(This week’s blog is from a frequent collaborator, Bill Wade: a career distribution expert especially for heavy duty truck and automotive parts.
Amazon is expanding US fulfillment capacity by 50% in just 2020 as they drive towards 12-hour delivery in a 24-hour day. They are doing heavy build outs in target cities including Bill’s hometown of Chicago. Parts distributors of all types will feel the heat.)
Continue reading 210. The Future is Easier to Understand in Your Own Back Yard
Levels of Innovation:
All businesses innovate along a continuum from: trivial to breakthrough. Some rearrange the deck furniture on their Titanic (incremental innovations). Some might get an iceberg-resistant ship (new business model). And, a few will pursue an iceberg-free route (new channel model).
Continue reading 203. Invent New, Distributor Models
Vigorish (“vig”) is the fee charged by a bookmaker (casino or loan shark) for accepting a gambler’s wager. For roulette, gamblers bet on 1- 36 possibilities. The wheel, though, has 38 slots that include 0 and 00. When the ball lands in the 0’s (2/38th or 5.26% of the time) the house takes in all bets. With a 5%+ edge and time, the house prospers.
What if your company had several, service-value edges over the competition? Or, conversely, would you want to compete against a firm that has big, additive, value and/or cost edges over you? Two cases.
Continue reading 199. Create – Targeted, Additive, Service – Vigorish
Back in 2002…
…..Amazon hit an enterprise, IT, dead-end. Their IT system could not handle the silos of people who were handling exploding numbers of- SKUs, categories, orders, acquisitions, etc. – all sold through one homepage.
Continue reading 198. Bezos Switched From a Dead-End ERP System. Will You?
“Cloud eCommerce ’23” (?)
C-19 challenges are currently all-consuming. But, e-trends continue to accelerate in the background.
How will these e-factors converge in 30+ months (January 1st, 2023)?
Continue reading 194. Seeing and Winning at: “Cloud eCommerce 2023”
Principles for Innovating
Google: “Amazon’s 14 Leadership Principles”. Here’s how a distributor put them to work.
Principle #1 (P#1); “Customer Obsession”
(CEO speaking): We subscribe to a customer/SKU, net-profit analytics service. We were initially shocked by the net-profit winners and losers. But, if we were going to reinvent service-value in a Frugal (P#10) way, we should start obsessing about our most net-profitable customers and customer niches. Continue reading 176. Distributor Puts Amazon’s 14 Principles to Work