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A STRATEGIC IMPERATIVE FOR RETAILERS Accelerate Global Growth How to Combat Uncertainty and Volatility in New International Markets

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Page 1: How to Combat Uncertainty and Volatility in New ...mktforms.gtnexus.com/rs/gtnexus/images/GTNexus...How to Combat Uncertainty and Volatility in New International Markets For retailers

A STRATEGIC IMPERATIVE FOR RETAILERS

Accelerate Global GrowthHow to Combat Uncertainty and Volatility in New International Markets

Page 2: How to Combat Uncertainty and Volatility in New ...mktforms.gtnexus.com/rs/gtnexus/images/GTNexus...How to Combat Uncertainty and Volatility in New International Markets For retailers

For retailers to expand globally, they need to have

access to a large network of providers and be able to

change their expansion plan easily. When a company

expands into a new country, they might have limited

data on product viability, consumer needs and buying

habits, regional sourcing options, and reliable compa-

nies to partner up with. When they make decisions on

this limited data, it’s often hard to make changes as

challenges appear.

Even if a retailer can find good partners, it’s not guar-

anteed they will use similar systems, standardized

data, or even the same language and currency. It can

hinder communication and performance analytics

when there is not a single platform for real-time infor-

mation.

Impact of Poor Growth Strategy

Global growth can slow or come to a halt when retail-

ers are not equipped with the right technology to man-

age such an intricate supply chain. Without a cloud-

based platform, they are likely to experience:

• Inability to expand quickly enough

• Difficulty identifying and managing new suppliers

and partners

• Difficulty integrating partners with existing systems

• Difficulty managing cross border payments from

subsidiaries or distributors

• Poor use of inventory to meet demand in different

regions

The Root of the Problem

The core cause of bad global growth strategy is the

unknown. Retailers may not know what the demand is,

how to handle outbound flows, and who to partner

with. With only a traditional ERP system, there’s no way

to integrate data to make smart decisions in new mar-

kets.

1. Lack of global visibility

When there is no consolidated view of global

demand, no view of outbound supply, and multiple

sources of visibility data, the following occurs:

• Inability to allocate to regional demand

• Inability to consolidate purchasing

2. No established network of partners

When retailers don’t know which partners are the

best option and supply chains are not integrated,

there is no easy sharing of comprehensive supply

chain data. This leads to:

• Poor use of procurement budget

• Difficulty in switching to better partners when per-

formance is failing

The Challenge

Expanding internationally or adding categories is difficult with a complex global supply chain.

RegionalProduction

Hubs

LATAMStores

NAMStores

EUStores

Middle EastStores

Asia Stores

Adding regions without good data leads to confusion and poorly vetted partnerships.

Page 3: How to Combat Uncertainty and Volatility in New ...mktforms.gtnexus.com/rs/gtnexus/images/GTNexus...How to Combat Uncertainty and Volatility in New International Markets For retailers

Retailers can accelerate global growth by using cloud-

based technology to bring all of their global providers

and potential partners onto the same network. Unlike

with traditional ERP systems, cloud technology makes

it easy to bring on new suppliers and partners and

communicate with all of the stake-holders in a supply

chain. Data on new markets can be gathered in real

time and changes made to strategy as needed.

Suppliers & Agents

LogisticsServiceProviders

FreightCarriers

FinancialServiceProviders

Out of Market

DC Space & Labor

OrderDistribution Cross Dock

Postpone-ment

On Order In Production At Origin In Transit

In CustomsInlandDelivered

Sample Enabled Workflows

Operating Platform

Partner Network

Throughout the supply chain, retailers can adapt their growth

strategy based on information along the way.

Adopt a flexible, scalable cloud platform to collect

data from new markets.

• Enable electronic data management and payment

• Use electronic documentation to move goods fluidly

across a global network

• Handle complex, multi-leg intercontinental flows

(factories, in-country DC, end delivery)

• Use dashboards and KPIs highlighting supply chain

variability, bottlenecks, etc.

How to use it to accelerate global growth:

1. Improve sourcing by identifying “at risk” orders

2. Plan inventory with high reliability

3. Measure provider accountability

4. Manage cash settlement and discounts

5. Better communicate with customers to make

more sales

Value Propositions

By using a platform that allows global providers to plug

into a cloud-based network, retailers can bring in crucial

supply chain data from sources in emerging markets.

They can:

1. Increase sales and service levels through

reallocation

• Rapidly respond to customer demand

2. Improve brand equity and repeat business

• Achieve faster and more efficient market entry

• Solidify position as reliable and on-trend retailer

3. Increase COGS through better sourcing strategy

• Use pre-integrated supplier network

4. Lower admin costs with elimination of manual

processes

5. Increase revenue through global growth

• Accelerate new market entry

• Improve product availability globally

• Optimize use of inventory to increase margins

Global Growth and the Networked Company

To accelerate global growth, companies must transform

themselves from silo-based, inward-facing corporate

operators to interconnected, highly agile business

network orchestrators.

NetworkConnectivity

Agility

B

A

Sense more accurately

Operate more e�ciently

Respond faster

Make better decisions

Global growth is driven by a real

understanding of emerging markets.

Without supply chain data for these

regions, retailers will lose out to their

more equipped competitors.

The Solution

Page 4: How to Combat Uncertainty and Volatility in New ...mktforms.gtnexus.com/rs/gtnexus/images/GTNexus...How to Combat Uncertainty and Volatility in New International Markets For retailers

GT Nexus provides the cloud-based collaboration platform that leaders in nearly

every sector rely on to automate hundreds of supply chain processes on a global

scale, across entire trade communities.

Copyright © 2017 GT Nexus, an Infor company. All rights reservedgtnexus.com