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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by Jennifer Hart Yim | Sep 25, 2019 | Blog, Leadership, Strategy, Supply Chain, Talent
New research shows Gen X business leaders are being promoted slower than their millennial and boomer counterparts. This Gen X talent looking to jump ship.
This guest post comes to us from Argentus Supply Chain Recruiting, a boutique recruitment firm specializing in Supply Chain Management and Procurement.
Much attention has been given to millennial employees over the years –what attracts them, what causes them to stay in a role, how to manage them differently than other generations of employees. It was a hot topic of discussion at the recent SCMA National Conference. At the same time, more baby boomers are beginning to retire. These two generations represent the back and front end of the Supply Chain industry’s talent pipeline, and they’ve been the industry’s focus. But of course, the demographic picture is broader and more nuanced than just these two generations.
Last week, we wrote an article about the importance of the emerging Generation Z – people born between 1997 or so and the 2010s – to companies seeking to win the war for Supply Chain talent. Hopefully, it helped fill in the generational picture even further.
Now a recent, very interesting article in Harvard Business Review has us wondering – are Gen X employees being forgotten by the industry? If so, what’s the impact on their careers, as well as organizations who employ them – the companies who stand to lose if dissatisfied Gen X’ers begin to jump ship?
At the risk of explaining the obvious, Gen X’ers are generally defined as being born between the mid-1960s and early 1980s – after baby boomers, but before millennials. They also came of age with a reputation for being “unambitious” – a reputation that’s just as outdated as some of the most famous slacker movies (classic though those movies may be).
As we said with our article about Gen Z, these generational distinctions are a bit fraught. Career motivations are different for every person. They’re too complex to paint everyone with the same brush. But when you can marshal enough data, you can start to learn some interesting high-level things about the hopes, dreams, and discontents of a particular demographic. In 2018, HBR worked with EY and The Conference Board to collect and analyze data from some 25,000 business leaders. Those surveyed were from all over the business landscape, but there’s data here that will be useful for Supply Chain organizations looking in the mirror.
Some of the results related to Gen X in the workplace were very interesting, in particular:
- The majority of Gen X leaders (66%) had either not been promoted in the past 5 years, or had only been promoted once.
- Baby Boomer and Millennial leaders were more likely to receive promotions (58% and 52% respectively). This is unsurprising for the boomer generation, but it is surprising that a generation younger than Gen X seems to be getting promoted more. It suggests Gen X employees are being “skipped” compared to their counterparts.
- The data found that Gen X employees are promoted typically 20%-30% slower than millennials are.
- Generally speaking, Gen X managers have more direct reports than millennial managers at the same level, indicating a higher workload.
This is the situation on the ground for Gen X talent and leaders. But how are they responding to this lack of advancement?
Gen X employees tend to be more loyal to their current employers, with 37% contemplating leaving their current role compared to 42% for millennials. They came of age before the 2008 financial crisis, in a time before the rise of the gig economy, which might account for their willingness to spend longer in a role.
But companies shouldn’t mistake this loyalty for complacency: according to the data, only 58% of Gen X employees feel that their careers are advancing at a good rate, which is significantly lower than the 65% of millennials who feel the same way. Almost one in five Gen X leaders surveyed reported an increased desire to leave their current role (18%).
Many organizations are beginning to reckon with the retirement of the baby boomer generation. They’re trying to attract and retain millennial talent by improving opportunities for career growth. Maybe they should also be doing more to nurture Gen X talent, to avoid losing that all-important middle group within the talent landscape.
As Stephanie Neal, the HBR writer puts it, a significant number of Gen X’ers might be reaching a “breaking point in” their careers. But she identified some key strategies for companies to avoid neglecting Gen X talent:
- Invest not only in continuing education for employees, but personalize it. Most Gen X employees have developed a broad base of skills, but individual needs and desires vary. Organizations should tailor their talent development to each person. Stay interviews, which we’ve written about recently, are a good strategy to better understand what motivates each individual in your organization.
- Give Gen X leaders opportunity for mentorship, and not just within the organization. We also recently wrote about the power of mentorship in a Supply Chain career, so we were happy to see HBR highlight the importance of mentorship as well. According to the research, a majority of Gen X leaders craved mentorship outside their organizations, which is enabled by things like industry conferences and professional groups. Investment in these opportunities not only helps with retaining Gen X leaders, it also offers chances to expand your supplier network or find new business.
- Hire and promote based on data, rather than gut feelings. Hiring managers often work hard to try to eliminate unconscious bias from the hiring process, but ageism often goes under the radar. Applying stereotypes to a certain cohort introduces bias that harms your process and leads to dissatisfaction. Neal uses the example of assuming that a millennial would be better at a digital marketing role than a Gen X employee. Decisions based on data such as assessments and quantifiable achievements will always be more successful than those based on stereotypes.
