by Jennifer Hart Yim | Jul 26, 2017 | Blog, Current Events, Logistics, Strategy, Supply Chain
Amazon’s foray into the grocery space has larger implications for its overall strategy, and the possible benefits for the eCommerce goliath are diverse.
This guest post comes to us from Argentus Supply Chain Recruiting, a boutique recruitment firm specializing in Supply Chain Management and Procurement.
Big news out of the grocery retail world as Amazon has announced its acquisition of major organic foods retailer Whole Foods Market – for an eye-popping $13.7 billion sale price that doesn’t look so massive given Amazon’s $136 billion sales volume in 2016.
Analysts across the retail industry are talking about the huge implications of this sale for a retail industry that many say is in the middle of a major meltdown, in part owing to Amazon’s massive growth in the eCommerce space. This foray into the grocery business is a big challenge to companies like Target, Wal-Mart, and others, and also a sign that reports of brick and mortar retail’s demise might be greatly exaggerated.
Anyone following the industry probably isn’t completely surprised by the acquisition, which serves as another example of Amazon’s constantly widening footprint across all aspects of Supply Chain. It follows on the company’s gradual conquest of the logistics space over the last few years, including the licensing of 20 Boeing 767 air cargo jets, the acquisition of wholesale shipping licenses, and forays into trucking. It shouldn’t be so surprising that the company is seeking to put one of the final puzzle pieces in place towards a completely vertically-integrated retail Supply Chain by buying brick and mortar stores – while also buying a major staging ground to improve its last-mile logistics, which is often said to be the “holy grail of eCommerce.”
It all fits into analysts’ understanding of Amazon’s quest for world domination.
That being said, the specific acquisition of a healthy lifestyle brand like Whole Foods is intriguing for sure. This is a brand with major goodwill and solid growth as consumers have looked to healthier choices over the past several years, so it makes sense from that perspective. But as many outlets have reported, Amazon’s foray into the grocery space has larger implications for its overall strategy, and the possible benefits for the eCommerce goliath are diverse. As Supply Chain 24/7 put it, this move is more than a disruption to retail – it could be a disruption to all of society.
Woah.
So let’s dive in: what is Amazon’s medium and long game with this acquisition? What are the possible benefits to the company and the potential disruption?
- Amazon gets to reap the sales of a popular and upscale grocery brand.
- It brings Amazon a step closer to perfecting its last-mile delivery strategy, which has been difficult to execute for high-turnover perishable items like groceries.
- It expands the company’s distribution network, adding 440 refrigerated warehouses within 10 miles of 80 percent of the population.
- It allows Amazon to place pressure on food suppliers’ profit margins by being even larger.
- It obviously gives the company more physical, brick and mortar presence, which allows it to eliminate some of its disadvantages compared to brick and mortar chains – for example the fact that people shopping online on Amazon can’t try on clothes or select fruit. The company has already dipped its toe into the brick and mortar waters with its Amazon Bookstores, now up to eight locations, but this represents a full-blown cannonball into that space, selling way more than just books.
- It allows the company to digitize the strongest parts of Whole Foods’ brick and mortar experience, adopting a hybridized approach at the same time as Wal-Mart looks to become more like Amazon.
- It allows the company a larger testing ground for its Amazon Go app, which allows customers to pay for grocery goods using a smart phone without ever interacting with a checkout counter. This has negative employment implications, obviously, for retail workers long-term.
- It gives the company more “touch points” with shoppers and avenues to sell higher-margin goods such as Kindle devices in grocery stores.
- It also delivers a massive new client to Amazon Web Services, a client who is currently using Microsoft’s Azure Cloud platform.
- It puts a number of Amazon’s biggest retail rivals on notice, including Target, Wal-Mart, and others, that they can expect more price competition.
When this move was reported, it sent stocks for Canadian grocery companies into a conniption, with some companies losing 3.5% of their value in a day’s trading. American grocery companies didn’t do much better, with Target, Walmart and Kroger all losing value as well. Whatever the outcome, it looks like this year’s retail industry upheavals might just be a taste of what’s to come.
This post originally appeared on the Argentus blog.
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by Elizabeth Hines | Jul 25, 2017 | Blog, Content Marketing, Marketing, Strategy
When you achieve sales and marketing alignment, your company will perform better. Here’s how to get there.
The State of Inbound 2017 reports that only 22% of respondents say their sales and marketing relationship is tightly aligned. That’s a big problem.
Sales and marketing teams that are tightly aligned perform better, and revenue increases as well. Clear and consistent expectations between the two teams results in positivity across the boardroom.
Here are 6 ways to embrace “smarketing,” the process of integrating sales and marketing.
