Wednesday, December 23, 2009
Supply Chain and Logistics Predictions for 2010
We also estimate that IBM has grown its revenues in this area to over $10 million in three years, despite not offering a core DSR database product. And now Oracle has entered the market, and we expect the company to generate at least $10 million dollars in DSR-related revenues in the next five years. (i2, IBM, and Oracle are all ARC clients). Based on these factors, it's hard to imagine this still immature market not growing by a very health margin again next year.
Also look to Bluesky Tech - They have a killer app for FMCG
Google continues to roil the supply chain technology market: As I highlighted in a recent post, Google has shaken up the GPS and navigation industry with some recent announcements. Google is developing a map database to compete with the routing and navigation maps provided by NAVTEQ and Tele Atlas. The company also announced it is offering a free turn-by-turn (TBT) navigation app with its Android 2.0-based smart phones. I don't expect these to be the last announcements that surprise logisticians. I expect Google to continue investing in mobile technologies, in free cloud-based applications, and in other new areas designed to rattle its mortal enemy Microsoft. Google's primary focus is serving the mass consumer market, not providing logisticians with new solutions. Nevertheless, I expect to see more solutions based on Google technologies come to market in the supply chain arena.
Going Green: With the USA EPA ruling earlier this month that CO2 and other greenhouse gases are a danger to public health, thus giving it the power to regulate CO2 emissions under the Clean Air Act, some form of legislation from Congress is arguably the better poison for companies to swallow. The clear winners at this point: software vendors offering "carbon information management" solutions (see "Managing Carbon: A Green Opportunity for IT" and click here to read all our postings this past year related to sustainability).
Tuesday, December 22, 2009
The State of the Retail Supply Chain
The Retail Industry Leaders Association and the supply chain faculty at Auburn University recently published a report called "The State of the Retail Supply Chain." The research results are based on interviews with Senior Vice Presidents, Vice Presidents, and Directors from 45 large retailers headquartered in North America, including many retail organizations respected for their supply chain capabilities.
Wednesday, November 18, 2009
Multi-Channel Retailing
What is Multi-Channel?
Retailers traditionally maintained a single department, offering sales and support via a single mode of customer interaction like the physical store. Over time this has expanded to include multiple ways of selling to, engaging, and interacting with the customer, primarily via mail, catalogue and telephone.
Advancing technology however, has led to a number of new ways of inter-personal interaction like the internet, mobile phones, and interactive TV; and as these embed deeper into social culture, subsequently new channels for offering product and service.
Multi-Channel then refers to the delivery of customer propositions via multiple channels with at least some degree of cross channel integration in management, information and service, i.e. in a consistent and coordinated way across all channels.
Complete integration and sharing of information and experience across all channels is now being referred to as Merged-Channel retailing, but that's a story for another paper. If you want to know more, have a look at my paper on The High Street 2.0, which is about merging online and offline customer experiences.
Drivers
While emerging technology has been a key enabler, multi-channel growth is essentially driven by consumers. According to Shop.org, 34% of consumers today use at least three channels when shopping. Research has found them to spend up to 10 times more, to generate 25 to 50% more profit and demonstrate greater loyalty than their single-channel counterparts. The core driver then is customer demand.
The other major driver is cost saving through efficiency and effectiveness. Managing channels separately may not only impair customer relationships but also result in cost increases resulting from running separate order-management and customer service operations, multiple warehouses and fulfilment systems, and buyers and merchandisers duplicating effort across the different channels.
Multi-channel is also driven by strategic competitive advantage and differentiation opportunities, and regulatory pressures around ensuring that all customers are able to access products and services on offer.
Benefits
There are a huge number of both organizational and customer related benefits to be gained from implementing a multi-channel strategy. Here’s a few:
Organisational Benefits
• Increased revenue and growth opportunities – more touch points into target market
• Better responsiveness and sensitivity to changing environments
• Competitive advantage over pure-plays particularly around immediacy, education opportunities for complex products and easy e-merchandise returns.
• Organisational efficiency and effectiveness opportunities through sharing of processes,
technology and information
Customer Related benefits
• Better and wider customer interaction with a greater variety of information available for improved understanding of customers and identification of opportunities for increasing value per customer (business intelligence)
• Increased customer loyalty through better understanding of customers
• Better customer experience reducing churn and increasing loyalty
• Opportunity to leverage and improve brand perception
Customers themselves also benefit from increased choice in interaction opportunities and the ability to switch channels as convenient.
Challenges
I'd argue that the underlying success factor in multi-channel retail from an external perspective is a seamless customer experience, and from an internal perspective is a single customer view – different sides of the same coin. Most of the challenges to any retailer appear to stem from attempting to achieve this.
The two key areas of impact here are technological and organizational dependent on retailer age and size. The older the organization, the more likely they are to have legacy systems, and the larger they are, they more likely they are to face resistance to change. Multi-channel may therefore require integration of disparate technologies, while also needing a complete review of structure, skills, staff incentivisation, and a host of other business and marketing processes.
The 5 main challenges faced by similar retailers entering the multi-channel space are as follows:
1. Evaluating cost of investment in development of cost effective, secure, scalable environments and systems integration against probable short term impact on bottom line
2. Pricing across different channels - Store channels have higher cost structures than web channels for example, and price competition is higher on web, but consumers can be put off by different pricing for the same product
3. Channel synchronisation i.e. ensuring brand, customer experience and customer information
consistency across channels while avoiding the 3E trap i.e. trying to provide ‘everything to
everyone everywhere’
4. Problems in merging and standardising customer data i.e. unifying different systems which may have very different data models
5. Difficulties in reducing or abolishing organisational boundaries to cope with new channels
In summary, customers for whom a multi-channel approach will yield the most benefits are often those for whom achieving it the most problematic – they have the largest customer bases, most complex lines, and longest histories of systems development, with many business critical systems that supply old CRM processes.
Organisational Impacts and the Changes Needed
A successful shift to multi-channel retailing requires a number of changes to the way any traditional retail business functions, primarily in the areas of commercial capability, technical capability, and organization and processes.
Commercial Capability
• Retailers must develop the ability to differentiate between offering attributes across different
channels because they vary in effectiveness and efficiency.
• Modeling capability will be crucial in enabling a deep understanding of the target audience’s
channel preferences and their perceptions of service
• Pricing, brand impact and route to market will have to evolve to ensure a seamless customer experience.
• The organisation will have to shift towards developing multi-channel value propositions and
commercial strategies.
Technical Capability
• The core capability needed is a single customer information view, ideally via a single platform for enterprise wide customer relationship management and proposition development. This requires full integration of database and management systems across channels and also with supply chain activities.
• Multi-channel IT architecture requires a channel independent, service oriented and scalable
integration of different front-end and back-end legacy systems and 3rd party services. The front- end should support open industry standards like XML and web-services.
