ASCI Risk Management Program

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Risk within supply chain has become more and more prominent from both a legislative and industry globalisation point of view. There are countless articles flooding our inbox about the risks of quality, delivery and customer experience.

Together with the Ethics Management Program and Body of Knowledge, the ASCI Risk Management Program is a core component of the ASCI Professional Accreditation Scheme. Under this scheme, individuals register as professionals and practitioners. It is the only program of its kind in the supply chain domain in Australia.

Crucial to ASCI’s submission to the Professional Standards Authority is the identification of the risks associated with decision making in the supply chain. Furthermore the PSA is interested in ensuring that, once supply chain management is legislated as a profession, the professional indemnity cap under legislation is determined at the correct level to suit the risk exposure in the supply chain profession.

Of course, ignoring supply chain risk has wide reaching consequences, such as penalties imposed by legislation, impacts to business continuity and the adverse effect to our own careers.

The ASCI Industry Risk Committee commenced in February 2019 as one of ASCI’s professionalisation committees, focussed on developing a Supply Chain Industry Risk Management Framework to support ASCI members in understanding potential decision risks and mitigation guidelines.

Currently, the committee is defining the themes that will comprise the Supply Chain Industry Risk Management Framework, i.e. sourcing and procurement risk, these themes will encompass the full spectrum of supply chain.

In the longer term, these themes will form a collection of papers in a library and fleshed out for the community via ASCI’s Roundtable Series, Leadership Series and Lunchtime Webinar Series for feedback, education and sharing.

The Risk Management committee welcomes feedback on themes that require attention.  Please contact us at risk@asci.org.au

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Machine learning and artificial intelligence for retail supply chains

How retailers can incorporate machine learning and artificial intelligence into their supply chain: A snapshot of the recent ASCI Networking Breakfast panel event

 

By Harsha Illindala, Vice President, Solutions Advisor – APAC at JDA Software

 

I was lucky enough to host a panel at a recent ASCI breakfast on new advances in machine learning and artificial intelligence and how they are helping retailers optimise their operations and supply chain. I was joined by Michelle Grujin, Managing Director, Retail Industry Lead ANZ at Accenture and Marcy Larsen, Industry Solution Executive, Retail and CPG at Microsoft.

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While these technologies are becoming increasingly important, we first discussed some of the macro trends influencing retail customers today, what makes them different to customers from 10 or 20 years ago to frame why investing in these technologies is so important:

  1. Hyper-personalisation

 

Retailers are now expected to customise the customer experience to the segment of one. Retailers need to cluster and segment more narrowly across all retail formats.

  1. Premiumisation

There is a growing interest in premium food, clothes and other merchandise. There has been growth in health, vegan and specialised foods. Customers are also concerned with ethical sourcing and fair trade. They want to believe in the product.

  1. Convenience

Convenience is the price of admission: customers expect retailers to be convenient to deal with. They prioritise this, often over price.

  1. Mobility

The ability to shop online from a Smartphone means customers are more mobile than ever before and can purchase from anywhere.

  1. Urbanisation and population

There is a changing population mix with more customers living in urban areas. Customers will favour retailers who prioritise inclusion and diversity and demonstrate authenticity.

  1. Talent

We then went on to discuss how talent in retail is changing. According to the 2019 Retail C-Suite Viewpoint surveyconducted by JDA Software and Microsoft, talent is a top three issue with the C-suite in retail.

The workforce is varied with more part-timers and a workforce with time constraints. The gig economy is mobilising millennials and the retired workforce. Employees now have the ability to achieve genuine flexibility and hold down several different styles of job which fits in with their lifestyle and personal constraints.

For retailers the focus is now less on workforce scheduling and more about engagement with employees. There is also a huge competition for skills so retailers need to create a dynamic environment which values their skills.

Engaging employees with technology that is as advanced, if not more advanced, than what they are able to access at home is important. Employees, just like customers, expect retailers to demonstrate inclusiveness, diversity and authenticity.

  1. Provenance in supply chain

Customers care about the claims made by brands and retailers about products. Smart looking packaging and brand advertising strategies are important. Environmental and societal influences, morality and accountability are priorities for the customer.

