by Jennifer Hart Yim | Aug 28, 2020 | Blog, Logistics, Talent
Digital supply chain management requires a whole new set of skills. From an omnichannel mindset to enterprise IT use, here’s what defines success of logistics leaders.
Editor’s note: This is the final guest post in a three-part series by Kate Began of Polycase.
It took some time for the tech revolution to hit the logistics industry, but now that it’s here, everything is changing rapidly. Suddenly, it’s all about omnichannel commerce, digital transparency, and advanced analytics (among many other trends). And as the world of logistics changes, the leaders of the logistics industry will have to develop new skills with which to navigate it.
What skills will the logistics leaders of tomorrow (and today) need to effectively manage the new realities of the supply chain? These seven areas will define the success of a business’s digital supply chain operations and separate the organizations that can fuel their success with technology from the ones who must struggle to adapt to it.
To manage the digital supply chain, here are 7 skills logistics leaders need
1. Ability to adapt
Twenty-first-century logistics will require its leaders and managers to constantly learn how to use new tools and react to changing market conditions. The new logistics professional has to keep a steady hand at the tiller during times of big change and use solid data analysis to find the right path forward, even when market conditions aren’t perfectly clear.
Flexibility will be incredibly important in implementing the most cutting-edge logistics technologies such as logistics blockchain, automation, and IoT. But it’s also critical to the daily operations of logistics when it comes to filling in transportation gaps and devising on-the-spot solutions to problems. The logistician who can harness the new digital tools for these ends will be formidable indeed.
2. Proactive curiosity
Adaptation is easier when a business pursues the right new tech, rather than waiting for it to come to them. Good logistics management will also increasingly require a commitment to proactively keeping up with technological and industry trends.
The 21st-century logistician has to be well-versed in everything from industry white papers to what’s trending among logistics professionals on LinkedIn. They need to be able to spot key trends and prepare for them so that businesses can stay ahead of the curve and not get blindsided by major changes.
3. Strategic thinking
Thinking two steps ahead can be tough when the business environment is changing so rapidly, but that’s what the new millennium logistics professional has to do. They have to take the long view and keep a business’s core principles at heart when creating plans for the future.
The need for strategic thinking also means tempering enthusiasm for new tech with good judgment and analytical rigor. Unwise investment in unproven or poorly-implemented technologies can be just as disastrous for a supply chain as lagging behind in tech, so as always, there’s no substitute for clear-eyed analysis and solid planning.
4. Enterprise IT use and procurement
Enterprise IT is an increasingly critical skill set for logistics professionals. Almost all logistics companies now use enterprise IT software, such as ERP suites, to manage their supply chains, and digital logistics professionals must often make decisions about procurement and implementation of these sophisticated software products.
Knowing how to get all of these disparate technologies to work together can be an even more difficult and necessary skill. Cross-platform performance can require knowledge of APIs and other tools that have been foreign to the logistics industry until now. Much of today’s logistics software is also cloud-based, so it’s also useful to know the basic principles of SaaS architecture and cloud workflows.
5. Project management
Today’s logistics professional often has to assume leadership roles on major projects. In order to be an effective leader, they must be skilled at tasks such as:
● Identifying the strengths and weaknesses of team members and delegating tasks to them effectively
● Working with upper management to structure project calendars and deadlines
● Estimating costs and planning for the budgeting and deployment of resources
● Identifying key technological tools for driving project success
● Creating transparency at all levels of the project by deploying appropriate digital tools such as IoT sensors and shipment tracking
Twenty-first century logistics concentrates more operational and computing power in every employee’s hand than ever before—but that power only produces results when employees are managed properly by a competent project manager.
6. People skills
Speaking of managing people, logistics professionals must also remember that not everything in the digital supply chain is run by circuits in a plastic enclosure. On the contrary, old-fashioned people skills are as necessary in the logistics industry as they’ve ever been—perhaps even more so.
