Tag Archive: disruptor

The Amazon Effect is Still Going Strong!

July 1st, 2019

The Amazon Effect remains top of mind with CEOs. Whether they compete directly (which is less than 1% with my clients), supply or distribute for Amazon (which is a slightly higher percentage) or are just impacted by the Amazon Effect, it is a major source of concern and/or opportunity. Have you thought about what Amazon is doing lately and how it might impact your business? Better yet, have you thought about becoming the disruptor?

Here are a few of the latest headlines about Amazon (all in the last few days):

  1. Kohl’s will accept Amazon returns across the board starting in July – The pilot programs in Los Angeles, Chicago and Milwaukee have been successful. Kohl’s and Amazon see this as a win-win.
  2. Amazon announced that one-day free shipping will be the standard for Prime members – It is very hard to go backwards once you get accustomed to a new level of service. All organizations watch out!
  3. Amazon is interested in buying Boost from T-Mobile and Sprint – There is no telling what Amazon is thinking of disrupting next.
  4. Amazon seems to be saying it isn’t a retailer – It appears as though the threat of Amazon purging thousands of smaller vendors from its core business is coming true. Stay tuned…
  5. Amazon makes a big splash in the travel industry – In India, Amazon will offer flight booking services.

Amazon gets a ridiculous number of headlines. In the interim, one of the last Sears stores in Phoenix had a massive closeout sale recently. Sears used to be the Amazon of the times 50 years ago but lost its way with a few strategic missteps and lack of innovation. Waiting around for Amazon to determine your course is not a wise move. Instead, think proactively about your strategic advantage and how you’ll get out in front of the crowd.

Think about what Amazon and other competitors do not do well.  Find a way to capitalize on these opportunities. Of course, you’ll have to adhere to the new model of doing business – rapid deliveries with short lead times and high tech opportunities.  Find what is unique to you and your product or service and drive differentiation in your market segment.

We find that there is significant change occurring across the board. Perhaps the reason some companies are vertically integrating is to do what Amazon cannot do completely at this point: take control over the complete supply chain. Amazon seems to be pursuing this strategy as well when it comes to transportation infrastructure although last mile delivery is quite the challenge. If you’d like to get an assessment of your business and profit opportunities as it relates to the Amazon Effect, please contact us.

 

Did you like this article?  Continue reading on this topic:

UGG Founder, the Amazon Effect in Healthcare & Why Demand is Key

The Resilient Supply Chain: What If You Sell More?

 

2019 Predictions Document

Find out how pricing relates to 2019’s predictions. If you missed our 2019 Predictions Document, download yours here:

 

 

Do You Have a Resilient Supply Chain?

Do you have a resilient supply chain? In today’s disruption-intensive business environment, a resilient supply chain is a “must”!

Find out how to navigate disruption and achieve peak performance.

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The Value of Collaborating with Strange Bedfellows

February 19th, 2019

The topic of collaborating with strange bedfellows has recently come up repeatedly. There can be significant value and strategic advantage created in collaborating with unlikely partners if there are clear objectives, trust and an open mind. Just think about Amazon’s collaboration with the U.S. Postal service. Amazon is clearly famous for rapid, same-day, even Sunday deliveries whereas the U.S. postal service is definitely not known for agility and speed yet they understand and are proficient with the ‘last mile’.

Kash Gokli & I host the Harvey Mudd executive roundtables, and the topic of collaborating with competitors as well as unlikely partners arose in our recent roundtable. In the ‘right’ situation at the ‘right’ time, it can maximize service and value. Also, I am a Board member of the Inland Empire Economic Partnership and member of the Southern CA Logistics council, and this topic of collaboration has come up on multiple occasions. We recently led a collaboration session with 10 academic institutions. Of course, they all compete from several respects yet there are opportunities for 1+1+1 = 25. And this is just the beginning. When it is put together with collaborations with industry and government, perhaps 25 can turn into 100 or 1000. Last but not least, I met with UCR students last night to encourage their involvement in manufacturing and supply chain and invite their participation in APICS-IE. We had this exact conversation about collaborating with their competitors (Cal Poly Pomona, CSUSB etc.).

Are you exploring collaborations with strange bedfellows?

