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Big retailers compete

Date:2017/12/22 15:55:41

Earlier this month, target agreed to buy Shipt, a grocery distribution company, for $550 million. The move is a clear indication that Target intends to launch the same-day delivery for customers in order to compete with other major retailers (ahem, Amazon). The impact of same-day delivery on e-commerce retailers will largely depend on how their digital businesses are built.
I spoke to Gregory Ng, vice President of Digital Engagement at Globant's PointSource, about the digitization of the supply chain and the significance of e-commerce retailers. Wu Changjun company and supply chain management, retailers and insurance company cooperation, to help build a flexible, adaptable digital infrastructure, in a rapidly changing digital keep tough trading environment.
PCMag(PCM): for the overall large box retail landscape, what does the Target acquisition of Shipt mean, especially in e-commerce?

Greg Ng, PointSource
Gregory Ng(GN): Target's Shipt company not only clearly demonstrates their threat to amazon Prime, but also represents a change in customer expectations. As Amazon speeds up its delivery services, consumers are demanding more from retailers other than Amazon. As a target for the "amazon effect", Shipt will be their must-have tool so they can meet those needs with amazon. Target's acquisition demonstrates the need to constantly update products in the retail space. Big retailers need to keep this in mind as they consider their e-commerce strategies. If they can't keep up with amazon's demands for consumer speed, they will inevitably lose those retailers that offer this experience.
Greg Ng, PointSource
PCM: how quickly can we expect to be delivered to a large retailer? From companies like amazon to big cities, from branded retailers to the suburbs, it is possible.
I think a lot of people have anticipated that. If they can't buy things from big retailers on the same day, consumers are likely to put their business somewhere. As this trend continues to grow in the retail sector, we've been seeing big retailers like Kohl's working with companies like amazon so they can do that. I expect we will continue to see large retailers offering same-day delivery, and if they don't, we will see a corresponding decline in their Numbers.
PCM: how to use same-day delivery on a large scale to influence supply chain?
GN: this will change many things in the retail supply chain. This includes the need for real-time supply chain information so that retailers can understand the location of each product at any time, and the ability to transport anywhere from anywhere. Transparent supply chain information will be key to ensure customer satisfaction and supply chain efficiency. As the day delivery trend continues, expectations for the delivery range will continue to expand. The supply chain will need to use technology to provide this insight and create efficiencies in their processes to make delivery lean and fast.
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PCM: how will these almost instantaneous online transactions affect the real business? What changes would you see there?
CGN: employees at brick-and-mortar retail stores now need training in transportation and transportation, as well as display product packaging and sales. In order to meet the delivery requirements of the day, it is important to ensure that all the people are on deck when preparing the shipment to ensure that the order is accurate and the process is valid. In bricks and mortar, the ratio of exhibition halls to warehouses will also change. In some sectors, brick-and-mortar stores may become more of a show-center and self-packaging space. The most likely thing for Target is television, furniture, bicycles, and those too big to be installed on most cars. The ability to ship with the sky means that you don't need to carry a huge box to tie it to your roof.
PCM: besides the same-day delivery, should consumers start to consider other means of delivery? Can we make delivery in the car? Does the family make delivery? What else?
GN: I think the next delivery option that consumers should start thinking about is a lot of orders. Can a large community discount be far off? If the goals are completed on the same day, why don't they provide the option to buy commodities with their neighbors? It also helps them to have different types of market share and consumer base, like Costco. A large order with a neighbor means a more efficient supply chain process and a better deal for buyers. Target and other large retailers can learn from supermarket chains, which offer door-to-door delivery. This makes the retailers can free up valuable shelf space, at the same time offers more choices, because now and purchase decision-making process is in a virtual storage room, directly to your car or the door.



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