• Measurement capability will be vital for monitoring and review channel integration
Organisational Process
• There may be need for a culture change programme to shift from a product or function focused approach to a customer focused approach
• Where separate channels have their own objectives, management, staff and systems, these may need to be synchronised or even merged if necessary
• Organisational restructure may require a new model that adapts people, processes and
technology to meet the coordinated approach to channel management. Strong support from CEO and Management will be required.
• Multi-channel trend analysis on the industry in question will need to play a larger role in the
corporate strategy formulation process
• Channel strategy and associated business propositions must be embedded into the basic
processes of the organization
Where do you start?
A good place to start your multi-channel journey is by considering Flint and Spieler’s 4 stage process (Source - IBM white paper on Multi-Channel Customer Management: The Benefits and Challenges)
1. Create a multichannel strategy
2. Determine the relative priority for the channels
3. Reorganise for multichannel operation by reconciling central brand, experience and service
standards control with the need for local autonomy in managing individual channels
4. Adopt and implement best practices for integrating new with old technology
Summary
To summarise, while the benefits are many, this paper should have highlighted the fact that there are a number of challenges involved too. Embedding real multi-channel practices will take time as it involves both a cultural and technological shift for any organisation. My recommendation when making early stage investment and ROI decisions around multi-channel retailing, is aim to focus on long-term value and competitive advantage rather than short-term profit. In other words, think longer term when developing your business case, and have the patience to see it through. It will pay off.
Monday, November 9, 2009
What Causes Shelf Out-of-Stocks?
Steve Banker from ARC has written up a good article on out of stock management .
See this link for the full article..
What Causes Shelf Out-of-Stocks?
Thursday, November 5, 2009
Retail Customer Experience WebSite
Tuesday, October 27, 2009
RFID - Resurgence in Mining Industry
Mining operations around the world are beginning to realize the tremendous benefits of real-time tracking systems utilizing RFID technologies. Here are just some of the benefits already being enjoyed today:
Safety: Real-time visibility of the accurate location and status of employees is
paramount at all times, but especially in emergencies. RFID systems can remain
operational during accidents, allowing you to know the precise location of personnel
during an emergency, thus greatly reducing respondent response time. RFID can also
be used to quickly locate emergency equipment such as respirators, first-aid kits and
fire suppression equipment.
Asset Management: Manage materials, equipment and personnel more efficiently with
automatic identification solutions. Accurately account for the status and location of all of
your equipment, thus dramatically improving asset utilization, and streamlining the
maintenance and repair process.
Collision Avoidance: NIOSH studies calculate that collisions between haulage
equipment and pedestrian workers or other vehicles claim an average of five lives each
year in surface and underground metal/nonmetal mining operations. Many more
workers are severely injured. New developments in RFID systems can significantly
reduce the risk of collisions, by providing automated alerts when problems appear likely.
Security: RFID can be used to limit workers from using unauthorized equipment as well
as prevent access to unauthorized areas.
No single solution works for every mining operation and a fit gap analysis is recommended so as to ascertain the cost, benefits and best technology and partners to utlise.
Sunday, October 11, 2009
Appealing to the Imagination
Harry Gordon Selfridge, the founder of the legendary London department store which now bears his name, once said that “the whole art of merchandising consists of appealing to the imagination. Once the imagination is moved, the hand goes naturally to the pocket. But if the first appeal is to the purse, the imagination is apt to revolt and raise barriers against buying.”
Arguably, much of Australian retail is about appealing “to the purse” rather than “the imagination”. Hence we can end up with relatively sterile retail environments plastered with cardboard screaming about “this week’s offer”. The great retailers of the world, however, have always understood the importance of getting the customer’s juices going before asking for the order. And a big part of the stimulation has been in the form of exciting visual merchandising (VM).
According to David Jenkin in “What Great Retailers Do”, VM is a simple concept; “it’s all about presenting merchandise in the most eye-catching way.”UK and US retailers tend to put more emphasis on the importance of really inspiring VM. UK creative director and retail commentator Mary Portas resurrected Harvey Nichols in the UK by creating highly memorable shop windows and calls them “the art of the high street”. Mickey Drexler (now CEO of American apparel retailer J.Crew) built The Gap/Banana Republic/Old Navy empire on clever VM.
...
It’s time for Australian retailers to lift their sights and embrace VM on a more sophisticated level. By appealing to “the imagination” first and “the purse” second you might just find wallets opening automatically. Jon Bird is CEO of retail marketing specialist IdeaWorks (www.ideaworks.com.au). He can be contacted at jon.bird@ideaworks.com.au.
A fingertip away from desire
In 1923, Robert Woodruff, then President of Coca-Cola, first stated that the iconic soft drink should always be “within an arm’s reach of desire”.Over the next half century or so, Coca-Cola met and exceeded Woodruff’s vision, popping up across the globe in convenience stores, supermarkets, restaurants and vending machines. Wherever thirsty consumers found themselves, there was bound to be an ice-cold Coke close by.Coke took 50 years to achieve its ubiquitous presence.
These days however, retailers can reach the same goal in the twinkling of an eye with relative ease, first via the internet and now the mobile phone. As I’ve written in several columns, the device in the palm of the shopper’s hand really does change everything. Suddenly, as the US consultancy Retail Forward notes, the “store” is no longer a location, but omnipresent. We are rapidly shifting from the concept of “place” to “anyplace” and retailers who recognise and capitalise on this fact will be winners in the future.
In a presentation last month in the US, Dan Stanek, executive VP of Retail Forward, identified that mobility = opportunity. Stanek said that transit, queues or the car can become shopping trips. With the right iPhone App, downtime can be turned into shopping time. The trick is to place your offer within a fingertip’s reach of desire during a customer’s idle moments.
Already, you can purchase music on the move from iTunes with just four clicks. Hear it, want it, click, click, click, click, it’s yours. It’s frighteningly simple... and personally, I love it.
Amazon is at the vanguard of m-commerce (mobile commerce), as they were with shopping via the web. Their new iPhone application elegantly allows you to fill a shopping cart with your fingertips no matter where you are. The app also features a neat function called “Amazon Remembers”. See something you like – say a chair that takes your fancy at a beach cafe – hit the Remembers button and your iPhone camera opens so that you can take a snap and automatically send it to Amazon. Then Amazon analyses the photo and tries to find an item just like it to offer you for sale. Clever stuff.Tesco in the UK is developing its own iPhone app to allow customers to do their supermarket shopping on the move. So you could fill your trolley on the bus, or perhaps even buy your groceries in the middle of a meeting.
US discount department store Target doesn’t yet allow you to easily purchase products from its application, but you can search for items on your mobile, check if they’re available before you shop (what’s increasingly called “know before you go”) and even get the in-store aisle location. Plus the latest deals in the Target Weekly ad are just a click away. And if you do see a product you’d like to purchase, you are linked through to Target’s online site.
Australian retailers are just starting to get their heads around e-commerce, and we can expect a rash of shopping-enabled sites in the next 12-18 months. But it’s worth starting to plan for an m-commerce world. Ask yourself this question: when customers desire your product or service during an idle moment, will you be there at their fingertips?
