Retail Without Boundaries

This is an excerpt of the original article. It was written for the November 2013 edition of Supply Chain Management Review. The full article is available to current subscribers.

November 2013

Sales & Operations Planning is both a science and an art. Like any science, it relies on principles, rules, methodology, and specific measurable outcomes. But an S&OP implementation also calls for creative, incremental thoughts to address challenges.

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Supply chain innovation comes in two iterations: reactive and proactive. Reactive innovation is a response to change, including change that an organization didn’t see coming. Proactive innovation is a catalyst for change. When a leading organization gains a competitive advantage through proactive innovation, the rest of the market has to react just to keep pace.

Both types of innovation are on display in the retail supply chain as the industry evolves from single channel to multi-channel to omni-channel retailing.

The catalyst for this evolution is Amazon Prime. Back in 2005, the online retailer announced free two-day shipping on qualified items. Designed to enhance loyalty and fuel top line sales growth, the Amazon Prime program has had a huge impact on Amazon’s success in recent years.

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