Extending the Supply Chain Network

The retail marketplace will never accept the status quo of a disparate and unconnected network of service and product providers because the consumers that make up the retail marketplace have moved beyond the islands of providers and separated connections to a connected network that supports collaboration and the smooth flow of data and activities.  The pieces and parts required to extend the network are available and proven, the retailers and network partners must now focus on connecting the dots and delivering the goods. The focus now of the retailers and other providers in the extended supply chain must be on collaboration and connectivity. This is easy to suggest and I think that everyone agrees with the concepts and the challenge is in the action and implementation.  This requires a change in culture for many of the players in the supply chain to open up and embrace the change.

This change must start with retailers and change their focus from an internal self centered view to a community and collaborative view.  This requires that the retailers embrace the concept that they cannot survive as a major force in the market based on their own singular capabilities and this means that they must embrace the true meaning of collaboration which is sharing and working in partnership towards mutually beneficial goals.  This does not mean that they must relinquish their identity, it simply means that they must identify the activities that are common practices more effectively so that they can share the support of these activities while focusing on the activities, products and even culture that makes these retailers special.  

Retailers will not need to replace their eCommerce sites although these sites will need to change to provide more social networking capabilities and connectivity to the extended supply chain in order to grow.  These connections and open technologies will allow the retailer to focus on their strengths and build the relationships within their newly extended collaborative network. This focus is important to allow the retailer to grow and succeed in the future.  Just like we saw the economy impact the supply chain, this time we will see the marketplace changes and increased velocity in these changes having a similar impact on the marketplace and retailers across the board. Based on a comparison of these changes I see that the retail network can take advantage of the learnings and practices from the supply chain network.

Now is the time for these retailers to take a look around at the networks that interact and support the retail marketplace to evaluate how to harness the strengths and capabilities available.  This is an important time now to react and take the time now to chart a course through the integration and extension of these capabilities to improve the retail marketplace and their place in this marketplace.  Retailers focused up to this point on what I would call operational efficiencies and now must turn the focus to the social and shopping aspect demanded by the market. The good news is that these retailers can utilize the social networking tools and the collaborative tools developed over the years to support their efforts.