Sunday, October 4, 2009
Top 10 brand and marketing trends for 2010
Niels Bohr once noted that "prediction is very difficult, especially about the future," but then he didn't have access to predictive loyalty metrics. Happily, we do. And, as they measure the direction and velocity of consumer values 12 to 18 months in advance of the marketplace and consumer articulations of category needs and expectations, they identify future trends with uncanny accuracy.
Having examined these measures, we offer 10 trends for marketers for 2010 that will have direct consequences to the success — or failure — of next year's branding and marketing efforts.
1) Value is the new black
Consumer spending, even on sale items, will continue to be replaced by a reason-to-buy at all. This spells trouble for brands with no authentic meaning, whether high-end or low.
2) Brands increasingly a surrogate for "value"
What makes goods and services valuable will increasingly be what's wrapped up in the brand and what it stands for. Why J Crew instead of The Gap? J Crew stands for a new era in careful chic — being smart and stylish. The first family's support of the brand doesn't hurt either.
3) Brand differentiation is brand value
The unique meaning of a brand will increase in importance as generic features continue to plague the brand landscape. Awareness as a meaningful market force has long been obsolete, and differentiation will be critical for success — meaning sales and profitability.
4) "Because I said so" is so over
Brand values can be established as a brand identity, but they must believably exist in the mind of the consumer. A brand can't just say it stands for something and make it so. The consumer will decide, making it more important than ever for a brand to have measures of authenticity that will aid in brand differentiation and consumer engagement.
5) Consumer expectations are growing
Brands are barely keeping up with consumer expectations now. Every day consumers adopt and devour the latest technologies and innovations, and hunger for more. Smarter marketers will identify and capitalize on unmet expectations. Those brands that understand where the strongest expectations exist will be the brands that survive — and prosper.
6) Old tricks don't work/won't work anymore
In case your brand didn't get the memo, here it is: Consumers are on to brands trying to play their emotions for profit. In the wake of the financial debacle of this past year, people are more aware then ever of the hollowness of bank ads that claim "we're all in this together" when those same banks have rescinded their credit and turned their retirement plan into case studies. The same is true for insincere celebrity pairings: think Seinfeld and Microsoft, or Tiger Woods and Buick. Celebrity values and brand values need to be in concert, like Tiger Woods and Accenture. That's authenticity.
7) They won't need to know you to love you
As the buying space becomes even more online-driven and international (and uncontrolled by brands and corporations), front-end awareness will become less important. A brand with the right street cred can go viral in days, with awareness following, not leading, the conversation. After all, everybody knows GM, but nobody's buying their cars.
8) It's not just buzz
Conversation and community is all; eBay thrives based on consumer feedback. If consumers trust the community, they will extend trust to the brand. Not just word of mouth, but the right word of mouth within the community. This means the coming of a new era of customer care.
9) They're talking to each other before talking to the brand
Social networking and exchange of information outside of the brand space will increase. Look for more websites using Facebook Connect to share information with the friends from those sites. More companies will become members of LinkedIn. Twitter users will spend more money on the Internet than those who don't tweet.
10) Engagement is not a fad. It's the way today's consumers do business
Marketers will come to accept that there are four engagement methods including Platform (TV; online), Context (Program; webpage), Message (Ad or Communication), and Experience (Store/Event). But there is only one objective for the future: Brand Engagement. Marketers will continue realize that attaining real brand engagement is impossible using out- dated attitudinal models.
Accommodating these trends will require a paradigm change on the parts of some companies. But whether a brand does something about it or not, the future is where it's going to spend the rest of its life. How long that life lasts is up to the brand, determined by how it responds to today's reality.
Seven ways to cut costs with retail systems integration and roll-outs
Learn the best ways to communicate with front-line tech staff, and how to make sure they have what they need to use their time and resources efficiently.
Discover the hidden costs of an inefficient maintenance plan – and how you can eliminate them.
Find new ways to make deployment launches smooth and painless.
hit the link for details..
Wednesday, September 30, 2009
CSCMP - Council of Supply Chain Management Professionals
CSCMP Vision: The Council of Supply Chain Management Professionals is the preeminent worldwide professional association of supply chain management professionals.
CSCMP exists to:
Provide opportunities for supply chain professionals to communicate in order to develop and improve their supply chain management skills
Identify and conduct research which adds to the knowledge base of supply chain theory and practice
Create awareness of the significance of supply chain to business and to the economy
CSCMP Values: As a professional not-for-profit organization, the Council of Supply Chain Management Professionals holds these values:
We operate with the highest standards of integrity and ethics.
We are committed to the individual professional development of our members.
We are an inclusive organization, open to all who wish to enhance their supply chain management knowledge.
We endeavor to be the supply chain management thought leaders by encouraging, promoting, and disseminating leading edge products and services.
We endeavor to offer products and services of the highest quality.
CSCMP Goals:
1) Provides leadership in developing, defining, understanding, and enhancing the logistics and supply chain management profession.
2) Enhances member value through education, networking, research, communication, and other services
3) Operates with sound business practices.
There are local CSCMP groups across Asia , Australia and the globe.
i urge you to hit the website and take advantage of the councils collaterals, expertise and members.
Monday, September 28, 2009
Buying a WMS in an M and A environment
Also, for companies that have already implemented these packages, what should be their strategy with respect to upgrades, support etc.?
Full Article:
Adapted from a response by Jim Willems on 10/03/2008. I believe that if a company completes an accurate selection process (meaning they buy a system according to their needs not their desires) and they structure the contract terms correctly, the consolidation of the WMS industry should be minimal. In my experience most clients are looking for a 5 to 7 year life from their WMS - meaning their system should be up and live prior to their vendor being purchased. Most acquiring firms are not going to immediately change anything, allowing for the client to get even closer to the point of their systems live expectancy. If the new vendor does significantly changes to the culture, pricing, and system the client should be at a point of having their ROI and able to move to a new system if needed.
Monday, September 14, 2009
Explaining the Value of Logistics to the CEO
Is logistics a cost center or a competitive differentiator? Is it a core competency or a function that should be outsourced?
I would argue that most CEOs, at least historically, have viewed logistics as a cost center (trucks, warehouses, overhead, etc.), a business function that falls short of their "core competency" definition. This perspective has led to the ongoing growth (except for this year) of the logistics outsourcing (3PL) industry.
Of course, just because a business function is not considered a core competency, or is outsourced to a third party, doesn't necessarily mean that it's not valued by the CEO. The true test of value is whether a CEO is willing to continue investing in logistics, either internally-in people, technology, assets, etc.-or by developing more strategic relationships with 3PL partners. If neither type of investment is taking place, then you have a problem.
Is this the case at your company? If so, how do you explain the value of logistics to your CEO?
The common advice is to communicate the value of logistics in terms the CEO, as well as the CFO, can understand. In other words, you have to speak their language, which entails linking logistics with financial metrics. Unfortunately, many logistics executives are financial illiterates. If you can't read and understand an income statement or balance sheet, for example, then your ability to effectively communicate the value of logistics to the CEO/CFO is severely limited.