6 steps to ensure sales and marketing alignment
1. Create an agreement.
Marketing strategies are three times more effective when a Service Level Agreement (SLA) aligning marketing goals with sales team practices is in place. The SLA clearly states how each side will help one another. Some 80% of respondents with an SLA in place who feel tightly aligned report that their marketing strategy is effective. Tightly aligned marketing and sales produces higher-value marketing leads.
2. Hear it from the top.
Demonstrate the value of aligned sales and marketing across all levels of the company. C-level executives know the importance of tight alignment, and when they communicate it to managers and individuals, it will boost key players’ confidence. Shout it from the rooftops so everyone gets the message.
3. Straddle both sectors.
Create a position or positions to supervise the alignment of both fields. That person can put a plan in place with measurable outcomes, as well as mechanisms for tracking client leads and feedback. First on the new position to-do list: devising an “Alignment 101” class to train each group on expectations and processes.
4. Monitor the revenue cycle.
Develop a system to keep track of leads from inception to signing on the dotted line. Make sure both sides of the aisle can (and do) access and update lead information, allowing everyone to take ownership of business successes. Monitoring the revenue cycle keeps everyone accountable.
5. Hold meetings and calls.
No one wants more meetings added to their calendars, but a weekly or bi-weekly check in gets everyone on the same page, imperative for tight alignment. Consider listening in on sales calls and attending each other’s networking events. Have fun learning about each other’s fields and how they overlap. A fresh set of eyes on something can often lead to a positive brainstorming session.
6. Create content.
Generating content for the sales team is a helpful way to partner up. Email templates, white papers, social media content, and Q&As are all tools salespeople can use to attract the attention of potential customers. Ask your sales counterparts how you can better support them.
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by Jennifer Hart Yim | Jul 13, 2017 | Blog, Customer Service, Manufacturing & Distribution, Strategy, Supply Chain
Manufacturers who listen and focus on customer experience and service will win in the battle to increase revenue and company size.
This post comes to us from Kevin Jessop of Cerasis, a top freight logistics company and truckload freight broker.
Manufacturers have always struggled to know their customers. But, modern businesses have grown to encompass an omnichannel sales opportunity. Customers can place orders online, by phone, in person and in nearly any other means desirable. Unfortunately, this means manufacturers face an even greater challenge, as more customers translate into greater use of customer service.
In addition, customers are continuing to demand lower prices and free shipping. But, our predictions’ post noted how manufacturers are having trouble with transforming customer input into responsiveness and enhancements to the customer experience. Those who do achieve this feat can realize significant increases in revenue and high returns. But, how do manufacturers turn their focus to the customer experience?
1. Determine What Customers Want Today.
Modern technologies can give manufacturers real-time insight into the ways products are moving in retail and online environments. But, patterns today do not necessarily reflect the needs for tomorrow. As a result, manufacturers must be wary of overproduction and focus on providing the products customers want now, not tomorrow. In other words, manufacturers need analytics from point-of-sale systems, transportation metrics and more. Furthermore, companies must extend the buying cycle to get as much information as possible from consumers.
2. Lengthen the Buying Cycle Through Interaction.
Remember the catch-phrase, “Do you want fries with that?” Well, that concept holds true in the supply chain and for manufacturers alike. Consumers may not always go for what you are offering, but they want you to offer more than you have. Essentially, this creates a stronger level of customer service, and it can turn into additional purchases. More importantly, it gives manufacturers a chance to find out more about what the customer wants.
For example, a customer is a shoe store may purchase shoes, but if offered a new brand of socks, he or she refuses. During the ensuing conversation, the representative finds out that the socks have gathered a bad reputation on social media.
While this example is a bit extreme, it highlights how a longer buying cycle can translate into insights for manufacturers. In addition, a longer buying cycle naturally improves the company’s reputation.
3. Partner With Appropriate Businesses.
Businesses are often grouped into a broad category of competitors, but businesses can work to help manufacturers become more responsive to their consumers. This can include offering like products in package deals, compiling changes in like demographics or sharing information to reduce costs across the scope of both companies’ transportation networks. In fact, manufacturers can collaborate with third-party logistics providers (3PLs), like Cerasis, to realize the benefits of collaboration and taking advantage of business-to-business (B2B) sales through integration of systems, explains Louis Columbus of Supply Chain 24/7.
Essentially, every interaction with another business increases the possible customer base by both the number of employees in the new business and the number of customers working with that specific business. As you go through the chain of business, the opportunity for enhancing customer experiences grows.