  1. Data

The influence of data is significant. Customer trust is established when the right data is provided. When there is transparency of data between suppliers – shipping through to store – it creates a better customer experience.

  1. Influence of digital

Customers expect the physical experience to be on par with the digital experience. Technology is transforming the customer: 75% of a customer’s visits to a store are influenced by digital and 58% of sales are impacted by digital, according to the 2019 Retail C-Suite Viewpoint survey.

Digital has changed the customer journey; digital is now the ‘front of store’. The customer journey has evolved to loyalty – discovery – research – purchase – fulfillment.

We then went on to discuss which technology, such as artificial intelligence (AI) and machine learning (ML), is emerging to help retailers meet the needs of the customer in light of these macro trends.

The Tech

We then covered technology that is playing increasing important role in the supply chain for retailers and why companies should be investing in them:

Technology for personalisation

36% of the C-suite in retail expect to undertake pilots using AI in personalised product recommendations, 20% for localised pricing and 29% for personalised product assortments.

AI helps retailers meet customer expectations around product availability and fulfillment choices – in-store, pick-up and delivery. Customers expect instant gratification when it comes to fulfillment.

AI also provides a flowing, single view of inventory and allows for dynamic allocation and fulfillment, predictive replenishment and a shorter product life cycle.

Technology for provenance in supply chain

AI and ML provide real-time visibility. Traditional systems such as ERP centric reports and dashboards are too slow, alternatively AI provides real-time and direct visualisation of supply chain data with ML identifying and weeding out data discrepancies.

Blockchain is becoming an increasingly common buzzword and is something that could old the answer to many provenance related issues. With Blockchain providing a method to manage forms of exchange, entities in a supply chain can with increased confidence know where each asset has originated

Technology for the workforce

Technology is changing rapidly and affecting supply chain practices. There are several workplace changes that will become more important to how supply chain operates.

With more virtual and contingent workers, automation, increased connectivity through workplace social networks (e.g. instant messaging, communities) and more advanced communication tools (e.g. virtual meetings, webinars) will become increasingly important. Apps (e.g. personal organisers, goal setting, real-time feedback, team activities) will play a role, as will gamification (e.g. realistic training scenarios to stress test and develop supply chain strategies). Artificial Intelligence (e.g. advanced data mining) will help identify business trends and opportunities.

Challenges in adoption

We went on to discuss the major challenges facing retailers in adopting these technologies.

Some of the key observations included:

  • 55% of retailers don’t have single view of inventory
  • 78% of retailers don’t have real time view of inventory
  • 50% of retailers believe their technologies are lagging
  • Most retailers have CDTOs / CDOs and in-house AI teams, but tangible and scalable innovations have been far and few between
  • Many retailers have started off by trying to understand “what will my data show”, but need to transition to “what action needs to be taken” as a result of those insights

Is technology simplifying supply chain or adding to complexity?

We went on to question whether an increasingly complex supply chain is being simplified or further complicated by technology. We agreed that technology can minimise store effort in handling product and create flexibility in flow volumes and mechanisms.

We also discussed automation. There are increased and more affordable automation solutions in warehouses and in-store. Automation delivers productivity but also narrows variations. This means there is a greater need to manage the inventory flow to leverage the automation. Retailers need to manage coordination across inventory planning, transportation, yard, dock and warehouse operations.

A big thank you to the ASCI for inviting me along to host this excellent and insightful panel.

If you have questions about how AI and ML can improve your supply chain, you can contact me at Sriharsha.Illindala@jda.comor visit the JDA website.

ASCI as Professional Accreditation Body

Extending an invitation to all Industry Peak Bodies in the Supply Chain

 

ASCI has positioned itself as the Professional Accreditation Body for the supply chain industry. In this capacity, it has developed a Professional Accreditation Scheme, in line with the criteria set by the Professional Standards Authority (PSA), which oversees the legislation for lawyers, accountants, etc.

Although ASCI has not yet obtained legislation for supply chain as a legislated profession, we are following the exact process in the expectation that we will one day be ready to seek formal legislation.