Placing logistics in a financial context will get your foot in the door, but is it enough?
I don't think so. CEOs suffer from a similar deficiency: most of them are supply chain and logistics illiterates. They are often the weakest link in a company's supply chain, as Rueben E. Slone, Executive VP of Supply Chain at Office Max, and his co-authors wrote in "Are You the Weakest Link in Your Company's Supply Chain?" (Harvard Business Review, September 2007). "In this article," the authors wrote, "we advise CEOs not to become unwitting weak links in their companies' own supply chain strategies. The costs of neglecting important matters of supply chain management are damaging to any type of business for which SCM is potentially a competitive differentiator (most notably, manufacturing, retail, and distribution). CEOs should get involved."
Sir William Osler, MD, the father of modern medicine, once said, "Medicine is learned by the bedside and not in the class room. Let not your conception of manifestations of disease come from work heard in the lecture room or read from the book: see and then research, compare and control. But see first."
In order for CEOs to truly appreciate the value of logistics, they too must see first...by spending the day picking goods at the warehouse; driving shotgun on a delivery truck; finding capacity for uncovered loads; tracking and tracing shipments; building pallets near the loading dock; calling vendors overseas, and taking calls from customers, in both cases the same question: Where's our order?
If getting your CEO immersed in your logistics operations is too much to ask, then have him attend a supply chain and logistics conference...or two or three, especially the ones organized by the software and technology vendors that power your logistics processes. While not as good as see first, spending a few days with supply chain and logistics professionals, from many different companies and industries, presenting case studies and discussing industry trends, is still a valuable type of seeing and hearing.
How do you explain the value of logistics to a CEO? You don't. The value has to be experienced firsthand, like getting soaked in the rain. Everything else is just words and numbers.
Thursday, September 10, 2009
Consolidation looms in WMS market
Recessions tend to drive market consolidation, as the lean revenues thin out the herd in nearly all markets. And the warehouse management systems (WMS) market is no exception, say market analysts at ARC Advisory Group.
In a recent report, ARC analysts say the top-tier vendors in the WMS market saw strong growth in 2008, as they have in most of the past 10 years ARC has performed the study. However, that trend of the big getting bigger cannot continue for much longer, and soon—maybe as soon as next year—the WMS market will have consolidated to the point where the only way the top five vendors can grow is by taking over one of the other top five.
Overall the WMS market shrank by 1% in 2008 and is forecast to decline again this year in total size before trending back up to grow again in 2010 through 2013. Compound annual growth for the WMS market through 2013 is forecast to be 2.2%, but much of that top-line growth is driven by the largest vendors.
“ARC expects that at least 10 WMS suppliers will go out of business”in 2010, says Steve Banker, ARC analyst. “In a smaller, consolidated market, the major suppliers will find that the WMS market is much more of a zero sum game. One vendor’s growth will come at another’s expense.”
And among the smaller vendors, there is likely to be a snowball effect—as WMS buyers get more concerned about the risk or going with a lesser-known vendor, they will ask those vendors to open up their books. “And many will fail that test,” ARC reports.
Tuesday, September 8, 2009
41 new business ideas from around the world
Click in the link to learn more
Wednesday, August 26, 2009
What makes a great shopping experience
What is interesting in this article is their list of five major areas that contribute to a great shopping experience:
Engagement: being polite, genuinely caring and interested in helping, acknowledging and listening.
Executional excellence: patiently explaining and advising, checking stock, helping to find products, having product knowledge and providing unexpected product quality.
Brand Experience: exciting store design and atmosphere, consistently great product quality, making customers feel they’re special and that they always get a deal.
Expediting: being sensitive to customers’ time on long check-out lines, being proactive in helping speed the shopping process.
Problem Recovery: helping resolve and compensate for problems, upgrading quality and ensuring complete satisfaction.
Great shopping experiences are those we talk about to others.
Retailers trading under a common shingle - the various newsagency brands or just the word newsagency - need to collectively agree standards and strategies which drive great shopping experieences and commit to relentless pursuit of these standards and the implementation of the strategies.
Too many newsagencies are run by people who prefer process work over business leadership, people who have bought an income and not a business.
The strength of our future as a retail channel depends on how many of us want to provide a great shopping experience.
How does your business shape up ?
Monday, August 17, 2009
Top 10 Supply Chain Technology Trends
In summary the whitepaper lists the following trends:
Here are the top 10 trends and technologies impacting supply chain operations spanning production, distribution, retail and remote service.
1. Comprehensive connectivity – from 802.11 wireless LAN technologies, cellular networks, Bluetooth
2. Voice and GPS communication integrated into rugged computers
3. Speech recognition
4. Digital imaging
5. Portable printing
6. 2D & other bar coding advances
7. RFID
8. RTLS
9. Remote management
10. Wireless and device security
You’re probably familiar with the technologies listed above, but perhaps not with the latest developments and trends. For example, did you know that practically any application can be
easily modified to accept speech input because of the recent development of terminal emulation-based speech recognition technology? Did you know that Bluetooth, 802.11b/g, cellular and
GPS communication are all available in a single handheld device?
Did you know improved optics allow 2D bar codes on paper to be read at greater distances (over 50 feet) than 1D bar codes on retroreflective labels?
Read the whitepaper in full to learn more about how these and other developments are helping make production, distribution, service and other supply chain operations more efficient.
Sunday, August 16, 2009
Warehouse & DC: Voice broadens its horizons
The verdict is in and there’s very little debate: Voice-directed picking has proven time and again that it can help companies make significant strides in productivity, accuracy, and safety improvement. By converting pick lists to voice commands and transmitting them to workers via headsets linked to wearable, mobile computers over wireless networks, voice allows workers to free their hands and eyes for the most important task at hand—the picking of product. And by all accounts, interest in voice, especially in grocery and retail verticals, is not expected to wane anytime soon.
According to Eric Lamphier, senior director of product management for Manhattan Associates, his company’s voice implementations are going global with the majority of the demand coming from private, non-3PL sectors. “The grocery/food customers have certainly been leaders when it comes to implementing the technology, as full case, pick-to-pallet operation remains a very good fit for voice,” says Lamphier, adding that the healthcare and pharmaceutical sectors are rapidly following.
Tom Singer, principal at supply chain services provider Tompkins Associates, agrees with Lamphier’s assessment, but puts forth another theory for voice’s growing popularity. “Over the past few years,” says Singer, “top tier solution providers like Manhattan and Red Prairie have been collaborating with vendors and voice developers offering direct interface, out-of-the-box voice solutions.” Users simply pay a licensing fee for their pick engines to become voice-enabled.
According to both Singer and Lamphier, perhaps the latest technological development with voice responsible for driving its growth is the introduction of multi-modal devices. “What it gives you is the ability for dual use,” says Singer. “Pickers can work in a voice-only mode when doing straight picking, but switch to the screen or display when doing cycle counts and replenishments.”
Also Vocollect are ramping up its efforts and focus in Asia Pacific.
Voice for high volume , full case pick is an ideal solution.