Supply chains now have more stakeholders than ever, and effective management requires communicating effectively with a wide variety of personalities and roles. A good supply chain manager will be able to use 21st-century communication tools to connect people and make sure everyone’s on the same page, but they must also be fluent in the “soft skills” of empathy and interpersonal contact.
Empathy also requires a zero-tolerance mindset for regressive elements like sexism and racism in the digital workplace. Logistics may not be HR, but much of the everyday work of combating prejudice is done at the ground level by managers. For a business to attract and retain the best talent, they must pursue an egalitarian vision that makes work a great place to be for everyone.
7. An omnichannel mindset
Business, both B2C and B2B, now flows through a multitude of channels. That means that for the 21st-century logistics professional, an omnichannel mindset is a must-have. Whoever your customers are, they’re now on mobile phones, tablets and even voice command services like Alexa. A business’s platform and its logistics operations must reflect this new reality.
The rise of omnichannel commerce means that logistics operations must find a way to interlock with every channel that’s important to a business. That means keeping in mind how channels such as brick-and-mortar stores, traditional online sales and mobile shopping are all distinct but interrelated and managing them with an eye toward keeping every part of the complex interplay running smoothly.
There’s no running away from the oncoming wave of disruptive technology in the digital supply chain, so the only option is to ride it. Logistics professionals who are flexible, curious and empathetic will have the best capability for managing these new realities and turning them into a profitable and efficient future.
Kate Began serves as the Sales and Marketing Manager for Polycase. She oversees the customer service representatives, assists with product development, and leads the marketing efforts from the Avon, Ohio headquarters.
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by Jennifer Hart Yim | Aug 21, 2020 | Blog, Supply Chain, Talent
Editor’s note: This is the second in a series of three guest posts by Kate Began of Polycase.
The increasing digitization of commerce has revolutionized global supply chains in all kinds of ways. Shipments can now be dispatched with the click of a button, sophisticated algorithms can automatically route truckers around traffic jams, and goods can be imported and exported more quickly and easily than ever.
To handle all of those big changes and ensure that today’s supply chains keep up with the times, a new career has been born: the digital supply chain manager. This relatively new career is taking off fast. So, what’s it all about? Today, we’ll talk about what a career as a digital supply chain manager entails, how to enter this in-demand field, and even why some supply chain management jobs may be totally different from what you expect.
What exactly does a digital supply chain manager do?
Duties
Digital supply chain managers are responsible for helping businesses implement the tools of 21st-century logistics in their supply chains. It’s all about keeping one foot in the bold new frontiers of the digital world and one foot in classic business acumen. The goal? Breaking down walls and silos, and creating a more efficient and integrated process.
The job of a digital supply chain manager usually includes tasks such as:
- Using predictive analytics tools and automated replenishment to more effectively meet businesses’ inventory needs
- Managing the operation and implementation of software systems such as ERP suites and digital logistics platforms
- Helping businesses integrate their eCommerce platforms with their operations on the ground
- Deploying IoT devices and automation in innovative and cost-effective ways digital supply chain management jobs may be totally different from what you expect.
- Analyzing data collection practices and finding new ways to collect the data that matters
- Ensuring that all elements of the supply chain, both physical and digital, are secured appropriately
- Devising and implementing strategies for continually improving supply chain technologies and evaluating the latest technological trends
As the digital supply chain continues to evolve, the digital supply chain manager’s duties will continue to do so as well. It’s a career that requires a commitment to rolling with the punches and continually improving one’s own skills.
Qualifications
What kind of qualifications does someone need today to get a job as a digital supply chain manager?
- Education: At a minimum, you’ll probably need a bachelor’s degree from an accredited university, preferably in a subject like supply chain management, business, statistics, or information technology. Of course, a higher degree like an MBA can only help a candidate’s chances.
- Skills: A digital supply chain manager needs to have a working knowledge of key digital logistics tools such as demand forecasting software, trucker load boards, route planning software and major ERP software suites. But it’s important to remember that a good digital logistics manager’s skills don’t live inside the plastic enclosure of any of their many devices. At the end of the day, it comes down to a candidate’s ability to plan, prioritize and forge meaningful connections with other stakeholders.