In doing so, the ASCI Professional Accreditation Scheme, in its current form, is the only one of its kind that is based on the PSA guidelines. To distinguish this from the offerings of other organisations, often also referred to as “Professional Bodies”, we need to understand the distinction between the various professional bodies in our industry. The term “Professional Body” is often used by Industry Peak Bodies in their reference to the fact that they serve the “profession”. They do indeed, but not as an accreditation body, rather an Industry Peak Body. They most often offer certification programs, rather than a professional accreditation scheme. Certification programs are not to be confused with a Professional Accreditation Scheme.

Here is the difference:

“Certification”, a formal process of assessing that an individual is qualified in terms of particular knowledge or skills. It requires the candidate to study a particular learning set and write an exam on this set of knowledge in order to obtain certification.

“Accreditation” which, as in the case of lawyers, accountants, engineers, etc provides independent recognition of achievements and maintenance of the exact standards required to join the community of professional supply chain professionals and practitioners.

Professionals and practitioners registered under the professional accreditation scheme, are recognised for their competence, ability, integrity, and service to the profession. It is a voluntary means of demonstrating professionalism and involves being held to account by your peers for your abilities and adherence to ethical standards.

It is in this context that ASCI has commenced discussions with several Industry Peak Bodies in the supply chain domain, with the objective to offer registration against the Professional Accreditation Scheme through these Industry Peak Bodies, to their members, making the scheme more accessible to the broader supply chain community. Peak Bodies that are interested in offering professional and practitioner registration to their members can do so by affiliation with ASCI.

If you represent a peak industry body then we want to hear from you. Contact Our National Office at professionalisation@asci.org.au to commence discussions. It is through our common passion for the sustainability of the supply chain community that we can collectively raise the bar of supply chain management in Australasia.

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Dr Pieter Nagel is Head of Professionalisation at ASCI. Contact him about collaboration or registration at professionalisation@asci.org.au

ASCI Ethics Management Program

Given the importance of industry participants consistently demonstrating ethical behaviour in building credibility and establishing an enduring professional framework, the importance of a comprehensive and robust Ethics Management Program for the industry cannot be understated.

Together with Industry Risk Review and Body of Knowledge, the ASCI Ethics Management Program is a core component of the ASCI Professional Accreditation Scheme. Under this scheme, individuals register as professionals and practitioners. It is the only program of its kind in the supply chain domain in Australia.

The ASCI Ethics Management Program is unique as it consists of the ASCI Code of Ethics which is supported by a comprehensive complaints management process that allows complaints to be submitted by external parties regarding breaches of ethical behaviour or business practices of a registrant. The process enables the complaint to be heard, with equitable rights of appeal for the individual in accordance with the legislation. The scheme also includes scope for a sanction or penalty and supportive remediation processes.

With its in-depth work on Professional Accreditation Scheme supported by the Ethics Management, Industry Risk Review and Technical Review Committees and rigour in the registration process, ASCI clearly differentiates itself as a Professional Accreditation Body, rather than simply being an traditional industry peak body.

Upon registration, candidates are required to commit and submit to the Ethics Management Program which ensures full commitment from the registrant and oversight and educational support by the ASCI Ethics Committee.

The details of the ASCI Ethics Management Program is available on the ASCI website at https://www.asci.org.au/ethics-committee

Be a Supply Chain Ambassador

Japanese Business Colleagues

Guest Blog: ASCM CEO Abe Eshkenazi, CSCP, CPA, CAE

“In the first three months of 2019, employees got so much more work done that they smashed productivity forecasts,” writes Alexia Fernández Campbell for Vox Media. “That’s great for businesses (they earn more money) and for the economy (GDP grows faster). The problem is that companies aren’t rewarding their employees for the extra hard work.”

A recent Gallup World Poll bears out the author’s conclusions, finding that 85% of workers are displeased with their jobs.

As I read this article and considered that unfortunate statistic, I couldn’t help but reflect on ASCM’s brand new 2019 Supply Chain Salary and Career Survey Report. With so many people feeling underappreciated and underpaid — in fact, there were a record number of strikes in the United States last year — this survey reveals that supply chain salaries are on the rise and industry professionals truly love their jobs.

The median supply chain salary in 2018 was $80,000, a 3% increase over 2017. Even more importantly, an overwhelming majority of respondents say they are very or extremely satisfied in their jobs.