It’s a good start, but maybe this is issue deserves an even closer look. If we may add another tip: avoid stereotypes. Data surveying the preferences and mindsets of a large group of people can be instructive, but don’t assume that every Gen X employee is wired the same way.
What do you think? Are there any specific talent retention strategies for individuals in the Gen X cohort? Are you of this generation, and if so, how do you feel about your career prospects? We’d love to hear from you.
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by Jennifer Hart Yim | Jul 30, 2019 | Blog, Content Marketing, Leadership, Marketing, Supply Chain
Supply Chain Management can boost productivity – and alleviate issues – for companies as they scale.
This guest post comes to us from Argentus Supply Chain Recruiting, a boutique recruitment firm specializing in Supply Chain Management and Procurement.
Awhile ago, we blogged about how more Startups are looking to Supply Chain Management to boost their productivity as they scale. Procurement – the effective purchasing of raw materials, back-office goods and professional services – as well as Logistics – the orchestration of the movement of those goods – might not seem to be as important as sales, marketing, R&D or finance at first blush. But failure to account for these factors can be a major bottleneck to growth, and many a startup has failed because of Supply Chain issues.
Supply Chain Management is an important factor for fast-growing hardware manufacturing companies, whether they’re producing goods overseas or at home. But it’s important in food manufacturing, consumer goods, Pharma, and Cannabis as well, as well as any industry with direct B2B sales. In fact, we recently brought on a new Cannabis client who’s scaling up a strategic sourcing operation in all of their Procurement, so that all their spend is captured and accounted for as they grow, rather than after. Rather than taming out-of-control spend later, they’re maximizing profitability by being strategic about the company-wide spend now, by hiring a team of Procurement category managers.
The most successful startups grow quickly by relentlessly focusing on the consumer – giving them a better product, or a better customer experience – but customer service is dead on arrival without an effective Supply Chain. Any growing company needs people to forecast demand, produce or source the goods to meet that demand, and ship it quickly and reliably to consumers, while only holding as much inventory as absolutely necessary.
As a founder or senior leader in a growing company, you might think that you have the expertise to “figure it out” on the fly, because how hard can it be? But trust us, if you don’t have Supply Chain experience, you can’t. Developing a product line and business model is hard. Getting it funded is harder. But as a founder, you don’t know true pain until you’ve been saddled with massive inventory because you failed to plan, or until you’ve seen an entire shipment waiting at port for customs clearance three weeks before your launch because you don’t have someone on staff who has the experience to get the paperwork in order before you need to.
Avoid failure.
That’s how Supply Chain has always advocated for itself, and you may have even heard about these considerations before. Get your Supply Chain in order, and you might avoid pain, but you’ll also experience innovation and opportunities to improve your customer experience in ways you never thought were possible. It can also reinforce your core company values and mission, and pass it on to customers in ways you haven’t considered.
As Dave Evans recently talked about in Bloomberg, setting strong values early is the key to sustainable growth at a startup. Most entrepreneurs get that. But what they don’t always get is the importance of making sure that these values extend into your Supply Chain. Founders need Supply Chain experts who can forge close relationships with suppliers, and find manufacturing partners who can provide opportunities to improve the brand.
Too many founders treat Supply Chain like a transactional necessity: “okay, where are we going to source product from fastest and cheapest?” But Evans talks about how founders can actually use Supply Chain Management as an opportunity to improve and build their brand. He uses the example of Everlane, which has built a successful fashion brand out of radical supplier transparency – making it plain to customers exactly where their products come from, and breaking down all the costs associated with bringing it to market.
So where do you start?
Different areas matter more for different industries, and different levels of maturity. A seed-stage startup might need to set an overall direction for logistics and distribution (i.e. what sort of 3rd party logistics solution will you look to leverage?), whereas a scaling business might be able to leverage strong Procurement to extract additional value from supplier relationships – as with the Cannabis company we mentioned above.
Do you want your Supply Chain to be fast, cheap, or flexible? Skilled supply chain professionals can usually help you excel at two of those. The best in the business can get you all three. But if you don’t have any of that expertise, you’ll get zero.
Areas that startups need:
- Logistics and Distribution Strategy
- Demand Planning
- Production Planning
- Lead Time Management
- Inventory Planning
- Supplier Relationship Management
- Strategic Sourcing/Shared Services Procurement (growth stage)
Today’s top Supply Chain Management professionals can bring all these considerations to bear. One other thing to consider: manpower expenses are one of the highest costs in scaling a business, and you don’t want to take on extra full-time staff if you don’t have to. So one thing companies will do is hire a seasoned expert who has developed and implemented Supply Chain strategies at scaling companies before on a contract basis – say 6 or 12 months – to implement the process and strategy, and then move on to another contract. You will likely have to pay a bit more per-hour, but it can be a tremendously flexible and high-value option, especially because some of the best in the business are now working on contracts for growing companies.
