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© GT Nexus, Inc. How to Combat Uncertainty and Volatility in New International Markets Accelerate Global Growth A GT NEXUS STRATEGIC INITIATIVE FOR RETAILERS

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© 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