Look out for voice is other domains such as medical - coming soon
Want to know more - lets chat.
Monday, August 3, 2009
DHL Scores Five Asian Logistics Awards
The 2009 Frost & Sullivan Asia Pacific Transportation & Logistics Awards were presented at a ceremony in Singapore last week. The big winner at the awards was the global logistics company, DHL. The logistics giant was the winner in five categories, including received two of the regional Best Practices awards, comprising Manufacturing Logistics Service Provider of the Year and Green Logistics Service Provider of the Year. DHL was a winner in three Voice of Customer awards, including the Pharmaceutical Logistics Service Provider of the Year for Malaysia as well as Pharmaceutical Logistics Service Provider of the Year for Indonesia and FMCG and Retail Logistics Service Provider of the Year for Indonesia.
Supply Chain Software and Technology: The Status and the Future
By Bridget McCrea -- Supply Chain Management Review, 9/1/2008
You've heard that technology moves at the speed of light, and nowhere is this more evident than in the supply chain space, where new and improved offerings crop up every year. There are new iterations of TMS, WMS, ERP and GTM systems to test out, budding technologies like RFID and GPS to try, and many other options at your fingertips in this age of innovation.
In this article, we'll divide the supply chain technology space into segments—the software and solutions that vendors are developing, and the technology that they're using to make those systems better, faster and cheaper. Then, we'll look at what's around the next corner, what's coming down the pike, and the directions that software and technology are likely to take in the years to come.
So strap yourself in, sit back and enjoy the ride as we take you through the present and future of supply chain technology.Software and Solutions
Historically, supply chain software has been divided into two broad categories: supply chain execution (the optimization of product and service flow from source to customer) and supply chain planning (the coordination of assets to optimize the delivery of goods, services and information from supplier to customer). Over the last year, however, the lines between the two have become blurred, with new software bridging into both areas.
Nari Viswanathan, research director, supply chain management, for Aberdeen Group in Boston, points to One Network as a vendor that's helping to bridge the gap. “Its solution can do both planning and execution,” says Viswanathan, “and provides solutions that cover a wide variety of user roles and functions.” He says shippers are embracing the trend, with large high-tech, CPG, aerospace and defense manufacturers purchasing the software, which “sits on top of existing ERP systems.”
Also growing in popularity right now is the use of replenishment software, which is being developed by vendors like Oracle. Credit the fast-paced manufacturing environment with stoking the need for such systems, which help shippers achieve faster replenishment processes.
“This software runs several times a day, making use of the demand pattern provided by retailers,” says Viswanathan. “For a DVD manufacturer, for example, the software can help retailers replenish the stock within just a few hours.”
Joe Francis, executive director of technology for the Supply Chain Council in Washington, D.C., says global visibility has come to the forefront for many companies. And this, in turn, has pushed vendors to come up with solutions that effectively make the world smaller for those doing business internationally.
“Global visibility is the best practice that everyone wants right now,” says Francis. “Bad events are so disruptive that we're starting to see much more emphasis on track-and-trace and predictive events control.” Such controls aren't necessarily the domain of large ERP systems, says Francis, which tend to be more transaction-oriented in nature, rather than predictive. For help, shippers are turning to more specialized supply chain applications that can better tackle the global environment.
According to Steve Banker, director of supply chain management at Boston-based ARC Advisory Group, a recent survey of 140 supply chain managers uncovered TMS as the top-of-mind technology solution right now. Banker says that high fuel costs and a growing interest in green initiatives are pushing shippers in that direction, followed closely by WMS solutions that allow shippers to use RFID or speech recognition in their DCs. “TMS ranks the highest, and WMS is next as the most important supply chain applications right now,” Banker says.
Within those two categories, on-demand or “fast” solutions have gained much traction over the last few years. “Everyone has embraced the Web—particularly in the transportation realm—as the application space for solutions,” says Ann Grackin, managing director, global supply chain risk intelligence for Marsh Consulting in New York. Such solutions are particularly attractive for shippers that want to get up and running fast (without having to deal with the purchase-and-install process) at an affordable price and in an application environment where their trading partners can do the same.
“The concept isn't new, but the rate of adoption of these on-demand systems is increasing,” says Grackin. “Not just because we're seeing more complex supply chain networks that have to talk to each other, but also due to the increased need for visibility. The Web is the way to get that done.”
So whereas in the past, large companies would send out mandates to their trading partners to get hooked up on a specific solution, today those same firms are closely collaborating with their vendors and customers to create systems that help the various entities work together in the most efficient manner possible. Grackin points to the bumper crop of product recalls and counterfeit challenges in 2007 as one of the major catalysts for change in that arena.
“This year, we've seen a 2.7 percent increase in border seizures of counterfeit product, and that number could rise to 5 percent by the end of the year,” says Grackin. “That's driving companies to sit down with their trading partners to figure out how they can work together better and secure their supply chains while also increasing visibility and transparency. Then, they're coming up with strategies to put those discussions into action.”
According to AMR Research, users will be reaching out to both ERP vendors and so called best-of-breed specialty vendors to support a wide range of supply chain functions. Exhibit 1 gives a breakdown of the sources they turn to for the various applications.The Tech Behind it All
As companies are assessing the latest and greatest supply chain solutions, they're also looking at the technology behind those systems. Right now, for example, some have their hopes pinned on new combination RFID-GPS systems that integrate the two technologies into sensors and cellular devices. “Combining the two technologies allows tags to be used in every environment—whether they are remote or local,” says Grackin, “and solves the problem of 'where in the world is the reader?'”
At both the enterprise level and the third party (3PL) level, Francis says GPS is providing shippers with much more detail than they previously were able to access. Advancements in the technology is allowing for a “merging of fields” which enables companies to reroute shipments in the field (when an order change comes in, for example), thanks to the fact that their exact locations are known.
Francis says he “still hasn't seen the killer app for RFID that everyone is waiting for,” but adds that the technology has been most effective in military logistics applications, particularly in reverse logistics. “When you return from the field with material, you don't have a lot of time to scan in the bar codes on your trucks for parts,” Francis explains. “You'd rather put them in a box and have someone else know what's in them by simply punching a button.”
From her vantage point as research director at AMR Research in Boston, Jane Barrett says that adoption of RFID and service-oriented architecture (SOA) have so far been “slower than the vendors would like.” With companies under pressure to finish projects, getting new technologies isn't always easy. “Companies don't always feel that they will get the ROI that they want, and they often lack the skills and resources to get these new technologies,” says Barrett. “In some cases the technology is out there, but companies are under such pressure to try to keep the wheels turning, and as a result are struggling to adopt it.”What the Future Holds
As technology continues to evolve, so too do the supply chain applications that companies are using to increase visibility, optimize operations, streamline transportation channels, and increase their bottom lines. Studies by AMR Research show that these applications will be driven by customer demands, heightened global competition, and regulatory compliance among other issues. (Exhibit 2 shows the issues impacting application investments.)
