New reality is about selling with multiple channels to reach customers who have high expectations while enjoying convenience. Success is driven by the strategic, weaponized supply chain. Multiple channels need supply chain duality. One size does not fit all. E-commerce is a global market. It is about order delivery velocity, as stores are about no stock outs. New supply chain with its elements and essentials.

1. Omnichannel and
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
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3. 3

4. 4

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

6. Start
 Retail has become
omnichannel
 Power with customers
 New reality
 Supply chain duality
 New supply chain
management
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7. One Size Does Not Fit All
• Dual (omni / multi) sales
channels
• Require supply chain
duality
• Different channels with
different requirements
• No commoditized SCM
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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)
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9. It is all about
• Customer expectations
• Order delivery performance
• Order delivery speed
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10. 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
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11. New Supply Chain
 Supply Chain
Management
 Strategic
 Weaponized
 End-to-end velocity
 Upstream/Downstream
 Inventory speed
 Order Delivery speed
 Not fulfillment
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12. Elements
 Inventory velocity
 Time compression
 Extend upstream
 Advanced process and
technology integration
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13. Essentials
Process
Technology
Structure/organization
End-to-end velocity
Metrics
Network
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14. 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
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15. Metrics
 Perfect Order
 Customer
 Store restock
 Supplier
 Inventory
 Turns
 Number of Days
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MM
How are you doing with these
best company metrics?

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

17. 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?
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18. Manufacturing
 Have big challenge
 Adapt to customer velocity
 Requires velocity and flow
 Manufacturing built on stop
and start
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19. 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
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20. Last Mile
 Misdirection
 Customer expectations
 Place in order delivery
 Type of product
 Cost
 Logistics cost vs Supply
Chain performance for
Order Delivery Velocity
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21. 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
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22. 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
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23. 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?
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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
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