Saturday, November 8, 2014

E-COMMERCE & NEW SUPPLY CHAIN

There was QVC and Home Shopping Network.  Now there is online shopping.  But the evolution of remote shopping--remote as compared to going to a bricks and mortar store--is continuing.  It is now becoming about immediacy, namely immediate delivery.  Waiting days, even weeks, for an order is becoming less acceptable.  The convenience and satisfaction of online ordering is inversely proportional to the time it takes for complete order delivery. 

And here is where the new supply chain comes into play.  Amazon and few others see this.  But far too many just think of pulling orders and shipping via some parcel type carrier.  So a customer in New York is supposed to sit and wait while his order is shipped from California--and appreciate the slow service?  That must be what these online businesses think.  Otherwise why would they do.

Online is about much more than the website and related technology.  It is about providing service--the order--to each customer.  That should be done quickly.  Forcing customers to wait for internal reasons is creating opportunities that some corporations are stepping into to fill.

Yet the slow-to-learn firms continue to do the same-old thing.  Why?

There is a new supply chain.  The purpose is to service customers in ways that too many fail to appreciate. 

This new supply chain is going to sweep across all businesses, not just online.  To multichannel.  To other ways of providing products to customers.  All customers are going to want immediacy.  That service is a significant benefit to their business.  Time compression leads to improved sales, lower inventories, and much more.

Interested in transforming to the new supply chain?  Or just content to do the same-old, same-old and watch your business slowly fade away?

Read more about the new supply chain at http://www.ltdmgmt.com/omnicommerce.php