Looking forward, Grackin sees more developers looking to address risk management, and creating data and the solutions that surround such activities. “Future software applications will have to understand and embrace a new set of performance matrix around supply chain management, such as those that can look at existing models and try to extrapolate what can go wrong,” the Marsh consultant says. “While we've seen architectures in the risk management arena, we haven't really seen the data and solutions yet.”
In looking at the 3PL space, Francis says optimization will continue to be an ongoing goal for these providers and their clients. Many are beginning to use solutions from vendors like Xelocity, for example, to model their entire logistics network and develop their RFPs. “We see a big trend in custom logistics providers using this type of simulation software to set up their contracts,” says Francis. “Using this process, the 3PLs can then do pre-execution using a fairly accurate model that helps them understand the level of optimization necessary to go into the contract bid.”
Calling SOA “more rhetoric than reality” and a “slow, gradual process,” Banker says software as a whole is becoming more SOA-like every day. “Some suppliers are ahead of others,” he says. “In TMS, for example, on-demand works pretty well and is becoming more and more prevalent.”
Banker sees more supply chain managers turning to voice applications in the future. “I'm hearing from companies that voice is coming up in more and more deals,” says Banker, who expects voice to be integrated with other systems for maximum effectiveness. “It's sort of the multi-modal idea of being able to use voice in the beginning in conjunction with other applications.”
Finally, Banker says shippers are showing an interest in the use of appointment scheduling capabilities based on user-defined business tools such as optimization as well as dynamic routing guides that allow companies to select the most efficient and affordable routes possible for the shipment of goods. “This is a relatively new application that factors in carrier performance and dynamically adjusts based on that measure,” says Banker. “It's a relatively new technology that users are highly interested in.”More to Come
Viswanathan of the Aberdeen Group expects the evolution of service or “interarchitecture” and master data management to come to the forefront of supply chain applications in the future, and to result in further innovations over the next few years. More and more, he says, there is a need for the creation of globally-integrated supply chains, with all trading partners (suppliers, customers, shippers and carriers alike) functioning as part of a single, large supply chain, rather than a bunch of individual ones.
“Going forward,” says Viswanathan, “I see SOA and master data management allowing companies to synchronize across these disparate systems.”
As they struggle under the pressure of rising commodity costs and competition both domestically and overseas, expect more shippers to look to technology to solve their supply chain problems. Vendors are stepping up to the plate and coming up with new technologies and solutions to meet their customers' growing needs.
“Many of today's supply chains were designed around $20-a-barrel oil, and now many companies are rethinking what their entire supply chains look like,” says AMR's Barrett. “Technology is one major piece of that puzzle.”
Thursday, July 30, 2009
Top 20 SCM Vendors
The leaders in 2008 look much the same as in 2007. Once again, No. 1 SAP with $942 million and No. 2 Oracle with $715 million top the list. In a tough year, both posted significant percentage gains, with SAP up nearly 12% and Oracle growing by nearly 9%. JDA Software with $390 million, Manhattan Associates with $337 million and RedPrairie with $293 million rounded out the top five.
The TMS market was essentially flat, coming in at $1.2 billion, up from $1.1 billion in 2007, according to Adrian Gonzalez, director of the logistics executive council for ARC Research (781-471-1000, www.arcweb.com). The high price of fuel continues to be the most important factor driving the TMS market, according to Gonzalez. "Record oil prices through the first nine months of 2008 helped the market post an overall respectable number for the year."
The WMS market, meanwhile, was also flat, at $1.2 billion, according to Steve Banker, ARC's service director of supply chain management. The most important development in the market may be that big players like RedPrairie, Manhattan Associates and HighJump continue to take market share from the small to mid-sized providers. As Banker looks at the market, he sees as many as 20 small players that are on life support and may not survive in the current economy.
The most significant trend may be the emergence of new models, like on-demand, software-as-a-service, and by-the-transaction subscription models, for delivering and pricing supply chain management solutions. In the TMS market, for instance, the hosted model already represents about one third of the implementations, according to Gonzalez. While it has been slow to expand to the other applications, vendors are experimenting with new models. One idea that is emerging would deliver and price software services based on the number of transactions similar to the way a 3PL charges for order fulfillment services. Both Banker and Jacobson have had conversations with WMS and MES providers that are talking about this concept. Whether it will catch on or not is too early to tell.
"The on-demand market is about 1% of the WMS market," says Banker. "But vendors are looking at ways to reduce the upfront cost of implementing a solution."
Asia Pacific is about 8-12% of the global market and I predict significant change in the make-up of the SCM vendors in Asia Pac in 2009-2011.
The Asia Pacific market for WMS is still over $100M ..
More to follow..
Friday, July 17, 2009
Retailer Transforms Supply Chain With RFID
Sunday, June 28, 2009
Fresh software KPI, Gauges,Reports, Events & Cheap
Tuesday, June 16, 2009
Australian National Retail Forum - Melb August 11-13
Register now to see speakers including Ruby Anik (Senior VP Brand Marketing, JC Penney), Bernie Brookes (Chief Executive Officer, MYER), Alan Oster (Chief Economist, National Australia Bank) and Warren Wilmot (Chief Executive Officer, 7 Eleven Stores Australia).The National Retail Forum provides a unique opportunity for retailers to focus on the future, share experiences and embrace opportunities to evolve and adapt to a changing market.
Delegates also receive free entry to Retail Expo Australasia 2009, which runs alongside the National Retail Forum at the Melbourne Exhibition Centre. Come and experience ‘Retail 2020: Store of the Future', an exciting new technology feature that will be launched at this event.
See you there ..
Thursday, June 11, 2009
Latest Trends in SCM Technology
Monday, June 8, 2009
Top 10 Business and Technology Challenges
How does this compare to your companies needs ?
Wednesday, June 3, 2009
Retail Technology Subject Topics
Assisted Selling , Branding , Convenience Stores ,Customer Psychology , Customer Service , Digital Signage , In-Store Media , Loyalty Programs, Merchandising , POS , RFID , Self-service , Store Layout and Design , Supermarkets/Grocery Analytics and Measurement , Department Stores , Display Technology , Interactive Displays Kiosks, Marketing Point-of-purchase ,Psychology, Retail - Apparel , Retail - Electronics, Retail - Online Retail - Specialty, Self-Checkout , Signage Technology, Vending, Digital Signage , Measurement & Analysis , Digital Merchandising, Customer Experience ,Content Design & Aesthetics , Retail - Digital Signage,
Sunday, May 24, 2009
The Smart Supply Chain Technology Show
Wednesday, May 13, 2009
IBM :Turning Customers into Advocates
The premise is the while retailers are heeding the daily drumbeat of pundits on the importance of focusing on the customer experience, a gap remains between what retailers are delivering and what shoppers expect.
Retailers can close this gap by systematically integrating knowledge of what their best customers want and expect from their brand into every core operational decision.
This is where the bar will be set for retailers - to turn shoppers into advocates and create a sustainable, differentiated advantage.
This is what RSC is all about: making advocates of your customers for your company.
