e-commerce trends influencing brick and mortar stores

E-commerce Comes Back To Help Brick & Mortar

We know lately the trend of more retail giants closing their doors has been splashed across every news outlet , but now some brick and mortar stores are learning from these e-commerce trends.

Experts predicted online shopping, led mainly by Amazon, would one day eliminate brick and mortar stores and conquer all of retail. The rate of store closings set a record in 2017 with no type of store excluded. Havoc stretched from Madison Avenue boutiques to shopping malls across the country, making retailers jointly struggle. At this time in 2017 nearly 5,700 stores had closed their doors for good in the United States, according to retail analyst firm Coresight Research. This year only 4,480 stores have closed.

But Then Something Changed For Brick And Mortar Stores.

One thing breathing life into vacant malls are stores learning to capture the ease and instant gratification online shopping provides. Online shopping is a platform for customers to shop while in the comfort of their own home; something major retailers are starting to adopt and it’s working! The retail giant, Target has adopted a new practice where customers order what they need through the app, drive to their store and a team member meets them in the parking lot with their order. No getting out of the car and no waiting in line at the register. Since the launch of this program, Target saw more traffic online and in store than they expected to. Growing at its fastest pace in a decade.

Walmart has introduced “personal shoppers” to its mix of employees to select and package groceries for curbside pickup. It’s the same process as ordering online, with a little personal touch.

The retailers evolving their shopping programs recognize that Amazon has forever changed consumer behavior. Many successful stores are now a cross between a drive-through and hotel concierge; trying to keep customers satisfied and, in turn, loyal.

The main reason for the slower pace of store closings is due to unprofitable stores having already been shut down. Still, big retailers like JCPenny and Sears, despite closing failing stores and sprucing up the remaining ones, are still struggling. Therefore, the other reason is stronger players are benefiting from other stores’ failures. Target, for example, saw a huge leap in toy sales as Toys “R” Us entered their final days of their liquidation sale.

Information obtained from: nytimes.com

So What Does All This Mean For Retailers’ Supply Chains?

E-commerce has halted many B2B supply chains from growing since its boom. However, with these new shopper programs being introduced, supply chains will pick up. With the economy bouncing back and consumers having more to spend, products will be moving quicker; especially if shopping is “hassle-free.” Retailers are now taking a store-centric, omni-channel approach, connecting every dot imaginable in their consumer buying process. Big players are investing in robust digital models of the entire store footprint, giving employees digital merchandising tools, and using automation to enable visual merchandising and easily create store specific plans. A deep analysis of store models allows managers to optimize product placement and  This enables employees to track merchandise currently in store, en-route to store, or allowing them to order stock on the spot for customers. Therefore, saving customers time in the store, or from having to order merchandise after the fact.

Target even plans on opening new, smaller stores near college campuses with products specified for the area’s demographic. Instead of shoppers meandering through cavernous buildings, the retail giant will stock stores with targeted products that have a definitive vibe. This shortens shoppers time in the store and places what they want out in the open. Talk about a new meaning for “Target.”

How Does Automated Software Help Supply Chains?

An automated software solution integrated into a supply chain allows for greater visibility of orders. It connects the manufacturer/supplier, distributor and retailer throughout a package’s entire journey, keeping everyone in the loop and alerting retailers where merchandise is. Whether it be in stock or en-route.

Here are five main features an automated software needs to keep up with the e-commerce trend:

  1. Reporting Features

    Having accurate reports for purchases will make order fulfillment and store floor planning a smooth operation. Our software produces bill of lading, VICs bill of lading, carton contents and branded packing lists, making client recognition immediate. These reports are sent to retailers alerting them of every detail and quantity on their order. It makes it easier to track the progress and location of the order, and for employees to know when shipments will be in. Digitally connecting orders to stores using supply chain technology.

  2. Advanced Shipping Notice Kits

    Trading partners have specific requirements for the advanced shipping notices they receive. Having a software that already has the information installed on it will make switching back and forth between partners hassle-free. We have more than 190 different ASN kits for retailers and automakers programmed into ComplyLink. These ASN kits cut time and accurately inform clients on their orders.

  3. Integration

    Supply chains already have processes and procedures established, so it’s important for automated software to integrate into the existing system. Our software has integration features that’ll connect to EDI and ERP order management tools. ComplyLink installs on suppliers’ server or workstation and electronically talks with accounting to confirm, pack and ship orders, and then verify they’re on the truck to be shipped before marking it complete.

