feindt’s students and the other half from renowned institutes including NASA. It was acquired by JDA Software in 2018. Today, Blue Yonder, a JDA company, is one of the largest and most advanced private data science companies in Europe. The company has received numerous awards, including the Experton Big Data Leader Award 2016, the BT Retail Week Technology Award and the IGD Award 2017 for Supply Chain Innovation. “Blue Yonder is based in Karlsruhe, Germany and along with JDA Software, we serve all the geographies around the world.
Our data science practice is constantly growing and will impact all of our customers and solution areas. We are focused on all major verticals–retail, manufacturing and distribution–with deep, real world experience solving some of the world’s toughest supply chain and retail problems. In India, we have our offices in Bangalore and Hyderabad,” says Feindt.
“Three years ago we decided to concentrate only on retail. The reason for this was that there is very strong competition in retail, the margins are very small, and we understood that taking the right decision can make a complete difference between a very successful retailer and the retailers that are dying,” says Feindt.
“Typically Blue Yonder scientists take all historical data, add to this local holiday and festival data, factor in the historical weather forecast and make predictions for retailers based on this data.This is a complete probability distribution, a day-to-day prediction.
In today’s supply chains, customer demand can change in an instant due to trends, global events, weather, moves by the competition and more. To be successful, new solutions are required that run on a cognitive, real time and connected platform.
The path forward begins with next-generation solutions that can turn real-time data and insights into fast, profitable business decisions. With JDA LuminateTM, retailers can now harness the power of the cloud and cutting-edge innovation – such as SaaS, IoT, AI, advanced analytics and cross- platform integration – to drive smarter, more agile supply chain transformations for greater results,” Feindt further explains.
In India, two or three years ago, a retailer looking to implement auto replenishment systems would have set up a large demand forecasting team and spent a large amount of time and money, involving BPR consultants to set up demand management processes. Today, with JDA’s Blue Yonder-infused solutions, forecast creation and forecast management is largely zero-touch. So companies that did not invest in the previous generation technologies will have smaller change management issues when they adopt these solutions.
“While they may not be upfront consumers of AI technology, even Small and Medium Retailers in India are being touched by AI/ML technology which is helping them get the right product, in time and at the right price. Smaller technology companies in cities like Bangalore are offering smaller regional apparel retailers marketing insights driven by AI solutions to create personalized content and refining marketing campaigns, and making personalized recommendations,” states Feindt.
International Success Stories
Replenishment & Price Optimization at OTTO: In the face of growing competitive pressure in the e-commerce sector, combined with rapidly changing fashion trends, OTTO turned to AI.
The multichannel retailer’s competitive environment is characterized by low margins, high competitive pressure, as well as fast changing market conditions and evolving customer demands.
The company hired Blue Yonder to continually develop AI solutions to ensure maximum effectiveness. Blue Yonder’s AI algorithm has ensured that OTTO’s forecasts are constantly improving, giving them precise results that help them plan and control a future-oriented product range.
Thanks to Blue Yonder, OTTO has little stock left at the end of the season. On a daily basis, an up-to-date forecast is made per color and size, based on hundreds of different input variables (i.e. brand, price, online placement, stock situation, weather). This means that OTTO provides Blue Yonder with millions of data records each week. Every year, more than 5 billion forecasts are created this way. A considerable business success. As a result of Blue Yonder’s input, forecast quality has improved compared to the conventional processes and the end-of-season overhang has been reduced.
The software company has helped improved OTTO’s customer experience, increased sales, reduced stock levels and decreased returns by basing strategic decisions on data insights.
Store Replenishment at Morrisons: Headquartered in Bradford since 1899, Morrisons is a British company and one of the UK’s largest food retailers with more than 120,000 colleagues in 494 stores serving over 11 million customers every week.
One of the biggest customer satisfaction barriers that Morrisons identified was product availability. The supermarket chain had relied on traditional systems to replenish its stores – mostly through manual orders made by in-store teams. This proved time consuming, created inconsistencies between stores, and was not always accurate. To improve availability, Morrisons needed a solution that could solve its two biggest challenges: understocking and overstocking.
Morrisons identified Blue Yonder as the industry leader in AI and ML innovation, and its Demand Forecast & Replenishment solution as the ideal technology to significantly enhance Morrisons’ demand planning and replenishment capabilities.
Blue Yonder launched the deployment with a three-month pilot project in the run-up to Christmas; Morrisons’ busiest and most critical trading period. Due to its success, in the following 12 months, Blue Yonder optimised ambient and longlife replenishment among 26,000 SKUs across 130 categories in all of Morrisons’ stores.
