Nine Supply Chain Investments to Make in 2017
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1 Nine Supply Chain Investments to Make in 2017 Hosted by United States Fashion Industry Association (USFIA) & Amber Road, USFIA s Innovation Partner January 11, :00 P.M. Eastern/11:00 A.M. Pacific
2 Today s Speaker Gary Barraco Director, Global Product Marketing Amber Road
3 Do you have a question? During the webinar, all attendees will be assigned to listenonly mode. Please use the Questions box on your dashboard to ask a question during the webinar.
4 Nine Supply Chain Investments to Make in 2017 Wednesday, January 11, :00 PM EST Gary M. Barraco Director-Global Product Marketing Amber Road
5 Can You Hear Us? The broadcast has now begun Please use your computer speakers or headset to hear the audio If you do not hear any audio please let us know immediately Use the chat feature on the right side of your screen for communication All registrants are muted to reduce audio issues Please use the chat feature for any questions To connect to Audio: Click on the Audio button within the control panel on the right side of your screen
6 Focus for Today
7 Poll Question
8 Global Trade and Spending Trade growth remained weaker throughout the year Consumer spending is apprehensive Prolonged slow-down in manufacturing Global trade volumes are flat and decreasing Globalization is stalling
9 Supply chain jobs winners and losers Source: SCM World Report, Future of Supply Chain, November 2016 Source: 2016 Future of Supply Chain Study Individual votes top 3 countries selected n= s 1,179
10 The Dials on the Trade Compass are Spinning Which trade agreements might go into effect or be overhauled? How will employment respond to slowing global growth? Which industries might be impacted? Where is T-TIP and the EU? Where does Europe fit in and how will Brexit impact the EU? More or less global trade regulations, like REX or others? Are new trade deals going to focus on Western Hemisphere economies or will China still win with the new TPP or RCEP?
11 American spending Holiday /3 of consumers and ½ of parents started holiday shopping before Labor Day American spending was up 12% over last year 73% shopped online Thanksgiving through Cyber Monday online sales reached $12.8 billion Online sales went up 12% in the month of November compared to 4% from retail sales12%
12 e-commerce Overtakes Brick and Mortar
13 e-commerce is Just Commerce e-commerce will eclipse $3.5 trillion by 2020 Global B2C cross-border e-commerce will be $1 trillion in % of consumers have purchased goods from another country 48% of companies now do business in more than 50 countries 35% of companies realize more than half of their total sales from international markets e-commerce sales will outpace brick-and-mortar sales growth by a more than 3-1 margin
14 December Stats: In-Store vs Non-Store
15 Retailers Closing Up Shop
16 Supply Chain Risks and Fears Natural disasters (weather, Zika virus, etc.) Terrorist attacks Growing exposure to differing and global regulatory requirements Increasing complexity in supplier landscape Geopolitical instability in Northern Africa, the Middle East and other regions Global cargo theft continues to grow in Brazil, China, Germany, India, Mexico, South Africa and the United States
17 Logistics and Transportation The global shipping industry is bracing. Labor shortages are adding costs. Trucking companies are hitting regulatory roadblocks. Consolidation and turmoil for transportation and logistics providers continues. 42.4% of the world s container shipping capacity is held by the top three carriers. The commodities downturn is hitting the rail industry hard.
18 Logistics Strife Continues Worst performance since 2009 Volumes are likely to remain flat Consolidation may reduce price undercutting Lack of trucking capacity is an issue Increase in diesel fuel prices Additional regulatory controls Rail shipping demands are extremely low Coal, metal and equipment business especially Engines are being parked and workers furloughed
19
20 How to be confident? Cost Management Risk Management
21 GTM Solution Supply Chain Visibility What? A single central solution providing real-time visibility to all cross-border transactions How? Software that integrates information to/from your global trading partners Maps supply chain events to transactions visibility at the purchase order, sales order, and/or product level Why? Capability to easily switch trading partners if required flexibility to deal with unforeseen issues Pro-active alerts to supply chain issues ability to better handle unforeseen interruptions Better predictability results in leaner operation
22 Supply Chain Visibility - Example Issue A global ocean carrier suddenly falls into bankruptcy protection and no ports will allow their vessels to dock. Action By leveraging a GTM Supply Chain Visibility solution, the stranded inventory can be quickly identified and alternate plans can be made.
23 GTM Solution Supplier Collaboration What? A software platform which centralizes supplier supply chain information and communication as well as automates the execution of sell-side transactions to the global consumer market How? Software which replaces traditional supplier interaction (spreadsheets and s) with a centralized, cloud-based solution Execution software that can process export transactions in an automated fashion Why? Faster communication between buyer and supplier Collaboration with 3rd party testing companies Speed to market for new products critical for retail Detailed total landed cost information to consumers happier customers
24 Cross-Border e-commerce - Example Issue It takes too long for a fast fashion retailer to coordinate the buying process with their suppliers. They are constantly struggling to get the product from design to store before the fashion cycle changes once again. Action A GTM solution can streamline the process by centralizing the critical supply chain information including product specifications, work-in-progress events, and testing results. The overall cycle from design-to-store is reduced by 50%.
25 GTM Solution Global Trade Regulations What? Access to comprehensive and timely trade regulatory information and updates, with ability to automate the export and import supply chain transaction. How? Technology, process, and team dedicated to maintaining global trade regulatory content and integrating that content with software automation to enable efficiency. Why? Freedom to trade compliantly Efficiency process by exception
26 Global Trade Regulations - Example Issue Customers are returning their purchases at an alarming rate due to higher than expected duties, taxes, and fees. Action A GTM solution can automatically determine the total landed cost of a cross-border purchase, including logistics and import duties/taxes and those costs can be presented to the consumer before they add the goods to their shopping cart.
27 GTM Solution Data Analytics Cost Management What? Ability to turn data into insight relative to the global supply chain. How? Software platform that collects, persists, and normalizes all crossborder product, partner, and transaction data in a central location, and provides the capability to slice and dice this information as needed. Why? Identify opportunities to reduce costs / increase margins Identify opportunities to reduce/eliminate compliance risks Create permanent feedback loop for efficiency gains
28 Data Analytics - Example Issue Competition is heating up with an automotive supplier. Pricing pressures are affecting business, but management wants to maintain margins. Action A GTM solution data analytics solution can help identify opportunities for cost savings in areas like supply chain bottlenecks, duty reduction, and transportation spend.
29 GTM Solution Supply Chain Agility What? We don t know the next factor or change which will affect our global supply chain. How? A single centralized GTM software platform can provide the flexibility to be able to react quickly to both micro and macro events/trends Why? Visibility, flexibility, and access to critical information are the keys to global supply chain agility and can turn a reactive supply chain operation in to a predictive one
30 Implementing the Key Capabilities Achieving Greater Visibility and Agility Enabling Cross-Border e-commerce Automating for Greater Efficiency Meeting Regulatory Compliance in a Changing Environment Collaborating with Multiple Tiers of Suppliers Proactively Managing the New and Old Risks Decision-Making with Analytics and Dashboards Managing Cost to Serve
31 Q&A Gary Barraco Director, Global Product Marketing Amber Road
32 Contact Amber Road: GTM Best Practices Amber Road, Inc All rights Amber reserved. Road, Inc. Proprietary All rights and reserved. Confidential. Proprietary and Confidential.
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