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STOCKPIL
THE GOODSTOCKPILING THE GOODS:
What No One Tells You About Inventory Management
WHAT
NO ONEJeremy Hanks
Cofounder & CEO
DropShip Commerce
@ j e r e m y h a n k s
J E R E M Y H A N K S
INVENTORY DISTORTION*
$1.5 Trillion inventory sitting
in overstock position.
* IHL Group 2012
@ j e r e m y h a n k s
J E R E M Y H A N K S
INVENTORY DISTORTION*
$1.5 Trillion inventory sitting
in overstock position.
That turns into:
* IHL Group 2012
$326B
@ j e r e m y h a n k s
J E R E M Y H A N K S
INVENTORY DISTORTION*
$1.5 Trillion inventory sitting
in overstock position.
That turns into:
* IHL Group 2012
$326B
Out of stocks are an
even a bigger problem.
$456B
@ j e r e m y h a n k s
J E R E M Y H A N K S
INVENTORY DISTORTION*
$1.5 Trillion inventory sitting
in overstock position.
That turns into:
* IHL Group 2012
$326B
Out of stocks are an
even a bigger problem.
$456B $818B
@ j e r e m y h a n k s
J E R E M Y H A N K S
INVENTORY DISTORTION*
Growing by
* IHL Group 2012
$50B
Per year
@ j e r e m y h a n k s
J E R E M Y H A N K S
TRADITIONAL RETAIL SUPPLY CHAIN
SUPPLIERS RETAILERS
STOCK POS
CONSUMERS
B2B B2C
@ j e r e m y h a n k s
J E R E M Y H A N K S
eCOMMERCE
SUPPLIERS RETAILERS
STOCK POS
CONSUMERS
B2B B2C
@ j e r e m y h a n k s
J E R E M Y H A N K S
DROP SHIPPING/MARKETPLACE
SUPPLIERS RETAILERS
STOCK POS
CONSUMERS
B2B2C
@ j e r e m y h a n k s
J E R E M Y H A N K S
MANUFACTURER DIRECT TO CONSUMER
SUPPLIERS CONSUMERS
B2C
@ j e r e m y h a n k s
J E R E M Y H A N K S
VERTICALLY INTEGRATED eCOMMERCE
RETAILERS CONSUMERS
B2C
STOCK POS
@ j e r e m y h a n k s
J E R E M Y H A N K S
SUPPLIERS RETAILERS
STOCK POS
CONSUMERS
B2B B2C
B2B B2C
B2B2C
B2C
B2C
@ j e r e m y h a n k s
J E R E M Y H A N K S
SUPPLIERS RETAILERS
STOCK POS
CONSUMERS
VIRTUALIZATION
@ j e r e m y h a n k s
J E R E M Y H A N K S
SUPPLIERS RETAILERS
STOCK POS
CONSUMERS
VIRTUALIZATION
DIRECT
@ j e r e m y h a n k s
J E R E M Y H A N K S
RETAILERS CONSUMERSSUPPLIERS
@ j e r e m y h a n k s
J E R E M Y H A N K S
AGGREGATION DEMANDSUPPLY
@ j e r e m y h a n k s
J E R E M Y H A N K S
SUPPLY AS AGGREGATORS
AGGREGATION DEMANDSUPPLY
@ j e r e m y h a n k s
J E R E M Y H A N K S
CROWD AGGREGATION
AGGREGATION DEMANDSUPPLY
@ j e r e m y h a n k s
J E R E M Y H A N K S
CROWD SUPPLY
AGGREGATION DEMANDSUPPLY
@ j e r e m y h a n k s
J E R E M Y H A N K S
PRODUCT PUSH TO CONSUMER PULL
AGGREGATION DEMANDSUPPLY
@ j e r e m y h a n k s
J E R E M Y H A N K S
@ j e r e m y h a n k s
J E R E M Y H A N K S
@ j e r e m y h a n k s
J E R E M Y H A N K S
PRODUCT PENETRATION
73%
@ j e r e m y h a n k s
J E R E M Y H A N K S
PRODUCT SELECTION
25% - 33%
@ j e r e m y h a n k s
J E R E M Y H A N K S
CHALLENGES
INVENTORY VISIBILITY ORDER ASSURANCECONSUMER CATALOG
@ j e r e m y h a n k s
J E R E M Y H A N K S
ALIGNMENT: SAME PAGE
SHARED PROBLEMS
@ j e r e m y h a n k s
J E R E M Y H A N K S
ALIGNMENT: TEST
Place Order	

Receive Order	

Return Order	

ALIGNED APPROACHES
ALIGNMENT: TEST
PLACE ORDER RECEIVE ORDER RETURN ORDER
@ j e r e m y h a n k s
J E R E M Y H A N K S
ALIGNMENT: SCORECARDS
68% 83%
DATA CHANGE
ORDER MOVEMENT
OPEN & SHARED
@ j e r e m y h a n k s
J E R E M Y H A N K S
ALIGNMENT: TECHNOLOGY
@ j e r e m y h a n k s
J E R E M Y H A N K S
THINK ABOUT: MINDSET
VENDORS DEALERS
@ j e r e m y h a n k s
J E R E M Y H A N K S
THINK ABOUT: MINDSET
PARTNERS PARTNERS
@ j e r e m y h a n k s
J E R E M Y H A N K S
THINK ABOUT: MODELS
@ j e r e m y h a n k s
J E R E M Y H A N K S
THINK ABOUT: ATOMS > BITS
@ j e r e m y h a n k s
J E R E M Y H A N K S

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"What No One Tells You About Inventory Management," DropShip Commerce >> Jeremy Hanks [COMMERCISM 2014]

