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VARIETY AND AVAILABILITY of goods, particularly in small or difficult markets
Counters SKU reduction in bricks and mortar retail
CONVENIENCE: Products are brought to the customer
Reduces need and use of other transportation
Reduces “hunter-gatherer scavenging”
TIME: Once the “Order” button is pushed (anywhere), the customer is free to do other things
Asynchronous interaction
Doorstep/locker pickup is often fine, sometimes not.
Speed appropriate: It doesn’t have to be fastest, just bestest
Forrester Research
Marketing Funnel
Physical Moment of Truth
PMOT
Buyers
Influencers
What is the customer’s first experience of the product at that moment?
Must offer the best first-user experience possible
Paradigm lost – if there’s a problem, it’s your problem
Reviews are quick
and brutal
Remember – you’re turning buyers into influencers
Expectations and preconceived notions
Market demand
Package and shipper condition
Speed and accuracy of delivery
Condition upon first experience
Secondary factors (reverse logistics)
Followup
Digital media
Online content
Word of mouth
Product quality
Reviews
Fake?
Review metasites are increasing.
www.reviewmeta.com
www.fakespot.com
Flash fads
Speed of supply
Speed of handling unwanted products after it’s over.
Longer term trends
Long tail products
If you sell to one in a million, you have ~7,000 customers out there…you just have to get to them.
Handled on a probabilistic basis – forecasts are a range, not a single number
Custom/bespoke/one-off items are 13th most common. Does “repeat purchase” apply?
Corporate inertia and avoidance of risk Purchasing startups
Indegogo corporate ventures
*https://blog.hotmart.com/en/best-selling-products/
Predictive analytics
AI
Machine Learning
Nothing new
Reducing intuitive operation
May produce logical
errors common with people
Predictive ordering
90% good enough for...
Supply chains?
Social sensing
Could it be self-teaching?
Biggest Problem with Scaling: Data, data who owns the data?
Programming v. Learning
blog.toolsgroup.com
“Cobots ” task-flexible robots that work alongside humans.
Easily programmed, finding many small, flexible applications rather than one big one
Work with manual controls and guards & can be fitted with platform-agnostic vision and interpretive software.
Autonomous delivery
Of some sort...
Oc
ad
o
Nu
ro
Hit
ch
bo
t-
RIP
“Amazon incentivizes brands to create Frustration-Free Packaging”, Packaging Digest, 9/18/2018
Product integrity
Overpackaging as a negative
Opportunity for brand imprinting & individuation of product.
Digital printing
How do you shout the brand?
CWIFRESHNESS
INDICATOR
UV -CONSUME WITHIN (CWI) INDICATOR
CO2-CONSUME WITHIN (CWI)
AFTER OPENING-
CONSUME WITHIN (CWI)
TTI – ONVU
TI – THERMOTRACE
INTELLIGENT PACKAGING THAT MAY HELP ENSURE SAFETY AND QUALITY FOR FOOD & CPG
TEMPERATURE
INDICATOR
TTI & TI
MICROBIAL
INDICATOR
OXIDATION
INDICATOR
TOXINS & VEGETATIVE
CELLS SENSOR
VOC & TVB-N SENSOR
MICROBE SENSOR
PH FLUORESCENT DYE
SENSOR
H2S SENSOR
O2 SENSOR
www.PackagingTechnologyAndResearch.com14
Xerox PARC/Thin Film Electronics ASA
?
??
These may be different for delivery, BOPIS, shopping services, and bricks and mortar.
The creative challenge is brand unity within channel diversity.
Works with the aesthetics of the shipper itself.
Provides both protection and good PMOT impression.
http://www.thedieline.com/blog/2018/6/12/17-e-commerce-packaging-designs
Physical Moment of Truth (PMOT) – when the
customer unpacks the physical product
Creating Advocacy
Hans Rosling, MD
www.gapminder.com
$2 $8 $32$2 $8 $32
Physical Moment of Truth
PMOT
Buyers
InfluencersAdvocates
Deloitte (2015). “THE OMNICHANNEL OPPORTUNITY – UNLOCKING THE POWER OF THE CONNECTED CONSUMER”. [PDF] https://bit.ly/2k9zB1X
DHL Trend Research (2018). ARTIFICIAL INTELLIGENCE IN LOGISTICS:A collaborative report by DHL and IBM on implications and use cases for the logistics industry https://bit.ly/2IiyxEH
The Economist (2017). HOW GERMANY’S OTTO USES ARTIFICIAL INTELLIGENCE, Economist, April 12 2017. https://econ.st/2DEhFuc
The Ferrari Group: ORCHESTRATING DIGITALLY ENABLED RESPONSE NETWORK CAPABILITIES Available from www.toolsgroup.com: https://bit.ly/2OexRGw
Gartner Research (2018), Gartner Hype Cycle 2018; https://gtnr.it/2vTTphv
Gartner Research (2017). “PREPARING AND ARCHITECTING FOR MACHINE LEARNING”, Published: 17 January 2017 ID: G00317328 Analyst(s): Carlton E Sapp. https://gtnr.it/2NEDjTJ
Haven, Brian (2007). “RETHINKING THE MARKETING FUNNEL”, blog post by the author of the now-unavailable Forrester marketing funnel report. https://bit.ly/1bPNlcn
Rosling, Hans (2018) “Factfulness”, Flatiron Books ISBN-13: 978-8925598185 Also see www.gapminder.com
The ToolsGroup blog: https://blog.toolsgroup.com/en Particularly articles by Jeff Bodenstab on supply chain innovation
Tyndall, G., Timme, Steven, Baker, A, “ ACHIEVING REVENUE GAINS FROM DISTRIBUTED LOGISTICS: The value of inventory proximity to customers:, Available from MonarchFX Logistics: https://bit.ly/2QlxWG6
Weill, P. & Woerner, S.L. (2015) “THRIVING IN AN INCREASINGLY DIGITAL ECOSYSTEM”. MIT Sloan Management Review. https://bit.ly/2qH1vrc
Zebra Technologies (2018); “FUTURE OF FULFILLMENT VISION STUDY” – press release.https://bit.ly/2v2sylh
www.scottamorris.com