Any way you go about it, failing to plan a Supply Chain can quickly sink a growing company – and developing one that excels will make a growing company soar.
If you fail to plan, you plan to fail. Having Supply Chain Management professionals in the room is some of the best business planning possible in 2019. That’s why they’re a founder’s secret weapon.
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by Jennifer Hart Yim | Jul 9, 2019 | Blog, Content Marketing, Logistics, Marketing, Social Media, Supply Chain
LinkedIn a great place for businesses to make relevant LinkedIn users aware of their brand. However, there are common mistakes that companies make on LinkedIn.
LinkedIn is a powerful social network to connect with industry professionals, especially for B2B(business to business). People use LinkedIn to connect with coworkers and industry peers, get business advice, and even find new jobs. It’s a great place for businesses to make relevant LinkedIn users aware of their brand. However, just like Facebook and Twitter, there are common mistakes that companies make on LinkedIn.
Here are 9 LinkedIn for business strategies to avoid, as well as how to remedy them.
1. You Don’t Answer Questions.
The “Answers” section of LinkedIn, where people go to ask their business-related questions, is a place where businesses establish themselves as industry experts and even find new customers. These questions are categorized by industry; anything from finance & accounting to marketing & sales. Avoiding answering questions because you’re too shy or don’t want to invest the time is such a missed opportunity. Take a few minutes each day to look at the new questions in your industry, and see if there is a question you can provide a helpful answer to.
2. You’re Overly Self-Promotional when Answering Questions.
If you were in a bind and reached out to a community of peers for help, would you want the only response to be “Give me your money”? Of course not. You’d hope for honest and valuable guidance. The “Answers” section of LinkedIn is a fantastic place to find potential customers who have publicly revealed that they have a problem your service/product would solve. Instead of proclaiming that they should hire or buy from you to reach a solution, offer useful advice and let them know to contact you directly if they have more questions. This way, you’ll be building a relationship that will gain their trust, and then they’ll be more likely to turn into a customer.
3. You Don’t Join or Participate in Groups.
If you haven’t joined any relevant groups on LinkedIn, you’re missing out on a few things. First, being in a group lets you share links with that group, so you can share links to your own blog or site (in a very non-spammy fashion, of course). Second, you can find out the latest industry news, because other professionals post helpful links to groups constantly. Also, they’re a great place to find industry peers to connect with, whether to find new customers or even find fellow industry bloggers who could potentially link to you.
4. Your Profile is Blank/Incomplete.
Since you’ll be answering Questions and joining Groups with your personal account, you should make sure your own profile is complete so that you can gain people’s trust and establish authority. If people can’t learn anything about you in your profile, they won’t want to connect with you. Describe your role at your current and previous companies, and provide links to your website and any relevant profiles (i.e. Twitter).
5. Your Company Page is Blank.
Your company page has the potential to gain LinkedIn followers who will see your blog posts, company profile updates, and job openings appear in their LinkedIn newsfeed. But if your company description isn’t filled in, it might prevent people from following you, or even from finding you in the first place. Make sure you optimize your company page by including relevant keywords and links to your website.
6. You Don’t Promote Your LinkedIn Page on Your Website.
Keeping your company’s LinkedIn profile page a secret from your website visitors isn’t a good idea since these are the people most likely to actually follow you. Add a LinkedIn icon to your website to increase awareness of your presence on LinkedIn. Make it easy for your visitors to find out how to connect with you on social media.
7. You Ignore Connection Invitations.
Once you provide value in Answers and Groups, people will start inviting you to connect with them on LinkedIn. Don’t just ignore these invitations. Unlike Facebook, don’t feel like you need to personally know everyone that you connect with. LinkedIn automatically sorts your connections based on how you know them; whether through a current or previous job, or through a group, so don’t be concerned about having a network that’s too big to keep track of.
8. You Don’t Post Status Updates
It might seem like overkill to post updates on Facebook, Twitter, and LinkedIn. But it’s not. LinkedIn is a more professional social networking site than Facebook and Twitter, so it’s likely that you’ll have different followers here who will benefit from seeing your updates. It’s ok to re-purpose content across all of the social channels, as long as you’re not duplicating the content.
What would be your #9? Let me know in the comments below!
This article was written by Diana Urban, marketing manager at BookBub and the former Head of Conversion Marketing in HubSpot. Diana is a results-driven marketer and content strategist who’s passionate about inbound marketing at startups.
