"What No One Tells You About Inventory Management," DropShip Commerce >> Jeremy Hanks [COMMERCISM...

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STOCKPIL THE GOOD STOCKPILING THE GOODS: What No One Tells You About Inventory Management WHAT NO ONE TELLS Jeremy Hanks Cofounder & CEO DropShip Commerce

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STOCKPILING THE GOODS: WHAT NO ONE TELLS YOU ABOUT INVENTORY MANAGEMENT, Jeremy Hanks, Founder & CEO, DropShip Commerce Check out Jeremy's presentation that goes with this slide deck here: http://www.youtube.com/watch?v=ZV64ERGvbjE

Transcript of "What No One Tells You About Inventory Management," DropShip Commerce >> Jeremy Hanks [COMMERCISM...

Page 1: "What No One Tells You About Inventory Management," DropShip Commerce >> Jeremy Hanks [COMMERCISM 2014]

STOCKPILING THE GOODS

STOCKPILING THE GOODS: What No One Tells You About Inventory ManagementWHAT NO ONE TELLS

Jeremy Hanks Cofounder & CEO DropShip Commerce

Page 2: "What No One Tells You About Inventory Management," DropShip Commerce >> Jeremy Hanks [COMMERCISM 2014]

@ j e r e m y h a n k sJ E R E M Y H A N K S

INVENTORY DISTORTION*

$1.5 Trillion inventory sitting in overstock position.

* IHL Group 2012

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INVENTORY DISTORTION*

$1.5 Trillion inventory sitting in overstock position.

That turns into:

* IHL Group 2012

$326B

Page 4: "What No One Tells You About Inventory Management," DropShip Commerce >> Jeremy Hanks [COMMERCISM 2014]

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INVENTORY DISTORTION*

$1.5 Trillion inventory sitting in overstock position.

That turns into:

* IHL Group 2012

$326B

Out of stocks are an even a bigger problem.

$456B

Page 5: "What No One Tells You About Inventory Management," DropShip Commerce >> Jeremy Hanks [COMMERCISM 2014]

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INVENTORY DISTORTION*

$1.5 Trillion inventory sitting in overstock position.

That turns into:

* IHL Group 2012

$326B

Out of stocks are an even a bigger problem.

$456B $818B

Page 6: "What No One Tells You About Inventory Management," DropShip Commerce >> Jeremy Hanks [COMMERCISM 2014]

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INVENTORY DISTORTION*

Growing by

* IHL Group 2012

$50B Per year

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TRADITIONAL RETAIL SUPPLY CHAIN

SUPPLIERS RETAILERS

STOCK POS

CONSUMERS

B2B B2C

Page 8: "What No One Tells You About Inventory Management," DropShip Commerce >> Jeremy Hanks [COMMERCISM 2014]

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eCOMMERCE

SUPPLIERS RETAILERS

STOCK POS

CONSUMERS

B2B B2C

Page 9: "What No One Tells You About Inventory Management," DropShip Commerce >> Jeremy Hanks [COMMERCISM 2014]

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DROP SHIPPING/MARKETPLACE

SUPPLIERS RETAILERS

STOCK POS

CONSUMERS

B2B2C

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MANUFACTURER DIRECT TO CONSUMER

SUPPLIERS CONSUMERS

B2C

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VERTICALLY INTEGRATED eCOMMERCE

RETAILERS CONSUMERS

B2CSTOCK POS

Page 12: "What No One Tells You About Inventory Management," DropShip Commerce >> Jeremy Hanks [COMMERCISM 2014]

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SUPPLIERS RETAILERS

STOCK POS

CONSUMERS

B2B B2C

B2B B2C

B2B2C

B2C

B2C

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SUPPLIERS RETAILERS

STOCK POS

CONSUMERS

VIRTUALIZATION

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SUPPLIERS RETAILERS

STOCK POS

CONSUMERS

VIRTUALIZATION

DIRECT

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RETAILERS CONSUMERSSUPPLIERS

Page 16: "What No One Tells You About Inventory Management," DropShip Commerce >> Jeremy Hanks [COMMERCISM 2014]

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AGGREGATION DEMANDSUPPLY

Page 17: "What No One Tells You About Inventory Management," DropShip Commerce >> Jeremy Hanks [COMMERCISM 2014]

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SUPPLY AS AGGREGATORS

AGGREGATION DEMANDSUPPLY

Page 18: "What No One Tells You About Inventory Management," DropShip Commerce >> Jeremy Hanks [COMMERCISM 2014]

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CROWD AGGREGATION

AGGREGATION DEMANDSUPPLY

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CROWD SUPPLY

AGGREGATION DEMANDSUPPLY

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PRODUCT PUSH TO CONSUMER PULL

AGGREGATION DEMANDSUPPLY

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Page 22: "What No One Tells You About Inventory Management," DropShip Commerce >> Jeremy Hanks [COMMERCISM 2014]

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Page 23: "What No One Tells You About Inventory Management," DropShip Commerce >> Jeremy Hanks [COMMERCISM 2014]

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PRODUCT PENETRATION

73%

Page 24: "What No One Tells You About Inventory Management," DropShip Commerce >> Jeremy Hanks [COMMERCISM 2014]

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PRODUCT SELECTION

25% - 33%

Page 25: "What No One Tells You About Inventory Management," DropShip Commerce >> Jeremy Hanks [COMMERCISM 2014]

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CHALLENGES

INVENTORY VISIBILITY ORDER ASSURANCECONSUMER CATALOG

Page 26: "What No One Tells You About Inventory Management," DropShip Commerce >> Jeremy Hanks [COMMERCISM 2014]

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ALIGNMENT: SAME PAGE

SHARED PROBLEMS

Page 27: "What No One Tells You About Inventory Management," DropShip Commerce >> Jeremy Hanks [COMMERCISM 2014]

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ALIGNMENT: TEST

Place Order

Receive Order

Return Order ALIGNED APPROACHES

ALIGNMENT: TEST

PLACE ORDER RECEIVE ORDER RETURN ORDER

Page 28: "What No One Tells You About Inventory Management," DropShip Commerce >> Jeremy Hanks [COMMERCISM 2014]

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ALIGNMENT: SCORECARDS

68% 83%

DATA CHANGE

ORDER MOVEMENT

OPEN & SHARED

Page 29: "What No One Tells You About Inventory Management," DropShip Commerce >> Jeremy Hanks [COMMERCISM 2014]

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ALIGNMENT: TECHNOLOGY

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THINK ABOUT: MINDSET

VENDORS DEALERS

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THINK ABOUT: MINDSET

PARTNERS PARTNERS

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THINK ABOUT: MODELS

Page 33: "What No One Tells You About Inventory Management," DropShip Commerce >> Jeremy Hanks [COMMERCISM 2014]

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THINK ABOUT: ATOMS > BITS

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