Managing Director at BCG. Reflections on Digital Supply Chains & Platforms
Over the last decade, eCommerce has grown in popularity with businesses and consumers alike. BCG is at the center of it all, helping clients build strategies and implement technology to achieve transformational results. The below is a recent podcast I did with my fellow BCG Platinion colleague Jamie Hammond. Jamie Hammond: One of the biggest pain… Continue reading BCG E-Commerce Podcast: Supply chain turning into ‘supply pain’
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
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
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
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
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
Last mile home delivery is a key driver shaping the growth of the US online sales. While efficient and innovative delivery models abound for parcel products, large format product categories such as white goods, furniture and large electronics remain stuck in an ineffective and inefficient supply chain model, preventing their full potential growth. Despite the need,… Continue reading The Future Model for Big Box Last Mile Delivery
Michael Hu | BCG 