Spotlight opens up new web channel with SAP Commerce
Client:
SpotlightChallenge:
- Needed a solution to cater for multiple brands, operating in multiple countries
- Needed more channels to reach out to customers and cater for complex promotion rules
- Vast product range and Stock Keeping Unit (SKU)
Solution:
- Multi-site, multi country SAP Commerce platform that seamlessly integrated with SAP ERP and downstream fulfilment system as well as multiple payment systems and third party systems
- Multiple touch points for the customers to engage with the brand with and new custom promotion engine
- Robust platform to cater for extensive product range and large SKU count with supporting Product Information Management (PIM) system
Results:
- A future proofed, performance oriented and scalable solution operating across multiple sites and regions
- Advanced multi-channel touchpoints and targeted promotional activity
- A more personalised experience increased customer satisfaction and helped to foster customer intimacy
Spotlight Pty Ltd is the largest chain of fabric, craft, and home interiors stores in Australia. The company employs more than 6700 staff, operates in Australia, New Zealand, Malaysia, and Singapore and is headquartered in South Melbourne. The brand is synonymous with expertise in crafting, fabrics and home decorating. The company started during the 1970s and has grown to more than 120 stores across Australia, New Zealand, and Asia.
Project Drivers
Spotlight had a website but no online store. Another division of the Spotlight Retail Group (SRG), Anaconda, was already operating successfully online. When Spotlight celebrated its 40th anniversary, they went to market to find a strategic online partner that could power e-commerce growth and keep pace with customer demand across their various multi-site/multi-brand platforms.
Spotlight undertook a formal closed tender process that evaluated a number of different providers and scored all providers against categories such as fit with business requirements, vendor integration, partner stability and support, technical approach and financial impact.
SAP Commerce emerged as the clear leader. A key feature that differentiated SAP Commerce was its unique Product Information System (PIM) that could be integrated with the company’s existing SAP product and pricing model.
Implementation
DXC Oxygen, one of SAP’s trusted implementation partners, was awarded the contract for the implementation and launched phase one of the project for Spotlight. Phase one included getting the base e-commerce capability online including fulfilment processes from hub stores and launching a home delivery service.
The SAP Commerce platform needed to integrate with SAP ECC for product data and SAP CRM for customer information. Spotlight has a significant VIP program, so it was important for the retailer to offer the same customer benefits online, and to provide a consistent experience across channels.
In phase one, the initial range was limited to the manchester, home décor, and party departments. Store picking, and packing was facilitated through the development of an interface with a paperless picking system. When a customer places an online order, the system automatically detects which picking location has the capacity to fill the entire order and routes it directly for picking and packing. If no store has the complete customer order in stock, then the software will automatically split the order across two stores for dispatch directly to the customer.
The second phase of the project offered customers a number of additional functions, including the ability to buy products by the metre such as Spotlight’s popular fabrics and ribbons as well as bulky items that incur a higher shipping cost. The sale of gift cards was also added online, and promotional catalogues integrated with the shopping cart.
The final stage of the release was launched to cater for New Zealand customers.
The implementation effort was supported by a multi-disciplined internal project team made up of both business and IT resources. Throughout the project there was a focus on building capability in order to facilitate a seamless handover to support once the core project components were delivered
Business Benefits
In less than four months on the SAP platform, Spotlight fulfilled a significant number of online orders each day and by the end of the year had close to 60,000 products available online.
The online presence not only provides convenience and familiarity with the product range for customers, it also enables Spotlight to extend its reach into remote locations that are not easily serviced through the store network.
Spotlight have always had a high level of engagement with their customers. The introduction of the SAP Commerce platform simply provided another mechanism for the company to engage with their customers and for them to engage with Spotlight. One of the key benefits of having the online channel is that the company can use its CRM data to create a more personalised experience for their customers – being more targeted with things like promotional offers increases satisfaction and helps build customer intimacy.