- 1. Retail Supply Chain Ann Grackin CEO-ChainLink Research
2. Agenda
- Changing Face of the Supply Chain
- What it will take going forward
3. Changing Face of Retail 4. We NeedWorld View 5. Now more than
ever, a networked economy 6. And Retail Has Changes Beyond
Replenishment Not all Retail is about Convenience And assortment
Stack it high. Watch it fly. Price it low. Watch it go. 7. We are
on the Web DNS Query Growth 8. We are on the Move Human Migration
and Mobility 9. Huge Demographic Changes Rank City/Urban area
Country Average annual growth 2006 to 2020, in % 1BeihaiChina10.58
2GhaziabadIndia5.20 3Sana'aYemen5.00 4SuratIndia4.99
5KabulAfghanistan4.74 6BamakoMali4.45 7LagosNigeria4.44
8FaridabadIndia4.44 9Dar es SalaamTanzania4.39
10ChittagongBangladesh4.29 11TolucaMexico4.25 12LubumbashiCongo4.10
13KampalaUganda4.03 14Santa CruzBolivia3.98 15LuandaAngola3.96
16NashikIndia3.90 17KinshasaCongo3.89 18NairobiKenya3.87
19DhakaBangladesh3.79 20AntananarivoMadagascar3.73 21PatnaIndia3.72
22RajkotIndia3.63 23ConakryGuinea3.61 24JaipurIndia3.60
25MaputoMozambique3.54 26MogadishuSomalia3.52
27GujranwalaPakistan3.49 28DelhiIndia3.48 29Pune (Poona)India3.46
30Las VegasUSA3.45 31Addis AbabaEthiopia3.40 32IndoreIndia3.35
33FaisalabadPakistan3.32 34RawalpindiPakistan3.31
35BrazzavilleCongo3.29 36PeshawarPakistan3.29
37KhulnaBangladesh3.24 38SuwonRepublic of Korea3.23
39KarachiPakistan3.19 40AsuncinParaguay3.17 41LahorePakistan3.12
42AsansolIndia3.11 43RiyadhSaudi Arabia3.09 44DakarSenegal3.06
45MultanPakistan3.06 46ValenciaVenezuela3.05 47JakartaIndonesia3.03
48BrasliaBrazil2.99 49Port-au-PrinceHaiti2.98
50PalembangIndonesia2.94 51JiddaSaudi Arabia2.93 52AccraGhana2.93
53AgraIndia2.93 54HyderabadPakistan2.91 55BandungIndonesia2.90
56WenzhouChina2.90 57East Rand (Ekurhuleni)South Africa2.89
58WuhanChina2.87 59MosulIraq2.86 60AmritsarIndia2.85
61BursaTurkey2.85 62ManausBrazil2.83 63MeerutIndia2.83
64YaoundCameroon2.80 65ChangshaChina2.80 66BelmBrazil2.79
67BangaloreIndia2.79 68HezeChina2.78 69TijuanaMexico2.77
70ShantouChina2.77 71MaceiBrazil2.75 72AlgiersAlgeria2.74
73AhmadabadIndia2.73 74LucknowIndia2.72 75DoualaCameroon2.71
76AustinUSA2.69 77BhopalIndia2.69 78AtlantaUSA2.64 79Ujung
PandangIndonesia2.63 80LudhianaIndia2.63 81ManaguaNicaragua2.62
82ZhanjiangChina2.59 83KarajIran 2.59 84JamshedpurIndia2.59
85MeccaSaudi Arabia2.56 86VadodaraIndia2.55 87DavaoPhilippines2.53
88KanpurIndia2.53 89Ciudad JurezMexico2.51
90TegucigalpaHonduras2.51 91ShenzhenChina2.51 92SrinagarIndia2.50
93CoimbatoreIndia2.49 94AbidjanCte d'Ivoire2.49 95YangonMyanmar2.46
96DhanbadIndia2.46 97RabatMorocco2.45 98AleppoSyria 2.42 99San
JosCosta Rica2.42 100KhartoumSudan2.41 10. Web Business WW are
Growing
- 90 + Million domain names exist in the world
- Growth rate is increasing quarter over quarter
Source: Zooknic, October 2005; VeriSign, October 2005 O THER 11.
And Business are Moving Out of the 4 WallsEnterprises.. and
Federations Federations SOHO.Self Employedand Consumers Enterprise
A Enterprise C Enterprise G .. within thefour walls Shared
execution Fully outsourced processes Process A Process B Process C
Process D Enterprise H Enterprise Y Enterprise B Enterprise X
Enterprise Y Enterprise Z Enterprise A Enterprise B Enterprise C
Enterprise G Enterprise X Enterprise Z % of businesses at home is
increasingMicro loansincrease WW 40%+ quarter over quarter 12.