4. Take Extra Care of B2B Partners.
B2B sales are more fickle than business-to-customer sales. According to a Gallup study, reports Chief Executive, more than 70 percent of B2B companies are facing setbacks and decreases among their B2B partners because of lacking customer engagement. Since B2B sales often take place behind the public’s perception of the economy, it is important that manufacturers work to create engaging relationships through content-driven, digital experiences. This can include videos demonstrating how products work, informative blog posts that provide something free and helpful to customers and beyond. Of course, the same concept of using digital technology to engage customers can be applied to B2C sales channels as well.
5. Be There for Customers After the Sale.
We have all experienced that disheartening feeling when calling customer service and getting lost or frustrated with the lack of service offered. Manufacturers need to be present to their customers after the sale because the level of customer service provided will be shared widely on social media. More importantly, poor customer service or inability to help customers with product issues or questions will gain a huge following much faster than a positive comment.
For example, manufacturers could send out emails for high-tech products that will require updates, or they may create online video banks to teach customers how to use the products easily. The opportunity for creativity in engaging current and future customers is only limited by your imagination!
Listening to What Customers Say is the Key to a Positive Customer Experience.
These steps go back to one thing, listening. Your company should listen to what internet-connected devices are saying about customers. You should listen to what your B2B partners are saying about your products and customers. Listen to what stakeholders, employees and B2C customers are saying. If you take the time to listen, you can meet the growing expectations of a modern customer base that wants a higher level of service than past generations. Ultimately, manufacturers who do listen and focus on customer experience and service will win in the battle to increase revenue and company size.
This post originally appeared on Cerasis’ blog.
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by Elizabeth Hines | Jul 11, 2017 | Blog, Content Marketing, Marketing, Social Media, Strategy
Take an honest assessment of these 6 areas to see if outsourcing your marketing might be a smart move.
Supply chain companies are increasingly open to outsourcing their logistics because it allows them to focus on their core competencies while improving productivity. So why not apply the same rationale to bolster your marketing efforts? Don’t be afraid to look outside the box for the marketing tools you need to succeed.
As your competitors’ marketing budgets continue to climb, your company needs expertise on your side to get the most out of your marketing dollars — and that’s especially true in the digital space. Content marketing can be very challenging for novices and seasoned marketers alike. Blogging, paid search and social advertising, email marketing, social media management: there’s a lot to juggle. That’s why many companies are outsourcing some — or all — of their marketing programs.
Have you considered outsourcing as an option? Maybe it’s time you did. Parsing out certain projects on an as-needed basis to an outside firm can help you comfortably navigate and succeed in the marketing world.
6 signs you should outsource your marketing
Assess your staff in these six areas to determine if it’s time to explore outsourcing your marketing efforts.
1) “Wait, what’s going on with social media now?”
Do you feel like your company is always reacting to marketing trends instead of planning for them? You need to be one step ahead of what’s coming, especially in fast-changing spaces like social media, in order to meet your customers where they are.
Learning best practices and new tools can be challenging, especially if you’re time strapped. Using an outside firm with expertise across the spectrum — and whose job depends on knowing the newest platforms and media — will give you an edge over competitors.
2) Everyone is at capacity.
Is your current marketing team able to take on new projects easily, without compromising existing responsibilities? If your staff has great ideas but not the resources to initiate them or follow through, you need to find a way to fix that.
Consider breaking off projects to an outside firm, even on a trial basis to test the waters. Plus if you outsource to experts, you won’t have to reinvent the wheel in-house or risk being off trend.
3) You lack time for proper strategizing and assessment.
Do you have a unified marketing strategy in place with a way to measure objectives and results? If you’re too busy keeping up with day-to-day work to step back and plan, then regularly assess how things are going, consider outsourcing.
Creating a strategy with short- and long-term goals is essential to marketing success. Using an agency to create a roadmap for you — and then to track progress — will free you up to focus on running your business. Also, an objective audit of your practices can be truly beneficial and will only improve your strategies.
3) You only have time to focus on one or two platforms/areas/ideas.
Are your marketing channels diversified? Your marketing reach needs to extend to all avenues, particularly in the digital world. Outsourcing SEO, paid search and social advertising, blogging and social media projects is a relatively easy task to manage and is absolutely essential for success in the current world.
4) You can’t afford another hire.
Are you on a tight budget? If your budget doesn’t allow for hiring and training key staff, outsourcing your marketing needs is a way to grow your reach and accomplish your goals without generating overhead such as training costs, benefits or payroll expenses. It’s also a way to try out new projects and programs to see if they stick.
5) You don’t have time for professional development.
Is there a skillset you and your employees want to advance? Gauge the temperature of your existing staff to ensure everyone’s needs are being met. Retaining top talent isn’t easy, so keep in mind that you don’t want existing employees to be concerned about their job security.
