eComm Sustainability

My point of view: I believe eComm in its current state is more harmful to the environment than traditional brick and mortar retail. It also really hurts retail profitability.

Although many studies suggest online shopping may be more sustainable than store shopping, frankly I’m not sure. At least from my own shopping behavior…what I see from our family’s Amazon buys is high package waste, single item buys, shipped from far away. How can this be better for the planet than if I simply swung by the store on my drive home?

A completely different view suggests that eComm delivery routes are already baked into the eComm solution, so if they happen to make one additional stop at my house on its somewhat fixed route, that will be less impactful than if I drive to the store.

I find it hard to consolidate buys online. This is a problem because almost everything arrives at the doorstep as a one-off package.

Granted we may see a future state with far fewer stores, more simple drive-by pick-ups, better ways to consolidate online buying and delivery, reusable packaging, and things could improve.

There seem to be two important fronts to address: one from the retailer’s perspective, and another for the consumer.

For the retailer, sustainable solution challenges are everywhere, and most important - how to consolidate orders into fewer packages located closer to customer. Not to mention packaging optimization, sustainably (and profitably) managing returns, selectively managing appropriate vendor direct ships, introducing convenient customer pick-up options into the shopping experience…it’s an incredibly long list of things that need to be optimized into the complete solution.

For consumers, I sense a great need for awareness, like what are “good” vs “bad” eComm shopping behaviors from a sustainability perspective? If the studies show that certain online shopping behaviors can reduce emissions by 50% - 100%, then customers really should know.

Progressive retailers should integrate both these fronts, by constantly measuring their solution strategies and informing consumers how to shop more sustainably - online and at the store.

What I do here: Help companies obtain and analyze eComm order flow data to identify sustainability hot-spots (and big cost-killers) that can easily be improved (SKUs with poor package utilization, order-splitting SKUs, inventory imbalance driving long distance shipments, identify more efficient network flow-paths). Recommend better solutions. Within 4-6 weeks we typically find numerous large opportunities that quickly pay off.

This begins with a quick phone call, start the conversation.

My big hairy goal: We need to figure out how to make the eComm ecosystem more sustainable. Industry needs a blueprint for success. I want to partner with retailers and other providers to determine the solutions and consumer practices that are best for the environment.

I propose we develop end-to-end network modeling scenarios to compare eComm vs traditional order flows, examining existing and proposed network solutions.

We should quantify and compare environmental and cost impacts, including various consumer shopping behaviors.

This will help inform retailers of better ways to transform their solutions, and guide consumers as to the most sustainable shopping behaviors.

This is certainly a big challenge but then again a huge need. Interested? Get in touch

Cross-Functional Visibility

My point of view: Operating reality is way behind conceptual thinking here. It’s because the underlying supply chain data isn’t integrated, within and across enterprises.

Unfortunately most leaders haven’t prioritized investments to solve this data problem.

It obviously requires a tech solution, and for many it feels too big, expensive, long and risky. And it certainly can be.

But in some areas it may be possible to use a limited, surgical approach focused on particular capabilities with high payback.

For example, the order flow analysis (see eComm to the left) is effectively cross-functional order visibility. Developing these eComm solutions integrates a few data sources and generally within about a month can generate results that immediately hit the bottom line.

As I help clients with assessments, I find that the integrated supply chain is absolutely filled with similar cases.

What I do in this space: In a relatively short assessment (1 to 4 weeks), I help clients identify missing supply chain capabilities that can be solved with connected data.

If interested, I introduce providers who can implement the needed capabilities. Their deals come with extremely limited assistance from internal IT, are funded on a subscription basis, and deliver results within 2-3 months for rapid payback.

If needed, I can play a role supporting the implementation.

Interested? Get in touch