Al-Shamil Improves Customer Experience and Automates Inventory Updates Using AWS

Executive Summary

Saudi Arabian retailer Al-Shamil needed an automated system to synchronize the inventory stored in its ERP system with its ecommerce website. Supported by AWS Partner SnapTec, it now has a system built on Amazon RDS for MySQL that lets two people update both systems at the same time, and now do a job that previously required 10 employees. It has also improved the customer experience through the use of machine learning.

Al-Shamil Improves Customer Experience and Automates Inventory Updates Using AWS

Saudi Arabian retailer Al-Shamil rapidly launched an ecommerce site when the COVID-19 pandemic began. But it soon realized it needed an automated system to update the inventory on its website. With 60,000 items in stock, and regular inventory refreshes, it took 10 members of staff to keep systems updated on a daily basis.

Al-Shamil needed a website that was easy for customers to navigate, and simple for staff to manage and update. The company turned to Amazon Web Services (AWS) and AWS Select Consulting Partner Snap for Information Technology (SnapTec) to improve the customer experience of its site and to integrate with its enterprise resource planning (ERP) system to automate inventory updates.

Al-Shamil chose SnapTec because of its experience in the ecommerce market. “SnapTec has a complete team dedicated to building and launching ecommerce solutions. They are real experts,” says Mohammed Alkhateeb, head of ecommerce at Al-Shamil.

Updated Inventory System Reduces Manual Overhead by 80%

The company sells clothing, shoes, accessories, and perfumes, with some of its stores offering a wider range of household items, including furniture, appliances, and kitchenware. Before the COVID-19 pandemic, Al-Shamil didn’t have a website or mobile app—all its sales were made through its nine stores across Saudi Arabia. When lockdowns started it pivoted to online sales.
 
Saudi consumers have been slow to embrace online shopping—although this changed during early lockdowns, with 50 percent of consumers shopping online at least once per week in 2020.
 
But Al-Shamil discovered its first ecommerce website had a problem: its ERP-based inventory system did not always accurately match what was displayed on the website. The company had to update product content and descriptions on the site on a daily basis. The Al-Shamil web team regularly had to find makeshift fixes to cover the workload of updating item entries on the website. It often had to borrow staff from other departments, including finance and accounting, to help with manual data entry.
 
Working with SnapTec led to immediate improvements. The AWS Partner built the system using Amazon RDS for MySQL. This meant staff could use a single system to update the website inventory and create sales reports.
 
The simplified process proved much easier to manage. “We originally had 10 people doing data entry but have now been able to reduce to just two,” says Alkhateeb. “Once everything was integrated by SnapTec, it was seamless, and staff were able to go back to focusing on their main jobs.” 

“We want to migrate everything to AWS for efficiency and security. It will provide a more seamless omnichannel experience and, most importantly, it will perfect our real-time reporting, and support data-driven decision making.”

-  Mohammed Alkhateeb, Head of Ecommerce, Al-Shamil

Improving the Customer Experience and Scaling to Meet Demand

Despite the preference of Saudi consumers for real-world shopping, the initial launch of the site was successful. “After constructing the website, we had a very high demand compared to our physical branches,” says Alkhateeb.

Since its launch, the company has had more than 3,500 regular online customers, with many using the site at least once or twice per week. A mobile app was launched later in 2021, with the company’s online customers growing further. The app was downloaded 7,000 times in the first month with the figure now standing at 18,000 downloads.

Next, Al-Shamil wanted the website customer experience to run as smoothly as its internal systems. SnapTec implemented a number of interface improvements to the site layout to improve usability. “Initially, there were user interface and user experience issues. Sometimes it was simply about placing buttons in the right place to improve the customer journey,” says Mamdoh Ahmed, managing director at SnapTec.

Al-Shamil is also using machine learning (ML) to improve the search function on the website. With such a large inventory and so many categories of product, it can sometimes be difficult for customers to find what they want. That led the company to introduce a ‘Smart Search’ function using ML to improve findability—even if words are spelt incorrectly or are not exact matches with inventory items. This search functionality runs on Amazon OpenSearch Service and is already proving popular with customers, with more successful searches completed.

When it launched, the website had a limit of 60,000 stock keeping units (SKUs). This forced the company to only display the products it felt to be most essential for customers. However, with a growing number of SKUs and an expanding customer base, Al-Shamil wanted the agility to add more SKUs as it chose, and the ability to scale as demand grew.

SnapTec recommended using Amazon EC2 Auto Scaling to allow the website to scale instantly when customer demand grew. The site can now manage up to 5,000 simultaneous users. It has also increased the number of items available online from 60,000 SKUs to the full 100,000 or so available in its largest real-world stores.

A Future of Growth and Innovation in the Cloud

Al-Shamil is pleased with the improvements and once its ERP system is fully migrated to the cloud, the company is going all-in on AWS. “We want to migrate everything to AWS for efficiency and security. It will provide a more seamless omnichannel experience and, most importantly, it will perfect our real-time reporting and support data-driven decision making,” says Alkhateeb.

Al-Shamil is still facing some challenges with its on-premises systems, notably around availability. Currently, each individual store must connect to the central ERP system to log sales reports but at times the data center or network connections are not available, so reporting does not happen. Migrating this function from on-premises to AWS will speed-up report generation and provide better data-based decision making for buyers, marketing, and financial planners across the whole group.

Now with a solid foundation for its ecommerce site, Al-Shamil is keen to grow its online market with support from SnapTec. “We’ve built a strong base of online customers and a scalable, intuitive website using AWS. Now, by providing incentives, like discounts and free deliveries, we hope to grow even further—with the confidence that our website can handle the demand,” says Alkhateeb.

AlShamil

About Al-Shamil

Al-Shamil has a 20-year history and runs nine large stores across Saudi Arabia selling everything a family needs, including clothes, accessories and homewares. It only recently started selling online in response to customer demand and restrictions created by the COVID-19 pandemic.

About SnapTec

SnapTec is a Saudi-based ecommerce specialist and AWS Advanced Consulting Partner. It has been designing and building websites and mobile applications for leading retailers and other customers for more than 10 years. SnapTec also has expertise in digital marketing, advertising, and search engine optimization.

Published February 2022