Monday, May 11, 2009
ARC Advisory Group ranks Manhattan Associates as leading supplier of warehouse management systems
Manhattan Associates: WMS solution achieved first place ranking in 15 categories.
ARC Advisory Group released its “Warehouse Management Systems Worldwide Outlook, Market Analysis and Forecast Through 2013” today, with global supply chain optimization provider Manhattan Associates, Inc. ranking as the leading supplier of total warehouse management software (WMS) and services.
ARC Advisory Group produces the annual forecast which follows more than 80 suppliers of WMS solutions and gives a detailed analysis and forecast for the marketplace through 2013. The Manhattan Associates’ WMS solution achieved a first place ranking in the following categories:
Total WMS Software and Services
Suppliers of WMS Software
Base WMS Software
WMS Add-on Software Modules
WMS Implementation Services
WMS Maintenance Services
WMS in North America
WMS in the Middle East & Africa
WMS in Asia
WMS to Tier 1 Customers
WMS to Tier 3 Customers
Pharmaceutical & Biotech Manufacturers
Wholesale/Distributors
Apparel Retailers
Department & General Merchandise Retailers
"Manhattan is the largest supplier of WMS solutions in the world. The company emerged as the leading supplier of WMS in Asia this year for the first time," says Steve Banker, service director, supply chain management for ARC Advisory Services. "Manhattan also made huge strides in EMEA this year, moving up from the #6 WMS provider to the #2 provider of WMS in the region. Not only did Manhattan Associates increase their global footprint, but they increased their solution footprint significantly by introducing some compelling WMS add-on modules — Supply Chain Intelligence (SCI) and Workforce Schedule Optimization. In a marketplace where it is sometimes difficult to differentiate solutions, Manhattan has continued to extend the runway with science-based applications built exclusively for distribution centers."
"Manhattan's ranking in ARC's “Warehouse Management Systems Worldwide Outlook” underscores our commitment to developing the type of solutions that give our customers a short term path to success while also delivering long term value," says Eddie Capel, executive vice president, global operations, Manhattan Associates. "Our entire suite of distribution management solutions is designed to give our customers flexibility and the ability to add complementary solutions such as Supply Chain Intelligence, Total Cost-to-Serve or Labor Scheduling as their supply chain network continues to grow and mature."
Foot note: In my Opinion if you need a SCM/WMS with the lot then MANH is the group to talk too...
Sunday, May 10, 2009
Oracle - Beehive Collaboration Software
According to independent analyst Peter O'Kelly, Beehive represents Oracle's fourth attempt to crack the collaboration market, which has been long dominated by Microsoft and its Exchange and SharePoint products, and IBM with its Lotus Notes and Domino software.
Despite its late entrance to the market, Oracle's senior vice president of collaboration technologies David Gilmour asserts that things will be different for Beehive. "The market leaders are groupware products that have grown up," he said. "Collaboration was layered on after the fact, not designed that way in the beginning. Beehive is almost the complete inverse of that."
Thursday, May 7, 2009
Warehouse Management Systems - Outlook to 2012
The ARC group has recently published a Five Year Market Analysis and Forecast through 2013. An overview of the report can be found at http://www.arcweb.com/StudyBrochurePDFs/Study_wms.pdf
The outlook is for slow growth off the back of a drop in 2009.
For many suppliers, strategies must be focused on survival rather than growth.
In putting together their strategies, the following kinds of questions need answers.
- How much will the market consolidate?
- How will 2009 compare to 2008?
- When will the market begin to grow again?
- What types of core WMS solutions and add on modules will sell well during the downturn?
- What regions and industries should suppliers focus on?
WMS is often sold as part of a larger supply chain or enterprise suite. How important is that suite? How does the suite offered by leading suppliers need to change so that leading suppliers can maintain and grow their market share?
The full report can be downloaded from this address : http://www.arcweb.com/Research/Studies/Pages/WMS.aspxThere are also similar reports for TMS, planning, Global Trade, SCE etc
Monday, May 4, 2009
Blue Sky - Insight SCM Visibility
http://www.blueskylogistics.com/insight.html
Great product , sits on multiple WMS applications. Contact me for details...
Wednesday, April 29, 2009
Growing busines via your Networks - Ivan Misner
Tuesday, April 28, 2009
Top 20 Software Vendors in Retailing - Dec 2008
SAP
Microsoft
Celerant Technology
Micros Retail
Escalate Retail
Tomax
PCMS
Datafit
ECR Software
Retalix
MicroStrategy
IBM
Magstar
Manhattan Associates
Lawson Software
SAS
Epicor
Radiant Systems
JDA
Software Reflexis
Monday, April 27, 2009
The 6 Laws Of Customer Experience
BRUCE TEMKIN has a great blog site : http://www.experiencematters.wordpress.com/
A recent whitepaper by Bruce lists and discusses the 6 Laws Of Customer Experience.
1) Every interaction creates a personal reaction.2) People are instinctively self-centered.
3) Customer familiarity breeds alignment.
4) Unengaged employees don't create engaged customers.
5) Employees do what is measured, incented, and celebrated.
6) You can't fake it.
THE BOTTOM LINE: WHEN IT COMES TO THE 6 LAWS OF
CUSTOMER EXPERIENCE, IGNORANCE IS NOT A VALID DEFENSE.
Check out his website and blog for more details and a full white paper
Friday, April 24, 2009
TESCO to re-launch loyalty scheme24 Apr 2009
Tesco's focus on Loyalty and multi-media is testiment to the uplift retailers can obtain and retain with a solid focus on Loyalty & multi-media channels marketing.
What is your retail strategy in this area ?
Want to know\ learn\discuss more - then contact me :0)
Thursday, April 16, 2009
Planet Retail - Daily News Feed
Every day, thousands of professionals turn to Planet Retail as the most trusted authority on global retailing. From in-depth company profiles and market analysis to virtual tours and breaking news, our market leading intelligence service can deliver immediate value to your business.Why Planet Retail
Wednesday, April 15, 2009
Supply Chain Technology Market to Grow to US$9.2B in 2012
Based on its analysis, the company predicts there is a high likelihood that the economic challenges of the coming years will offer greater opportunities for supply chain technology adoption.“The supply chain, and the technologies that support it, will play an important role in helping companies deal and thrive in an economy that is going to be quite unlike anything we’ve seen in the post-war era,” said John Fontanella, vice president of research at AMR Research.
The study named five major forces that will be at work in the economy and society in the foreseeable future, and how the supply chain and the technologies that support it will help companies in the next five years.
High inflation – Inflation will force supply chain managers to play an important role in protecting product and company margins through cost control and increased efficiencies in their operations. Rising commodity prices – Pressure from higher commodity prices will bring supply more in line with demand and reduce inventory levels from raw materials to the finished product. Threats to brand security – Counterfeiting, the gray market, and questionable quality standards will make brand protection a top priority.
Companies will look to adopt risk mitigation and global trade technologies as well as analytics to monitor distribution channel buy-and-sell patterns. Sustainability becomes a component of corporate decision making – Public sentiment will force substantive measures by industry to become more environmentally friendly.
