Omni-Channel Commerce Capability

Philip Morris South Africa (PMSA) developed an Omni-Channel Order Fulfilment Solution to streamline the ordering process between the wholesalers/ Distribution centers with the informal traders. This solution aimed to address current deficiencies, leveraging various technologies to improve order accuracy and operational efficiency and acceleration and expansion of smoke free products to realize its ambition for a Smoke Free Future. The goals of the Omni-Channel Fulfilment (OCF) project are to:

1. Streamline the Ordering Process: The project aims to create multiple channels for informal traders to order products, initially through interactive voice response (IVR) and unstructured supplementary services data (USSD) services. Subsequent phases will include additional channels such as chatbots, WhatsApp, and Uberization of orders.
2. Reduce Errors: By providing a more efficient ordering system, the project aims to improve the accuracy of orders and reduce errors that hinder customer satisfaction and operational efficiency2.
3. Meet Rising Customer Expectations: The project aims to meet the rising customer expectations for convenience and simplicity by providing a user-friendly ordering process.
4. Improve Operational Efficiency: The project aims to improve the profitability of bike agents who service the informal trade, reducing the high attrition rate of bike agents who leave due to unprofitable conditions.
5. Integrate with Existing Systems: The OCF solution will integrate with the Talos Order Management system, which is currently used to manage orders for PMI. This integration will cover the design of the IVR, USSD, and notification services.

These goals are designed to create a more efficient and user-friendly ordering process for informal traders, leveraging multiple channels and integrating with existing systems to enhance operational efficiency and customer satisfaction.

Overall, this project is expected to significantly enhance digital presence and improve customer engagement, leading to better business outcomes. This project aims to streamline the ordering process, reduce errors, and meet rising customer expectations for convenience and simplicity. Here are some key outcomes you can expect:

1. Enhanced Customer Experience: By creating multiple channels for ordering, such as interactive voice response (IVR), unstructured supplementary services data (USSD), chatbots, and WhatsApp, customers will have more convenient and accessible ways to place orders.
2. Improved Order Accuracy: The integration of these channels with the Order Management system will help in reducing order inaccuracies and ensuring that orders are processed efficiently.
3. Operational Efficiency: The project will address current deficiencies in the informal sector, such as limited insights on post-sale activities and language barriers, thereby improving overall operational efficiency.
4. Increased Coverage: The solution will enable the business to cover more than the current 100,000 points of sale (POS), expanding their reach and potentially increasing sales.
5. Better Data Management: The integration services will ensure that all messages, including error messages, are logged into a database for traceability, and incidents are logged into the Incident Management System for resolution.
6. Scalability: The cloud-based architecture will allow for efficient scaling from 10 to 10,000+ agents without worrying about the management or configuration of the underlying platform and telephony infrastructure.

The Omni-Channel Order Fulfilment project utilizes a variety of software, equipment, and auxiliary systems to ensure its success. Here are the key components:

1. Cloud Telephony System (CTS): This system handles telephony workloads, including telephony, interface/API, IVR, agent workstation, and metrics and reporting. It integrates with a telephony provider with redundant dedicated network paths to ensure capacity, platform resiliency, and scaling.

2. Interactive Voice Response (IVR): The IVR layer serves as the point of entry for retailers contacting the Order Management system. It dynamically invokes functions to make API calls to the Order Management system, sends SMS messages, and uses advanced text-to-speech technologies.

3. WebChat: This service provides interactive messages and conversational interactions (bots) that feel natural to customers. It uses the same APIs as the IVR to connect and communicate with the Order Management System.

4. Unstructured Supplementary Services Data (USSD): The USSD service facilitates the order fulfilment process. It operates in either HTTP GET or POST mode and routes requests to the API gateway over a secure HTTP connection.

5. Order Management System: OMS handles authentication requests and performs all order fulfilment functions. It creates new order numbers to track orders from creation to delivery.

6. Integration Services: These services provide the interface between the Order Management system, the workflow engine, the scheduler, and the notification service. They log all messages, including error messages, for traceability and incident resolution.

Implementing the Omni-Channel Order Fulfilment project come with several challenges:

1. Fragmented Market: The South African market is highly fragmented, with over 100,000 points of sale (POS). This fragmentation makes it difficult to efficiently manage and service all locations.
2. High Attrition of Bike Agents: The current system relies on bike agents who visit stores without prior knowledge of stock levels or order volumes. This inefficiency leads to high attrition rates among bike agents, as they often leave for more lucrative opportunities.
3. Integration Complexity: The project involves integrating multiple channels (IVR, USSD, chatbots, WhatsApp) with the Order Management system. Ensuring seamless integration and communication between these systems was complex and costly.
4. Data Management: Managing and logging all messages, including error messages, for traceability and incident resolution required robust data management systems.
5. Compliance and security: Ensuring compliance with data protection regulations, such as the POPI Act, and implementing robust encryption and access control measures are critical.

Philip Morris South Africa (PMSA) developed an Omni-Channel Order Fulfilment Solution to streamline the ordering process between the wholesalers/ Distribution centers with the informal traders. This solution aimed to address current deficiencies, leveraging various technologies to improve order accuracy and operational efficiency and acceleration and expansion of smoke free products to realize its ambition for a Smoke Free Future.

• Project Purpose: The project aims to build a solution that streamlines the ordering process, reduces errors, and meets rising customer expectations for convenience and simplicity.
• Current Deficiencies: The existing process has several deficiencies, including limited insights on post-sale activities, language barriers, and inefficiencies in stock management by bike agents.
• Proposed Solution: The Omni-Channel Fulfilment solution will initially use interactive voice response (IVR) and unstructured supplementary services data (USSD) services, with future phases including chatbots, WhatsApp, and other channels.
• System Integration: The solution integrated with the existing Order Management system to manage orders, suggested orders (AI/ML), gamification, uberization and notification services, ensuring seamless operation across different channels.
• Technical Architecture: The solution leveraged cloud services and including components such as a Cloud Telephony System (CTS), API Gateway, Workflow Engine, and Notification Service.
• Security Measures: The solution emphasized data encryption, access control, and compliance with data protection regulations to ensure secure data handling and storage.
• Operationalization and Management: Operational aspects included license management, security management, vendor and contract management, and user training to ensure smooth implementation and maintenance.