STOCKPILING THE GOODS: WHAT NO ONE TELLS YOU ABOUT INVENTORY MANAGEMENT, Jeremy Hanks, Founder & CEO, DropShip Commerce Check out Jeremy's presentation that goes with this slide deck here: http://www.youtube.com/watch?v=ZV64ERGvbjE

1. STOCKPIL
THE GOODSTOCKPILING THE GOODS:
What No One Tells You About Inventory Management
WHAT
NO ONEJeremy Hanks
Cofounder & CEO
DropShip Commerce

2. @ j e r e m y h a n k s
J E R E M Y H A N K S
INVENTORY DISTORTION*
$1.5 Trillion inventory sitting
in overstock position.
* IHL Group 2012

3. @ j e r e m y h a n k s
J E R E M Y H A N K S
INVENTORY DISTORTION*
$1.5 Trillion inventory sitting
in overstock position.
That turns into:
* IHL Group 2012
$326B

4. @ j e r e m y h a n k s
J E R E M Y H A N K S
INVENTORY DISTORTION*
$1.5 Trillion inventory sitting
in overstock position.
That turns into:
* IHL Group 2012
$326B
Out of stocks are an
even a bigger problem.
$456B

5. @ j e r e m y h a n k s
J E R E M Y H A N K S
INVENTORY DISTORTION*
$1.5 Trillion inventory sitting
in overstock position.
That turns into:
* IHL Group 2012
$326B
Out of stocks are an
even a bigger problem.
$456B $818B

6. @ j e r e m y h a n k s
J E R E M Y H A N K S
INVENTORY DISTORTION*
Growing by
* IHL Group 2012
$50B
Per year

7. @ j e r e m y h a n k s
J E R E M Y H A N K S
TRADITIONAL RETAIL SUPPLY CHAIN
SUPPLIERS RETAILERS
STOCK POS
CONSUMERS
B2B B2C

8. @ j e r e m y h a n k s
J E R E M Y H A N K S
eCOMMERCE
SUPPLIERS RETAILERS
STOCK POS
CONSUMERS
B2B B2C

9. @ j e r e m y h a n k s
J E R E M Y H A N K S
DROP SHIPPING/MARKETPLACE
SUPPLIERS RETAILERS
STOCK POS
CONSUMERS
B2B2C

10. @ j e r e m y h a n k s
J E R E M Y H A N K S
MANUFACTURER DIRECT TO CONSUMER
SUPPLIERS CONSUMERS
B2C

11. @ j e r e m y h a n k s
J E R E M Y H A N K S
VERTICALLY INTEGRATED eCOMMERCE
RETAILERS CONSUMERS
B2C
STOCK POS

12. @ j e r e m y h a n k s
J E R E M Y H A N K S
SUPPLIERS RETAILERS
STOCK POS
CONSUMERS
B2B B2C
B2B B2C
B2B2C
B2C
B2C

13. @ j e r e m y h a n k s
J E R E M Y H A N K S
SUPPLIERS RETAILERS
STOCK POS
CONSUMERS
VIRTUALIZATION

14. @ j e r e m y h a n k s
J E R E M Y H A N K S
SUPPLIERS RETAILERS
STOCK POS
CONSUMERS
VIRTUALIZATION
DIRECT

15. @ j e r e m y h a n k s
J E R E M Y H A N K S
RETAILERS CONSUMERSSUPPLIERS

16. @ j e r e m y h a n k s
J E R E M Y H A N K S
AGGREGATION DEMANDSUPPLY

17. @ j e r e m y h a n k s
J E R E M Y H A N K S
SUPPLY AS AGGREGATORS
AGGREGATION DEMANDSUPPLY

18. @ j e r e m y h a n k s
J E R E M Y H A N K S
CROWD AGGREGATION
AGGREGATION DEMANDSUPPLY

19. @ j e r e m y h a n k s
J E R E M Y H A N K S
CROWD SUPPLY
AGGREGATION DEMANDSUPPLY

20. @ j e r e m y h a n k s
J E R E M Y H A N K S
PRODUCT PUSH TO CONSUMER PULL
AGGREGATION DEMANDSUPPLY

21. @ j e r e m y h a n k s
J E R E M Y H A N K S

22. @ j e r e m y h a n k s
J E R E M Y H A N K S

23. @ j e r e m y h a n k s
J E R E M Y H A N K S
PRODUCT PENETRATION
73%

24. @ j e r e m y h a n k s
J E R E M Y H A N K S
PRODUCT SELECTION
25% - 33%

25. @ j e r e m y h a n k s
J E R E M Y H A N K S
CHALLENGES
INVENTORY VISIBILITY ORDER ASSURANCECONSUMER CATALOG

26. @ j e r e m y h a n k s
J E R E M Y H A N K S
ALIGNMENT: SAME PAGE
SHARED PROBLEMS

27. @ j e r e m y h a n k s
J E R E M Y H A N K S
ALIGNMENT: TEST
Place Order
Receive Order
Return Order
ALIGNED APPROACHES
ALIGNMENT: TEST
PLACE ORDER RECEIVE ORDER RETURN ORDER

28. @ j e r e m y h a n k s
J E R E M Y H A N K S
ALIGNMENT: SCORECARDS
68% 83%
DATA CHANGE
ORDER MOVEMENT
OPEN & SHARED

29. @ j e r e m y h a n k s
J E R E M Y H A N K S
ALIGNMENT: TECHNOLOGY

30. @ j e r e m y h a n k s
J E R E M Y H A N K S
THINK ABOUT: MINDSET
VENDORS DEALERS

31. @ j e r e m y h a n k s
J E R E M Y H A N K S
THINK ABOUT: MINDSET
PARTNERS PARTNERS

32. @ j e r e m y h a n k s
J E R E M Y H A N K S
THINK ABOUT: MODELS

33. @ j e r e m y h a n k s
J E R E M Y H A N K S
THINK ABOUT: ATOMS > BITS

34. @ j e r e m y h a n k s
J E R E M Y H A N K S