- Experience: Entry-level jobs in the digital supply chain management field often include jobs such as logistics analysis, customer service, procurement coordinators, and buyers. Digital supply chain management is a field in which experience and skills are king, so someone with a long history of success in the field may be a competitive candidate even without an advanced degree.
Job outlook
With supply chains expanding and digitizing every day, the job market outlook for digital supply chain managers is fairly strong. The Bureau of Labor Statistics (BLS) predicts job growth of 5 percent (or about as fast as an average career path) for logisticians of all kinds, but there’s good reason to think that digital supply chain management will be a fast-growing subset of that career.
That’s because, as eCommerce continues to create the new realities of the market, the BLS also predicts continued strong growth in all kinds of industries adjacent to eCommerce. And as businesses attempt to compete (or work alongside) eCom behemoths like Amazon and Walmart, the demand for logistics professionals who can navigate the digital supply chain is likely to remain high.
How about average salaries and income? According to BLS data, the average logistician earns around $75,000 per year, which already isn’t too shabby. However, considering the high demand for digital and software skills, digital supply chain managers are likely to earn toward the higher end of the pay scale for their field. And for candidates whose skills include the back-end aspects of software development, the opportunities can be even greater.
The other kind
Depending on who you’re talking to, the phrase “digital supply chain manager” can also refer to a totally different career. The other kind of digital supply chain manager works to coordinate the many aspects of delivering a digital product or service to the consumer.
Think about it: Any app or service that you use goes through a multitude of layers of other software and Web services. From Amazon Web Services to WordPress to cloud security software, this new “digital supply chain” is an essential part of 21st-century commerce. Making sure that every step of the chain is secure and functional is a big job that requires a lot of big-picture thinking and familiarity with a huge variety of technologies.
This kind of digital supply chain management is much more software-focused and can often be done remotely. Essential qualifications skew much more toward the technical side, with degrees and experience in full-stack development, software engineering, computer science, and information technology all offering relevant knowledge.
For those seeking the careers of tomorrow, digital supply chain management is almost certain to have its place among the most critical jobs. Its combination of logistics and sophisticated computer skills isn’t for everyone—but it’s definitely a promising career for those who find that it calls to them.
Kate Began serves as the Sales and Marketing Manager for Polycase. She oversees the customer service representatives, assists with product development, and leads the marketing efforts from the Avon, Ohio headquarters. Kate is also an avid Cleveland Indians fan!
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by Jennifer Hart Yim | Aug 5, 2020 | Blog, Covid-19
Editor’s note: This is the first in a series of three guest posts by Kate Began of Polycase.
The Covid-19 outbreak has changed the global business landscape in ways that would have seemed unbelievable just a few months ago. Businesses have been forced to reevaluate their approach to everything–from sourcing to operations. The manufacturing industry has seen particularly high levels of disruptions as plants are temporarily shut down and supply chains are disrupted.
A few months into the pandemic, trends have begun to emerge that allow the business community to begin to analyze Covid-19’s impact on American manufacturing. While supply has been constricted on everything from electronics enclosures to pharmaceuticals, demand has mutated in unpredictable ways, and businesses are scrambling to find new strategies for addressing these challenges.
These five aspects have already created major change in the manufacturing economy, and manufacturers will need to face them head-on to create a plan for surviving the continuing challenges of the post-pandemic business landscape.
1. Quarantines and shutdowns have caused some major hits to the bottom line for the American manufacturing industry.
Many U.S. manufacturers were forced to shut down as a result of the “stay-at-home” orders that their states imposed in March and April of 2020. Those that weren’t required to shut down often had to produce at reduced capacity, thanks to lower demand in many industries (as we’ll discuss later).
The result has been dramatic: an estimated 25 percent decrease in yearly profit predictions for the American manufacturing industry. While it’s true that manufacturers in some sectors, such as CPGs and medical equipment, have seen enormous spikes in demand, the overall financial picture for the manufacturing sector (particularly heavy industry) remains disturbing.
