The Salling Group Ecommerce Story Tom Rune Bjørnstad Westernacher Solution Architect a 2 Year Plan? How About Doing It in 6 Months?

Alan Jensen Salling Group CIO The Salling Group eCommerce Story Tom Rune Bjørnstad Westernacher Solution Architect A 2 year plan? How about doing it in 6 months?

SBN Conference 29/10/2020 Salling Group A brief Introduction We are Denmark’s largest retailer with a strong portfolio of both brick & mortar and online formats

Brick & mortar Online business Convenience

Discount, super- Department Non-food Digital Online groceries Restaurants & hypermarkets & toys stores E-commerce services & meal boxes

3 BRICK & MORTAR In Denmark we operate more than 600 physical stores across the Bilka, føtex and Netto chains

Type Hypermarket Supermarket Discounter

Format Bilka wants to be the preferred shopping føtex is known for its broad range and Netto offers customers high-quality DNA universe – in hypermarkets and online high quality everyday products at low prices

Market Only hypermarket and in competition with Leading supermarket chain with Largest discount format in Denmark position both food, non-food, and online players competitive advantage on prices with strong position in CPH

# Stores 19 stores 102 stores +500 stores

Sales area Min Avg. Max Min Avg. Max Min Avg. Max (sqm) 5.000 10.200 15.600 200 2.200 4.200 200 680 1650

4 BRICK & MORTAR Netto operates internationally with more than 1200 discount stores in three markets

COUNTRY NO. OF STORES MARKET POSITION

+500 stores in all Market leader in a very mature parts of Denmark market with high store density Since 1981

+380 stores in Growing player in a high West-Central Poland growth discount market Since 1995

+340 stores in Strong regional player in a North-East Germany mature and competitive market Since 1990

Across all markets our Netto stores build on the same format DNA and concept principles

5 Deliver Innovation and Value Fast, ….very Fast! How Salling IT delivers on strategic business shifts driven by market disruption

Home Delivery is on our Please get this up and strategic roadmap in the running on SAP in coming 2 years… 6 months!...

January 2020 April 2020

Home delivery Home delivery

Customer Home Customer Home

We started from a pre-developed and practice proven SAP based supply chain execution solution with some add-ons and specific templates for eCommerce Groceries and adjusted this to our needs.

Customer Web Shop Order Integration Management

Customer Home Picking Dark Store Transportation Transportation Outbound Planning Execution

Replenishment Dark Store Inbound Proof of Delivery, Track & Trace

SAP Westernacher SAP EWM SAP TM SAP EM ECC Driver App

Customer Web Shop Order Integration Management

Customer Home Picking Dark Store Transportation Transportation Outbound Planning Execution

Replenishment Dark Store Inbound Proof of Delivery, Track & Trace

Order Warehouse Transportation Home Delivery Integration Management Operations planning

Order • SAP ERP Integration Deliver-based Transportation Management Requirement (SD- / Customer Order) • Web order received in EWM as Direct Outbound Delivery from WEB front end Warehouse • High flexibility in handling order changes from the customer Operations • Delivery is replicated to SAP TM having • requested delivery dates Transportation • line item information planning • ship-from / ship-to location

Home Delivery

Integration

Order • Delivery documents created from WEB front end as delivery Management demands • Wave Creation from Transportation Unit (TU) Warehouse Operations • Custom built RF dialogs for flexible Putaway Process • Pick by Voice Transportation • Customer grouping for optimized pick paths planning • Order-based replenishment with prioritization logic to fulfill peak hour demand Home Delivery • Shipping Cockpit used for Planning and Execution: • Staging Area Planning and Wave Creation Integration • Door Assignment • Status Monitoring

Order • Manual & automated planning Management • Transportation Optimization (Vehicle Scheduling and Routing) • GIS-services are used to calculate distance and duration Warehouse • Customer time slot is used by planning (relevant dates selected) Operations • After transport planning TM will send to EWM: ▪ Send Load Appointment as Transport Unit to EWM (i.e. Load Sequence, Leave Yard Time) Transportation planning • Delivery Time Slots • Delivery time slots and capacity is shared from TM to Web front end

Home Delivery

Integration

Order • SAP Event Management and Fiori-based Driver App used Management for Home Delivery execution • Driver App: Warehouse • Driver communication & management Operations • Real-time navigation • Milestone updates Transportation • Fast and secure system-guided unloading planning • Exception management • SAP Event Management: Home Delivery • Enhanced POD interface to update to back-end systems, reporting actuals delivered • Push notifications to customer through SMS gateway service Integration

Order • Standard integration used across the SAP systems. Management Some custom integration with WEB front end from EWM and TM.

Warehouse Operations

Transportation planning

Home Delivery

Integration

CIO SAP Solution Architect

[email protected] [email protected] +47 984 52 981

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