To most retailers and manufacturers, the word omni-channel is synonymous with complex. They see their supply networks splintering as they try to provide “seamless” experiences to their customers. Instead of splintering, companies need to aggregate. Manufacturers and retailers need to use facilities that can provide a full range of services. Manufacturers and retailers also need to join forces to achieve scale in a world where order sizes are decreasing. Omnichannel Solution Strategies for Retailers By SupplyChainBrain The challenges of omnichannel distribution are perhaps the largest issues facing retailers today. Two senior consultants from Kurt Salmon identify solutions that can help retailers deal with omnichannel demands today and stay ahead of future changes. The big trend in today’s marketplace is the shift of consumers from shopping…
ConAgra Commits to Sustainable Palm Oil
ConAgra has announced its intent to use 100% sustainably-sourced palm oil by 2015. The company uses palm oil in many of its branded, private brand, and food service products. In a statement on its website, the company said “We are committed to the responsible sourcing of this raw material, and we have made a pledge to source 100 percent of our palm oil from RSPO sustainably certified sources by 2015. We are working with our suppliers to support the development of a sustainable, cost-effective market for palm oil to prevent the deforestation of lands for the purpose of developing new palm plantations.” ES3 applauds ConAgra’s commitment to the environment! ConAgra joins movement for deforestation-free palm oil By Robert Kropp Published August 25, 2014 The destructive effects of…
3D Printing is Not Just for Prototyping
Companies are reducing parts supplies and making parts as needed using 3D printers. This is not just for production facilities, it will have huge benefits for the maintenance teams in warehouses. From automation to material handling equipment, the ability to make what you need, when you need it will mean reduced costs and higher “up time.” 3D printing makes its move into production By Robert L. Mitchell Computerworld – When NASA’s Juno satellite blasted off for Jupiter, the 3D printed parts in its final assembly represented just one small step toward manufacturer Lockheed Martin’s goal to eventually build an entire spacecraft using additive manufacturing technology. The launch also signified one giant leap toward the use of 3D printing in the aerospace firm’s manufacturing processes here…
Location, location, location, in E-commerce
E-commerce opens an exciting world of new possibilites, new knowledge, and new products. Thanks to the internet, people now want (and can get) incredibly diverse and random items, reflecting their individual taste preferences. Or do they? In a recently released book by Wharton professor David Bell, titled “Why Location is (Still) Everything, e-commerce is revealed to have changed surprisingly little about consumer brand loyalty. People who live on the east coast still prefer Maxwell House, and people on the west coast still drink Folgers. More surprisingly, these differences are statistically significant. Will this trend continue in the future with brands established after the internet age? Only time can tell. Why Location Is (Still) Everything BY ILAN MOCHARI What’s your favorite brand of instant coffee? Do you prefer Folgers or Maxwell House? Believe it or not,…
Uber Breaks Out Same-Day Delivery Service
Uber flexes its startup muscle and announces a new same-day delivery service called Uber Corner Store available only in certain parts of Washington D.C. The announcement comes just a few months after Uber launched UberRUSH, a courier delivery system in Manhattan where customers can have items be picked up and dropped off at a specific address by Uber bicyclists. Both of these services appear to be tests -temporary experiments with Uber’s logistical capabilities. The market is full of competition; startups like Postmates and WunWum and giants like Ebay and Amazon are all trying to break into the same-day, quick, convenient service market. However, if we think back to the dot-com bubble days, start-ups like Kosmo and Webvan burned bright and faded away offering the same services, ultimately losing huge amounts…
The New Consumer is the “Transumer,” says Director of Convenience
We’ve been talking about the importance of convenience for a while, but Waitrose, a British retailer, has elevated that thought to the next level by employing a Director of Convenience, who promptly introduced a new store format to cater to “transumers.” What are transumers? Chances are you are one. “Transumers” refers to traveling consumers, people who purchase items on the way to, or from, destinations. Increasingly, it’s becoming more important for merchants to fit themselves in a consumer’s daily life. Waitrose has built a new format around that idea, opening Little Waitrose, a 2,500 sq. ft. store in London’s Kings Cross station. The idea behind the store, says Jackie Wharton, Director of Convenience for Waitrose, is to “become part of a customers’ daily pattern, so…
Asimov’s Predictions for 2014 & Hambleton’s Predictions for 2024
I went to the 1964 World’s Fair as a child. I remember being amazed by the GE exhibit that showcased the future. 2014 seemed very far away back then. Asimov predicted that we would have connected cars, 3D technology, and cordless electronics – things that were almost unimaginable. GE has launched a digital campaign to celebrate those achievements and spur the next generation of innovation – called Next List. Top on my Next List are home food replicators….. General Electric Imagines What Technology Will Look Like in 2064 Anniversary of NYT piece advances digital campaign By Lauren Johnson In 1964, author and scientist Isaac Asimov wrote an article for The New York Times predicting what technology would look like in 2014 after visiting General Electric’s pavilion at…
Trying to Understand Millennials
The biggest buying group, Millennials, are proving to be less predictable than their Baby Boomer parents. They change habits and preferences as new opportunities present themselves. They have conflicting interests – sustainability and convenience. This is due, in part, because they are the most diverse generation we have seen. Millennials cannot easily be described, but an infographic from Adweek provides some interesting insight. Adweek says Millennials check their smartphones 43 times per day – that seems low based on my observations! Infographic Source: Carlos Monteiro Originally published in Adweek
Collaborative Distribution is Coming of Age
ES3 has been doing collaborative distribution for twelve years with more than sixty manufacturer and retailer partners. It is not easy to collaborate with competitors but it is necessary to cut expenses, improve sustainability, and increase service. Manufacturers have tried it on their own but without the benefit of a neutral, third-party to handle the financial transactions and integrate systems, it is really hard to scale. Shared shipping is slowly gaining ground between market rivals Companies cut expenses and carbon when they ‘compete on the shelf and collaborate on the back of a truck’. But how to build the trust it needs to succeed? When Ocean Spray opened a new distribution center in Lakeland, Florida in 2011, the facility’s proximity to a rail yard used…
New Strategies to Build Brand Loyalty
Ever purchased something only to see it at a cheaper price in a different store? Walmart’s decided to help its shoppers get rid of that awful feeling with its new Savings Catcher service. The service analyzes the price paid for each item at Walmart, and compares it to the listed prices at local competitor stores. If the item can be found for a lower price at a competing store in the area, Walmart will refund the difference to the shopper. All the shopper has to do to take advantage of the service is log into their Walmart.com account and type in the number on their receipt. For each receipt, the Savings Catcher will place the refund onto a Walmart gift card, which can be used…