This report confirms what all of us at ASCM and every supply chain professional already know: Supply chain careers are rewarding, both professionally and personally. We at ASCM are also proud to discover that the median salary for people with at least one APICS certification is 25% higher than those without. And, in addition to the power of APICS education to advance careers, our initiatives related to women in supply chain are paying off: The gap between men’s and women’s salaries is narrowing, especially for professionals under 40, where the difference is less than $1,000.

Put the findings to work

As we continue to face a vast talent gap, this report highlights numerous opportunities to attract more people to the supply chain. But ASCM can’t do it alone; we need your help.

Begin by talking to the young people in your life about why you are passionate about what you do. Describe your job and how it has a positive influence on the entire business, the lives of your customers and the communities in which they live.

Explain why you look forward to staying in supply chain for years to come (93% of respondents believe they will stay in the field; 44% say they definitely will).

And tell them about the work-life balance you enjoy (nearly all respondents receive holiday pay, and the majority receive three weeks or more paid time off, as well as flexible work schedules).

Then, take a moment to download the survey and post it in your social channels. Share something that you’re especially excited about with the hashtag #lovemyjob. As more and more people outside the industry experience our enthusiasm, they will see that supply chain professionals are highly sought after by employers, make a difference at our organisations and have truly fulfilling careers.

To find out more about APICS certification, visit Australasian Supply Chain Institute – the Premier Channel Partner – for Australian Semester schedules and prices.

Lean into value streams for happier customers

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Imagine you could achieve:

  • 1,000 discrete insights to improve processes and supply chain outcomes
  • US$1.8 million in operating cost savings
  • 52% increase in lean capability review scores
  • Positive effects on the customer experience, operational capabilities, compliance, and the bottom line

Well that’s what has happened at Johnson & Johnson (JnJ) whose idea it was to break from some of the existing inertia where people believe that lean was not really applicable to them or was really just for the sake of generating some cost improvements.

JnJ wanted to build competency in using lean as an approach to create value. You see, they already had goals and objectives and things they wanted to do to create value for customers. But what they needed was a potent methodology and approach to attack these problems to help achieve those goals and objectives.

Lean, they felt, fit that bill because it helped marry up the goal and then to create an approach to define, measure, analyse, improve and control that problem.

Although the overarching emphasis of these lean projects was on waste reduction in end-to-end value streams, many of the initiatives paid specific attention to value and process enhancement.

The value stream consists of all the activities or processes necessary to deliver a product or service to the customer. Value stream mapping is a technique using flow charts to identify the key elements and activities in the process and flow of information. In value stream mapping, each activity is identified as either a value- or non-value-adding activity. Lean management seeks to minimize and eliminate non-value-adding activities from all processes.

For instance, a customer-facing, collaborative project that reduces the overstock and subsequent destruction of seasonal products may not result in momentous cost savings for the manufacturer given the specific terms of sale, but it could create value for the customer. Similarly, a compliance-oriented project may seek to assess historic non-compliance.

How did they learn the methodology?

APICS Certified in Production & Inventory Management (APICS CPIM). JnJ picked individuals who they thought had the drive and had the interest and applying some of these tools. They knew that the results were going to be there. They just need a couple of people to be the first to kind of “jump out on the dance floor” and help them demonstrate the value of this methodology.

They invested in APICS CPIM training and were there every step along the way as the individuals achieved their certifications. From there, they were able to share their stories and were able to share the results and the impact with their immediate team. It’s amazing what first hand results you can achieve using this approach.

JnJ used the APICS Body of Knowledge with a more principled approach. So, in addition to the tools and the concepts and the practices that you would employ to attack a problem or an opportunity, they wanted to use some of the body of knowledge and the principles to give a sense of what value is and how to go about pursuing it.

Did you know that lean management:

  • is applied not only in production but across the entire enterprise
  • has broad applications in the service industries
  • involves the systematic identification and elimination of waste throughout the entire value stream
  • includes time and inventory in its measurements
  • offers a one-piece flow of the product or service.

According to APICS, there are seven categories of waste:

  • overproduction—producing in excess or too early
  • waiting—queuing delays around production areas
  • transportation—unneeded movement of materials in and outside the facility
  • processing—poor process design
  • movement—staff activities that do not add value
  • inventory—idle stock accumulating cost without necessarily providing value
  • defective units—scrapping or reworking products and components.

