Well, last week I complained that we hadn’t received any snow yet this winter, and this morning I woke up to about an inch of snow on the ground, with more snow forecast for tomorrow. Today, I am lamenting the fact that in all of my adult years, I have yet to win the lottery. Just saying.
As expected, this week’s news was dominated by retail-related items.
- Descartes Unveils Major Extensions of Logistic Flow Control Solution for Retailers
- JDA Software Launches JDA Customer Engagement
- RedPrairie Commerce Cloud takes flight at NRF 2012
- SAP Makes Strategic Investment in Forecasting and Replenishment Software For Retailers and Beyond
- SAP to Provide Retailers with Real-Time Data for Actionable Decision-Making
- NRF Forecasts Retail Industry Sales Growth Of 3.4 Percent In 2012
- Con-way Freight Launches iPad® Application for Online Shipping Services
- Apple Navigates China Maze (Wall Street Journal)
I don’t have the time or space to comment on each announcement, so I recommend you read the press releases for all the details. But here are some common threads between them:
- Vendors are positioning “cloud” solutions to retailers, with emphasis on time-to-value and risk reduction. The solutions announced by Descartes, JDA, and RedPrairie are all delivered as a cloud service.
- Retailers want to make it easier for consumers to buy what they want, wherever and whenever they want to. This implies that retailers must provide consumers with timely and accurate product, pricing, and availability information, and they must provide consumers with a seamless shopping experience across all channels. At least that’s what technology vendors and analysts are telling them.
- More accurate and timely information—from external partners like suppliers and transportation providers, and from stores, distribution centers, and other internal sources—equals smarter planning and execution. The net result, of course, is increased sales, higher margins, and enhanced customer loyalty. The pieces of the technology puzzle include network connectivity, business intelligence, and optimization solutions (especially related to inventory management).
In related news, the National Retail Federation expects retail sales to grow 3.4 percent in 2012, a bit slower than last year’s growth (4.7 percent) but faster than real GDP, which many economist predict will grow 2.1 to 2.4 percent this year, according to the press release. NRF based its forecast on various factors, including employment, income growth, and consumer confidence, which as we all know by now can turn up or down on a dime.
Just like retailers, transportation providers are looking for new ways to connect with customers. Con-way’s announcement this week about its iPad application is similar to the smartphone app the company released back in September 2011. According to the press release, “The iPad app provides customers the option to create a personalized rate quote for shipments within the United States and Canada. In addition to custom rate quotes, app users can track shipments, view shipping documents and locate and call service centers.”
Finally, Apple made news this week by releasing a report detailing its supplier base and how well (and in some cases, poorly) these suppliers comply with its Supplier Code of Conduct. Apple’s Supplier Responsibility team conducted 229 audits last year, an 80 percent increase over 2010. These audits, which included surprise visits, revealed that:
- 62% of suppliers weren’t compliant with working-hours limits.
- 32% weren’t compliant with hazardous-substances management practices.
- 35% did not meet Apple’s standards to prevent worker injuries.
While some companies have been reporting this type of information for years, it is still not the norm. But I believe these reports will become standard practice across most industries in the years ahead, as customers, investors, employees, and other stakeholders ask for greater transparency of supply chains.
Now, I’m off to buy that lottery ticket. Have a great weekend.
(Note: Descartes, JDA Software, RedPrairie, SAP, and Con-way are ARC clients).


TMC had an interesting blog yesterday highlighting the challenges shippers and service providers have when retailers have sales surcharges http://www.mytmc.com/Blog/. It appears that retailers are continuing to push their vendors for accurate and timely information which will help, however the challenge will then move from information availability to who has the information and is everyone on the same page. It always comes back to communication.
I agree with what Greg says. As a retail distribution team we are driving harder to become more capable of leveraging inventory information and product availability to ensure it is at the right location to meet customer demands and expectations for price, quality and timeliness. This puts a lot of pressure on our suppliers and carriers. Whether shopping online or in person, the customer is becoming more digitally sophisticated. All parties in the supply chain face constant challenges to keep pace physically and technologically. Adrian, I bought my lotto ticket last night. Same thing, I wonder why it takes so long to win at that game? I guess many of us must really like to slug it out in the logistics trenches, although a trip on my new yacht would be a nice change….. Cheers.