Tuesday, December 27, 2016

CHANGE--SUPPLY CHAIN MANAGEMENT

Most major companies lag with change. For example, Amazon created the e-commerce immediacy effect and the customer experience. It wasn’t a major retailer. The same with the finance supply chain topics such as blockchain and IoT. 

MNCs are laggards here. They show up at seminars. But they really do not have much to tell. The firms that have much to talk about are not invited. They lack the name recognition that draws attendance. They also are not recognized in publications who have to put things in the context of big firms. All this is done because most firms are afraid of change. So they are not leaders.  They want to know what someone else is doing to give them some courage to try to change. Go , back to e-commerce/omnichannel and look at name retailers who may not survive the next two years. Stuck in the old ways, in the same old. Manufacturers will sell and ship direct to consumers to fill the void created by dying retailers. And that will create more chaos and change.

It is the same thing with the supply chain required for omnichannel. Big change is needed. Amazon is doing it. But most retailers dabble in change and continue to lose business. Brick, not click. Click and collect to get people into stores because they will buy more while refusing to recognize how many buy elsewhere to get delivery.

Or the dynamics of the new supply chain with inventory velocity, time compression, and extending the supply chain upstream. Instead—and with the out-dated GAAP, it’s the same old with inventory “optimization” and other “answers’ that never worked in the first place. More 3 card monty.
The new supply chain requires new logistics services.  But what if often is out there is renaming the same-old services. And logistics providers sticking with their business models.

The result will be new companies who step in to fill the voids created by the inactions of big name corporations. We are in an era where the only issue with change is how fast. And it is too fast for too many.  They are called laggards, not leaders.