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Supply Chain Management – Commentary and Solutions
Presenter: Paul Young, CPA, CGA – Proven Practice Adviser – Risk Analytics, FOPM/FPM and Close, Consolidate and Reporting
Day: March 27, 2017
© 2012 IBM Corporation
Author / Bio
September 9, 2014
• Paul Young, CPA, CGA• SME – Financial Performance Management (TM1, Cognos Controller
and Cognos Disclosure Management, OpenPages, Algorithmics, Cognos Integrated Server, Cognos Command Center and Datawatch)
• Industry Experience• 15+ years in Corporate Reporting, Budget & Forecasting,
Costing, Business Process Management, Internal Audit and Controls, Risk Management, Financial Analysis, Costing
• 11+ years in financial solutions (FOPM, FPM, Risk, Office of the Finance, Risk Management)
• 8+ years teaching Advance Finance, Advance Accounting, Public Finance and Advance Management Information Systems
• Blogger in areas like Finance Analysis, Government policies, market segment
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Retail Sales/Inventory
Global Forecast
Business Investment / Technology
Micrologistics
Re-shaping retail channels
Agenda
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• Business continue to face both domestic and global challenges
• Business continues to struggle with aligning technology with their business operations
• Business continues to struggle with managing data analytics as part of the close, consolidate and reporting cycle
Challenges
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https://www.census.gov/mtis/www/data/pdf/mtis_current.pdf - March 15, 2017
United States – Retail Sales – February 2017
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February 2017 – Retail Sales by Segment
Source - USA Government
US Retail Sales in February post smallest gain in six-months – Bloomberg March 15, 2017
But notably, January's core retail sales were upwardly revised to a 1.2% increase, up from the prior reading of 0.8%. Business Inside – March 15, 2017
Most U.S. retailers reported weak sales in February despite unseasonably warm weather, a likely offshoot of delayed tax refunds for millions of households.Market Watch – March 15, 2017
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Retail Sales change by month
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Source – Scotiabank – March 7, 2017
Global Forecast
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Sales Tax Changes / New Mexico / Amazon
http://www.cnbc.com/2017/03/06/the-associated-press-amazon-to-collect-sales-tax-in-new-mexico-starting-in-april.html
More States are targeting eCommerce retailers (lack of Nexus)
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Source - http://blogs.infor.com/the-informed-distributor/2017/03/todays-technology-investment-will-drive-tomorrows-distribution-business-models.html
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Amazon
http://www.supplychainquarterly.com/topics/Strategy/20160503-so-you-think-amazon-rules-the-world-new-report-says-you-aint-seen-nothing-yet/September 9, 2014
Amazon, Alibaba will use self driving vehicles, robotics, 3d printing and AI for to compete on same day delivery
Amazon, which currently charges a $99 annual fee for two-day deliveries under its "Prime" service, will eventually offer two-tier pricing for delivery services, Jindel said. One will be a "Gold Prime" membership costing $199 to $249 a year that covers next-day deliveries, the other a platinum membership for $399 a year that includes same-day deliveries. Jindel said the pricing scheme will take effect only after Amazon builds out its distribution infrastructure.
Amazon is using and will using all aspects of - Robotic warehouses - Robotic trucks - Drone delivery - AI and quantum computers improved logistics and analytics - additive manufacturing
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https://www.exact.com/au/about-exact/news/434-wholesale-of-the-future
What is migrologistics?
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• Risk and Compliance (Taxation)
• Cost to serve models
• Retailers competing against Amazon • Changes to hub and spoke approach channel management
• Social Media Analytics• Understanding the trends
• Watson• More predictability with sales
• Time-Series (Inventory on hand/turnover)• Product launches• Inventory Management
• Testing inventory stock provision for dead and slow moving stock• Tracking inventory• Costing (rebates, discount)
Business Demands
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IoT - https://www.ibm.com/blogs/internet-of-things/enabling-iot-business-outcomes/
Watson - https://www.ibm.com/analytics/watson-analytics/in-en/by-industry/retail
Analytics - http://www-05.ibm.com/uk/forecasting-and-budgeting/2017_Q1_Rolling_Forecast_Seminar_slide_deck3-1.pdf or https://www.ibm.com/analytics/us/en/business/financial-performance-management/
Opportunities for solutions