Having taken such a painful hit to the bottom line, many manufacturing businesses find themselves limping into Q3 and in need of a new plan for finishing out the year. Easy answers will be in short supply, but manufacturers will need to take decisive action to prevent a bad situation from becoming worse.
2. The devastating impact of lax safety procedures has become apparent.
American manufacturing businesses have to face the facts: During a pandemic, inaction is deadly. We’ve seen uncontrolled outbreaks sweep through meat-packing facilities across the nation, killing dozens and sickening thousands more. While it’s true that meat-packing plants are uniquely vulnerable to the spread of respiratory diseases, the risks apply to any facility in which workers are in close proximity to one another and/or share equipment.
Manufacturers owe it to their employees, their customers, and the world at large to ensure that their facilities don’t contribute to the spread of coronavirus. More than ever, practicing good workplace hygiene has become a matter of life and death. Businesses must be sure to follow the CDC’s guidelines for businesses and employers, and they must strictly enforce compliance among employees.
Steps as simple as requiring masks at work can significantly reduce the chances of disease spread. However, in order to truly reach the level of a responsible corporate citizen, manufacturers must commit to substantial reconfiguration of their processes to institute social distancing in the workplace.
3. Manufacturing supply chains have seen major disruptions.
The globe-crossing supply chains that characterize 21st-century commerce have had their reliability severely tested by the pandemic. China, in particular, has experienced major logistics problems, such as closed ports and grounded flights. With so many of the world’s manufacturing supply chains running through China, many businesses have had to find creative ways to keep their operations running.
Business experts say that this global supply chain chaos has been a major learning experience for manufacturers, who were often caught without sufficient options when their Chinese supply chains began to collapse in February and March. Going forward, these businesses will have to put a new focus on diversifying their supply chains to increase their resilience to globally disruptive events such as pandemics. Those low-priced Chinese components may do great things for the bottom line, but you can’t capture any of those benefits if you can’t get the materials in the first place.
4. Demand has plummeted in some sectors (and exploded in others).
With the Covid-19 pandemic has come an economic contraction that has suddenly plunged the U.S. economy into a recession. As a result, demand has massively decreased in many key American manufacturing sectors. Industry reports demonstrate that demand for everything from heavy equipment to electronics to metal fabrication continues to experience painfully intense contractions.
The silver lining for some manufacturers is that demand has actually increased rapidly in some sectors. Food, beverage, and other essential household CPG manufacturers have all seen massive surges in demand, as have medical supply manufacturers. The demand surge has even reached some unexpected corners such as the DIY home products industry as bored, homebound Americans take on home improvement projects.
These shifts in demand have produced some fascinating examples of the versatility and agility of leading American manufacturers. Top consumer fashion brands have begun production of surgical masks and gowns, while industrial manufacturers like 3M have used their state-of-the-art fabrication facilities to produce ventilators and other key healthcare equipment.
5. Cash flow will be a major priority moving forward.
In a turbulent economy, many manufacturers are reevaluating their cash flow strategies and prioritizing liquidity. By maintaining increased cash reserve levels, manufacturers can prepare themselves better to deal with the constantly shifting nature of the Covid-19 crisis.
Bolstering cash flow effectively requires applying a finance-driven mindset across all levels and departments of a manufacturing organization. The day-to-day practice of supply chain operations tends to be conceptually grounded in inventory management and customer relationships. While these are critical facets that can’t be sacrificed, supply chain operators need to become more practiced in thinking like a CFO and seeing the financial framework that underpins logistics decisions.
However, it’s important to remember that financial concerns should never take priority over the safety of employees and customers. The ultimate goal is to create a system of operations where both employment and physical well-being are safe and well-protected.
The novel coronavirus has given the U.S. economy a massive dose of that most dangerous economic toxin: uncertainty. For manufacturers to continue to thrive and compete, they must turn that uncertainty into innovation and seize the new opportunities that this rapidly changing economy presents to them.
