Newsroom

Newsroom

The Latest

The Future of Retail in a Globalization 2.0 World – The Four New Roads to Growth and Profit

Jim Tompkins, CEO, Tompkins International
Michael Zakkour, Principal, Tompkins International

Globalization 1.0 was born in the 80’s, matured in the 90’s and peaked in the early 2000’s. The era was marked by “made in Asia,” the growth of the BRIC economies, wealth residing in the West, the birth of the Internet and the maturation of local, regional and global supply chains.

More importantly the era gave birth to three MEGATRENDS, the rise of China first as a manufacturing hub and then as a market, the exponential growth of e-commerce and the development of the advanced globally integrated supply chains.

It was a great time to be a retailer as cheap goods from Asia, hyper-consumption in the US and the new markets opening = rapid expansion and big profits.

All of that is over now. Retail has experienced major disruptions over the last five years. These mega-trends have melded together to form a single new MEGATREND — Globalization 2.0 – and this has completely changed how retailers and brands must operate and how they must approach making, moving and selling consumer products.

Globalization 2.0 has largely shattered close to 100 years of retail and consumer product manufacturing, operations, sales, marketing and supply chain structures, closing down the old routes to growth and profit while opening new ones. Not everyone understands or has accepted that the rules of the road have changed.

If you are a retailer or consumer product brand Globalization 2.0 means you not only CAN but MUST be able to “make/buy it” anywhere, “move it” anywhere, and “sell it” anywhere.

Globalization 2.0 has found its purest expression in the birth of global disruption twins, Amazon and Alibaba. They look the same but have different personalities. Amazon and Alibaba are changing the face of global retail.

They are the poster children for a 2.0 world. Jeff Bezos and Jack Ma both run companies that are supply chain focused, that have cool tech interfaces and who rely on China as a factory and market. In their own ways they have blown up the old rules of retailing and branding as much as big box retailers and warehouse stores did a generation before them.

Both companies have used the 2.0 foundation to influence every aspect of global retail, branding and merchandising. Changing how all brands need to operate. In fact, their older brother, Wal-Mart finds itself suddenly having to learn some new tricks from their little brothers.

In this 2.0 environment US and European retailers and brands have four new roads they must follow in order to grow and be profitable.

ROAD I – Reframe Your Business for a 2.0 World

This means asking three big questions:

  1. Where should I make it?
  2. Where and how should I sell it?
  3. How should I deliver it?

Globalization-2.0

Wealth has shifted to the East. Emerging markets have become linchpins of consumer culture. Advantages and disadvantages of low cost country manufacturing are shifting faster than they used to. Supply chain strategy, product agility and visibility have become critical to success.

Retailers and brands must ask themselves, how do we reset our “make it, sell it, move it” strategies in a 2.0 world?

While the answer will be different for every retailer and brand it will usually involve shifting to a model that accounts for:

  1. A mix of Asia, Latin America and the US for production and sourcing
  2. A mix of Asia, Latin America and the US as growth markets
  3. A new mix of hyper-localized supply chains integrated with an Omnichannel and e-commerce focus on regional and global networks

Globalization-2.0

Click here to keep reading.

Articles

The Future of Retail in a Globalization 2.0 World – The Four New Roads to Growth and Profit

Jim Tompkins, CEO, Tompkins International
Michael Zakkour, Principal, Tompkins International

Press Release

The Age of Material Handling Systems Will Affect Business

RALEIGH, NC – Many material handling systems used today are beginning to show their age. What were once considered brand new systems are now deteriorating and fighting to stay current. With information collected in a recent survey to retailers, manufacturers, wholesalers, and third-party logistics firms, Tompkins Supply Chain Consortium is able to provide important data regarding the age of material handling systems.

Articles

Maximizing Profitability through Best-in-Class Channel Management

Jim Tompkins, CEO, Tompkins International
Lisa Kennedy, Project Manager, Tompkins International

Press Release

Retail Backrooms Are the Secret to Omnichannel Success, Says Tompkins International

White paper explores new role of retail backrooms & their unforeseen value

Press Release

‘Responding to the Alibaba Effect’ Keynote Kicks Off Supply Chain Leadership Forum

Jim Tompkins Reveals New Insights on Omnichannel and Alternative Channels

Press Release

Gary Church Joins Tompkins International as Vice President, Strategic Initiatives

New position will help advance clients’ growth and customer satisfaction goals

Press Release

Will New E-commerce ‘Darling’ Flipkart Threaten Success of Chinese Giant Alibaba?

Retail supply chain and logistics expert Jim Tompkins weighs in on latest news

Press Release

The Alibaba Effect: What It Means for All U.S. Businesses and How They Need to Respond

Expert Jim Tompkins Releases Video, Predicts Surging Growth of Alibaba

Press Release

Nashville to Host 2014 Tompkins Supply Chain Leadership Forum

August 25-27 Event Offers Exclusive Networking Opportunities & Hot Topic Sessions

Press Release

New Industrial Distribution Report Features Expert Interview with Jim Tompkins

Integration Leads to Reduced Costs & Improved Customer Service, According to Tompkins Supply Chain Consortium

Press Release

New Survey Says Alignment of Supply Chain and Business Strategies Is Critical to Success

Integration Leads to Reduced Costs & Improved Customer Service, According to Tompkins Supply Chain Consortium

Press Release

SME Student Members Find Energy & Cost Savings for North Carolina Manufacturer

The Society of Manufacturing Engineers (SME) recognized several student members for conducting a cost-saving energy assessment, including Wendy Johnson, who is now an associate consultant at Tompkins International. Johnson is a member of SME’s North Carolina State University professional and student chapters.

Read the press release here.

Press Release

New Report Unveils Top 5 Transportation Issues Expected in 2014

Tompkins Supply Chain Consortium Explores Emerging Transportation Challenges

Press Release

Kelly Reed Recognized as ‘Pro to Know’ by Supply & Demand Chain Executive

Executive Vice President at Tompkins International Among Honorees for Supply Chain Leadership

Press Release

Tompkins International Releases New Guide to Goods-to-Person Order Fulfillment

Distribution Operations Can Gain Higher Payback from Latest Technology

Press Release

Secret to Successful Operations Strategy Is Alignment with Business Strategy, According to Tompkins International

New Paper Explores How to Build Bridge Between Strategy and Performance

Press Release

Tompkins International’s Kelly Reed Appointed to MHI Roundtable of Industry Experts

Read announcement from MHI here. (on MHI.org)

Press Release

Personalized, Multichannel Logistics Allows Companies to Customize Fulfillment and Delivery

New Tompkins International Paper Reveals How Your Supply Chain Can Meet Needs of Multichannel Consumers

Press Release

Investing Available Capital in the Right Supply Chain Initiatives Creates Operational Value

New Tompkins International Paper Discloses Ways to Employ Available Capital Wisely

Press Release

E-commerce Surge Requires Flexible, Customer-driven Fulfillment Centers

New Tompkins International Video Reveals Strategies to Meet Boom in Online Ordering