moving your supply chain beyond traditional distribution and fulfillment centers bruce tompkins...
TRANSCRIPT
Moving Your Supply Chain Beyond
Traditional Distribution and Fulfillment Centers
Bruce TompkinsPartner, Tompkins International
May 13, 2015
What is a Traditional Furniture
Distribution Center /
Fulfillment Center?
Reality of Today’s
Marketplace
Supply Chain Transformatio
n
Path to Distribution
Transformation
ConclusionsOpportunities for Furniture Distribution
Session OverviewInternational Conference of Furniture Transportation and Logistics
2:00 3:00
Copyright 2015 Tompkins International
03What is a Traditional Furniture DC / FC?International Conference of Furniture Transportation and Logistics
Copyright 2015 Tompkins International
Size Range?
Configuration?
Material Handling Equipment and Automation?
Technology Employed?
Practices and Processes – Slotting, Cycle Counting?
Reality of Today’s MarketplaceInternational Conference of Furniture Transportation and Logistics
Copyright 2015 Tompkins International
Customer Expectations
Evolution: Who Is The Boss? Retailer: YGGIWIS (Your Gonna Get It When I
Say) Customer: IWI –WWIWI-OYTMTP (I Want It
When And Where I Want It, Once You Tell Me The Price)
Speed of Delivery
Leaders In Setting Customer Expectations –
Walmart/ Alibaba/Amazon
E-Commerce (online sales and shopping)
04
0105Reality of Today’s MarketplaceInternational Conference of Furniture Transportation and Logistics
Copyright 2015 Tompkins International
Global Expansion (ex. selling in China)
Growing US Market
US Furniture Factory Orders in 2014: +6.5% US Furniture Factory Shipments in 2014: +6.0% US Furniture Sales - 2014 to 2019: +15.5%
Transformation of US Supply Chains and Distribution
Facilities
0106Supply Chain TransformationInternational Conference of Furniture Transportation and Logistics
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2
3
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Pursuing Cost Reduction in a
Single Supply Chain Process.
Pursuing Holistic Supply Chain Cost Reduction.
Pursuing a Supply Chain Transformation Plan by
Department.
Pursuing a Holistic Supply Chain
Transformation.
Integrated, Aligned,
and Coherent
Strategic, Aligned Plans
Incoherent, Fragmented
Pursuits
Incremental change: When done right it is a process of
Continuous Improvement and Increased Profitability.
Transformational change: When successful leads to Monumental Improvement
and Competitive Advantage.
Low HighDegree of Change
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Opportunities for Furniture Distribution
0107
International Conference of Furniture Transportation and Logistics
Copyright 2015 Tompkins International
Omnichannel
Personalized Experience
Demand Visibility
Organizational Structure That Supports Above 3
Bullet Points
Technology That Supports Above 3 Bullet Points
Path to Distribution Transformation
0108
International Conference of Furniture Transportation and Logistics
Copyright 2015 Tompkins International
For Each Characteristic We Must Identify The Required Supply Chain Transformational Change By Filling The Gap Between Our Current State and Our Ideal Future State
Characteristics
Omnichannel Status: Seamless Experiences Seamless Inventory Seamless Data Seamless Logistics (Network, Inventory, Transportation,
Distribution)
Personalization Status: IWI WWIWI OYTMTP Reasonably Fast/Responsive
Path to Distribution Transformation
0109
International Conference of Furniture Transportation and Logistics
Copyright 2015 Tompkins International
Visibility Status:
Demand Driven: Pull to Store Sales Floor Consumer Sale to Raw Materials
Organizational Structure Status
Technology Status
Conclusions 0110
International Conference of Furniture Transportation and Logistics
Copyright 2015 Tompkins International
There are real and significant changes occurring in the
distribution environment for the furniture industry
The DC of 10-15 years ago is slowly becoming less
functional to meet the needs of customers
Distribution must be transformed to keep pace with
customers and competitors
True transformation requires a strategic, aligned plan
and a high tolerance for change
Operations Strategy – Structure – Implementation
0111Contact Information
Contact UsGlobal Switchboard: +001-919-876-
3667Toll Free: 800-789-1257
E-mail: Fax: 919-872-9666
Bruce [email protected]
or 919.855.5527
Mail [email protected]
Web Sitewww.tompkinsinc.com
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Copyright 2015 Tompkins International
Tompkins International. Your Supply Chain. The Right Way.
Leadership Forum – San Antonio 2015
0112
To learn more about the Leadership Forum visit our website: www.supplychainconsortium.com
Meet colleagues and exchange ideas at a special kick-off event on Monday, August 31.
Attend keynote and general sessions on current hot topics. Learn about new practices and ideas in education sessions on operations strategies,
the future of supply chains, network design processes, demand-driven supply chains, and much more.
Gain insights from presentations by top supply chain professionals.
Copyright 2015 Tompkins International
0113
Visit to Know Us
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Tompkins International. Your Supply Chain. The Right Way.