These and other aspects to the methodology were learned and applied to the JnJ business during the APICS training. It was wonderful to see the impact that APICS had on their confidence and their competencies!

If you would like to know more about this case study, visit the APICS website here and watch the video featuring an exclusive interview with Michael Morand, CFPIM, supply chain manager at Johnson & Johnson Health Care Systems from which this blog has been transcribed.

If you are an Australian company wanting the same results for your organisation, contact Australasian Supply Chain Institute today at enquiries@asci.org.au for quotations and study options.

 

 

 

Are we ready for Industry 4.0?

Guest Blog: Rob Stummer, CEO, Australasia, SYSPRO

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With all the discussion around Industry 4.0, how ready are we for it in this region and how many manufacturers have fully embraced it? It’s widely agreed that manufacturing has experienced a decade of productivity stagnation and demand fragmentation and the fact is that this level of innovation is long overdue. It’s been proven that the Australasian organisations that have taken Industry 4.0 innovation to scale beyond the pilot phase have experienced unprecedented increases in efficiency with minimal loss of employees.

The main issue reported by McKinsey and the World Economic Forum is that most companies appear to be stuck in the pilot phase and despite all the research and evidence saying that it will lead to a sizeable increase in global wealth production, benefiting people throughout society, the Australia and New Zealand governments have not done enough to help its advancement.

Globally it is having an impact globally across multiple sectors, simplifying things by streamlining processes, reducing human labour, fostering global interconnectedness and leading to unlimited possibilities. But is Australasia really ready for Industry 4.0?

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Automation won’t take jobs

There has been a lot of scaremongering about the risk to jobs due to automation, but technology and changing consumer preferences are driving the demand for new skills and jobs. In many cases, these emerging technologies have improved processes without shedding jobs and have made businesses more competitive than they have ever been, resulting in lower prices for consumers, higher wages for employees or higher profits, leading to increased demand and more jobs.

The previous industrial revolutions have shown us that, in the long run, technology and other labour market changes have been positive for many employees, removing the jobs that nobody wants to do as they can be unpleasant, physically exhausting and dangerous or boring and repetitive.

In smart factories, the emphasis will be on adding value, and up-skilled workers will be highly sought after for their specialist knowledge and ability to innovate.

Will bots take over the world?

There are a lot of myths surrounding AI, and science fiction movies often portray it as robots with human-like characteristics taking control and using their super-intelligence against us. There’s no doubt that AI does raise a whole host of complex questions, and that the current way the industry does certain things will become defunct.

We can’t ignore the fact that the Australian manufacturers that are leveraging AI have made their companies far more efficient and productive. This is a trend that their leaders see as inexorable, and the pressure on them to adapt and compete is huge.

Automation is essential

Automation is working extremely well in several different manufacturing scenarios, particularly when finite precision is needed, in challenging or dangerous work environments, where repetition happens and when personalisation and configuration are required.

So, what does automation look like in practice in an industrial environment? There are many tasks that could be carried out by a robot; not only would they be more efficient, but also the employees could then focus on more complex work.

The real benefits of automation are what makes it truly worth the investment, including increased efficiency, reduced costs, improved safety and wellbeing for employees, due to avoiding monotony and a clear competitive advantage over manufacturers that choose not to automate. Automation is clearly the future of Australasian manufacturing and its influence will only increase as competition from China and other developing Asian nations grows.

Rob Stummer is CEO, Australasia, SYSPRO

 

 

Enforcing Packaging Standards Across the Supply Chain delivers Ethical and Financial Value

PackagingGuest Blog: David Griffiths, Senior Product Marketing Manager at Adjuno

Switched on brands are becoming ever more aware of the importance of packaging when it comes to consumer experience. Far too few, however, have yet to address the extraordinary packaging inefficiencies that exist throughout the supply chain. Where is the consistency in packaging types -both material and size – that can not only enforce sustainability and ethical standards but also enable cost saving optimisation of pallets, containers and warehouse space? David Griffiths, Senior Product Marketing Manager, Adjuno, outlines the value of enforcing robust packaging standards across the global supply chain.