This will present opportunities to more directly connect product development efforts with supply chain management to minimize waste and material usage. Cash is king – Capital spending will come under scrutiny as companies preserve cash.
Technologies that increase the velocity of cash collection, including B2B e-commerce, will become a critical component of future initiatives.
The report also found that SAP, Oracle, and Manhattan Associates were the three largest SCM vendors by revenue in 2007, with a market share of 13 percent, 10 percent, and five percent respectively. AMR, www.amrresearch.com
Monday, April 13, 2009
Ad.Wright ! - Singapore based
As a founding Director of Ad.WRIGHT Communications, Martin has had a unique exposure to IT, agency and business challenges, gaining valuable experience that is used to help Ad.WRIGHT's clients achieve their ultimate business and marketing objectives.
Customer Experience - Loyalty research in 2009 - Bruce Temkin
What Research Was Hot In Q1 2009? April 8, 2009
Posted by Bruce Temkin in Customer experience.
For the ninth straight quarter, Bruces reports had the highest level of readership across all Forrester analysts. So, needless to say, customer experience remains a hot topic — even in the downturn.
To get a better sense of what’s hot, he compiled the following list of his 20 research reports that have had the most readership by Forrester clients in Q1 2009 (along with their publication dates):
Customer Experience Correlates To Loyalty (February 2009)
Voice Of The Customer: The Next Generation (February 2009)
The Customer Experience Index, 2008 (December 2008)
Customer Experience And Loyalty: A Closer Look (March 2009)
The Customer Experience Journey (September 2008)
Obstacles To Customer Experience Success, 2009 (February 2009)
Customer Experience Index 2008 Snapshot: Retail (February 2009)
Customer Experience Index 2008 Snapshot: Banks (December 2008)
Eight Steps For Keeping Customer Experience Momentum During An Economic Downturn (April 2008)
The Business Impact Of Customer Experience (March 2008)
Engage Gen Y Online With Immediacy (November 2008)
Experience-Based Differentiation (January 2007)
Customer Experience Index 2008 Snapshot: Wireless Carriers (December 2008)
A Closer Look At Customer Experience And Loyalty (August 2008)
Banks’ Cross-Channel Experience, 2008 (July 2008)
Customer Experience Index 2008 Snapshot: Internet Service Providers (March 2009)
Customer Experience Index 2008 Snapshot: Airlines (March 2009)
How Consumers Research, Buy, And Get Service (March 2008)
The Gen Y Design Guide (December 2007)
Wells Fargo Uses Ethnography To Improve Customer Communications (October 2008)
He have a few observations from this list:
There’s a lot of interest in connecting customer experience to business results (e.g., loyalty)
People want to see results from their specific industries
Companies are still trying to figure out how to reach Gen Y
Experience-Based Differentiation remains the blueprint for customer experience excellence
Looking Ahead To My Q2 Research
How Loyal Are Customers? Not Very. This report examines how three areas of loyalty vary across industries and companies: The willingness to repurchase, the reluctance to switch, and the likelihood to recommend.
Sunday, April 12, 2009
Headcount - Rent don't Buy Expertise
So how do companies achieve this with headcount freezes in place?
The answer is to rent the required expertise. There are many very experienced part-time & consultant based resources in the market place today and while companies cannot afford to hire them fulltime they are available for part-time, contract or retainer based engagements.
So if you have a business to run but can't hire then look towards a more flexible, cost effective arrangement. You may be surprised with the level of expertise and the skills available in today’s market place.
Friday, April 10, 2009
Smart SaaS
What are Venture Capitalists Saying About SaaS? by Kevin Dobbs
Flat is the New Up:
One phrase that was uttered more than once is that ‘Flat is the New Up’. Although when it comes to Software as a Service… it appears that ‘Up is still Up’. Even in 2008, most publicly traded SaaS companies have bounced back from their lows by an aggregate of 20%, which is much better than the S&P 500. Apparently Wall Street likes SaaS companies and now are valuing them at 3 to 3.5 times their recurring revenues, unfortunately at the beginning of 2008 that number was closer to 8x. Keep in mind that this is better than a lot of public firms that are currently trading at their cash values. Other Wall Street analysts are valuing SaaS firms at 12x their cash flow but it is difficult to understand if there is a consistent valuation metric that firms or investors should be using.
Customer Acquisition Costs:
When building your SaaS business model, it is important to assume that for every dollar of recurring revenue you will probably need to invest $.50 to $1.00 in your Customer Acquisition Costs (CAC). It is important than ever to have an active program of testing various CAC channels and tactics to maximize your investments. Then you need to have a smart statistical framework that you can explain to your investors.
Key take aways:
1 You need to still need to have a great idea, product and team but you might need to have reduced risk for your potential investors.
2 Demonstrate your company knows how to stretch a dollar as far as possible. Fewer employees is better… think Craigslist.
3 Show traction. Number of transactions, members, customers, revenues, profits.
4 Shop carefully for your potential investors and don’t waste time with Zombies.
Thursday, April 9, 2009
GPS Solution - Telogis - Check it out ..
Its ease of use has allowed OnTrack to achieve a significantly high adoption rate among its fleet management customers. OnTrack enables fleet managers to improve productivity and reduce operating costs by providing secure, remote access to real-time GPS vehicle and driver information as well as providing dispatch and route optimization and handheld products for fleet optimization. OnTrack has an extremely open architecture and can integrate with a wide range of fleet management, CRM software, or mobile resource management systems.
OnTrack can communicate with and import data from other applications as well. Telogis application programming interface (API) tools and software development kits (SDK) are also available to provide an additional level of customization. As an example, many customers customize OnTrack and layer in vertical-specific data, such as gas lines and power lines etc.OnTrack Workforce is a wireless location-enabled application that allows businesses of all size to increase regulatory compliance, streamline operations, and improve customer service while eliminating paperwork and manual dispatch functions. OnTrack WorkForce can be run on any Windows CE device.Highlights of OnTrack WorkForce include: Voice prompted turn-by-turn navigation using premium NAVTEQ map data, an hours of service module for regulatory compliance, and real-time instant messaging.
OnTrack Workforce increases regulatory compliance, streamlines operations, and improves customer service.The navigation functionality enables drivers to route themselves to known customer locations as well as new locations entered on the fly. Stops can also be dispatched by the back office via OnTrack; Telogis' web-based fleet management application. The seamless integration of web-based and mobile applications is a natural extension of Telogis' technology portfolio.The real strength of OnTrack comes from the platform it is built upon.
The platform, another product set sold by Telogis, is GeoBase.GeoBase is the company’s market-leading geospatial platform and mapping solution for application developers, systems integrators, enterprise users and other peers, including telematics OEMs. Features include rich and detailed maps, navigation, geocoding, reverse geocoding and route optimization.
The strong demand for a geospatial mapping platform was initially derived from other peers in the AVL and GPS location industry. Users embed GeoBase maps in their web-based AVL and GPS software applications.
http://www.telogis.com/