Economic Mobility MercerWorld middleclass increases Most expensive
shopping streets in The Americas Street City 5th Avenue New York
East 57th Street New York Madison Avenue New York Rodeo Drive Los
Angeles N Michigan Avenue Chicago Union Square San Francisco Bloor
Street Toronto Iguatemi Shopping Sao Paulo Rio Sul Shopping Rio de
Janeiro Newbury Street Boston Most expensive shopping streets in
Europe Street City Champs Elyses Paris Oxford Street London Bond
Street London Covent Garden London Brompton Road London Faubourg St
Honor Paris Grafton Street Dublin Blv Haussmann Paris
Kaufingerstrasse Munich Tverskaya Moscow 13. We are Searching for
Something Else Maslows Hierarchy Revisited Values Experience
Results Price Availability 14. Stepford Village Show new mall
concepts What have we got from Best Buy 15. MainStreet Show new
mall concepts What have we got from Best Buy 16. Destinations
- Starbucks:Business Meetings
- Whole Foods:Lunches and Diners
- American Girl: Tea Parties
- Cereality: Just Like Saturday Morning
17. The Commoditization Blues Price / Margins Time Revenue and
Margin Loss Product Offering C Product Offering B Product Offering
A 18. Evolution of Marketing Production Orientation Sales
Orientation MarketingOrientation Outcome Orientation Late 1800s
Early 1930s Mid-1950s 2000
- If we make it, they will buy it !
Source:Fundamentals of Marketing, Stanton, Etzel, Walker Seller
Power Buyer Power 19. Results Power by the Hour 20. Experience 21.
Outcome Business Models Increasing Margins Embeddednes of Needs and
Values Make + Service with SLAs Leasing Managing Out-Sourced
Processes Selling Outcomes Warranties $ Make Only Make + Service
Doll: China: $2.80Retailer: $19.99Fashion Party:$1,020.00 22. Where
Do they look for their Experience The whole consumer economy is
going experiential 23. WeThinkWe Know the Customer 24. Changing
Face of Supply Chain 25. The Supply Chain Challenge
- The irrationality of a thing is no argument against its
existence, rather a condition of it
Friedrich Nietzsche 26. Money is Lost in the Chain 27. Money is
Lost in the Store
-
- Plan-o-grams vs. real-o-grams
28. Money is Lost at the Shelf
- Over/under order by order to fill
- Order visually out or low stock items vs.. All items
- Missing shelf tag items do not get ordered
- Not orderedfor multiple locations
- Not accurately ordered for promotions/Business events
- Provided automated solution to manual ordering
- Produced simple item forecast
29. Money is Lost in IT 30. Money is Lost Through Lack of
Knowledge % Sales 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 Low High
Store Labor Shrink Lost Sales WTW Inventory Inventory 31. A Vision
for the Future 32. RFID is a Multi-Enterprise Solution
- Data Collection for Language Barriers
- Mfg routing for unique packaging
- Cold Chain-Temperature Sensing
33. Retail is Multi-Channel 34. A Vision of the Future 35.
Create: Sustainable Supply Chain s Wal-Marts Green Packaging
InitiativesCould Produce Ripple Effects 36. Update Your Role 37.
Revitalize Your Vision 38. Create Brands that Reflect Value 39.
Revise the Technology Predictive Networks Total Sourcing Models
Expressive Bidding Total Cost to Serve Compliance Auditing Risk
Management Collaboration a Given! 2000 1990 2004 MRP Data
Warehouse, OLAP Event Management Spreadsheets Optimization (APS)
RFID Client Server APPLICATIONS ARCHITECTURES Web (Service-based)
Mainframe Third Paradigm Planning Synchronization 40. Revisit the
basics 41. Innovate your Process
- Several ordering and payment system pilots
- There is more to this story than in the Press
-
- Indoor payment vs. outdoor dry thru challenges
-
- Other applications for entertainment
-
- Other partnerships within theme parks etc..
42. Partner: Federated Models
- Payment for small retail purchases
- SmartCoversTM for 3300/3500/6360
- MasterCard, AT&T, Chase, 8 retailers
43. Consider the Total Process
- Total flow from access to parking to store layout to
checkout
44. Conclusions 45. The Challenge
- Wallet size/loyaltyof customers
How to gain of larger share of customer spend
46. Whats Your Strategy? Growth? Cost Reductions? or 47. Get a
World View 48. What Changes?
- Experiences havesurprise : How to design dynamic Supply
Chains?
- Building Relationships: Not sellingthings
- Completeness of Offerings: Federations
- Innovation Engines Needed
- Predictiveness in Technology
49. Embrace Change
- You need chaos in your soul to give birth
Friedrich Nietzsche
