E-commerce immediacy is sweeping
across the globe. It has become a selling and supply chain paradigm. Delivering customer orders within 48 hours of
placement is a megatrend.
E-commerce is the beginning.
Immediacy will move across channels, markets, and industries.
Additional inventory -- aka,
additional working capital or reduced liquidity-- is an underlying
factor. Many companies incorrectly focus on it. They deal with--
- Urge to increase inventory because of additional channels
- Allocating inventory by channel
- Not recognizing that inventory "optimization" struggles in reality of multichannel sales.
These do not really work.
The better approach--as part of the
New Supply Chain/the Blue Ocean Supply Chain is to:
- increase inventory velocity to inventoryvelocity2
- compress time
- move the supply chain upstream to key suppliers as determined by supply chain segmentation
- elevate integration of process and integration of technology to advanced levels
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