Kate Began serves as the Sales and Marketing Manager for Polycase. She oversees the customer service representatives, assists with product development, and leads the marketing efforts from the Avon, Ohio headquarters. Kate is also an avid Cleveland Indians fan.
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by Jennifer Hart Yim | Oct 29, 2019 | Blog, Logistics, Marketing, Social Media, Supply Chain
As other social networks face unprecedented controversy, LinkedIn is still the best professional social media tool. But too many Supply Chain professionals aren’t getting the most from it.
This guest post comes to us from Argentus Supply Chain Recruiting, a boutique recruitment firm specializing in Supply Chain Management and Procurement.
Awhile back, following Microsoft’s acquisition of LinkedIn, we wrote an article asking “Is LinkedIn in Trouble?” In that post, we identified a few shortcomings that we thought threatened to detract from its user promise as being premier social network for professionals. It was full of spam content that had no relevance to anyone, let alone people looking to network, and it had a somewhat faulty search functionality.
A few years on, and the network is still thriving. A recent article in the New York Times caught our attention, and has us revisiting where LinkedIn stands in today’s social media landscape – for job candidates, hiring managers, and people looking to network in general. Titled, “Why Aren’ Talking About LinkedIn?”, it examines some of the controversies around other social networks, and how LinkedIn has managed to steer clear.
Twitter has gained a reputation for trolling and harassment. Facebook, for its part, has gained a reputation for allowing its data to be compromised, threatening users’ privacy, and for allowing foreign actors to influence the U.S. election. Meanwhile, LinkedIn soldiers on. It’s not the savviest, smoothest social network experience – not that it ever has been – but it’s still one of the most useful.
We’re recruiters who are highly active on LinkedIn (check out our page there, if you haven’t.) From our perspective, the social network is still highly relevant to the career world, whether it’s researching prospects, finding candidates, looking for a job, or networking.
LinkedIn has taken efforts to modernize, and those efforts have reinforced the network’s core promise – helping people connect in a professional capacity, and share thought leadership – while avoiding the disinformation and harassment scandals that plague other social media platforms of similar size. As the Times puts it, “the site hasn’t proved especially useful for mainstreaming disinformation, for example, nor is it an obvious staging ground for organized harassment campaigns.”
Why has Linkedin avoided these issues? A few things set it apart from other social networks:
- Users communicate in a business-appropriate way. They realize that a future colleague, boss or hire could be reading what they post, so they’re less likely to post polarizing material.
- Similarly, LinkedIn isn’t political. Because it’s restricted to professional or professional-like communication, it’s managed to avoid some of the political filter bubbles common to other social networks. Political ads are banned on the platform.
- The majority (82%) of LinkedIn’s revenue comes from premium subscriptions, rather than advertising, which allows LinkedIn to rely less on mining user data for revenue. LinkedIn certainly holds a tremendous amount of its users’ data, but this might help explain why it’s had fewer data and privacy-related scandals than other social networks.
LinkedIn has been crisis free, and that’s allowed it to continue to chug along, owning the considerable niche that it’s owned since 2003. Other job sites and career apps have flourished – and floundered – in the meantime, but LinkedIn remains.
In 2019, the network has done a lot to address the biggest shortcomings we wrote about before. Spam posts are much reduced. The interface is lean and responsive, having worked out most of the kinks involved in its latest redesign. As the Times article describes, if you go on LinkedIn today, you see promotional content, but you also see a lot of people using the network for thoughtful professional communication. You see a lot of people who use its powerful content creation channels like LinkedIn Publisher and native video to boost their personal brand and generate career opportunities. It’s powerful not just when looking for a job: people use it to connect with possible suppliers, identify talent, learn best practices, network, and more.
Yet so many professionals still aren’t getting the most out of Linkedin.
In Supply Chain and Procurement, which is our area of recruitment specialty, some of the best candidates have highly inactive profiles. They don’t go into detail about accomplishments (e.g. major projects, cost savings, business transformation). Some of these candidates still don’t treat LinkedIn as a vital tool to build their personal brand, and see it more as an “online resume” to be updated whenever they’re looking for a job. Their profiles are almost empty.
