Reflections on Digital Supply Chains & Platforms
Getting fulfillment right is much more mission-critical in a digital enabled, omnichannel setting compared to a traditional brick and mortar retail. (see figure below). Fulfillment represents significantly higher costs in omnichannel—up to 15-20 per cent of online-order revenue in the US market. This is about five times the proportion compared to traditional B&M channels. Fulfillment… Continue reading Fulfillment: a Secret Weapon in Omnichannel
The traditional value chain boundaries separating manufacturers and retailers are starting to blur under a digital, omnichannel setting. Brands are becoming retailers and increasingly playing an active role in the consumer Research - Shop - Buy cycle that has traditionally been the domain of retailers. We see this "direct to consumer" as a pervasive and on-going trend across numerous industry sectors. Although… Continue reading Brands are Becoming Retailers
In 2003, William Gibson wrote a prescient novel - Pattern Recognition - that explored the tension between art and mass commercialization in retailing, among other interestingly speculative themes. One area of Gibson's focus was consumer fatigue against ubiquitous brands in an increasingly global and digital market through his metaphoric protagonist Cayce Pollard - a coolhunter who experiences and uses as a consulting tool her… Continue reading Muji, William Gibson and the Future of No Brand
I recently delivered a keynote presentation on best practices in omnichannel supply chain with my A.T. Kearney colleagues and Wal-Mart at the National Retail Federation Supply Chain Summit in Dallas. Our talk, Beating the Burden of Brick and Mortar for Breakthrough Omnichannel Fulfillment, discusses how traditional brick & mortar retailers need to overcome organizational and operational challenges… Continue reading NRF Omnichannel Keynote
Michael Hu 