Wednesday, March 25, 2009

Finally a retailer that gets global logistics



For some reason retailers in the US haven't figured out that they can build up their consumer base simply by allowing consumers to order products online and have them shipped globally. You would be surprised, by the number of leading clothing retailers like JCrew and Banana Republic that won't ship outside of the US. Why? I have no idea. They could easily let UPS and/or FedEx handle all of the complicated customs and logistics issues. But they choose not too. Well Apple has finally figured this out. While they have an online store in dozens of countries and languages, if you want something shipped to Austria, you need to order from the Austrian Apple store online and if you don't speak German or if you don't live in Austria, well then tough. Until today...

Apple announced Cross Borders, which allows US customers to ship to over 20 countries, including Switzerland and Austria, where I happen to spend my days and nights. This makes me very happy. The other benefit is that expats and others that don't speak the language can order from the US online Apple store and have it shipped to them locally. Brilliance? No, just solid logistics outsourcing 101.

Thursday, March 12, 2009

New Chief Supply Chain Officer Study

Whenever I promote something related to IBM, I always first disclose that I work for IBM. So consider yourself disclosed. A few weeks ago IBM released a new study based on interviews with 400 supply chain executives from the Americas, Western Europe and Asia called the Supply Chain of the Future. The report boils down to 5 major challenges including cost containment, supply chain visibility, risk management, increased customer demand and globalization. You can download the report here, which includes a forward by Bob Moffat, senior vice president, IBM Systems and Technology Group. While it's not implied in his title, he owns the responsibility for IBM's $38 billion supply chain.

On a side note, when I was working in the US I had the pleasure to spend considerable time with Bob on numerous occasions. He lives in breaths supply chains and has dedicated a large part of his career to transforming IBM's supply chain from a broken-up network to globally integrated. Books could be written about what he's done to IBM's hardware supply chain, which is now also being applied to IBM's services and global delivery business. His endorsement of this study and his participation in it really makes it a must read in my view.