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by Jennifer Hart Yim | Jun 26, 2019 | Blog, Content Marketing, Manufacturing & Distribution, Marketing, Supply Chain, Talent
The global Supply chain provides goods faster and more efficiently than ever before. Here are the top supply chain skills for one of the most important industries: manufacturing.
Highlights:
- Sitting at the intersection of raw materials acquisition and distribution of finished goods, manufacturing is one of the most crucial functions within the global Supply Chain.
- If you’re in Manufacturing purchasing, think closely about what sort of buying you’re doing, how to diversify that experience, and deepen your understanding of the market you’re buying in – there are big dividends for those who do.
- Boosting your skills with continuous improvement, just-in-time manufacturing, and Six Sigma are some of the best ways to distinguish yourself in the field.
This guest post comes to us from Argentus Supply Chain Recruiting, a boutique recruitment firm specializing in Supply Chain Management and Procurement.
The global Supply Chain provides goods to consumers faster and more efficiently than ever before, and there’s a staggering diversity of Supply Chain professionals making that happen. Today, we want to take a moment to highlight the skills profile for one of Supply Chain’s most important industries – which also happens to contain one of its hottest job markets: Manufacturing.
Sitting at the intersection of raw materials acquisition and distribution of finished goods, manufacturing is one of the most crucial functions within the global Supply Chain. Despite perennial political statements around the “demise of manufacturing,” the sector is quite strong in Canada, especially in the Supply Chain, Purchasing and Logistics functions.
At Argentus, we’ve always worked in manufacturing recruitment, but we’ve been making a big push into this area recently, including in the areas of Aerospace, Consumer Electronics, Automotive, Electrical Manufacturing, Manufacturing Automation, and Food Production. We’ve seen what’s happening in the industry firsthand: dynamic companies are redefining the space, using a strong Supply Chain to scale up quickly while controlling costs.
In the past few months, we’ve helped a Food Production company with an innovative approach to product development scale up their Procurement and Plant bench strength. We’ve bolstered a fast-growing Aerospace company looking for highly-technical technical buyers to boost their new product introductions. We’ve helped a startup manufacturer seeking their first Supply Chain Manager to implement a sourcing, distribution and logistics strategy for the first time.
And these are just a few. These experiences, combined with our intelligence in the marketplace, have given us a good understanding of the hottest skills in Manufacturing Supply Chain jobs in the market as of right now.
A couple caveats: this reflects manufacturing positions at the corporate Supply Chain Management level and not the shop floor / distribution centre level. It also isn’t exhaustive of all required skills, just those that we’ve noticed being in high demand recently.
So without further ado, here are some of the hottest skills:
“Direct” Purchasing: Raw Materials, Packaging, Food
Buying raw materials has always been a vital part of manufacturing – after all, what can you produce without raw materials? – but clients’ demand for specific raw materials purchasing experience is rising. Whether it’s food ingredients or building materials, companies are looking for individuals who can think strategically about raw materials to find better suppliers and processes. For certain raw materials, they want individuals who have a deep understanding of particular commodities markets. If you’re in Manufacturing purchasing, think closely about what sort of buying you’re doing, how to diversify that experience, and deepen your understanding of the market you’re buying in – there are big dividends for those who do.
ERP Skills:
It probably goes without saying at this point, but a high degree of competency with ERP systems is a must-have in today’s manufacturing Supply Chain. Many of the vital Supply Chain planning functions for most manufacturing processes (production planning, supply network planning, etc.) run through ERP systems like SAP, Oracle or Microsoft NAV, so it’s no wonder that most front line workers distinguish themselves with excellent command of these systems.
Buying “build to spec” for highly engineered components:
If you’re working in a highly technical subsection of manufacturing (electrical, aerospace, etc.), more companies are seeking Procurement people with the technical background to source components at a very early stage of new product development. We’ve worked on a number of searches recently where our client is looking for new product buyers who can source based on technical specs, as opposed to drawings. People with mechanical engineering backgrounds are excellent for these roles. But even if you don’t have that background, an understanding of detailed technical specifications can give your career a boost over more transactional buyers.
Continuous improvement:
Lean manufacturing, Kaizen and continuous improvement are decades old at this point, but manufacturers who fail to implement these models are still falling behind in the marketplace. The ability to constantly improve manufacturing processes is still one of the chief differentiators for Supply Chains, and companies are constantly on the lookout for people who can help transform and improve their operations. Boosting your skills with continuous improvement, just-in-time manufacturing, and Six Sigma are some of the best ways to distinguish yourself in the field.
So that’s some perspective from the front lines of Supply Chain recruitment in manufacturing. But what are you seeing in the marketplace, either as a Supply Chain professional or hiring manager?
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