We still find those candidates for our clients. Boolean searches are a powerful tool, as is the tried and true method of talking to as many people as possible. But we often wonder: how many other great Supply Chain professionals are out there who don’t put in the small amount of time required to get on our radar by being more active about their personal branding?
Consider your daily time allotted to social media. How much of it goes to networks like Facebook and Twitter? Isn’t it worth it to take a small chunk of that time and post about career-related topics in a more mentally healthy environment, and boost your brand in the process?
Say you’re a specialist. A Strategic Sourcing professional with expertise in facilities and real estate Procurement, or a Supply Chain analyst who’s highly skilled with SAP and other Enterprise Resource Planning (ERP) applications. Those are requirements our clients – some of the top companies in the world – have all the time. By getting more active on LinkedIn, you’re owning your niche, and rising to the top when people search for people with your speciality. Recruiters, but also suppliers, and colleagues. And trust us, people are searching. Every day.
So what small steps can you take to treat LinkedIn more like a marketing tool, and less like a “set it and forget it” online resume?
- If you aren’t connected to many other Supply Chain professionals, expand your network. Most people are open to unsolicited connection requests if they’re not transactional. Reach out to connect with people at interesting organizations, and start conversations that aren’t about looking for a job.
- Share relevant content with your network, with your comments, and attempt to start discussions. LinkedIn has a new “Top News” feature – on the sidebar of the homepage – which can give you some current topics. Pick things that make you think, and share your thoughts. Publications like Supply Chain Dive, SCMDojo, and Procurious have lots of great thought-provoking professional content to look at as well.
- Think about publishing an article or two through LinkedIn Publisher. What big issues or changes are you facing in your Supply Chain practice? What are you most excited about? A longer-form article can help you organize your thoughts and show off expertise.
- Make sure that your profile has relevant accomplishments, and detailed keywords related to your niche (e.g. the categories you work on in Procurement).
- Be persistent, but not relentless. The LinkedIn algorithm – in our experience – tends to reward people who are more active. But don’t post all over the place indiscriminately – pick and choose topics about which you have something to say.
But this is just the tip of the iceberg. If you’re a Supply Chain or HR professional, how is LinkedIn is working for you in 2019, either in looking for jobs, or hiring? Let us know in the comments!
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by Jennifer Hart Yim | Oct 22, 2019 | Blog, Current Events, Logistics, Manufacturing & Distribution, Strategy, Supply Chain
Amazon has changed the way we do business. Supply chain companies need to get on board with Amazon’s e-commerce strategy or risk losing business.
It is no secret that Amazon has dominated the online retail industry. Amazon Prime has shifted consumer expectations so that waiting 5-7 business days for your online order is no longer acceptable. With people now ordering anything from couches to groceries online, companies need to get on board with this shift to e-commerce or risk missing out on many sales.
Consumers now more than ever want access to more inventory no matter if they are shopping online or in stores. Many companies report the struggle of trying to keep up with this retail giant, and current-day supply chains have certainly felt the impact.
Historically, supply chains have been set up to support a network of stores using the multichannel business model. This includes retailers managing their different channels almost as separate businesses. These channels are what businesses use to get their goods and services to their consumers. For example, many retailers use brick-and-mortar stores as well as e-commerce when it comes to selling.
So, what’s the problem with this? Well, the customer’s experience can vary depending on the shopping channel they choose. Retailers often keep their online and brick-and-mortar inventory separate, which can lead to a frustrating shopping experience for the customer.
I am sure at some point in your life you have had the experience of walking into a store looking to return an online order only to find out it must be returned to the company through the mail. Customers do not view a brand in silos, and the same selection of inventory is expected whether they are shopping online or in a physical store. Companies also run the risk of losing a sale if the exact item the consumer wants is unavailable or sold out. This is one area that allows Amazon to shine because they maintain one pool of inventory that is not separated by different channels of business.