2018 saw the introduction of short life fresh products as well as fruits and vegetables to the Blue Yonder solution, making a total of 29,000 SKUs.
A key factor in the speed of implementation was the easy integration into the Morrisons IT landscape as the solution used interfaces that were already in place.
By deploying Blue Yonder’s Demand Forecast & Replenishment technology, Morrisons can now make 430 million calculations and 13 million automatic decisions every single day – at far greater scale, and more accurately and consistently than previously. In addition, the granularity of information available is enabling Morrisons to enhance the customer experience down to store level; incorporating factors like shelf sizes and consumer buying patterns, rather than taking a ‘clustered’ approach to planning and replenishment.
The technology has already:
In India, 7 of the top 10 retailers leverage JDA to optimize their supply chain across dimensions such as category management, assortment planning, store operations and warehouse operations and all of the top five grocery and convenience retailers in India use JDA for space and category management.
JDA recently took yet another step towards their moonshot – the Autonomous Supply ChainTM – as they opened up their end-to-end supply chain portfolio as a development platform. JDA’s AI-powered Supply Chain Management (SCM) Platform is infused with AI and ML optimization technology from Blue Yonder, will uniquely enable their customers as well as application development and technology partners to create cutting-edge applications on top of JDA’s solutions for the first time.
JDA’s India business is one of the fastest growing having grown at 100 percent year on year for past two years especially since marquee Indian corporates have started to move beyond generic ERP solutions to look to differentiate themselves through their supply chain prowess.
Big-box retailers and chain drug stores are bringing to the Syracuse suburbs a tax-dodging strategy that has lowered their property tax bills in other states.
Target, Walmart, Kohl’s, home improvement and drug stores are trying to get their property tax bills reduced by as much as 99 percent in suburban towns in Central New York and across the state, according to a Syracuse.com analysis of lawsuits.
If it works, it would shift that property tax burden to every other taxpayer in those towns.
Target has filed lawsuits in Manlius, Cicero and Camillus. In each, they argue that their assessments should be lowered from about $9 million to about $900,000.
In Cicero, for example, it would lower the school, town and county property tax bills from about $327,000 a year to about $33,000.
The amount is so low that it’s laughable to town assessors.
“Oh gosh, $900,000? That would be ridiculous,” Cicero Assessor Karen Tavernese said. “That wouldn’t be fair to other businesses.”
The stores are unlikely to win that lowball amount. But the tactic has successfully reduced their taxes in other parts of New York. And stores have filed dozens of similar lawsuits against town assessors from Buffalo to Long Island.
Walmart has a more reasonable ask. The world’s largest retailer wants to reduce assessments in DeWitt, Cicero and Camillus from $11 million and $12 million to $8 million and $9 million, records show.
After a string of store wins in Midwestern states, The Standard & Poor’s rating service warned that this strategy could stress the budgets of suburban towns and school districts that rely on retail to pay the bills.
The tactic is nicknamed the “dark store theory,” and it works like this:
Store lawyers argue that their fully functioning stores should be valued the same as vacant stores when it comes to charging local property taxes.
Those amounts are much lower than the values town assessors come up with. Assessors apply a formula that relies on a potential cost per square foot, as if the stores leased the buildings. But assessors know, the stores are not really leased.
Upstate NY town forced to pay
In Queensbury, near Lake George, a judge sided with Home Depot in a case that has alarmed town assessors across New York.
The town was forced to lower the store’s assessed value from $9 million to about $5 million. The school district, the town and the county were ordered to pay back about $500,000.
Queensbury Assessor Teri Ross said she never saw it coming. Big retailers are constantly challenging their assessments. It takes years to reach the point where they have to hire an appraiser and show their math. Even when the issue reaches court, a judge typically picks a number somewhere in the middle, she said.
“I’ve never, since I’ve been here, seen a judge make a decision absolutely hook, line and sinker for the petitioner,” she said.
Home Depot hired appraiser Chris Harland to make its successful argument. Harland has also challenged assessments for Rite Aid, Walgreens, Target, Walmart, and Raymour and Flanigan – mostly in the Albany and Dutchess County areas.
Property tax cases are unique and complicated. But Harland’s argument is simple: “If Target was to sell a store, they are selling a vacant building. They are not selling a building with a long-term lease on it.”
In Queensbury, he compared the Home Depot store’s value to seven vacant big-box stores outside of the region. The state appeals court was satisfied.
“I’ve never used the term ‘dark store theory,’ ” he said. “That’s somebody else’s characterization of the concept.”
