This document discusses the importance of supply chain and logistics competencies for retail executives in today's omni-commerce environment. It notes that understanding supply chain inventory deployment, fulfillment capabilities, and the customer experience around delivery are now critical skills. The expectations around delivery options and returns are increasing, placing more demands on supply chain agility and partnerships. New supply chain leaders need commercial thinking, change management skills, and the ability to work across functions and embrace innovation.

1. SUPPLY CHAIN –
THE NEW ROCK & ROLL

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Critical importance of supply chain and logistics competencies
“In this era of online retailing and Omni-commerce, there are
two leadership competencies that will differentiate
tomorrow’s executive leaders in retail. They are a deep
understanding of social-media fueled marketing and Internet
focused retailing, and a deep awareness, understanding and
appreciation of end-to-end supply chain inventory
deployment and fulfillment capabilities. From our lens,
recruiting for retail C-level executives has been too focused on
classic merchandising, finance or traditional brand marketing”.
Ferrari Group

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GET IT TO ME

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THE EXPECTATION OF MORE CHOICE KEEPS RISING
• The norm will become 7 day per
week, day time or evening, 1
hour timed slots, with advanced
notice
• Not always an economically
sound offer for retailer or buyer
• Multiple pick batches & cut-offs,
multi-way sortation,
sophisticated carrier
management solutions become
standard

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ARCHITECTING FOR AGILITY IN A RAPIDLY CHANGING WORLD

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YOUR CUSTOMER HAS A VIEW ON DELIVERY
Source: Collect +, CILIT

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THE FINAL MILE IS THE ZERO MOMENT OF TRUTH
• “Supply chain directors
will be brand directors”
Richard Cristofoli,
Debenhams Marketing Director

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LET ME GET IT

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WHERE CAN I GET IT?

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ANYWHERE IS A COLLECTION POINT

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NOT ALL PARTNERS WILL BE OBVIOUS

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THE STORE MAY NOT BE AN IDEAL COLLECTION POINT
• The greatest growth is typically
coming from your highest cost-to-
serve channels: convenience &
home
• Supporting a click & collect
proposition into some of those
convenience locations is
particularly challenging

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THE STORE EXPERIENCE IS ALSO CHANGING

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RANGE EXPANSION IS A STRATEGIC IMPERATIVE

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DROP SHIPPING A ZILLION SKUs
7 million home products
8,000 suppliers
$1 billion sales (2013, up 50% YoY)
500,000 products
800 brands

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TAKE IT BACK

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THE RISE OF RETURNS FRIENDLY COLLECTION POINTS

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IT’S NOT SOLD UNTIL IT’S USED

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AND WHAT OF THE STORE?

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Does my bum look big in this?
• Lots of retailers have
experimented with virtual
mirrors and augmented reality
• Social proof is a powerful
support when shopping

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The boundary of a store is dissolving
• The humble shop window is a 24
hour, interactive digital shop
• And who needs an actual shop
window

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Inside, the definition of a store is changing
• Digital interaction, reduced
stock, cleaner lines are
becoming common
• The shop is the social space,
the theatrical space
• Handheld devices enable a
different type of customer
interaction

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Minority report is here
• Facial recognition has been
around for a while
• Footfall tracking can now
approach web-style journey/
dwell/conversion analysis
• Personalised, enriched
experiences differentiate

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Google Glasses
• All manner of issues around
communications and privacy
etc
• But adoption by sell-side
rather than consumers may be
earliest uses
– Fiat Brazil is using it for virtual tours
– Virgin Atlantic is also engaging with it

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WHAT DOES IT ALL MEAN
FOR ME?

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APPROACH PARTNERSHIPS DIFFERENTLY
1. With increasing uncertainty and
more need for flexibility and fail-
fast approaches, the risk-sharing
model need to change
2. Rather than long-term
contractual relationships, we can
expect a move to shorter-term
partnering

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BE AGILE
1. Architect for rapid adjustment
and learning
2. This is different from designing
for maximum flexibility
3. Root the foundations in
customer-centric thinking

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SOME CHARACTERISTICS OF NEW SUPPLY CHAIN LEADERS
1. Commercial and
entrepreneurial in nature
2. A change agent
3. Strong influencing skills
4. Operating cross functionally
5. Builds an innovation capability
6. Embraces a fail-fast mentality

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30. THANKYOU