Tag Archive: Kohl’s

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.

 

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Collaboration in the Supply Chain

May 31st, 2018

To succeed in today’s Amazonian environment, we must keep strange bedfellows.  We just love the Amazon example of innovation – partnering with the U.S. Postal service – known as one of the least-innovative organizations out there.  But it works! Who ever thought you’d see a U.S. postal service mail truck delivering on Sunday for Amazon?

cross-functional teams

 

At the Southern California E-Commerce and Logistics Summit, there were several intriguing collaborations:  

  1.  Union Pacific and BNSF Railway – Although there was a healthy competition over resources (not surprisingly since both are experiencing a skills gap), there was also much collaboration over issues.
  2.  The AQMD and Staunch Opponents of Indirect Sourcing – Although there is little compromise in the widespread concern over indirect sourcing, there were panelists who are working to bridge the gap.
  3.  Political leaders and Business Owners – Working together for progress, even with the distractions and disruptions that occur on a daily basis.
  4.  Amazon and their Latest Partner – Doesn’t it seem like there is a new intriguing partner announced every week.  Kohl’s could be considered a foe but partners for win-win results but it is ‘old news’.  Recently, Amazon announced another competitor partnership with Best Buy. Who will be next?  Are you thinking about how to partner with competitors?
  5.  Technology companies and all others – In the era of data and technology, people like Google, Microsoft and Apple are collaborating with everyone – car companies, IoT devices and machinery manufacturers, systems providers and many more.  

Are you taking a hard look at your collaborations and partners?  Perhaps take a more innovative approach to what you might have “assigned” to procurement last year, so you’ll be around next year.