E-Commerce & Immediacy

Driving a New Supply Chain

Tom Craig – tomc@ltdmgmt.comLTD Management www.ltdmgmt.com

Supply Chain Management

Leading the Immediacy Megatrend

Agenda

E-commerce

E-commerce immediacy

Supply chain impact

Speakers

Warning

Some of what I will say may go against some traditional views

Making a new supply chain management to meet new opportunities

Set the Foundation

E-Commerce is about supply chain management.

E-Commerce Immediacy is about the new supply chain management!

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We are

Looking at a paradigm shift—For SellingFor Supply Chain

Management

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•Is big business – US and global•Part of Multichannel / Omnicommerce sales•Can we say Amazon and Alibaba?

E-COMMERCE

Online vs store

Customer—name & address

“Store” goes to customer

Customer convenience & experience

Customer—can be unknown

Goes to store

Shopping experience

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Do you think e-commerce is for B2C/retail only?

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•Too big a way of doing business to just be……•W.W. Grainger– 1/3 B2B sales are e-commerce (over $3bil)•It is about multichannel (e-commerce is one channel)

Manufacturers

Brand name recognition

Sell online direct or let retailers/wholesalers do itLimited / no contact with end customers

E-Commerce

Global B2C e-commerce for 2015--$1.7 trillion

Global B2B e-commerce for 2020--$6.7 trillion

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E-Commerce Countries

Top 15 countries for 2015 for e-commerce are— United States China United Kingdom Japan Germany France South Korea

Russia Belgium Australia Canada Hong Kong Netherlands Singapore DenmarkPer A.T. Kearney

Old vs New e-commerce

Immediacy

Delivery within 48 hours of order placement (or faster)

It is about the customer and the customer experience.

Same old-same old

Web site

Ship orders

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New Business & Supply Chain Reality

Is new e-commerce

Business disruptor

Changing supply chains

Hello— parcel delivery firms trucking firms 3PLs warehouses logistics investors

Customers want— What they want When they want it

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And

Multichannel / Omnichannel

mCommerce

Payment

Global reach

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Are there e-commerce, customer, and supply chain differences for?

Specialty retailers

Mass merchandisers / big box retailers

Private label / store brand

Name brand

Think about this

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Immediacy

Benefit to Sellers

Mitigates/reducesBuyer’s remorseOrder cancelationsReturns

Immediacy is not (yet)

Beam me up, Scotty.

Same and one-day deliveries—global

Drones

3D printing truck delivery

Click and collect

Build special distributions centers for e-commerce

Delivery to trunks of cars

Immediacy22

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Immediacy (of new e-commerce) & new

supply chain

Goes beyond E-Commerce/ B2C

Spreads across channels

Expands across industries

Expands across markets

Grows across the world

It is

Megatrend--Immediacy--

Supply chain management is leading it

Continuously driving new supply chains

Underlying IssueE-Commerce / Multichannel

Working capital / Liquidity

Multichannel

Vs the urge to increase inventory

Vs the idea of allocating inventory per sales channel

“Optimization” vs multichannel sales

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What lies ahead for supply chains

Duality

Segmentation

Focus on service and customer

InventoryVelocity2

Time compression

Upstream Supplier performance and supply chain extension

More

Network alignment & inventory positioning

Advanced integration—ProcessTechnology

New breed of Logistics Service Providers

Outsourcing to Supply Chain Service Providers

Virtual Reality Retailing

Retailing will transform

Virtual reality retail stores

Think New Supply Chain Management

It Is Coming31

"You got to be careful if you don’t know where you’re going, because you might not get there." – Yogi Berra

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