"Lei Feng on-" this article reproduced in TechCrunch China, originally titled the key to business success: supply chain
Many people may be surprised that Dell is the most popular technology stocks 90. This success does not come from marketing or product, but because of a revolutionary approach to supply chain management.
Dell's success is based on "production" mode. In this mode, Dell can provide users with customized solutions, and avoid a lot of inventory received before order. Dell's innovative supply chain management to make the company's performance in the stock market has risen. Throughout the 90 's, Dell's share price has risen 91,863%.
Time in 2014, the recent "Cyber Monday". Current market e-commerce giant Amazon from Kiva Systems technology to build a logistics center, successfully deal with this year's "Cyber Monday" brought about by pressure.
Through the supply chain innovation, Amazon has recreated the user experience and expectations. On one hand, received the order of few minutes, Amazon will be able to package delivery, on the Amazon to slash the costs of traditional labour-intensive Logistics Center. Amazon will be upgraded to a strategic logistics centre, using a revolutionary technique similar to Kiva Systems, so the companies can be in a low-cost way, in a 48-hour period for the United States domestic shipments. Amazon's innovation greatly increased the company's market share, while putting enormous pressure on competitors.
Dell and Amazon's case reminds us that business success lies in a tedious and complex supply chains and logistics field. Sam Walton (Sam Walton) pointed this out in the 60 's, and in more than 50 years later, that remains the case.
Other key elements of the user experience are still important, such as branding, personalization, and methods of promotion. However, it remains the basis of the current outstanding electrical contractor company starting from the supply chain and logistics system and the real world, rather than the virtual world, so the software solution does not solve all problems, but must cooperate with hardware similar to the Kiva robots, also need to express and Uber-driver to send the goods to the destination.
At present, order delivery is a key index to evaluate consumer online shopping made.
Recent report from Bain and Co again stressed this point. Reports that United States "60% online shoppers said that delivery costs are a major factor in deciding whether to shop online."
Therefore, many e-commerce sites are forced to provide free shipping. According to reports from Bain and Co, the third quarter of this year, online deals with free shipping 68%, up from 44% 2013. And that number continues to grow.
While consumer expectations have changed, but only a few companies to bear the cost of free shipping. Therefore, current United States electric company CEOs, "flexible delivery" is one of the highest strategic affairs.
New e-commerce company in the leading
Other innovators from Amazon's case gained experience, and try to gain a competitive advantage through logistics and supply chain management. Rent the Runway, such as emerging innovators have realized that the key to success is good match for inventory and supply chain management software. Rent the Runway currently operates United States largest dry cleaners, has an area of 160,000 square foot facility, and the software was developed, from millions of users of 65,000 pieces of clothing and accessories for hundreds of thousands of parts inventory management, shipping and delivery. Guerlain iPhone 5 Case
Wayfair recently made it to the market, is worth nearly $ 2 billion. Rent the Runway is similar to Wayfair businesses also depend, the company can accurately and efficiently distributing millions of products from thousands of vendors. Wayfair founder realized that sales of "long tail" product contains a lot of opportunities, because General retailers, including Amazon, unable to manage so many stocks, because such stock-keeping unit (SKU) is a small demand, resulting in costs of managing these stocks are very high. For example, Wayfair market demand for these boxes are listed on the website?
Wayfair deeply integrating the technology with thousands of suppliers, which enabled the company to sell the box, as well as thousands of other items and delivery speed and accuracy comparable to Amazon. Therefore, the company's untapped in the Amazon e-commerce get a market-leading position in the field.
Defense = threshold = profit = success
Effect of this type of supply chain innovation is that they represent a strong defense capability, brought a very high threshold. This led other companies cannot enter the same domain to avoid a decline in profit margins.
Through innovative supply chain management, Dell gained a leading position in the 90 's, Amazon dominate today's market while Wayfair and Rent the Runway will in the future become the leader. Based on current technology, such as unmanned vehicles, machine learning, data integration of science and drone, next generation B2C and B2B startups will be able to get a good opportunity. Guerlain iPhone 5 Case
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