  4. Order Verification Processes

    ComplyLink has various scanning and packing routines that support and expedite order fulfillment. These routines eliminate the need to manual enter order data in warehouse and distributors’ databases. With these processes, there is a 20 to 40 percent decrease in translation errors because it eliminates human error possibilities. There is also a 28 percent decrease in order costs because we provide tools for automatic data entry instead of having to manually type orders in. Automated processes streamline redundant, tedious tasks with the highest risk for mistakes.

  5. Customization

    The most important feature an automated software can have is the ability to be customized. Having a software that doesn’t require dramatic shifts in manufacturing procedures can alleviate pressure and uncertainty in the transition. ComplyLink ensures an easy adaptability period without missing a beat (or an order in this case) because we work with our clients to install it according to their needs.

The Key Takeaway:

E-commerce hasn’t fully claimed the retail world – and it may never get there. Warehouse managers and retailers working in conjunction with digital trends is the link brick and mortar stores need. Playing to their strengths and optimizing shipping and order-processing cycles via an automated software. Retailers can restock stores, optimize their layout and keep suppliers busy by providing material releases week by week, or with an overall product forecast. Notes like these are housed in a software like ComplyLink and keeps records for orders updated. Retailers and suppliers integrating electronic communication tools like 830s and 862s between each other pave the trail for success.

 

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5 Ways Digitization Transformed the Supply Chain

Digitization has proved to benefit the efficiency and productivity of the supply chain. The point of digitizing is to revamp supply chain management and to streamline repetitive tasks. A 2017 study from McKinsey found the average supply chain has a digitization level of 43 percent and only 2 percent of executives said that the supply chain is the focus of their digital strategies. Seizing an opportunity to digitize the supply chain has surprisingly been a challenge for a lot of companies. Embracing new technology also means revamping operational practices – which could even mean building a whole new management strategy.

The best way to digitize is to integrate advanced, leading-technology and revamp operations. Management usually understands the measures to the transformation approach – establishing a vision for the future supply chain, assessing the current state and envisioning the future path to take.

We’ve analyzed five different ways that digitization influenced the innovation of the supply chain.

  1. Supporting major operations like warehouse management.

    It was clear there was a need for innovating warehouse management. Tasks were becoming too tedious and were at risk for being mismanaged. Digital technology provides tansformative capabilities for inventory management. Linking cross-functional data like inventory, shipments, and schedules from internal and external sources, forecasting demand and performance. This is a way for planning to become more precise, and problems can be anticipated and prevented. A supply chain digital-transformation, then, is about establishing how applications can improve cost, agility and inventory levels to drive operational excellence. Our ComplyLink software is an automated database that tracks and traces every order that comes through an order management system – helping to manage inventory levels. Scanning routines like scan/pack, scan/print and scan/verify with ComplyLink automatically updates the database with shipping data. As a result, it eliminates the need for manual entry of order data making warehouse management more efficient and accurate.

  2. Digital transformation employs analytics, artificial intelligence, and other advanced technology to collect and process information automatically.

    Before digital technology, orders were processed by hand; getting passed along, person to person. Each time facing error-prone updates causing incorrect or delayed orders. Files were easily lost and entering data was a painstaking task. Our suspicious order monitoring software, SOMLink, is designed with a repository to store critical information pertaining to each customer. Each time an order is processed we compare it to past orders in regards to frequency, size and pattern. This allows companies to quickly identify and be alerted about orders of interest. Instead of delegating a single person to manually keep track of records for orders of interest and report then to the DEA, we created a solution to automatically process and store that information. SOMLink automatically captures orders of interest before they are fully processed and directly reports them to the Drug Enforcement Administration. Significantly reducing the risk for businesses.

  3. New technology can integrate better methods for collaboration.

    The key to supply chain success isn’t just a matter of buying and installing software. It’s about utilizing this software to reach the highest level of collaboration because it allows for an end-to-end perspective and update of the supply chain. This supports the overall mission of changing the ways employees and teams share/gather information. It also seeks out problems and opportunities for improvement, reaches decisions and carries out actions. The newest digital technologies can move a company forward with better methods of collaboration and prevent them from returning to their old ones. For that reason, both of our solutions have a multi-user interface feature that encourages collaboration among team members. It’s a key value for us to ensure our solutions make businesses more efficient and operations a lot smoother.

