In a report projecting $780bn in United States B2B e-commerce sales this year and $1.132tr by 2020, Forrester Research encourages companies to get to work now on a digital strategy for dealing with customers.
Chris and Tope Folayan, two brothers who grew up in Nigeria and attended college in the United States, founded MallforAfrica in 2013. Tope earned an M.B.A. from the Kellogg School of Management at Northwestern. After graduating, he returned to Lagos, while Chris remained in the United States. Their company makes it easier for Nigerians to place online orders for American and British products that are difficult to find in Nigerian stores and that online retailers don't offer directly to most African consumers because of troublesome customs duties and paperwork, shipping costs and the fear of fraud.
Analyst Insight: Speed is a game-changer. Leaders are enabling faster fulfillment and reaping real bottom line and competitive advantage benefits. The key is balancing potential revenue gain or service level improvement against the investment and operating costs required to deliver on the promise. Choosing the right strategy depends on understanding the impacts, not just within the distribution center, but across the entire organization. – Helgi Thor Leja, Industrial Distribution Leader, Fortna Inc.
Online shoppers around the world want the ability to search and shop on
multiple channels and devices, expect to see alternate delivery and payment options, and when it comes to shipping and returns, "free" is a driving factor to complete the sale.
Analyst Insight: The double-digit growth of the ecommerce channel is indisputable; yet, it's still only 6 percent of total U.S. retail spend. Amazon may seem like it's the 600-lb. gorilla, but it may just be Humpty Dumpty sitting on a wall. Omnichannel is certainly getting its share of hype. We believe connected consumer commerce will be a competitive mandate for bricks and mortar retailers. Are you ready for the disruptive changes to the rules of the game? – Rich Sherman, author and founder at Gold & Domas Research
Analyst Insight: The retail cut of the 2014 SCM World CSCO Study reaffirms that for most companies omnichannel is a major retail supply chain disruptor and that, for a few, progress has been made. Fulfillment changes have been driven by a desire for greater speed and agility. Battle lines are drawn between online and bricks-and-mortar supply chains. As omnichannel leaders look to move from walk to run, retail’s best weapon is harnessing demand data to make smart trade-offs. – Matt Davis, SVP Research at SCM World
Analyst Insight: Omnichannel commerce is the new "normal" for retail. And it's a tall order for most companies to achieve. You'll need an omnichannel road map that incorporates where you've come from and where you need to be based on your customers' expectations and your business strategy. – Joe Dunlap, Senior Director, Supply Chain Strategy, Fortna Inc.
Analyst Insight: The rise of omnichannel fulfillment and e-commerce is having a dramatic impact on distribution network design. As omnichannel fulfillment becomes the new normal for consumers, distribution and logistics professionals are increasingly reassessing their fulfillment networks, the attributes of their distribution facilities and the expectations placed on their partners. This reassessment is leading to more innovative fulfillment options, but uncertainty remains on the profitability of additional customer service solutions. – Barry Blake, Vice President, Research, SCM World
Analyst Insight: Consumer products companies are making far greater use of alternative sales channels than ever before. They are proactively reaching out to customers, whether in B2B or B2C environments, to gain share of mind and increase sales. Consumer products companies have also become much more active using their own websites and utilizing marketplaces as a means to increase their product's visibility and availability to potential customers. – Bruce Tompkins, Executive Director, Tompkins Supply Chain Consortium
Macy's Inc. plans to relocate its West Sacramento, Calif., direct-to-consumer fulfillment center to a larger facility in a nearby location to support continued sales growth driven by its omnichannel strategy.
