One of the most promising applications of emerging blockchain technology is supply chain management. Blockchain--the digital record-keeping system developed for cryptocurrency networks--can help supply chain partners with some of their challenges by creating a complete, transparent, tamperproof history of the information flows, inventory flows, and financial flows in transactions. The authors studied seven large U.S. corporations that are exploring how blockchain might improve their supply chain operations. Their early initiatives show that the technology can enable faster and more cost-efficient product delivery, make products more traceable, streamline the financing process, and enhance coordination among buyers, suppliers, and banks. There are special requirements for using blockchain in supply chain management: restricting participation to known, trusted partners; adopting a new consensus protocol; and taking steps to keep errors and counterfeits out of the supply chain. But if implemented thoughtfully, the authors suggest, blockchain could pay big dividends for companies in a host of industries.
In pursuit of double-digit top-line growth, many retailers relentlessly open new stores, even when doing so destroys the profitability of their businesses. This addiction is fueled by Wall Street and a capitalist culture that's obsessed with growth. It's hard to kick, primarily because companies don't know when or how to turn off the growth machine--or what to replace it with. To explore the problem, the authors studied the financial data of 37 U.S. retailers with recent sales of at least $1 billion whose growth rate had faltered. They found that the less successful retailers had continued to chase growth by opening new stores far past the point of diminishing returns. By contrast, the more successful retailers had drastically curtailed expansion and instead relied on operational improvements at their existing stores to drive additional sales. This allowed them to increase revenues faster than expenses, which had a powerful positive impact on earnings. This article lays out a framework for determining when to switch to a low-growth strategy and how to put it into practice. If retailers execute well, they can stay in the maturity stage of the life cycle for a very long time, forestalling decline.
What should a supply chain do well? After an introduction to key terms and concepts, the core reading moves on to the strategic and operational decisions behind a supply chain that matches the need for responsiveness and efficiency. Within this framwork, it presents the strategic and operational decisions behind improving efficiency, and introduces concepts such as sales and operations planning, the bullwhip effect (and steps for avoiding this phenomenon), and updating demand forecasts. Practical strategies for improving responsiveness focus on delayed differentiation and in-depth discussion of read-react capability. The reading concludes by shifting to the design stage of a supply chain, . A supplemental reading also explores sources of supply chain risk, building resilience, and future requirements for compliance, transparency, and traceability.
Retail inventory is a statistic that is closely watched by retailers as well as their investors, lenders, and suppliers. Retailers not only benefit from inventory, but also bear the cost of excess inventory. Investors, lenders, and suppliers interpret this statistic for signs of the retailer's health, future sales prospects, and impending costs. This article synthesizes the perspectives of investors, lenders, and suppliers on inventory. Moreover, the article shows that inventory turns, a commonly used metric to identify excess inventory, has important limitations that reduce its utility for all these stakeholders. It then presents a new metric, adjusted inventory turns, which can be effectively utilized by all stakeholders to assess whether a retailer is carrying too much or too little inventory.
Multiple delays of the Airbus A380 have shocked analysts and investors alike. What are the causes of these delays and how should investors respond to the signals they may be sending about the company's outlook?
Examines the decision of a hedge fund manager who is considering investing in a retail stock. The protagonist is concerned about the retailer's inventory level. Explores the relationship between the retailer's inventory and future earnings--and, hence, the relationship between inventory level and stock price.