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OVERCOMING CHOICE OVERLOAD – The New Realty of Supply Chain

SAN ANTONIO, TX – Two hundred supply chain experts have taken their seats to listen to Dr. James A Tompkins begin his keynote speech at the 2015 Tompkins Supply Chain Leadership Forum. Jim Tompkins, CEO, Tompkins International has begun to address the new reality of supply chain, Overcoming Choice Overload.

Many people regard choices as a good thing. But, one must realize too few choices begets discomfort or unhappiness and too many choices leads to confusion, regret of alternatives not taken, and second guessing. Today, the business world is more complex than it has ever been. Adaptation to the marketplace is required in order to be successful. Therefore, choices must be made.

Most companies are operating in an environment of choice overload. The mega-choices businesses are making to operate their supply chain will create greater success, status quo, or fail. Businesses must define what mega-choices need to be made, all involved must understand the choices being made, understand other businesses choices, and implement the choices correctly.

Dr. Tompkins suggests businesses need to make supply chain choices regarding; crossborder, omnichannel, customer centricity, and final delivery. Alibaba, Amazon, and WalMart have made these choices and continue to do so.

Crossborder is important. By the year 2020 the Asia-Pacific Region will have 48% of crossborder purchases leading the way. Clothing and footwear will represent 39% of online crossborder purchases while electronics will represent 26%. A wide selection is key.

Omnichannel is important and the data supports this. February 2015, Ernst & Young, “88% of all retailers say they can no longer rely on traditional sales channels to drive growth.” February 2015, Supply Chain Digest, “Business as we know it has changed forever with the advent of omnichannel commerce.” Question from WalMart Board Member: “How much time and money will our omnichannel efforts take?” Neal Ashe, President of Global eCommerce, WalMart response, “It will take the rest of our careers and as much money as we’ve got. This isn’t a project, it’s about the future of the company.”

Customer centricity is important, there is no business if you have no customers. Businesses must become customer driven. Businesses should be focused on customer satisfaction, customer service, customer experience, and the customer’s journey. Businesses need to place high importance on the conversations they are having with their customers. A reduction of customer friction leads to loyal customers.

Final delivery is important, the choices a business makes on final delivery will change their profit margin. Costs for international goods, actually begin at the import hub, and extend to the ultimate destination. This has to do with how shipments are de-consolidated, carriers routed, and then actual delivery. The costs for final delivery actually begin upstream, with the structure of the distribution network, the way in which consolidation / de-consolidation is conducted, and the efficiency of the modes and carriers in routing and scheduling from the import hub to the destination. If the correct choices are made final delivery will improve a business’s supply chain.

Choices must be made with respect to crossborder, omnichannel, customer centricity, and final delivery. Without making these choices businesses supply chains will flounder and fail. Steps must be taken right away or risk falling behind your competition.

About Tompkins International

Tompkins International is a supply chain consulting and implementation firm that maximizes supply chain performance and value creation. We enable clients to be more profitable and valuable, while also becoming more agile, flexible, and adaptive to the marketplace. Tompkins collaborates with client teams to develop improved operations strategies, supply chain planning, and execution across all the Mega Processes of supply chains (PLAN-BUY-MAKE-MOVE-DISTRIBUTE-SELL). Tompkins is headquartered in Raleigh, NC and has offices throughout North America and in Europe and Asia.

CONTACT:
Andrea Epstein
, aepstein@tompkinsinc.com

Twitter: @jimtompkins
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Creating Supply Chain Excellence Blog

In The Media

OVERCOMING CHOICE OVERLOAD – The New Realty of Supply Chain

SAN ANTONIO, TX – Two hundred supply chain experts have taken their seats to listen to Dr. James A Tompkins begin his keynote speech at the 2015 Tompkins Supply Chain Leadership Forum. Jim Tompkins, CEO, Tompkins International has begun to address the new reality of supply chain, Overcoming Choice Overload.

In The Media

The Customer Benefits Most from Walmart and Amazon, Christmas in July “Prime Day”

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This morning I read an article that addressed the use of forecasts and predictions to understand the future of retail. Although an interesting read, I take exception to understanding forecasts and predictions as one in the same.

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Here at Tompkins International we like the idea of Christmas in July. July is a slow sales month (after the summer season but before the Back-To-School season) and often retail supply chains are slow. So, boosting sales in July is a good idea and a July promotion may not only increase sales, but also offer an opportunity to clear out merchandise before products begin to arrive for the holiday season, leveling supply chain operations.

In The Media

Tompkins Supply Chain Leadership Forum 2015 Keynote Speech
The Change of Supply Chain is Rapid and Surprising

Join the Tompkins Supply Chain Leadership Forum 2015. This year’s keynote speaker Jim Tompkins, CEO, Tompkins International, will address the latest thoughts on supply chain practices. Jim was selected as the 2015 Frank and Lillian Gilbreth Industrial Engineering Award recipient by the Institute of Industrial Engineers, IIE. The award recognizes those who have distinguished themselves through contributions to the welfare of mankind in the field of industrial engineering. The contributions are of the highest caliber and nationally or internationally recognized. Jim has also fulfilled over 1,500 speaking engagement requests.

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Frank and Lillian Gilbreth Industrial Engineering Award

Dr. James A. Tompkins received the prestigious Frank and Lillian Gilbreth Industrial Engineering Award at the Institute of Industrial Engineers (IIE) Annual Conference and EXPO 2015 held in Nashville, Tennessee on June 1, 2015. This award is the highest and most esteemed honor bestowed by IIE. It recognizes individuals who have distinguished themselves through contributions to the welfare of mankind in the field of industrial engineering. The contributions are of the highest caliber and nationally or internationally recognized.

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The Alibaba Effect Video – One Year Anniversary

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

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The Age of Material Handling Systems Will Affect Business

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

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

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

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

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