How E-commerce winners in Europe and Asia orchestrate supply chains

Posted by Martin Verwijmeren on Nov 7, 2014 5:30:34 AM

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E-Commerce Supply Chain Orchestration

In my last blog I discussed the international e-commerce success of the American giant Amazon and eBay. We have seen that this combination of e-commerce and internationalization requires dynamic orchestration of the flows across the parties in the network of different supply chains for flexible e-fulfillment. The success of e-commerce seems unstoppable. See below how Alibaba in Asia and RFS Wehkamp in Europe develop international e-commerce. Is your company ready for this new Supply Chain Orchestration? Download the presentation on international e-commerce.

Alibaba: sudden Chinese power

Recently, Alibaba had its initial public offering on the international stock exchanges showing a market cap of more than $ 200 billion. Alibaba kicked-off as a Chinese e-commerce player, and although China is still its dominant market, the company has meanwhile started to serve customers across the world. The founders started Alibaba to champion small businesses, in the belief that the internet would level the playing field by enabling small enterprises to leverage innovation and technology to grow and compete more effectively in the domestic and global economies. Alibaba operates leading online and mobile marketplaces in retail and wholesale trade, as well as cloud computing and other services to enable consumers, merchants, and other participants to conduct e-commerce in the ecosystem. The company uses AliExpress.com for smaller clients who can order quality products per piece at factory prices and pay safely. Supply chain services behind the commercial transactions can be done through Alibaba Logistics, that orchestrates leading third-party logistics to ensure competitive transparent prices, full online tracking and guaranteed service delivery.

RFS Wehkamp: cool European challenger

RFS is a specialist in online retailing and the holding company for daughter companies and brands, such as Wehkamp.nl, Create2Fit and Fonq. Wehkamp.nl is the preferred online department store for Dutch consumers. Create2fit operates specialized internet boutiques applying a strict formula that puts the customer first. And Fonq.nl is a modern web department store with more than 100 niche web boutiques specializing in one or more product groups or premium brand ranges. Wehkamp.nl annually gets more than 100 million visitors, sells 18 million products and distributes 7 million parcels. Building on its leading position in the Netherlands, RFS has launched Wehkamp.be to start serving customers in Belgium with a portfolio of 150.000 articles. The ambition is to become a top-3 player in the Belgium online retail market within 3 years time. In order to materialize its growth ambitions, RFS is currently building the world’s biggest automated distribution center for on-line retail. The new e-fulfillment center has 480.000 picks, processes more than 12.000 items per hour and is ship ready 30 minutes after order placement. Next to this € 100 million investment in physical infrastructure, RFS invests in systems for supply chain orchestration to manage the e-commerce flows.

Supply Chain Orchestration

E-commerce first and Internationalization next require dynamic orchestration of the flows across the parties in the network of different supply chains for flexible e-fulfillment, including web shop integration, service level differentiation, supply chain segmentation, dynamic order planning, warehouse-transport integration, multi-modal distribution, import export customs, supplier direct delivery, proactive event management and supply chain visibility.

Is your company ready for these new requirements of Supply Chain Orchestration? Download the MPO presentation on a business case for international e-Commerce.

Presentation on International E-Commerc

 

Topics: Supply Chain Orchestration

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