SUPPLY CHAIN MANAGEMENT EVOLVED

Supply chain management and its logistics components have evolved from a back office cost center to being a blame factor for corporate profits and performance and for e-commerce success.  In other words, it is strategic.  Now we need the new strategies for retailers and manufacturers.

LEGACY VS DISRUPTION

In a time of disruption, retailers and manufacturers face legacy business models and legacy supply chains and legacy technology vs transformation.  3PLs and logistics providers face legacy business models and legacy technology vs transformation.

RETAIL AND CUSTOMER CENTRIC

If retailers are customer centric, then why do they struggle with the ultimate customer centric way of selling—e-commerce—and with the supply chain that drives that customer experience?

GOODS IN TRANSIT AND INVENTORY VELOCITY.

Do Inventory velocity and supply chain visibility issues differ where companies "massage" when/if in-transit inventory is include from those that recognize it?  Does it then affect their ability to transform their supply chains to compete in the e-commerce world with customer expectations?

HIGH RISK GAME OF SELLING AND SUPPLY CHAIN MANAGEMENT

Is this a lesson from Amazon's redefining retail and Supply Chain Management? Are those not transforming how they sell (not retail) and transforming how their supply chains drive meeting Customer Expectations playing a high-risk game with their futures?

E-COMMERCE INVENTORY TURN VELOCITY

Retailers and manufacturers--are your inventory turns faster with e-commerce than with your regular supply chain?  If they are not, it may be signs of supply chain design and operation issues that do not generate supply chain inventory velocity.

LOGISTICS OUTSOURCING RESULTS

Retailers and Manufacturers--how well has your logistics outsourcing gone? ROI? Performance metrics for the 3PL and for your Supply Chain?

BLOCKCHAIN AND PHARMA / FOOD CHAIN OF CUSTODY

Chain of Custody. For Blockchain to achieve its proposed Supply Chain benefits, need to bring in domain expertise for Supply Chain Management and its logistics components. Critical for Chain Of Custody for Pharma and food supply chains.

WHERE ARE SUPPLY CHAIN PEOPLE IN THE BLOCKCHAIN DISCUSSION?

Where are the supply chain people in the blockchain-supply chain discussion?  They seem to be missing.  What does that do to achieving the potential supply chain benefits?

BLOCKCHAIN, SUPPLY CHAIN VISIBILITY, AND SCM TECHNOLOGY PROVIDERS

What does Blockchain with its Supply Chain Visibility do to and for supply chain execution and visibility technology providers, such as GT Nexus and Log-Net?  How do participate and integrate the various distributed ledgers and/or blockchains?

NEW LOGISTICS OUTSOURCING FOR SUPPLY CHAIN MANAGEMENT

With the need for supply chain velocity, control, visibility, and chain of custody, what is the future for traditional logistics outsourcing?  Like much of SCM and logistics—disruption and transformation?  Need for new concept by both retailers/manufacturers and service providers that is dynamic and not static!  New opportunities for 3PSCM and SCMaaS providers!  The ROI for both parties with outsourcing.  It is about more than costs and getting business!

RETAILERS, MANUFACTURERS, AND SUPPLY CHAIN PERFORMANCE

Retailers and manufacturers--do you know how well your supply chain performance? And against a real metric. Logistics costs are not a performance metric. If not, why not?

AMAZON VS COMPLAINERS ABOUT LAST MILE, ETC.

Amazon has 44% market share.  The do not complain about Last Mile, logistics/transport, or fulfillment.  They use logistics, bringing some in house/reverse outsourcing, to improve their total, end-to-end supply chain performance that drives their defining and redefining customer expectations.  Amazon leads. Complainers lag.  Interesting.

DHL EXPRESS AND THE AMAZON LOGISTICS THREAT

Why do other logistics providers not see it?

https://theloadstar.co.uk/dhl-express-admits-amazon-become-competitor-logistics-arena/?utm_source=The+Loadstar+daily+email&utm_campaign=297dfd6a33-EMAIL_CAMPAIGN_2018_02_26&utm_medium=email&utm_term=0_c4570e43d4-297dfd6a33-153458185

INTERNATIONAL TRADE AND BLOCKCHAIN

Much on blockchain reflects a single one buyer-one seller direct transaction. International trade thought has multiple transactions with multiple stakeholders and participants at multiple levels at multiple time and different roles with multiple Incoterms.  The different roles can be obvious such as the product buy and the ocean shipping.  But there are other players that are behind the scene—trucking to/from the port, terminals, etc.  There are also transactions between them that are “hidden”/indirect from the product buy/sell and ocean freight buy/sell.  For true supply chain custody, control, and visibility, all transactions on multiple ledgers should be integrated to achieve the desired supply chain benefits.  There are also sub-plays, such as whether and how a smart contract pay defaults as an ocean transport shipping/service contract—and an built-in audit.  The complexity of international expands the blockchain and distributed ledgers, and they should be brought together.