Onondaga County challenges
In Onondaga County, Target is suing the towns of Manlius, Camillus and Cicero. In those cases, Target is represented by the same Long Island law firm that won in Queensbury, records show.
The way Manlius Assessor Patrick Duffy runs the numbers, the 125,000-square-foot Target store at Towne Center is worth about $9.1 million.
That means the store pays an annual school, town and county property tax bill of $365,000.
Target’s lawyers say the store is worth only $915,000. That would put the tax bill at $36,000.
The price difference is nearly the same in the Camillus and Cicero lawsuits.
So far, their arguments do not show how they came up with the numbers.
The Target stores have already had tax advantages. Even though New York state frowns on tax breaks for retail, the stores in Camillus, Cicero and Manlius had government help.
The Onondaga County Industrial Development Authority granted tax exemptions for 10 years to help lure the Target store to a dead mall in Fayetteville. At the time, they estimated it would save Target about $770,000 in property taxes.
Cicero offered a tax exemption that reduced the assessment by 50 percent for the first three years, then lower percentages over the next 7 years. In the last year, the store saved $11,000 in taxes, Tavernese said.
Target had a similar deal in Camillus, Assessor Celeste Karakas said.
As soon as those tax breaks expired, the stores filed lawsuits to lower their taxes.
Target Corp. reported net income of nearly $3 billion in 2018.
How assessments are set
Most real estate values in New York are based on the recent sale price of a similar property.
Duffy is constantly comparing sales in the town of Manlius. He can quickly look up the going rate on bank branches, for example, and adjust assessments to match the market. But there is only one Target store in the town of Manlius.
Without a similar comparison, he uses an income-based approach. He starts with a potential rental cost per square foot based on market research. He subtracts potential vacancy and credit losses, adds miscellaneous income like vending machines and subtracts operating expenses like snowplowing.
Until now, courts in New York state upheld that method.
“That’s what New York state hangs its hat on,” Duffy said, referring to the generally accepted practice for town assessors around the state.
The income approach is not perfect. But assessors say it would be wrong to compare a working store to a vacant store for several reasons. Vacant stores are, well, vacant and often in less desirable places. They were often built for one type of store and have deed restrictions that limit the types of buyers. They sometimes sell at distressed prices. Sale prices can also be misleading because assessors do not know about the other assets that went into the sale, like a list of customers, for example.
“They say a fair comparison is something that is mothballed and there is no comparison there,” Duffy said.
Both sides: It’s really about the money
Each side blames the other for simply trying to save or raise money.
“These people don’t want to pay their taxes and the tax rate in New York is so high that when they look at their operating costs, they see that their taxes are way out of line with other states,” Clay Assessor Rob Bick said.
Bick said he is in constant negotiations with Walmart, Rite Aid and other retail stores. He said he sometimes gets grievances from competing law firms on behalf of the same property.
“They file arbitrary and ambiguous lawsuits, hoping that some town assessor is dumb enough to settle with them,” Bick said. “It’s quite preposterous and in some ways entertaining.”
Harland, the appraiser for Home Depot and others, said: “It doesn’t surprise me that assessors are advocating for higher assessments.”
What’s the solution?
Harland says a resolution would have to come from the courts. Rulings around the country are all over the place, he said.
Harland lost in another New York case. He argued the value of a Target in Colonie should be compared to the sale price of vacant stores outside the region including one in Massachusetts.
“New York is not the only state dealing with this issue,” he said. “Maybe the only way it gets resolved is if it goes up to the highest courts, to bring uniformity into the assessment practice and to give guidance to assessors, appraisers and attorneys in all locations.”
Successful retail lawsuits in Michigan and Indiana have resulted in hundreds of millions of dollars in estimated lost tax revenue to local governments, S&P analysts warned last year. The tactic is expected to spread to other states and to include small retail stores, auto parts stores and fast food chains, analysts said.
Town assessors and county officials in New York are hoping to stop the spread of the “dark store” tactic with state legislation.
Assemblyman Ken Zebrowsky, a Democrat from Rockland County, introduced a bill last month at the urging of the New York State Assessors’ Association and the New York State Association of Counties.
If passed, the new law would require assessors to compare properties that are similar in condition, use, type of construction, location, design, physical features and economic characteristics including similarities in occupancy and income-generating potential.
Assembly Bill A4752 does not have a Senate companion.
Warren Wheeler, an assessor in Oswego County and the executive director of the state assessors’ association, said a change in the law could head off use of the “dark store” theory in New York.
“The tax implications can be devastating to small towns,” he said.
Search real estate sales from 2016 to present for Cayuga, Madison, Onondaga and Oswego counties.