  4. Digitization can provide better end-to-end customer engagement.

    When supply chains utilize digital technology it allows the process to be undeniably transparent. The technology gives mangers more control with the orders and having a system that automates everything provides customers with detailed updates about their shipments. These updates include routing information, quantity of contents, and the date they’ll be shipped and delivered, also known as an advanced shipping notice. ComplyLink has a transportation management feature where suppliers and their customers can electronically exchange information from purchase orders to shipment authorizations. We make it easy to keep your customer “in the loop” so communication is not lost, and shipments are expected. The TMS feature also sends detailed advanced shipping notices to customers allowing them to prepare ahead of time for orders.

  5. Digital technologies provide deeper, more insightful assessments on supply chain performance.

    Integrating supply chain processes with ERP systems sets up data streams from sources within its organization. Incoming data is fed into the same processing engine where it can be connected to show how activities and decisions in one area of the supply chain affect other operations.  Linking related data sets can uncover systemic issues including: mismatched lead times and past-due purchased orders that hinder future key performance indicators of future demand for extended suppliers.  The consequences of not linking related data sets leads to customer order delays. This ties closely with that end-to-end perspective necessary for supply chain success.  Supply chains quickly have a domino effect if technology is not employed. One area of the supply chain isn’t fully up to speed and another area is waiting on them, it prevents high levels of work getting done. This feature ensures efficiency and create high-end productivity among the team.

 

 

Source: https://www.mckinsey.com/business-functions/operations/our-insights/digital-transformation-raising-supply-chain-performance-to-new-levels
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What Defines A Leader?

Daniel Goleman, an internationally known psychologist, interviewed with Forbes Magazine reporter Dan Schwabel on what makes an effective and impactful leader. Goleman talks about the types of leadership characteristics that are the most important in the business world and what the real definition of a leader is. All of this can be read more in depth in his book, Focus: The Hidden Driver of Excellence.

We took Goleman’s leadership characteristics and applied them to supply chain management. In an ever-changing industry, how can we build the best leaders in the business to create an overall efficient system? A system that harnesses different levels of talent in different ways to keep the supply chain moving forward.

  1. Studies conducted have proven the top 10 percent of executives display superior competencies in emotional intelligence, rather than just in purely cognitive thinking. Capabilities like self-confidence and initiative, bouncing back from setbacks and staying cool under stress, are essential when it comes to leadership in this industry.

    While working in the ever-busy supply chain industry and managing every piece of it, stress is inevitable. It’s how our leaders manage themselves that will impact how others react in any given situation. Through understanding emotional intelligence and how it works, supply chain leaders can inspire others’ reactions and behaviors to given situations. Emotional intelligence skills convert to diffusing conflicts, improving relationships and improving communication in the workplace. If above all else, we put an enormous emphasis on communication in the supply chain. So many moving parts and systems involved, leaders on staff must have top-level communication skills, lest the supply chain fails.

  2. Goleman makes the distinction between leaders who are smart and leaders who are wise. Smart leaders are good at things like running a business and getting quarterly results. Wise leaders have a larger sense of the social and environmental systems we operate within, as well as an expanded view of stakeholders.

    The ability to visualize an end-to-end perspective of your supply chain is a must have skill in all leaders. Having a feel for how your market is running and if more or less supplies needs to be made is critical. A smart leader creates short-term goals and sticks to them. This gets the team through the day-to-day, but what about the overarching goal? A wise leader forms a long-term vision and goal for the company, and applies that to every single short-term goal. How do our strategy, talent, processes and technology goals rank to the long-term goal? Can our leaders manage several employees’ needs, oversee the stream of orders, and keep track of equipment and supplies? A supply chain leader tunes into their market by acknowledging busy seasons and products in high demand, and starts preparing his/her team in advanced so they don’t get defeated.

  3. A leader is a passionate worker and shares that passion with co-workers. A person who is not finding passion in their work right now might consider how to make a portion of their job “good work,” or how to enlarge that portion over the course of their career.

    It is important for a leader to inspire and influence team members to do their job. Some employees are there because they have a knack for logistics, efficiency and order management. These are the people who spend time looking for the flaws in their processes and suggest new ways to conduct business. For those who are there simply for a paycheck, leaders must work to make them feel like an integral part of the supply chain. It’s cliché to say “we’re all in this together,” and “teamwork makes the dreamwork,” however helping them find something new, or different about their job each day/week/month/year can instill a passion in them and have them strive for excellence.