MANUFACTURERS AND SUPPLY CHAIN VELOCITY

Manufacturers—do you add or impede end-to-end supply chain velocity and its lean essentials for time and inventory?  Reality is it is more than just the four walls.  it is about the customer.

AMAZON AND REVERSE OUTSOURCING

What Amazon is doing with logistics—think of as bringing in-house/ Reverse Outsourcing—do to outsourcing, 3PLs, and logistics contracting!?  Will it redefine the need, role, and purpose of providers in the supply chain?

NEED FOR STRATEGY BY LOGISTICS PROVIDERS

The disruption and transformation in logistics demands strategy and execution by providers. It is a necessity.  Threats.  Opportunities.  New competition.  Change.

E-COMMERCE AND SELF-SABOTAGE

Do retailers and manufacturers self-sabotage their e-commerce success, including not transforming their supply chains?

CHANGING SUPPLIER RELATIONSHIP DYNAMIC

The e-commerce supply chain and its velocity  includes a new supplier relationship dynamic that transcends purchase orders, changes, and lower price demands.  E-tailers acting in traditional ways face problems.

SUPPLY CHAIN PERFORMANCE OPPORTUNITY

The biggest performance opportunity and often the most complex area with supply chain management is outside the four walls.  Technology.  Lean.  Inventory.  Process.  For starters.

LOGISTICS BLOCKCHAIN'S TWO SEGMENTS

Logistics blockchain has two applications.  Internal.  External--with regard to customers.  The external segment needs supply chain input and design if it is to achieve the Blockchain Supply Chain potential.  For the latter, domain expertise is with SCM.

THE BUSINESS DUALITY OF E-COMMERCE

E-commerce is about Business Duality. Online selling combined with the supply chain that meets Customer Expectations. A new reality.

MANUFACTURERS AND THE MESSAGE FROM RETAIL CLOSINGS

Is the message from Toys R Us and others that manufacturers are overdue to move from mono-channel selling to omnichannel? Take control of their sales and strategy. Determine role of retailers as customer intermediaries. Implement the required e-commerce supply chain for success.

SYSTEMIC SUPPLY CHAIN INVENTORY

Many retailers and manufacturers have built a "culture" and "safety net" of systemic inventory throughout the supply chain.  Does the benefit of the New Supply Chain with its end-to-end velocity and reduced dependency on an inventory surplus create uncertainty and hesitation to transform their supply chains?

INVESTORS AND LOGISTICS DISRUPTION

The disruption in the logistics provider segments also impacts investors. Much is unknown and evolving adding to understanding and perception of what is happening--and risks and opportunities.

LOGISTICS AND SUPPLY CHAIN TECHNOLOGY CHALLENGE

Challenge for logistics providers and supply chain management is that technology is moving faster than companies.  What will happen? Is it Technology Explosion vs Organization Implosion?

STOP AND START INVENTORY

The traditional supply chain often uses inventory as a build up/stock-drawdown-replenish (node/link or stop-start) approach which has both over stock and out of stock. Different from the e-commerce supply chain with end-to-end velocity.

DISCONNECT BETWEEN LOGISTICS PROVIDERS AND SCM

The gap between supply chain people and logistics providers seems to be widening as SCM transforms. See a disconnect emerging in articles and posts. Relationships moving backward to buyer-seller. Seems like few logistics leaders with the disruption and transformation.

LOGISTICS TECHNOLOGY AND ASSET LITE LOGISTICS PROVIDERS

Logistics technology has the potential for disintermediation--reducing the role of or need--for forwarders?  What about the impact on asset-lite logistics providers?

CHANGING ROLE OF LOGISTICS PROVIDERS

With the required Supply Chain Velocity for e-commerce and with developing technologies, the role of logistics providers is changing to supply chain providers. And if you impede required supply chain velocity, then... 

LOGISTICS COSTS VS SUPPLY CHAIN PERFORMANCE

Defining and measuring supply chain performance by logistics costs held back the evolution of SCM. That evolution issue created additional shortcomings with meeting the supply chain revolution and requirements of e-commerce. Now need supply chain transformation.

SUPPLY CHAIN CHALLENGES

The biggest challenges to supply chain transformation needed to meet e-commerce customer expectations may be internal.  Not external.