El Corte Ingles

Business rules and analytics help optimize product shipments, improving home delivery service

Published on 04-Dec-2013

"El Corte Ingles expects to achieve a higher level of customer service, reduced delivery times of orders, inventory visibility through various channels and better coordination of all actors in the supply chain." - El Corte Ingles

Customer:
El Corte Ingles

Industry:
Retail, Wholesale Distribution & Services

Deployment country:
Spain

Solution:
Commerce Solutions, Smarter Commerce, Smarter Planet, Transformational Account

Overview

El Corte Ingles (ECI) is the largest department store group in Europe (the retailer has 550 stores in Spain and Portugal alone), and second in the world standing between Sears and Macy’s. With a vast retail format offering, including department stores, supermarkets, hypermarkets, convenience stores, on-line stores, a successful TV sales channel, and a huge assortment, competition is intense in all fronts.

Business need:
ECI wanted to create a seamless customer experience, regardless of shopping medium (in-store, online, television, etc.), but its back-end order and return systems did not communicate well with each other, trapping customer orders from different ECI retail channels and formats in separate systems.

Solution:
A commerce solution with embedded analytics now integrates all of this retailer’s different delivery channels, creating a seamless order, delivery and return process for the consumer.

Benefits:
El Corte Ingles expects to achieve a higher level of customer service, reduced delivery times of orders, inventory visibility through various channels and better coordination of all actors in the supply chain.

Case Study

El Corte Ingles (ECI) is the largest department store group in Europe (the retailer has 550 stores in Spain and Portugal alone), and second in the world standing between Sears and Macy’s. With a vast retail format offering, including department stores, supermarkets, hypermarkets, convenience stores, on-line stores, a successful TV sales channel, and a huge assortment, competition is intense in all fronts.

The Opportunity
The motto of El Corte Ingles’ retail home delivery service is: “We deliver anything to you at you home.” ECI wanted to create a seamless customer experience, regardless of shopping medium (in-store, online, television, etc.), but its back-end order and return systems did not communicate well with each other, trapping customer orders from different ECI retail channels and formats in separate systems. ECI needed to create a single system able to support the functionality desired to provide home delivery for all customer orders, enable new types of cross- channel services and returns, and extend its network of suppliers, ultimately enabling a superior customer experience.

What Makes It Smarter
In today’s digital age, consumers expect fast, inexpensive delivery of their products, or they will find somewhere else to get them. A commerce solution with embedded analytics now integrates all of this retailer’s different delivery channels, creating a seamless order, delivery and return process for the consumer. Real-time visibility enables the retailer to provide the customer the status of their order, with expected delivery times, and gives the retailer a 360-degree view of the location of its products in stores and warehouses. Using analytics and business rules that take into account variables ranging from product location and transit time to the number of pending orders at a particular location (which might delay product shipment), the solution provides the optimal product source and transportation route, recommending the best delivery solution to maximize service to the customer, at the lowest cost to the company. The solution enables ECI to optimize its supply chain, reducing costs and delivery times, while continuing to expand its supplier network to enhance customer service.

Real Business Results
• Enables the retailer to create new cross-channel services for its customers, like a “click and collect” feature allows customers to order products online then pick them up in the store
• Helps the retailer reduce supply chain costs and delivery times through real-time visibility into product availability and location, coupled with business rules that optimize delivery
• Enables first class multi-channel service with features that will help the department store group to fight back its specialist competitors

For More Information
Please contact your IBM representative or IBM Business Partner. Visit us at ibm.com.

To learn more about El Corte Ingles, visit www.elcorteingles.es.

Products and services used

IBM products and services that were used in this case study.

Hardware:
Power Systems

Software:
Sterling Order Management

Service:
GBS Operations and Supply Chain

Legal Information

© Copyright IBM Corporation 2013 IBM Corporation Software Group Route 100 Somers, NY 10589 Produced in the United States of America November 2013 IBM, the IBM logo, ibm.com, Global Business Services and Power are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at www.ibm.com/legal/copytrade.shtml. This document is current as of the initial date of publication and may be changed by IBM at any time. Not all offerings are available in every country in which IBM operates. THE INFORMATION IN THIS DOCUMENT IS PROVIDED “AS IS” WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NON-INFRINGEMENT. IBM products are warranted according to the terms and conditions of the agreements under which they are provided.