accelerate global growth
TRANSCRIPT
© GT Nexus, Inc.
How to Combat Uncertainty and Volatility in New International Markets
Accelerate Global Growth
A GT NEXUS STRATEGIC INITIATIVE FOR RETAILERS
www.gtnexus.com
For retailers to expand globally, they need to have access to a large network of providers and be able to change their expansion plan easily. When a company expands into a new country, they might have limited data on product viability, consumer needs and buying habits, regional sourcing options, and reliable companies to partner up with. When they make decisions on this limited data, it’s often hard to make changes as challenges appear.
Even if a retailer can find good partners, it’s not guaranteed they will use similar systems, standardized data, or even the same language and currency. It can hinder communication and performance analytics when there is not a single platform for real-time information.
Impact of Poor Growth StrategyGlobal growth can slow or come to a halt when retailers are not equipped with the right technology to manage such an intricate supply chain. Without a cloud-based platform, they are likely to experience:
Inability to expand quickly enough
Difficulty identifying and managing new suppliers and partners
Difficulty integrating partners with existing systems
Difficulty managing cross border payments from subsidiar-ies or distributors
Poor use of inventory to meet demand in different regions
The Root of the ProblemThe core cause of bad global growth strategy is the unknown. Retailers may not know what the demand is, how to handle outbound flows, and who to partner with. With only a tradi-tional ERP system, there’s no way to integrate data to make smart decisions in new markets.
1. Lack of global visibility
When there is no consolidated view of global demand, no view of outbound supply, and multiple sources of visibility data, the following occurs:
Inability to allocate to regional demand
Inability to consolidate purchasing
2. No established network of partners
When retailers don’t know which partners are the best option and supply chains are not integrated, there is no easy sharing of comprehensive supply chain data. This leads to:
Poor use of procurement budget
Difficulty in switching to better partners when perfor-mance is failing
Plant
Plant
NetworkConnectivity
Agility
Customers
Customer
DC / Warehouse
Plan
Actual At-Risk DelayDynamic ETA
B
A
Sense more accurately
Operate more efficiently
Respond faster
Make better decisions
© GT Nexus, Inc.
32
The SolutionRetailers can accelerate global growth by using cloud-based technology to bring all of their global providers and potential partners onto the same network. Unlike with traditional ERP systems, cloud technology makes it easy to bring on new suppliers and partners and communicate with all of the stake-holders in a supply chain. Data on new markets can be gath-ered in real time and changes made to strategy as needed.
Adopt a flexible, scalable cloud platform to collect data from new markets.
Enable electronic data management and payment
Use electronic documentation to move goods fluidly across a global network
Handle complex, multi-leg intercontinental flows (factories, in-country DC, end delivery)
Use dashboards and KPIs highlighting supply chain vari-ability, bottlenecks, etc.
How to use it to accelerate global growth:
1. Improve sourcing by identifying “at risk” orders
2. Plan inventory with high reliability
3. Measure provider accountability
4. Manage cash settlement and discounts
5. Better communicate with customers to make more sales
Value PropositionsBy using a platform that allows global providers to plug into a cloud-based network, retailers can bring in crucial supply chain data from sources in emerging markets. They can:
1. Increase sales and service levels through reallocation
Rapidly respond to customer demand
2. Improve brand equity and repeat business
Achieve faster and more efficient market entry
Solidify position as reliable and on-trend retailer
3. Increase COGS through better sourcing strategy
Use pre-integrated supplier network
4. Lower admin costs with elimination of manual processes
5. Increase revenue through global growth
Accelerate new market entry
Improve product availability globally
Optimize use of inventory to increase margins
Global Growth and the Networked CompanyTo accelerate global growth, companies must transform them-selves from silo-based, inward-facing corporate operators to interconnected, highly agile business network orchestrators.
Expanding internationally or adding categories is difficult with a complex global supply chain.
The Challenge
Global growth is driven by a real understanding of emerging markets. Without supply chain data for these regions, retailers will lose out to their more equipped competitors.
Adding regions without good data leads to confusion and poorly vetted partnerships.
zzzzzzzzZzzzzzzzzzzzzzzZ ZzzzzzzzzzzzzzzzZzzzzzzzzzZzzzzzzz ZzzzZ
RegionalProduction
Hubs
RegionalConsolidation
Hubs
LATAMStores
NAMStores
EUStores
Middle EastStores
Asia Stores
Throughout the supply chain, retailers can adapt their growth strategy based on information along the way.
