1. E-Commerce &
Immediacy
Driving a New Supply Chain
Tom Craig – tomc@ltdmgmt.com
LTD Management
www.ltdmgmt.com

2. Supply Chain Management
Leading the Immediacy Megatrend

3. Agenda
 E-commerce
 E-commerce immediacy
 Supply chain impact
 Speakers

4. Warning
Some of what I will say may go against some
traditional views
Making a new supply chain management to meet
new opportunities

5. Set the Foundation
E-Commerce is about supply chain management.
E-Commerce Immediacy is about the new supply chain
management!

6. We are
 Looking at a paradigm
shift—
 For Selling
 For Supply Chain
Management
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7. •Is big business – US and global
•Part of Multichannel /
Omnicommerce sales
•Can we say Amazon and Alibaba?
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E-COMMERCE

8. Online vs store
 Customer—name & address
 “Store” goes to customer
 Customer convenience &
experience
 Customer—can be unknown
 Goes to store
 Shopping experience

9. Do you think e-commerce is for B2C/retail only?
•Too big a way of doing business to just be……
•W.W. Grainger– 1/3 B2B sales are e-commerce (over
$3bil)
•It is about multichannel (e-commerce is one channel)
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10. Manufacturers
 Brand name recognition
 Sell online direct or let retailers/wholesalers do it
 Limited / no contact with end customers

11. E-Commerce
Global B2C e-commerce for
2015--$1.7 trillion
Global B2B e-commerce for
2020--$6.7 trillion
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12. E-Commerce Countries
 Top 15 countries for
2015 for e-commerce
are—
 United States
 China
 United Kingdom
 Japan
 Germany
 France
 South Korea
 Russia
 Belgium
 Australia
 Canada
 Hong Kong
 Netherlands
 Singapore
 Denmark
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Per A.T. Kearney

13. Old vs New
e-commerce
 Immediacy
 Delivery within 48
hours of order
placement (or faster)
 It is about the customer
and the customer
experience.
 Same old-same old
 Web site
 Ship orders
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14. New Business & Supply Chain Reality
 Is new e-commerce
 Business disruptor
 Changing supply chains
 Hello—
 parcel delivery firms
 trucking firms
 3PLs
 warehouses
 logistics investors
 Customers want—
 What they want
 When they want it
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15. And
 Multichannel /
Omnichannel
 mCommerce
 Payment
 Global reach

16. Are there e-commerce, customer, and
supply chain differences for?
 Specialty retailers
 Mass merchandisers / big
box retailers
 Private label / store brand
 Name brand
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17. Think about this

19. 19

20. Immediacy
 Benefit to Sellers
 Mitigates/reduces
 Buyer’s remorse
 Order cancelations
 Returns

21. Immediacy is not (yet)
Beam me up, Scotty.

22.  Same and one-day deliveries—global
 Drones
 3D printing truck delivery
 Click and collect
 Build special distributions centers for e-commerce
 Delivery to trunks of cars
Immediacy
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23. Immediacy (of new e-
commerce) & new supply
chain
 Goes beyond E-Commerce/
B2C
 Spreads across channels
 Expands across industries
 Expands across markets
 Grows across the world
It is
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24. Megatrend
--Immediacy--
 Supply chain management is leading it
 Continuously driving new supply chains

26. Underlying Issue
E-Commerce / Multichannel
Working capital / Liquidity

27. Multichannel
 Vs the urge to increase
inventory
 Vs the idea of allocating
inventory per sales channel
 “Optimization” vs
multichannel sales
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28. What lies ahead for supply chains
 Duality
 Segmentation
 Focus on service and customer
 InventoryVelocity2
 Time compression
 Upstream Supplier performance and supply chain
extension

29. More
 Network alignment & inventory positioning
 Advanced integration—
 Process
 Technology
 New breed of Logistics Service Providers
 Outsourcing to Supply Chain Service Providers

30. Virtual Reality Retailing
 Retailing will transform
 Virtual reality retail stores
 Think New Supply Chain Management

31. It Is Coming
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32. "You got to be careful if you don’t know
where you’re going, because you might
not get there." –
Yogi Berra
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