Tuesday, December 12, 2017

SUPPLY CHAIN DISRUPTION AND CHAOS

We challenge traditional views of supply chain management that are outdated for e-commerce success and the new selling reality with cross-borders.  Where do you want to be in the time of disruption, chaos, change, and transformation?




SUPPLY CHAIN AGILITY VS THE SUPPLY CHAIN MONOLITH

Is Supply Chain Agility code for strategy and/or tactical mistakes and looking to SCM to make up for it using a designed SCM monolith? A variation of anything is possible when you are not the one doing the work?   Thoughts?  SCM practitioners vs not--a factor in the answer?




REACTING SUPPLY CHAIN MANAGEMENT

Reacting is NOT a supply chain strategy and does not drive e-commerce need to meet order-delivery velocity. It is high in risk and high in negative impact. Yet many omnichannel firms do it. Go figure.





YOU GET WHAT YOU PAY FOR

From logistics services to consulting services, it is interesting to see those who buy on low price are then frustrated with they bought and the results.




FAUX OMNICHANNEL

Retailers and Manufacturers--act to implement the new supply chain that meets customer order-delivery expectation and creates e-commerce success.

No faux omnichannel.



NO FAUX OMNICHANNEL

Retailers and manufacturers and distributors have a choice with E-commerce.  Make it a key part of your strategy and aggressively pursue.  Or, go through the motions of e-commerce for various reasons; a pretend effort.  Faux Omnichannel




MANUFACTURERS AND E-COMMERCE BLINDERS


An issue of many manufacturers with establishing e-commerce supply chains is not seeing the upstream supply chain.  They see the supply chain starting in their factories and look at fulfillment (not the customers and their expectations) as online selling.  Those blinders and not seeing the end-to-end supply chain lay the ground work for operating problems and not meeting customer expectations, especially during surge periods.



Monday, December 11, 2017

INVESTORS AND LOGISTICS BIG PICTURE

With the chaos and disruption in logistics, investors need to look at the total picture of what is happening, and not just in a vacuum or in the singularity of a logistics provider.




WHYS AND EXCESS INVENTORY

Excess inventory is waste--waste of capital, waste of needed inventory space, and waste of warehouse productivity with having to work around it.  Excess inventory is easily identifiable by all the dust that sits on the cartons as it matures into obsolete.  It is a practice of retailers, manufacturers, and distributors.  The impact is exponential across the organization and locations.

Some why questions with excess inventory.  Why does it occur so much when there are better options, such as Inventory Velocity, and the pressure to improve supply chain costs?  Why do these products/materials sit so long in warehouses?  Why are key executives hesitant to take the needed write-offs to dispose/fire sale the products?  

Is this an example of Einstein insanity--doing the same thing over and over and expecting different results?











BIG PLANS AND PROBLEMS FOR CHINA TO EUROPE RAIL

China wants to move 25% of its exports to Europe via rail.  What would that do to container lines, mega ships, alliances, and ports?   BRI  


https://theloadstar.co.uk/claims-threat-subsidies-casts-pall-booming-asia-europe-rail/?utm_source=The+Loadstar+daily+email&utm_campaign=57cc2c04af-EMAIL_CAMPAIGN_2017_12_11&utm_medium=email&utm_term=0_c4570e43d4-57cc2c04af-153458185

DEMAND FOR NEW JERSEY WAREHOUSE SPACE

Interesting as to e-commerce demand for warehouses close to major population areas. Question as to their size when compared to Amazon distribution with both large square footage AND the height for conveyors; these large inventories and shipping big volumes of orders.

https://www.wsj.com/articles/demand-for-new-jersey-warehouse-space-skyrockets-1512837841?mod=djemlogistics

Sunday, December 10, 2017

PLATFORM BUSINESS AND SUPPLY CHAIN MANAGEMENT AS A SERVICE (SCMaaS)


There should be a supply chain management Platform Business (or businesses) for the  SME community.  Supply Chain Management as a Service (SCMaaS).  Blend technology and actual supply chain management--a hybrid that creates ongoing value.

