Omnichannel requires different supply chains to drive success in each channel. One Size Does Not Fit All. This is global event. Across industries and markets. And it is constantly changing. View the New Supply Chain Elements and Essentials. And more. For manufacturers and retailers.

1. Omnichannel / Selling Duality &
Supply Chain Duality
Tom Craig
tomc@ltdmgmt.com

2. Introducing LTD Management
 Logistics/supply chain
management consultancy
 Based on real-world
experience
 Experience brings authority
to clients
 Provide
 Strategy
 Operations
 Implementation
 Capabilities
 Transportation
 Inventory
 Supply chain design
 Performance improvements
 Solutions That Work
2

3. 3

4. 4

5. Growth
5
Growth from
$31B in 2018
Forecast at
$120B by 2025
Growth from
49M users in
2015
To 150M

6. One Size Does Not Fit All
• New Reality
• Omnichannel sales /
Selling Duality
• Power shift / Different
channels with different
requirements
• No commoditized, generic
SCM
• Require supply chain
duality
• Segmentation
6

7. It is all about
• Customer expectations
• Order delivery performance
• Order delivery speed
7

8. Differences—Store vs Online
1) Stores
2) No stock outs
3) Cases
4) Warehouse layout for cases/
pallets (Height & Labor)
5) Warehouse alignment—fewer
6) Stop and start
7) Standard use of outside
logistics providers
1) Individual customers
2) Perfect Order
3) Eaches
4) Warehouse layout for eaches
(Horizontal & Tech)
5) Warehouse alignment—more
6) Flow
7) New role with velocity & bring
logistics in-house (Reverse
Outsourcing)
8

9. Order Delivery
 Customer expectations increasing
 Order Delivery Velocity=transfer order to warehouse +
order pick/prep + shipping. Add customs clearance if it
is cross-border.
 What is your order delivery velocity performance? If you
do not know, why are you selling online?
 Talk about your order pick/prep
 Your last mile logistics provider and its performance
 Customs
9

10. New Supply Chain
 Supply Chain
Management
 Strategic
 Weaponized
 End-to-end velocity
 Upstream/Downstream
 Inventory speed
 Order Delivery speed
 Not fulfillment (pick and
ship)
10

11. Elements
 Inventory velocity
 Time compression
 Extend upstream
 Advanced process and
technology integration
11

12. Essentials
Process
Technology
Structure/organization
End-to-end velocity
Metrics
Network
12

13. Technology
 End-to-end integrated visibility (more than track and trace)
 New techs impact supply chain management and logistics
 Drones, driverless trucks, digitalization, blockchain,
augmented reality/virtual reality /3D, IoT, analytics
 How to do it—new reality needs new organization: Meld SCM
and tech, not project teams
13

14. Metrics
 Perfect Order
 Customer
 Store restock
 Supplier
 Inventory
 Turns
 Number of Days
14
MM
How are you doing with these
best company metrics?

15. Inventory Rich AND Out of Stock
 Finished goods
 WIP
 Raw Materials, components,
assemblies
 Inventory In Transit
15
 Working capital
 Lost investment
opportunity cost
 Cash burn
 Missed revenue yield
maximization
 Product substitutions/stock
out
 Customer failure

16. Challenges
 The 4 walls versus outside.
 Much focus downstream. Supply of Supply chain
management begins upstream
 Redefining the role of transport/logistics (including
customs for cross-border trade)
 How do ERP systems handle omnichannel with its supply
chain duality that drives success?
 How do ERP systems deal with the new business reality
of end-to-end velocity?
16

17. Manufacturing
 Have big challenge
 Adapt to customer velocity
 Requires velocity and flow
 Manufacturing built on stop
and start
 Requires elevating lean
requirements when so
much lean potential is in
the Supply Chain & outside
the 4 walls
17

18. Transform Your
Supply Chain
Understand complexity
Supply chains within supply chains
What is happening
Where are you/Assess
Where are you going
How to get there
18

19. Last Mile & Reverse Outsourcing
 Misdirection
 Customer expectations
 Place in order delivery
 Type of product
 Logistics cost vs Supply
Chain performance for
Order Delivery Velocity
 Reverse Outsourcing
19

20. Comment—Your
online supply chain
• Copying lacks detail
• More commoditization
• Trying to copy what someone
else does is not a strategy
• Original—designed for your
customers, markets, and
requirements
• Tipping point
20

21. Side Question
Logistics providers, in the new reality
with strategic, weaponized end-to-
end Supply Chain Management, how
do you transform without
understanding SCM and your new
role?
SCMaaS 3PSCM
21

22. Conclusion
 Talking about a global supply chain revolution, not evolution
 Your Perfect Order failure AND Stock Outs—impact on your brand value and
integrity
 Moving to one day and same day order delivery velocity. If you cannot do it,
someone else will. Customers have power.
 The projected growth of e-commerce requires end-to-end supply chain
velocity. For country after country around the world. In country & cross
border. If your supply chain lacks velocity, you will be left behind. Does it
lack the needed speed? What are you doing about it?
22

23. Think about
Retailers, Manufacturers, Supply
Chains, & Logistics share a
commonality.
Many are too tied to where they
are instead of where they are
going in the New Reality.
That is not good for their futures.
23

24. FREE
 How do you view your supply
chain? Take the free Supply
Chain Management Self-
Assessment. See your score
and what it means.
 E-book: The New Reality—
Omnichannel, New Selling,
and the New Supply Chain
 Both at www.ltdmgmt.com
24