One tip to implement this week:
Perhaps it is as simple as opening your mind to new possibilities. Think about the person or entity you would most want to avoid joining your collaboration. What if you gave it a chance? For example, I remember a distinct time a few years ago when I was involved with a group. Someone in the group brought up a new member who would be the last person I’d want to join our group. I felt like I was collaborating with a diverse set of people, and we were making great progress. I just didn’t like this person. Although I didn’t say it, I cursed my bad luck on the way home because I just wasn’t excited about collaborating.

Fast-forward several months and it turned out that the new participant added unique value that probably would not have occurred otherwise. Although I still wouldn’t want to have dinner with this person outside of our work together, I’m glad I gave it a chance or I would have missed out on fantastic benefits and a learning opportunity. We have all been there, and sometimes we are right to be hesitant. Can you achieve a shared goal? Is trust possible as it relates to the objective? Assuming so, I vote for exploring the opportunity. Perhaps it is the next Amazon/ U.S. Postal Service collaboration.

Collaboration goes hand-in-hand with resilience. In today’s marketplace, there is no doubt the resilient will thrive. If your key supplier or customer is devastated by a natural disaster, power outage or unexpected shutdown or other disruptor, have you thought about collaborating with strange bedfellows to serve your customers? You cannot wait until the issue occurs! Creating a resilient end-to-end supply chain is of paramount importance.

For more information, check out our new resilient supply chain series and contact us if you’d like to have an assessment of your organization.



How Resilient Are Your People?

January 17th, 2019

We would be remiss if we went too far down-the-path with supply chain resiliency without pointing out that the ONLY way you’ll have a resilient supply chain is if you have resilient people.  Similar to building a house, without a solid foundation, the best accessories will fail to “hold up” over the long haul without that solid foundation.  Your team is your foundation.  Would you be willing to have your business hang in the balance if your team’s ability to “hold it up” would make or break success?  Hopefully so!

Here are a few questions to think about to determine how comfortable you are with your foundation:

  • If your competition offered your employees slightly more money, would they jump ship without much thought?
  • Are your people willing to take a risk if they know the decision will help move the company forward?
  • Are your people willing to disagree with you?
  • Are your people willing to try new ideas, even if they fail?
  • If a customer presses your people about an issue, will they blame it on “them” or will they take responsibility to resolve the issue quickly regardless of whether it has anything to do with them?
  • If changing market conditions dictate they should follow a new course that isn’t popular or approved, will they bring it up?
  • What do they say to your customers and suppliers when you aren’t listening?

Every executive at our Harvey Mudd executive roundtables and on the APICS-IE executive panel pointed out the relevance of culture and your people on business success.  Technical topics are abuzz but the REAL buzz is who has the strongest team as they will speed on by the competition and be the most resilient as the economy turns, the industry changes, a disruptor emerges etc.  With this fresh perspective, it pays to think again about your team and the priority you give it.



The Resilient Supply Chain: Are You the Disrupted or the Disruptor?

November 1st, 2018

At the Association for Supply Chain Management’s (ASCM/APICS) International Conference, almost every presenter mentioned disruption.  It is prevalent in today’s Amazonian, technology-ridden environment.  

Similarly, after attending APICS, I flew to lead the annual meeting for the Society for the Advancement of Consulting. During the first lunch, my colleagues spent the entire time discussing disruption.  One (a former Apple executive) lives it daily and coaches executives on disruption.  Another is a leadership expert who sees the significance and is writing a book on disruptors.  Interesting!

In the interim, we have dealt with a few client challenges – guess what?  You got it. They relate to disruption! And last but not least, the next leg of my trip was entirely about disruption.  Technology has the potential to vastly impact manufacturing and distribution jobs, so it makes a lot of sense to find a proactive approach instead of playing the victim.  

According to a proactive CPA partner, artificial intelligence (AI) is going to transform the industry.  According to a healthcare expert, it has vast potential to disrupt the healthcare industry. Gartner thinks 33% of all occupations will be performed by smart robots by 2025.  Forrester Research says AI will take over up to 16% of jobs in the U.S. And, if that wasn’t shocking enough, Google thinks                                                                     robots will achieve human intelligence levels by 2029.  

So, do you want to be the disrupted or the disruptor? We choose disruptor!

Since I had lunch with two disruption experts, I asked the critical question:  Can we learn to become a disruptor? The great news is that it is possible! Start paying attention to disruptors.  What do they do differently? What would you like to emulate? You don’t have to do exactly what they do. Find your own path but look for commonalities.  One of our colleagues is writing a book on this exact subject. When it comes out, we’ll pass it along.

In the interim, start asking a few questions….