  4. Leaders have triple focus. The inner focus, or core, is centered on their own feelings, values and intuitions, and to manage themselves well. The next focus is on others and how well leaders can read people, which is key in managing relationships. An outer focus lets the leader understand the larger forces and systems that they must navigate. As well as determine the best strategy going forward.

    In today’s world, focus isn’t so mainstream because we live where there are thousands of distractions. A person who has the skillset to isolate their focus internally and externally is a person destined for leadership. For any supply chain leader, they must first understand how they learn, understand and operate the technology and systems, then continue to build on that before leading others. The next level of focus – the one that centers on reading others – allows leaders to quickly figure out how to coach each employee individually. What is their learning technique? What do they respond to as far as your teaching style? It is highly important leaders grasp each persons’ learning style, especially when teaching them about the technology used to pack, pick and ship orders to ensure efficiency and accuracy.

  5. Everyone with a sphere of influence is a leader, whether they have the explicit job description or not.

    Job title is irrelevant when it comes to leadership. A manger can be a manger, but still not a leader. A leader effects change and motivates team members to do a good job. Others look to them for inspiration and mentorship. This is where having a variety of talent on the team leads to success. Peer-to-peer interaction should be encouraged in your supply chain. New ideas can come from anyone and sometimes the best ideas come from those who are on the frontline of the supply chain each day. Innovation should be encouraged from your leaders to continually shape the path of success.

Leaders can come from anywhere within the organization. From line workers to top executives. The important thing to take away here is watch your workers. Watch how they interact with one another, how or who they look to each other for guidance. In an industry that is constantly adapting to new technology and consumer demands, too many leaders just can’t be possible.

 

Source:

https://www.forbes.com/sites/danschawbel/2014/03/18/daniel-goleman-the-truth-about-what-makes-a-great-leader/#70e0f6e33671

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Workforce Domination: Millennials and Supply Chain Management

Millennials are quickly taking over the workforce. The Governance Studies at Brookings predicts that by 2025, 75 percent of the workforce will be millennials. So, what will become of the supply chain in the millennial workforce?

A study done at the close of 2017 by the Council of Supply Chain Management Professional found striking results in regards to the future. CSCMP interviewed 300 young professionals. Of those 300, 70 percent are working towards a bachelor’s degree and 54 percent are majoring in supply chain management or a related field. The reason? When choosing a career choice, millennials gravitate to jobs that give endless opportunities and different types of jobs. They’re also looking for an abundance of room for growth. Millennials appreciate the surplus of opportunities for internships and first hand learning, saying it gives them perspective into the job before graduation.

Job satisfaction is another reason young professionals are looking to supply chain management for their career choice. When asked, 88 percent responded positively in regards to their overall job. Most using words such as “good”, “meaningful” and “enjoyable”.

Despite these reported high levels of job satisfaction, millennials are always looking for the next great job opportunity. A way for them to design, develop and implement business strategies of their own.

Millennials and the Attraction to Supply Chain Management

In the past 20 years we’ve been around, we’ve seen consumerism turn into an around-the-clock, on-demand industry, an increase in prescription drug abuse, and more and more shipping regulations put in place by big retailers and automakers. And throughout it all, we had to tailor our software to meet those demands.

These are the things millennials crave to be a part of. They want to effect change. After all they’re a huge reason new consumerism trends are emerging from brick-and-mortar stores to online, 2-day delivery.

Supply chain management provides millennials with the task of problem solving and analyzing business’s needs. Solving supply chain problems requires sorting through piles of data and delve into descriptive, predictive and prescriptive analytics.

A career in supply chain management also provides opportunities for millennials to make an impact. Lots of businesses are struggling to keep up with growing consumerism trends. We work to decrease those chances by completely customizing our software for our clients. Tailoring our software for clients makes projects impactful – even the slightest change brought on a company’s supply chain has a large impact on how it runs overall. Every decision made changes the face of the company strategy and organizational structure.

The wide varieties the supply chain industry offers keeps millennials engaged and stand out as a key reason they study supply chain management.

Sources:

https://www.forbes.com/sites/workday/2016/05/05/workforce-2020-what-you-need-to-know-now/#45d7ff062d63

http://www.supplychainquarterly.com/files/pdfs/YP_insert_final.pdf