Contact the author: Michelle Breidenbach | firstname.lastname@example.org | 315-470-3186.
My first, large chain store experience in retail was as a blue light special girl for K-mart. For the uninitiated, this meant dragging around a cabinet on wheels about the size of a bathroom vanity. Inside was a car battery, wired to a light at the top of a pole that stuck out through the middle of the cabinet. The light at the top was a flashing blue light, kind of like the old magnet police lights from old movies and TV shows. When I showed up for work, I was given a list and times to run “specials” – blue light specials – in the store. So at the appointed time, I would get on the PA system and announce that there was a blue light special in a specific department, and then I would go to that department with my blue light, and I would use a price sticker gun to manually reprice items that people wanted to buy.
The people who got items repriced would take them to the bank of registers in the front, and the clerk would enter the temporary promotional price, and the customer would walk out happy.
I remember this, and share this, because this was the cutting edge of technology in your average retail chain store in 1988. And I remember the year clearly because it was the year that “Your Simi Valley K-mart!” converted from all manual pricing to… barcodes. Yes, barcodes. The thing that was first used to scan Wrigley gum in 1974.
The first Sunday (day of the new week’s sales) that my K-mart cut over to barcodes, the price file didn’t load. I didn’t run any blue light specials that day, because I spent the whole day first frantically answering price check calls at the registers until we all realized what had happened, and then frantically manually pricing everything with that week’s deals so that we could get cashiers running faster.
It’s hard to believe that only seven years later, Amazon started selling books online.
This was the pace of technology change in retail prior to the internet age. This is the very core of retail’s challenge in navigating the disruptions of the last 20 years. Retailers think it’s totally okay to wait 14 years to embrace a new technology, even when it demonstrably improves operations. Case in point, there are retailers today who are frantically trying to stave off the day their support for Microsoft Windows 7 ends. Microsoft ended mainstream support in 2015, and are finally cutting everyone off (unless you want to pay exorbitant support costs) in 2020. There are even retailers who are trying to save their Windows XP installs.
So it’s with a great sense of irony to find that while retailers may be trying to control – and milk for all its worth and then some – the technology they use to run their operations, it has been consumers who have been driving and defining the technology that retailers use for engagement. And not only have there been more and more touchpoints, but the pace of change has not slowed. If anything, it has only increased.
When it comes to customer engagement, retailers, whether they like it or not, are on the bleeding edge front line. If consumers want to shop and pay on Instagram, retailers better figure it out. If they want to use Facetime or group chats to co-shop with distant friends, retailers need to be there.
The challenge for retailers, who operate thin-margin businesses and don’t have a lot of extra cash available to experiment, is trying to decide when is the right time to “get in” on a new technology. That challenge is no different, when it comes to Augmented Reality. Retailers aren’t thrilled to have to deal with yet another touchpoint for customer engagement. But their ability to avoid it – if consumers adopt – is pretty much zero.
What Consumers Want
If consumers drive engagement technology adoption, then what does their adoption say about how fast AR should come to the retail industry? The numbers are a bit sobering.
While at least 87% of US consumer households have mobile phones today, only about one-third report having used augmented reality (which is most easily delivered via a mobile app). Given the hype over mobile AR games like Pokémon Go, and the number of Snapchat filter selfies there are floating around on the internet, this number seemed low. But when you look at adoption, it supports the one-third number. About one-third of US consumers seem to have downloaded Pokémon Go (whether they are still active users is another matter). And about 30% of US adults (over the age of 18) are Snapchat users.
That may not seem compelling on the surface, but these users are highly attractive to retailers. Of the US consumers who reported trying AR, 41% had income over $75,000 per year, and 81% were 44 or younger.
On the virtual reality side, only 11% of US consumers report owning a VR headset, a surprisingly low number after two holiday seasons in a row that were considered fairly successful for VR, between Playstation, Oculus, Samsung and HTC.
With these rates of adoption, companies that are investing in mixed reality (AR or VR, or XR to mean potentially both) are setting expectations low. Microsoft talks about consumer market penetration of AR in terms of years, and is partly why the company has chosen to prioritize enterprise applications first.
When They Want It
With low penetration rates of both VR (which requires equipment that can get expensive fast) and AR (which is still low even though 87% of households have mobile phones, which means AR apps are just a download away), it seems that consumers aren’t in any great hurry to experience mixed reality in any setting, let alone specifically in retail.