Identity each in-house staff member’s strengths and interests, and cultivate them. For example, encourage a designer to add a new skill to his or her portfolio, or an analyst to take a webinar or class to become even savvier. Strength what you have but look to complete your marketing toolkit with the available expertise.
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by Elizabeth Hines | Jul 10, 2017 | Blog, Consumer Electronics, Manufacturing & Distribution, Strategy, Supply Chain
With increasing consumer demands comes an increasing need for electronics manufacturers to adapt and change with the times.
Manufacturing operations strive to increase demand fulfillment and to reduce costs. But, too often these objectives seem mutually exclusive in practice. In fact, a 10-year study by Accenture of nearly 250 businesses across industries and sectors found that only 11% were meeting both goals.
So what are the 11% doing differently? Interestingly, the study found that operational flexibility was the common thread binding these companies together. What’s more, they were able to achieve flexibility, reduce costs, and increase demand by adhering to three key principles of operations.
3 pillars of operational flexibility
1) Keep it simple.
It can be difficult to keep up with the growing market demand for product customization while maintaining low overhead costs. But the answer is not fewer SKUs — in fact, quite the opposite. Successful manufacturers have increased product variants while reducing the number of components in each SKU, simplifying production.
A prime example of this is Toyota, which is transitioning from 100 different platform variants to five standard platforms across all its models. The brand will maintain design variation in accompanying components and interior choices. Toyota expects this will enhance the customer driving experience while reducing factory costs by 40% and manpower by about 20%.
2) Embrace digitization.
The supply chain is a series of steps toward getting the product in the hands of the end user. Digitization can break down barriers between steps so the supply chain becomes one integrated process. By offering faster responsiveness through digitalization, businesses can better meet consumer demand in timely manner.
Additionally, digitization can help reduce costs associated with production. An example of this is the use of 3-D printing. Traditional manufacturing processes for building a part are subtractive, creating a lot of scrap and wasted material as a byproduct. Not so with 3-D printing, an additive process using the minimum material necessary to fabricate a part. Less wasted material equals less wasted cost.
3) Develop multi-skilled labor.
Investing in a workforce that can adjust and handle multiple duties is an important aspect of operational flexibility. By cross-training employees, manufacturers are better able to optimize time and effort.
Honda’s ARC line, which trains line members across multiple tasks, offers a prime example. Not only are employees more capable of assessing and solving problems, Honda has been able to improve work efficiency by 10%.
Variables
With increasing consumer demands comes an increasing need for electronics manufacturers to adapt and change with the times. And there will always be unexpected variables and market fluctuations that require operational agility. But by being faster, more flexible, and cheaper, businesses can continue to increase demand fulfillment while effectively managing costs.
This article originally appeared on EBN Online.
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![12 Steps to an Effective Content Strategy for the Supply Chain [Slideshow]](https://fronetics.com/wp-content/uploads/2017/06/12-steps-to-an-effective-content-strategy-1.jpg)
by Elizabeth Hines | Jun 26, 2017 | Blog, Content Marketing, Marketing, Strategy, Supply Chain
Learn how to stand out from the crowd with a content strategy that drives profitable customer action.
According to a survey of supply chain and logistics marketers by Fronetics, 86% are using content as a marketing tool. Respondents report using content marketing primarily in order to:
- Increase brand awareness (96%)
- Generate leads (83%)
- Establish the company as an industry leader (74%)
- Engage customers (74%)
By consistently creating and distributing valuable, relevant content, you can attract a clearly defined audience — and, ultimately, drive profitable customer action. But how do you know what your audience will find valuable and relevant?
Throwing spaghetti at the wall to see what sticks certainly won’t get your desired results. Since 3 billion pieces of content are shared online everyday, you have to be strategic and thoughtful about your content in order to stand out from the noise (and your competitors). It takes time, careful research, and strategy to build a content marketing program that helps achieve your business goals.
At Fronetics, we specialize in helping supply chain and logistics companies create and execute digital and content marketing strategies. So we’ve learned a few tricks of the trade over the years. For example, did you know that explicitly designating a specific person to lead your content strategy can improve its effectiveness by 40%? Or that documenting your strategy can make it three times as effective?
We’ve put together a quick slideshow specifically for supply chain and logistics businesses who are looking to learn about content marketing and build a content strategy that will be effective in growing brand awareness, generating leads, engaging customers, and establishing their brands as industry leaders.
12 Steps to an Effective Content Strategy will help your business identify the key steps to getting the most out of your content marketing efforts. Download the slideshow to get started growing your business with content!
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