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Amazon Disrupts Again
From:
Lisa Anderson M.B.A. - Manufacturing and Supply Chain Lisa Anderson M.B.A. - Manufacturing and Supply Chain
For Immediate Release:
Dateline: Claremont , CA
Friday, April 05, 2019

 

According to Bloomberg, Amazon disrupts again. They have abruptly stopped selling products from their wholesalers and are instead encouraging suppliers to sell on their marketplace, transferring the purchasing, storing and shipping of products to the supplier. The marketplace business is already estimated at $250 billion in value which is more than double the online retail business. They also pulled volume from some suppliers less than $10 million annually. If you are in either of these positions, this could be a substantial disruption especially with no notice!

According to the Journal of Commerce, Amazon is also disrupting container shipping with its increased use of its ocean forwarding arm. For example, with its non-vessel-operating common carrier (NVO), Amazon is gaining greater control over its internal supply chain but the key is whether it is thinking about building a supply chain platform.

Amazon isn’t the only disruptor. Are you proactively thinking about navigating disruption?

What Should We Consider and/or What Impacts Could Arise?
Hardly a day goes by without some sort of disruption, natural disaster or other event such as the Boeing 737 Max concerns. There is no way you can be prepared for every potential issue that will arise. With that said, it is remiss not to consider the most likely and relevant risks. Do you have a process to incorporate these into your strategy and execution plans on a frequent basis? Gone are the days of the 5 year strategy, updated once a year. Business is moving at a much quicker speed!

In addition, start looking at how to build an agile and resilient end-to-end supply chain. Start internally. Are your people prepared for the daily, weekly and monthly changes most likely to impact your business? Do they have backup plans? Or will it take a lengthy approval process to get a critical decision made to navigate disruption? Don’t just assume you are covered. Go and find out. If you’d like some tips for managing disruption, take a look at our resilient supply chain series.

About ASCM and APICS
ASCM is the global leader in supply chain organizational transformation, innovation and leadership. ASCM is built on the foundation of APICS certification and training spanning 60 years. APICS provides world-class supply chain training and certification to foster supply chain talent and improve end-to-end performance. APCIS sets the standard for supply chain education, through outstanding training, certification and community programs..

About APICS – Inland Empire
The APICS Inland Empire Chapter (APICS-IE) covers the Inland Empire region of Southern California, which spans the easternmost portion of Los Angeles county and includes San Bernardino and Riverside counties.  The chapter offers educational classes, programs and special events in the hotbeds of manufacturing, distribution and transportation activity including Ontario, Riverside and Temecula.  APICS-IE partners with other organizations supporting manufacturing and distribution such as the DMA (Distribution Management Association), neighboring APICS chapters, industry leaders and government officials in support of furthering the region’s workforce development and growth.

Media Contact                                                            
Kathleen McEntee | Kathleen McEntee & Associates, Ltd. | p. (760) 262 - 4080 | KMcEntee@KMcEnteeAssoc.com                                                 

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President
LMA Consulting Group, Inc.
Claremont, CA
909-630-3943