However, the adoption lag hides a level of enthusiasm that retailers should pay attention to. Of the one-third of US consumers who reported using AR, 73% said they were satisfied (or very satisfied) with their experience. AR has the advantage over VR in that it does not have high odds of inducing the “hurl factor” (some people are sensitive to the eye-ear imbalance that occurs when VR replaces visual reality with something that doesn’t match what a person’s inner ear is telling them, with messy results), so the satisfaction levels with AR promise to overall be higher than with VR anyway.
Where retailers should really start to pay attention is when it comes specifically to shopping. Only 10% of consumers say they have used AR or VR while shopping. But another 45% say they would like to try it. And in the same survey, 30% of consumers said they would never go to another clothing store again if AR would allow them to buy the right size clothing with confidence. Those are numbers that promise that, with the right use-cases, consumers could start demanding AR experiences from retailers at a very fast pace, to the point where not having an AR experience becomes a disadvantage.
What Gets In The Way
There are a lot of reasons why consumers are not adopting XR at a faster pace than they are today. For VR, it’s still a novelty, and while you can get VR on the cheap, for the real, immersive experience, that is a big budget investment. The market is still highly fragmented and with lots of walled gardens. Going with one brand of VR means not having access to content from another brand that you might like.
With AR, the content is similarly walled off – every AR experience requires a new app, which must be downloaded and logged into and maintained and remembered. And knowing when AR is available is still a big guessing game.
For both AR and VR, the issue here is about friction – what it takes to get up and running reliably, and how easy it is to continue to use it. If there is a lot of friction, as there is right now, then it’s easier for consumers to not use it, than it is for them to embrace it.
Then there is the problem of ergonomics. If you’re worried that you’ll look silly bumbling around in a VR set, you’re probably worried that you’ll look almost as silly waving your phone around to try to get AR content up and running – if it’s even there to see in the first place. That’s one angle to the ergonomics, that it’s painfully obvious when you’re trying to use it, and there are more people not using it than are using it, so people trying to use it will stand out. Some people like to stand out in a crowd, but many don’t. That will inhibit use as well.
And then there are the plain ergonomics involved in successful use. I was testing out a few AR apps on my phone while sitting on my coach. The use cases were designed assuming the user would be sitting at a table. Trying to get the right angles to use the apps against the backdrop of my sofa arm rest meant holding some uncomfortable poses for arms and neck. I’ve tried multiple VR rigs, and some I have never managed to get to sit comfortably. It’s not a fun experience.
And if you believe that there is a convergence coming with AR and VR – one set of eyewear, with the only difference between AR and VR being the amount of “reality” you let through, there is this reality: 75% of the US population requires corrective lenses of some kind. Right now, VR rigs tend to take the ski-goggle approach – make them big and wide and add lots of padding around the edges, and the VR mask won’t crush your glasses against your face too badly. But it still makes for a less-than-appealing experience. For something of a Google Glass form factor, prescription lenses are going to have to be part of the equation, and let’s not forget bifocals at some point. These issues don’t seem to be much addressed in the discussion of how XR gets adopted.
What Retailers Think
There don’t seem to be a lot of studies diving into retailers’ planned or current adoption of AR or VR in their consumer experiences. In one study, 70% of retailers said they expect to see widespread adoption of AR across their company in the next 3 years, but that study was not focused on consumer experiences, and some retailers have jumped on the bandwagon of using XR for training purposes.
One analyst firm forecasts that by 2022, over 120,000 stores will be using AR smart glasses – this is globally, with the usage split evenly across Europe, North America, and Asia. In the same study (by ABI Research), the firm estimates that 3% of eCommerce revenue will be generated because of AR experiences, or $122 billion in revenue worldwide. It’s not clear exactly how this revenue will be generated – because of direct purchases through the channel, or through influencing sales that are generated in other channels.
The Bottom Line
Right now, the use cases for AR and VR that are focused on customer experiences tend to be very specialized – seeing if the couch will really fit in your house, or what the paint color might really look like on your walls, or what a redesigned kitchen might look like to walk through. Makeup and fashion are getting on board as well, with virtual try-on of makeup looks and colors, and 3D visualizations of clothing to get a better assessment of fit. Some of these work better than others – clothing fit is still a bit hit or miss. What retailers need to figure out is if XR will only ever be limited to these specific use cases, or if its utility can be expanded out beyond these. Buying with confidence is an important value that XR can bring to the shopping experience, but it’s probably not the only one.
In the meantime, until consumer adoption at home reaches a tipping point of some kind – and who knows, the long-awaited Harry Potter AR game may be that tipping point – retailers are going to have to find ways to experiment and stay on the learning curve. If XR is anything like any other technology experience that consumers have adopted over the last 20 years, when it hits, it will hit fast.
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