Packing, Shipping and Storing Air

Minimalist packaging may be the new black when it comes to consumer facing goods, but across the supply chain the situation is far from slick. When some retailers are handling thousands of different packaging types from suppliers globally, the implications on cost, sustainability and efficiency are very significant.

Given the risk of product damage associated with packaging that is too small, many suppliers will err on the large side – but the costs of this approach, both direct and indirect, are considerable. In addition to wasting money on unnecessary material, what about the wasted space? With multiple sizes used, pallets are not optimised, nor are containers; while oversized packaging also impacts the number of items that can be stored in the warehouse or distribution centre (DC), or in-store. Packing, shipping and storing air is an expensive business. Add in the cost of ethically disposing of damaged or unusable packaging, and reconsidering this area should be about far more than the consumer facing experience.

Plugging the Leak

With the rising pressure on costs and growing stakeholder expectations regarding ethical business practice, retailers need to take control and plug the financial leaks across the supply chain associated with packaging inefficiency. And that means defining and, critically, enforcing very clear packaging standards on suppliers.

Just consider the supply chain implications of reducing packaging types from thousands, even hundreds, to just a dozen – from the material consistency that transforms recycling and waste disposal activity to the optimisation of shipping and storage. And the financial returns that can be achieved by creating packaging standards across the world are significant – from a typical 5% to 10% reduction in the amount of packaging material being used to an improvement in container utilisation of 5% – 15%. The return on investment is compelling – and quick.

Enforcing Control

The starting point must be a robust review of requirements: what are the packaging requirements of the product? What are the space restrictions in the DC? What can containers handle? And what are the feasible packaging types that can be enforced? The challenge, however, is not simply to create these standards but to ensure they are enforced globally. Going through the exercise of rationalising packaging is great but fail to robustly enforce the standards and suppliers will rapidly revert back to using all various shapes and sizes.

Compliance is key – and that means ensuring a retailer has excellent visibility of the supplier’s packaging plans. The easiest approach is to automatically accept orders packed using the authorised sizes and materials. If a supplier cannot access approved packaging for some justifiable reason, retailers can also offer a short list of acceptable sizes – while also ensuring the substitution is automatically communicated. The big win is to have immediate visibility when a supplier proposes the use of unauthorised packaging – enabling a retailer to accept or reject an order based on the potential financial (and ethical) implications of failing to follow the defined standards.

It’s not just retailers that need visibility. In order to inspire suppliers to stick to the rules, they need to be easy to find as well as adhere to. Suppliers need to have excellent visibility of the retailers requirements in order to quickly locate the right type of packaging and keep the process running as efficiently as possible. 

Conclusion

This is a massive mindset shift – and one that will be increasingly considered not just at the time of each shipment but during supplier assessment. In a world where packaging is fast becoming a key component of sustainable and ethical business, a supplier’s commitment to the use of standardised packaging must become a fundamental component of the decision making process.

Minimalist packaging is indeed the new black – from supplier all the way through to consumer.

For more information, contact Adjuno. 

 

 

Spacious Potential in the Sharing Economy

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Photo by Pixabay on Pexels.com

By ASCM CEO Abe Eshkenazi, CSCP, CPA, CAE

The sharing economy is no longer just a catchy turn of phrase; today, sharing, renting and subscription services are everywhere. AirBnB for your holiday rental; WeWork for freelancers who prefer the office environment; Rover for the pup’s midday walk; Uber and Lyft when you need someone to drive you places; and Zipcar, LimeBike or Bird Scooters when you’d rather do the driving yourself. The potential applications are endless.

Although only 19 percent of U.S. adults have engaged in a sharing-economy transaction, PwC research reveals that 83 percent of survey respondents believe these services make life more convenient and efficient, 76 percent say they are better for the environment, and 43 percent admit that owning things can feel like a burden.

As ownership becomes unfashionable, the fashion industry is also taking notice.

“In October, the mall fixture [Express] launched Style Trial, a service that allows customers to borrow up to three pieces — with no limits on exchanges, free shipping both ways and free dry cleaning — for $69.95 per month,” writes Jasmin Malik Chua in Sourcing Journal. “If a subscriber loves something to death, she can buy it at a discount for keeps. Otherwise, she can keep garments circulating in an eternally refreshed ‘closet in the cloud’ with virtually infinite options yet zero commitments.”

