Reflections on Digital Supply Chains & Platforms
The Automation Imperative Leading consumer-focused businesses are automating their warehouse networks, generating step changes in service and cost performance. Some companies have already unlocked 20% to 50% improvement in service levels while generating a 25% to 50% reduction in fulfillment costs—all while boosting their resilience amid today’s acute labor shortages. Despite these success stories, however, many… Continue reading Amplify Your Warehouse Automation ROI
My colleague Arnold Kogan and I presented at the FMI Fresh Foods Leadership Council meeting in Orlando last week. We discussed the emerging challenges plaguing the retail landscape and how leaders are transforming the supply chain for the post pandemic future. The New Norm Post COVID Supply chain performance suffered starting 2020 due to a… Continue reading Transforming the Supply Chain for the Post Pandemic Future
The dizzying growth in e-commerce has wreaked havoc on CPG supply chains. Here’s how companies can tackle channel proliferation and meet customers’ rising expectations. E-commerce grew an astounding 35% during the COVID-19 pandemic, and that growth shows no signs of slowing. In the six months ending January 31, 2021, online sales of home goods surpassed… Continue reading How CPG Companies Can Conquer the E-Commerce Supply Chain
The rising requirements of urban Gen Z consumers will define where the future of retail is headed. When it comes to big-city shoppers, what really matters to winning the last mile in fast retail? We recently surveyed more than 4,000 consumers in the United States and big cities globally for the answer. The survey points… Continue reading Winning the Last Mile – What Consumers Want
Even today’s most sophisticated supply chains still try to predict what will happen, then optimize performance against plan. The problem is, the world is not predictable. It is filled with the unforeseen. To meet soaring customer demands in this erratic world, companies need to build a whole new kind of supply chain, fast. Supply chains are… Continue reading Why Future Supply Chains Must Sense and Pivot
I gave a panel presentation at the Bernstein "Motor of eCommerce" Conference last week in London. We discussed two trends that will significantly impact on the eCommerce supply chain dynamics in the near term horizon Direct-to-Consumer: Brands across many categories are accelerating their pace of selling directly to consumer (DTC). In the past several years, Brands… Continue reading Bernstein Motor of eCommerce Conference
I held a podcast this week with Supply Chain Management Review on the topic of AI in Planning. We discussed the structural complexities facing demand and supply planning functions today and the imminent role of AI and machine learning. You can view the podcast below: Key takeaways Businesses across all sectors are pressuring supply chains to… Continue reading AI in Supply Chain Planning – Podcast
In our recent article “US E-Commerce Trends and Impact of Logistics”, we assess the current state of the last mile fulfillment market and key supply side drivers of eCommerce. The US eCommerce industry is expected to post 12-14% growth in 2017, from $375B to $420B. At this rate, eCommerce is conservatively expected to account for 14-16%… Continue reading US eCommerce and Impact on Logistics
One question we often get from clients is “Will Amazon disrupt my sector next”? – be it in Fresh, CPG, Beauty, Apparel, or even Industrials. Amazon recently made several strategic moves, that taken in unison, strongly suggest that Fast Fashion is square and center in its disruption cross-hairs. Can Amazon be a Zara slayer? First… Continue reading Amazon the Zara Slayer
Consumers today are spoiled for choice. No matter where they live they have at their fingertips a vast assortment of products, a wide array of delivery options, and a never-ending parade of exclusive products and special offers. The consumer journey is becoming increasingly frictionless thanks to advances in technologies and disruptive innovations from the likes of… Continue reading Building an Omnichannel Supply Chain for Brands & CPG
I had a great time as a guest lecturer at Babson College this week where we discussed best practices and emerging trends in omnichannel supply chain. Very engaging class and lively discussion. Key topics included: - The importance of fulfillment as a source of strategic differentiation - The need for segmented customer promise to define a… Continue reading Guest lecture at Babson
I had a great experience co-presenting with Michael Kors, Google and Instacart on the topic of same day delivery at the 2016 GMA Supply Chain Conference last week. We discussed the underlying supply and demand side drivers of same day delivery and emerging models (see figure below). Here are a few key takeaways from the session: 1) Same Day… Continue reading Same Day Delivery at TPA/GMA 2016
Omnichannel retail sales have consistently doubled every 4-5 years since 2001 and is expected to become a $1.8 trillion dollar market by 2016 and hit $7 trillion by 2025. Part of the growth is driven by consumers taking their shopping online. However this is just one side of the equation. The other enabler is the… Continue reading 6 Trends Shaping Omnichannel Supply Chain
I recently facilitated the Omnichannel Last Mile panel at the 2015 RILA Retail Supply Chain Conference along with Michael Kors, JB Hunt and Sears. We had a very engaging and productive. It's clear that Last Mile continues to be a rapidly moving and strategic area of focus. Some key observations: 1) Retailers are making a strategic bet… Continue reading Omnichannel Last Mile – RILA 2015
I recently visited Walmart's pilot Same Day grocery drive-thru in Bentonville. The set-up allow consumers to shop online and pick-up their orders via drive through. This is one of the many innovative, new fulfillment strategies that Wal-Mart is experimenting with as it pushes to bring its Every Day Low Prices to an emerging omnichannel future of endless… Continue reading Walmart activating omnichannel
Michael Hu | BCG 