For trade—export/import.  For the required supply chain that enables e-commerce success with meeting customer expectations.

Include next gen technology for supply chain visibility, digitization, blockchain, and more.  Include the logistics community.  It more than leveling the playing field; it is leading.  It is a game changer for SMEs.



Saturday, December 9, 2017

E-COMMERCE INVENTORY VELOCITY, NUMBER OF LOGISTICS PARTICIPANTS, DIGITIZATION, DISINTERMEDIATION

E-commerce requires inventory velocity to deliver orders that meet customer expectations.  The international segment of supply chains, both inbound and outbound cross-border, have many logistics intermediaries--not all are designated by the buyer or seller but rather are a result of present logistics practices.  

While no one has measured it, it is logical to assume that there is a correlation between the number of logistics participants in shipments and the likelihood/the risk of less-than-optimum inventory velocity.  To mitigate the situation, digitization, with its potential disintermediation of the number of logistics players in trade activities has both logistics benefit and increased supply chain value.

Agree?  Thoughts?




RETAILER AND MANUFACTURER E-COMMERCE PERFORMANCE AND CUSTOMER EXPECTATIONS

It is interesting the many omnichannel stories that do not mention the retailer or manufacturer performance with satisfying Customer Expectations with order-delivery velocity. Does that lack of information reflect no use of metrics or a limited e-commerce program or ?




FASHION BRANDS PLAYING AN INVENTORY GAME

They choose to ignore the Inventory Velocity of the New Supply Chain.  It enables managing inventory flow, a better choice than the risk of scarcity and its impact.  That is THE solution for omnichannel.  Oh, well.

https://www.businessoffashion.com/articles/news-analysis/christmas-becomes-inventory-war-game-for-us-fashion-brands?utm_source=twitter.com&utm_medium=socialshare&utm_campaign=bof

Friday, December 8, 2017

SOME E-COMMERCE REALITY / FAUX OMNICHANNEL

Walmart seems to be the only serious e-commerce player, besides Amazon.  Too many retailers and manufacturers are playing pretend e-commerce.  No serious commitment to satisfying customer expectations and to transforming their supply chains to drive success.   They are content with getting some orders while complaining about Last Mile costs.  Faux Omnichannel.  Any wagers on what Amazon and Walmart do to their long term online activity and presence?  They do not practice "in for a penny; in for a pound".




BLOCKCHAIN AND SUPPLY CHAINS

Talking about blockchain for supply chains in terms of tracking products shows both a misunderstanding of supply chain management and an undervalution of blockchain's potential in supply chains.  Tracking is just a various of present track and trace offerings by transport/logistics providers. 

Escalate the thinking of the role of blockchain and supply chain management beyond "transactional". 
  1. Place the transaction in the context of the supply chain with managing purchase orders and creating critical inventory velocity. 
  2. Place it in the context of supply chain risk, mitigation, and chain of custody. 
  3. Place it as a way to integrate the two supply chains--product and finance.  
  4. And more.  The above are just starters.







THE NEW SUPPLY CHAIN AND INVENTORY VELOCITY

Inventory velocity is a necessity of the New Supply Chain that drives omnichannel e-commerce.  That velocity means the Perfect Order for customers--delivered complete and on-time, plus accurate--and in turn that means meeting customer expectations.  It means less working capital spent and tied up in inventory that sits.  It means less fire sales/depressed pricing.  It means improved profits.  It means faster conversion to getting paid and having cash.








WHAT IS THE PROBLEM WITH OMNICHANNEL?

Too many discussions on retail apocalyse and either/or for selling. What is wrong with doing omnnichannel, selling duality, and the supply chain duality that drives it? What is problem with retailers and manufacturers "multitasking"?  Is there an organization problem?




THE SHIPPER FOR INTERNATIONAL TRANSPORT

In writeups on container shipping and international air freight the term "shipper" should be clarified as to BCOs (beneficial cargo owners) vs freight forwarders/NVOs.  Big diff on how supply chains and service are viewed by the two.