A 2016 UPS survey found that, for the first time, shoppers revealed they bought more of their purchases online than in stores. It’s hard to tell what is the main driver behind this shift, but you can’t help but think of Amazon. It’s hard to comprehend how other companies not only compete but just even keep up with the trillion-dollar company with a revenue of $10.07 billion in 2018.
This is where the omnichannel business model comes into play. Omnichannel combines physical and online commerce to create a more seamless shopping experience for the consumer. While this business model is not a result of Amazon, it certainly puts companies in a better position to compete. The goal here is to provide the same customer experience throughout each channel while ensuring the product reaches the customer as fast as possible.
Characteristics of an omnichannel business model include:
- Buy online pick up in stores
- Stores shipping to other stores
- Dropshipping
- Order fulfillment from store
Nordstrom finding ways to differentiate from the competition
Online shopping provides many benefits to consumers, but it does not come without its own challenges. It is fairly common to buy a shirt online only to find out it is the wrong size. It can be a hassle to mail the item back, and consumers often opt out of this and chalk the purchase up to a loss. Nordstrom understands this pain point and took it upon themselves to offer a solution by creating service hubs called Nordstrom Local. The sole purpose of Nordstrom Local is to make the online shopping experience effortless. While these hubs do not contain designated inventory, they provide a handful of services to the customers.
They offer:
- Pickups
- Returns
- Stylist
- Dressing rooms
- Tailoring services
- Same-day delivery (if ordered before 2 p.m.)
- Espresso drinks, juices, wine & beer
As a consumer, what more could you ask for? The idea is that you order a variety of clothes online and have them delivered to Nordstrom Local. Here you can try on your purchases in their dressing rooms. If it doesn’t fit, no problem — they’ll mail it back for you. Need it hemmed? There’s a tailor on-site.
Nordstrom has held its own in the retail space. With 2018 revenue reaching $15.5 billion, it is hard to argue with their success. They must continue to innovate and find new ways to connect consumers to their product. Trying out this concept in Los Angeles has proven to be successful, and they are looking at opening up hubs in New York next.
Kohl’s joins forces with Amazon
Kohl’s, like many retail stores, welcomes any opportunity to increase foot traffic. Over 1,000 of their stores are now accepting returns from Amazon. Again, we see a pain point of online shopping removed for the consumer. You can bring your unwanted Amazon item to Kohl’s, and they will pack, label, and ship the item at no cost. The hope is that Amazon customers will flock to Kohl’s and hopefully buy some of their inventory on the way.
Their revenue has continued to rise over the past four years and reached 20 billion in 2018. This is a bold idea that can set Kohl’s apart from the competition by delivering a service that is unique to them. Amazon needs a way to keep its customers happy and Kohl’s needs to increase foot traffic, so it appears to be a win-win for all parties involved — including the consumer.
While Kohl’s new idea offers fewer services than Nordstrom’s, they are opening themselves up to a wider consumer market, and with this will likely come more sales. They have addressed the expected increase in expenses that will come with having to hire more employees and spending more on logistics, but the expected payoff is potentially massive.
Comparing strategies
It’s hard to tell which strategy will prove to be more profitable. The only thing that is for certain is that the shift toward e-commerce is not slowing down anytime soon, so companies need to look at how they connect consumers to their product. If the goal is to get your product to the consumer, then your supply chain needs to be tailored to this objective.
Amazon may have the upper hand now, but you never know what new idea could pop up in a few years. In the meantime, companies are faced with the harsh reality of ever-growing competition. Consumers are now hopping on their computers or mobile devices to choose from a plethora of inventory.
Amazon is not completely to blame when it comes to the evolution of consumer expectations, but they have certainly impacted them. Companies wanting to compete are left to make tough but critical decisions on what their next move will be.
This article was written by Emily Standish, an MBA student at the Peter T. Paul College of Business and Economics at the University of New Hampshire, specializing in Finance and Information Systems & Business Analytics. She graduated from Merrimack College in 2017 with a B.S. in Business Administration and Management with a concentration in Finance and currently works as a Corporate Financial Analyst.
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