Suppliers and
Agents
LogisticsService
Providers
FreightCarriers
FinancialService
Providers
OnOrder
InProduction
AtOrigin
InTransit
InCustoms Inland Delivered
Out of Market
DC Space & Labor
OrderDistribution
SampleEnabled
Workflows
OperatingPlatform
PartnerNetwork
Cross DockPostponement
For retailers to expand globally, they need to have access to a large network of providers and be able to change their expansion plan easily. When a company expands into a new country, they might have limited data on product viability, consumer needs and buying habits, regional sourcing options, and reliable companies to partner up with. When they make decisions on this limited data, it’s often hard to make changes as challenges appear.
Even if a retailer can find good partners, it’s not guaranteed they will use similar systems, standardized data, or even the same language and currency. It can hinder communication and performance analytics when there is not a single platform for real-time information.
Impact of Poor Growth StrategyGlobal growth can slow or come to a halt when retailers are not equipped with the right technology to manage such an intricate supply chain. Without a cloud-based platform, they are likely to experience:
Inability to expand quickly enough
Difficulty identifying and managing new suppliers and partners
Difficulty integrating partners with existing systems
Difficulty managing cross border payments from subsidiar-ies or distributors
Poor use of inventory to meet demand in different regions
The Root of the ProblemThe core cause of bad global growth strategy is the unknown. Retailers may not know what the demand is, how to handle outbound flows, and who to partner with. With only a tradi-tional ERP system, there’s no way to integrate data to make smart decisions in new markets.
1. Lack of global visibility
When there is no consolidated view of global demand, no view of outbound supply, and multiple sources of visibility data, the following occurs:
Inability to allocate to regional demand
Inability to consolidate purchasing
2. No established network of partners
When retailers don’t know which partners are the best option and supply chains are not integrated, there is no easy sharing of comprehensive supply chain data. This leads to:
Poor use of procurement budget
Difficulty in switching to better partners when perfor-mance is failing
Plant
Plant
NetworkConnectivity
Agility
Customers
Customer
DC / Warehouse
Plan
Actual At-Risk DelayDynamic ETA
B
A
Sense more accurately
Operate more efficiently
Respond faster
Make better decisions
© GT Nexus, Inc.
32
The SolutionRetailers can accelerate global growth by using cloud-based technology to bring all of their global providers and potential partners onto the same network. Unlike with traditional ERP systems, cloud technology makes it easy to bring on new suppliers and partners and communicate with all of the stake-holders in a supply chain. Data on new markets can be gath-ered in real time and changes made to strategy as needed.
Adopt a flexible, scalable cloud platform to collect data from new markets.
Enable electronic data management and payment
Use electronic documentation to move goods fluidly across a global network
Handle complex, multi-leg intercontinental flows (factories, in-country DC, end delivery)
Use dashboards and KPIs highlighting supply chain vari-ability, bottlenecks, etc.
How to use it to accelerate global growth:
1. Improve sourcing by identifying “at risk” orders
2. Plan inventory with high reliability
3. Measure provider accountability
4. Manage cash settlement and discounts
5. Better communicate with customers to make more sales
Value PropositionsBy using a platform that allows global providers to plug into a cloud-based network, retailers can bring in crucial supply chain data from sources in emerging markets. They can:
1. Increase sales and service levels through reallocation
Rapidly respond to customer demand
2. Improve brand equity and repeat business
Achieve faster and more efficient market entry
Solidify position as reliable and on-trend retailer
3. Increase COGS through better sourcing strategy
Use pre-integrated supplier network
4. Lower admin costs with elimination of manual processes
5. Increase revenue through global growth
Accelerate new market entry
Improve product availability globally
Optimize use of inventory to increase margins
Global Growth and the Networked CompanyTo accelerate global growth, companies must transform them-selves from silo-based, inward-facing corporate operators to interconnected, highly agile business network orchestrators.
Expanding internationally or adding categories is difficult with a complex global supply chain.
The Challenge
Global growth is driven by a real understanding of emerging markets. Without supply chain data for these regions, retailers will lose out to their more equipped competitors.
Adding regions without good data leads to confusion and poorly vetted partnerships.
zzzzzzzzZzzzzzzzzzzzzzzZ ZzzzzzzzzzzzzzzzZzzzzzzzzzZzzzzzzz ZzzzZ
RegionalProduction
Hubs
RegionalConsolidation
Hubs
LATAMStores
NAMStores
EUStores
Middle EastStores
Asia Stores
Throughout the supply chain, retailers can adapt their growth strategy based on information along the way.
Suppliers and
Agents
LogisticsService
Providers
FreightCarriers
FinancialService
Providers
OnOrder
InProduction
AtOrigin
InTransit
InCustoms Inland Delivered
Out of Market
DC Space & Labor
OrderDistribution
SampleEnabled
Workflows
OperatingPlatform
PartnerNetwork
Cross DockPostponement