The Biggest Day For Amazon In 2017 Is Not Amazon Prime Day

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Published July 11, 2017

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Jim Tompkins, CEO of Tompkins International and MonarchFx, supply chain and retail operations strategy expert, reveals the eight truths of retail success in his latest white paper, Food Fight: Discovering Eight Truths of the New Era of Retail.

Today is what many report as being the biggest day of the year for Amazon, Amazon Prime Day. However, according to Jim’s newest white paper, the biggest day for Amazon in 2017 will go down in history as being June 16th, when Amazon announced the purchase of Whole Foods.

The acquisition of Whole Foods by Amazon is discussed throughout the paper to illustrate not only where grocery is headed, but even more important, where retail is heading and what needs to take place going forward in order to be a successful retailer.

Food Fight: Discovering Eight Truths of the New Era of Retail will guide you through the Bricks vs. Cliques era to the new era of Bricks AND Cliques.

The foundation for Amazon’s growth model to date has been the realization that forward deployed inventory on a massive scale produces unit delivery costs that are lower, shipping distances that are shorter, and customer satisfaction that is higher. The real genius behind Amazon’s model was the insight that turning its supply chain infrastructure into a collaborative platform, Fulfillment By Amazon, and offering its functionality to other eCommerce sellers, it scaled so big and so quickly, that no other online retailer could match its shipping speeds, service levels, and unit costs. Greater volumes drive lower costs and lower prices, thereby attracting higher volumes.

The challenge now for retailers who choose not to work with Amazon is how to tap into the power of the “Amazon Growth Model”. It is clear no retailer themselves can compete with the Amazon post clique logistics ecosystem. Therefore, what is needed is a collaboration of retailers, brands, and marketplaces working together as one. A collaboration model has been developed and is rolling out these capabilities for Holiday 2018. This model is The MonarchFx Alliance.

The MonarchFx Alliance is the only post clique logistics ecosystem that will work in conjunction with an already in place retailer’s post clique logistics network, offering the speed of delivery of Amazon at an operating and capital cost significantly less than the cost of doing one’s own post clique logistics.

The Amazon growth model has run into a real road block with grocery. Pantry works well with the traditional Amazon growth model, but it does not work for fresh. Fresh requires stores. Amazon has jumped into the deep end of the Bricks AND Cliques pool with the acquisition of Whole Foods.

This is the beginning of the era of new retail, retail innovation, a new shopping experience, game-changing demand-driven replenishment, an Each supply chain, and the beginning for Amazon of Bricks AND Cliques. This new era will place the customer in charge of the Unichannel to enjoy the exploration and experience of shopping while maximizing convenience, value, and selection. This new era of retail will drive retailers’ success and profitability.

To learn more about the eight truths of retail success, download our new white paper: Food Fight: Discovering Eight Truths of the New Era of Retail

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I understand that Tompkins will only use this information to contact me about business opportunities. By completing this form I am confirming that I have read and accept the Privacy Policy.