Mercado | Magic Qudrant

Insight – The Magic Supply Chain Quadrant

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Insights: What I Learned In Supply Chain This Week Series
$$ The Magic Supply Chain Quadrant $$
Tags: First Mile, Global Supply Chain, Import, International Supply Chain, Magic Quadrant, Retail, Supply Chain, Technology
Dallas-based startup empowers businesses to optimize international trade.

Here, you can read a great article by John Thorbeck on the relative advantages of First, Middle, and Final Mile focus.



His analysis shows that the #firstmile (Plan, Buy) provides the greatest opportunity to free up working capital, and improve overall time to market.

The poster child for this approach is Inditex (Zara), and their financials speak for themselves. They consistently achieve multiples higher market cap and operating income versus their peers.

Zara took control of their First Mile through technology, functional integration, and integrated demand planning. They go from order to pay in 4-6 WEEKS vs 4-6 MONTHS.

Is it possible to replicate this? Yes. There are three steps needed to enable it:
  1. Connect the supply source
  2. Integrate the supply source with demand planning
  3. Automate and unite the sourcing, purchasing, and logistics functions
In my last post, I wrote about how Urban Outfitters had $500 million of “trapped” working capital in July. What if it could be 'set free' 3 months faster?
ABOUT THE SERIES

Each week, Mercado CEO Rob Garrison pens his latest learnings from the supply chain industry as part of a series run for his LinkedIn followers. Each article aims to share a little insight into what's going on that week and to help foster discussion amongst industry professionals across levels, geographies, and companies.

You can connect with Rob on Linkedin by following this link.
GT Nexus founder and supply chain industry veteran, John Urban, has joined the Mercado board of directors.

Here, you can read a great article by John Thorbeck on the relative advantages of First, Middle, and Final Mile focus.



His analysis shows that the #firstmile (Plan, Buy) provides the greatest opportunity to free up working capital, and improve overall time to market.

The poster child for this approach is Inditex (Zara), and their financials speak for themselves. They consistently achieve multiples higher market cap and operating income versus their peers.

Zara took control of their First Mile through technology, functional integration, and integrated demand planning. They go from order to pay in 4-6 WEEKS vs 4-6 MONTHS.

Is it possible to replicate this? Yes. There are three steps needed to enable it:
  1. Connect the supply source
  2. Integrate the supply source with demand planning
  3. Automate and unite the sourcing, purchasing, and logistics functions
In my last post, I wrote about how Urban Outfitters had $500 million of “trapped” working capital in July. What if it could be 'set free' 3 months faster?
ABOUT THE SERIES

Each week, Mercado CEO Rob Garrison pens his latest learnings from the supply chain industry as part of a series run for his LinkedIn followers. Each article aims to share a little insight into what's going on that week and to help foster discussion amongst industry professionals across levels, geographies, and companies.

You can connect with Rob on Linkedin by following this link.
                       

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Thank you for using Mercado. Our goal is to empower businesses to better navigate the complex world of importing. We know data security is of paramount importance, so we place high standards on ensuring it is safely and respectfully secured. We are committed to following and continuously evolving best practices to support this principle. Your data is yours, and we guard it closely. We do not sell any of your information, and we will always be fully transparent on how we collect and use your data. That's a promise.
Copyright © Mercado Labs
                       

Terms of Service   |   Privacy Policy
From us to you...

Thank you for using Mercado. Our goal is to empower businesses to better navigate the complex world of importing. We know data security is of paramount importance, so we place high standards on ensuring it is safely and respectfully secured. We are committed to following and continuously evolving best practices to support this principle. Your data is yours, and we guard it closely. We do not sell any of your information, and we will always be fully transparent on how we collect and use your data. That's a promise.
Copyright © Mercado Labs
                       

Terms of Service   |   Privacy Policy
From us to you...

Thank you for using Mercado. Our goal is to empower businesses to better navigate the complex world of importing. We know data security is of paramount importance, so we place high standards on ensuring it is safely and respectfully secured. We are committed to following and continuously evolving best practices to support this principle. Your data is yours, and we guard it closely. We do not sell any of your information, and we will always be fully transparent on how we collect and use your data. That's a promise.
Copyright © Mercado Labs
                       

Terms of Service   |   Privacy Policy
From us to you...

Thank you for using Mercado. Our goal is to empower businesses to better navigate the complex world of importing. We know data security is of paramount importance, so we place high standards on ensuring it is safely and respectfully secured. We are committed to following and continuously evolving best practices to support this principle. Your data is yours, and we guard it closely. We do not sell any of your information, and we will always be fully transparent on how we collect and use your data. That's a promise.
Copyright © Mercado Labs