Jim Hilt, Express executive vice president and chief customer experience officer, explains that this allows customers to tap the company’s “full assortment and styling services without breaking the budget.”

In addition to this kind of flexibility and cost savings, sharing clothes eliminates the hassle of shopping malls and the time spent packing bags for donation — not to mention all those minutes staring at our wardrobes trying to decide if an item still sparks joy.

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Shifting business models

Until very recently, most of us would never have considered staying in some random person’s home while on vacation, let alone sharing a sweater with a bunch of strangers. Yet today, Airbnb averages 425,000 guests per night — nearly 22 percent more than Hilton Worldwide.

“The data shows, renting and sharing are becoming increasingly popular alternatives,” the PwC report asserts. “Executives will be wise to assess the role of their product and brand in this model — are you squarely a purveyor of goods, or are you an enabler?”

For those supply chain managers bracing for change and facing some tough calls concerning clothing lifespans; quality control of shared garments; and logistics economics, especially for lower-cost items, there is some good news. The sharing economy is also flourishing in the education space, with LinkedIn Learning, Grow with Google, and a seemingly infinite number of instructive and informative videos on YouTube. Our own channel is bursting at the seams with customer success stories, webinars, research, annual conference sessions, and a multitude of supply chain education tailored to fit just right.

To join ASCM, joint membership is available through Australasian Supply Chain Institute for just $440 per annum. Visit our website for a full list of membership benefits.

Indian regulations rain on Amazon and Walmart’s e-commerce parade

By ASCM CEO Abe Eshkenazi, CSCP, CPA, CAE

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Amazon and Walmart subsidiary Flipkart is scrambling to revamp its supply chains, vendor relationships and systems. New regulations from the world’s fastest growing economy have undermined these retailers’ business models and obstructed their sales in India’s burgeoning e-commerce sector.

Previously, foreign companies were forbidden from holding their own online inventory and shipping it directly to customers. Amazon had found a workaround in the form of local subsidiaries of firms in which it had holdings, which opponents insisted was violating the spirit of the rule. Largely due to such proxy sellers, Amazon and Walmart had controlled almost 80 percent of India’s e-commerce.

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But as of February 1, such goods are not permitted for sale by foreign companies. In addition, these firms are barred from entering into exclusive online sales agreements. A vendor’s inventory also will be considered under the control of an e-commerce marketplace if more than one-quarter of its sales are derived there.

The protectionist move follows ongoing complaints from domestic retailers over anticompetitive practices. Amazon and Walmart both requested a six-month postponement of the effective date but were denied.

“Thousands of products were pulled from Amazon.com Inc.’s India website Friday — the first direct impact from the country’s new e-commerce rules,” writes Corinne Abrams in the Wall Street Journal. The article goes on to explain that the restrictions are the latest effort by India to curb U.S. tech giants’ dominance in the country and “promote homegrown companies” as Prime Minister Narendra Modi seeks a second term.

“Both Amazon and Walmart have made big bets in India, where the e-commerce market is estimated to balloon to $72 billion in 2022,” Abrams adds. “Amazon has pledged to invest $5 billion to expand in [India], while Walmart’s takeover of India’s Flipkart for $16 billion was its biggest acquisition ever.”

Global supply chain know-how

The operations of these e-commerce giants have been thrown into disarray. As these companies, and others, navigate such severe regulatory pressure, success will hinge upon the effectiveness, responsiveness and flexibility of their supply chains.

ASCM provides the resources you need to plot your own course through the ever-shifting global marketplace. The APICS Certified Supply Chain Professional (CSCP) program enables individuals to master the fundamentals of supply chain strategy, business model design, relationship-building, risk management and much more. In particular, the CSCP learning system includes a module centered around monetary, regulatory and trade considerations; negotiation and collaboration; and international standards and compliance. Begin your journey toward this world-class certification today.

The Australasian Supply Chain Institute (ASCI) is the Premier Channel Partner for APICS and offers joint memberships with ASCI for local and ASCM for global membership for both corporates and individuals. Contact us today at http://www.asci.org.au/membership or enquiries@asci.org.au.