  • 1. STOCKPIL THE GOODSTOCKPILING THE GOODS: What No One Tells You About Inventory Management WHAT NO ONEJeremy Hanks Cofounder & CEO DropShip Commerce
  • 2. @ j e r e m y h a n k s J E R E M Y H A N K S INVENTORY DISTORTION* $1.5 Trillion inventory sitting in overstock position. * IHL Group 2012
  • 3. @ j e r e m y h a n k s J E R E M Y H A N K S INVENTORY DISTORTION* $1.5 Trillion inventory sitting in overstock position. That turns into: * IHL Group 2012 $326B
  • 4. @ j e r e m y h a n k s J E R E M Y H A N K S INVENTORY DISTORTION* $1.5 Trillion inventory sitting in overstock position. That turns into: * IHL Group 2012 $326B Out of stocks are an even a bigger problem. $456B
  • 5. @ j e r e m y h a n k s J E R E M Y H A N K S INVENTORY DISTORTION* $1.5 Trillion inventory sitting in overstock position. That turns into: * IHL Group 2012 $326B Out of stocks are an even a bigger problem. $456B $818B
  • 6. @ j e r e m y h a n k s J E R E M Y H A N K S INVENTORY DISTORTION* Growing by * IHL Group 2012 $50B Per year
  • 7. @ j e r e m y h a n k s J E R E M Y H A N K S TRADITIONAL RETAIL SUPPLY CHAIN SUPPLIERS RETAILERS STOCK POS CONSUMERS B2B B2C
  • 8. @ j e r e m y h a n k s J E R E M Y H A N K S eCOMMERCE SUPPLIERS RETAILERS STOCK POS CONSUMERS B2B B2C
  • 9. @ j e r e m y h a n k s J E R E M Y H A N K S DROP SHIPPING/MARKETPLACE SUPPLIERS RETAILERS STOCK POS CONSUMERS B2B2C
  • 10. @ j e r e m y h a n k s J E R E M Y H A N K S MANUFACTURER DIRECT TO CONSUMER SUPPLIERS CONSUMERS B2C
  • 11. @ j e r e m y h a n k s J E R E M Y H A N K S VERTICALLY INTEGRATED eCOMMERCE RETAILERS CONSUMERS B2C STOCK POS
  • 12. @ j e r e m y h a n k s J E R E M Y H A N K S SUPPLIERS RETAILERS STOCK POS CONSUMERS B2B B2C B2B B2C B2B2C B2C B2C
  • 13. @ j e r e m y h a n k s J E R E M Y H A N K S SUPPLIERS RETAILERS STOCK POS CONSUMERS VIRTUALIZATION
  • 14. @ j e r e m y h a n k s J E R E M Y H A N K S SUPPLIERS RETAILERS STOCK POS CONSUMERS VIRTUALIZATION DIRECT
  • 15. @ j e r e m y h a n k s J E R E M Y H A N K S RETAILERS CONSUMERSSUPPLIERS
  • 16. @ j e r e m y h a n k s J E R E M Y H A N K S AGGREGATION DEMANDSUPPLY
  • 17. @ j e r e m y h a n k s J E R E M Y H A N K S SUPPLY AS AGGREGATORS AGGREGATION DEMANDSUPPLY
  • 18. @ j e r e m y h a n k s J E R E M Y H A N K S CROWD AGGREGATION AGGREGATION DEMANDSUPPLY
  • 19. @ j e r e m y h a n k s J E R E M Y H A N K S CROWD SUPPLY AGGREGATION DEMANDSUPPLY
  • 20. @ j e r e m y h a n k s J E R E M Y H A N K S PRODUCT PUSH TO CONSUMER PULL AGGREGATION DEMANDSUPPLY
  • 21. @ j e r e m y h a n k s J E R E M Y H A N K S
  • 22. @ j e r e m y h a n k s J E R E M Y H A N K S
  • 23. @ j e r e m y h a n k s J E R E M Y H A N K S PRODUCT PENETRATION 73%
  • 24. @ j e r e m y h a n k s J E R E M Y H A N K S PRODUCT SELECTION 25% - 33%
  • 25. @ j e r e m y h a n k s J E R E M Y H A N K S CHALLENGES INVENTORY VISIBILITY ORDER ASSURANCECONSUMER CATALOG
  • 26. @ j e r e m y h a n k s J E R E M Y H A N K S ALIGNMENT: SAME PAGE SHARED PROBLEMS
  • 27. @ j e r e m y h a n k s J E R E M Y H A N K S ALIGNMENT: TEST Place Order Receive Order Return Order ALIGNED APPROACHES ALIGNMENT: TEST PLACE ORDER RECEIVE ORDER RETURN ORDER
  • 28. @ j e r e m y h a n k s J E R E M Y H A N K S ALIGNMENT: SCORECARDS 68% 83% DATA CHANGE ORDER MOVEMENT OPEN & SHARED
  • 29. @ j e r e m y h a n k s J E R E M Y H A N K S ALIGNMENT: TECHNOLOGY
  • 30. @ j e r e m y h a n k s J E R E M Y H A N K S THINK ABOUT: MINDSET VENDORS DEALERS
  • 31. @ j e r e m y h a n k s J E R E M Y H A N K S THINK ABOUT: MINDSET PARTNERS PARTNERS
  • 32. @ j e r e m y h a n k s J E R E M Y H A N K S THINK ABOUT: MODELS
  • 33. @ j e r e m y h a n k s J E R E M Y H A N K S THINK ABOUT: ATOMS > BITS
  • 34. @ j e r e m y h a n k s J E R E M Y H A N K S