Click to add text

© 2014 IBM Corporation

Supply Chain Management – Commentary and Solutions

Presenter: Paul Young, CPA, CGA – Proven Practice Adviser – Risk Analytics, FOPM/FPM and Close, Consolidate and Reporting

Day: March 27, 2017

© 2012 IBM Corporation

Author / Bio

September 9, 2014

• Paul Young, CPA, CGA• SME – Financial Performance Management (TM1, Cognos Controller

and Cognos Disclosure Management, OpenPages, Algorithmics, Cognos Integrated Server, Cognos Command Center and Datawatch)

• Industry Experience• 15+ years in Corporate Reporting, Budget & Forecasting,

Costing, Business Process Management, Internal Audit and Controls, Risk Management, Financial Analysis, Costing

• 11+ years in financial solutions (FOPM, FPM, Risk, Office of the Finance, Risk Management)

• 8+ years teaching Advance Finance, Advance Accounting, Public Finance and Advance Management Information Systems

• Blogger in areas like Finance Analysis, Government policies, market segment

© 2012 IBM Corporation

Retail Sales/Inventory

Global Forecast

Business Investment / Technology

Micrologistics

Re-shaping retail channels

Agenda

© 2012 IBM Corporation

• Business continue to face both domestic and global challenges

• Business continues to struggle with aligning technology with their business operations

• Business continues to struggle with managing data analytics as part of the close, consolidate and reporting cycle

Challenges

© 2012 IBM Corporation

https://www.census.gov/mtis/www/data/pdf/mtis_current.pdf - March 15, 2017

United States – Retail Sales – February 2017

© 2012 IBM Corporation

February 2017 – Retail Sales by Segment

Source - USA Government

US Retail Sales in February post smallest gain in six-months – Bloomberg March 15, 2017

But notably, January's core retail sales were upwardly revised to a 1.2% increase, up from the prior reading of 0.8%. Business Inside – March 15, 2017

Most U.S. retailers reported weak sales in February despite unseasonably warm weather, a likely offshoot of delayed tax refunds for millions of households.Market Watch – March 15, 2017

© 2012 IBM Corporation

Retail Sales change by month

© 2012 IBM Corporation

Source – Scotiabank – March 7, 2017

Global Forecast

© 2012 IBM Corporation

Sales Tax Changes / New Mexico / Amazon

http://www.cnbc.com/2017/03/06/the-associated-press-amazon-to-collect-sales-tax-in-new-mexico-starting-in-april.html

More States are targeting eCommerce retailers (lack of Nexus)

© 2012 IBM Corporation

Source - http://blogs.infor.com/the-informed-distributor/2017/03/todays-technology-investment-will-drive-tomorrows-distribution-business-models.html

© 2012 IBM Corporation

Amazon

http://www.supplychainquarterly.com/topics/Strategy/20160503-so-you-think-amazon-rules-the-world-new-report-says-you-aint-seen-nothing-yet/September 9, 2014

Amazon, Alibaba will use self driving vehicles, robotics, 3d printing and AI for to compete on same day delivery

Amazon, which currently charges a $99 annual fee for two-day deliveries under its "Prime" service, will eventually offer two-tier pricing for delivery services, Jindel said. One will be a "Gold Prime" membership costing $199 to $249 a year that covers next-day deliveries, the other a platinum membership for $399 a year that includes same-day deliveries. Jindel said the pricing scheme will take effect only after Amazon builds out its distribution infrastructure.

Amazon is using and will using all aspects of - Robotic warehouses - Robotic trucks - Drone delivery - AI and quantum computers improved logistics and analytics - additive manufacturing

© 2012 IBM Corporation

https://www.exact.com/au/about-exact/news/434-wholesale-of-the-future

What is migrologistics?

© 2012 IBM Corporation

• Risk and Compliance (Taxation)

• Cost to serve models

• Retailers competing against Amazon • Changes to hub and spoke approach channel management

• Social Media Analytics• Understanding the trends

• Watson• More predictability with sales

• Time-Series (Inventory on hand/turnover)• Product launches• Inventory Management

• Testing inventory stock provision for dead and slow moving stock• Tracking inventory• Costing (rebates, discount)

Business Demands

© 2012 IBM Corporation

IoT - https://www.ibm.com/blogs/internet-of-things/enabling-iot-business-outcomes/

Watson - https://www.ibm.com/analytics/watson-analytics/in-en/by-industry/retail

Analytics - http://www-05.ibm.com/uk/forecasting-and-budgeting/2017_Q1_Rolling_Forecast_Seminar_slide_deck3-1.pdf or https://www.ibm.com/analytics/us/en/business/financial-performance-management/

Opportunities for solutions