This presentation looks at both the market trends as well as pressure points facing retailers. More and more business is being conducted online as such retailers of all shapes and sizes are looking for technology solutions that emphasises analytics, risk management and close and disclose cycle

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© 2014 IBM Corporation
Supply Chain Management –
Commentary and Solutions
Presenter: Paul Young, CPA, CGA – Proven Practice Adviser – Risk
Analytics, FOPM/FPM and Close, Consolidate and Reporting
Day: March 27, 2017

2. © 2012 IBM Corporation
Author / Bio
September 9,
2014
• Paul Young, CPA, CGA
• SME – Financial Performance Management (TM1, Cognos Controller and
Cognos Disclosure Management, OpenPages, Algorithmics, Cognos
Integrated Server, Cognos Command Center and Datawatch)
• Industry Experience
• 15+ years in Corporate Reporting, Budget & Forecasting, Costing,
Business Process Management, Internal Audit and Controls, Risk
Management, Financial Analysis, Costing
• 11+ years in financial solutions (FOPM, FPM, Risk, Office of the
Finance, Risk Management)
• 8+ years teaching Advance Finance, Advance Accounting, Public
Finance and Advance Management Information Systems
• Blogger in areas like Finance Analysis, Government policies, market
segment

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Retail Sales/Inventory
Global Forecast
Business Investment / Technology
Micrologistics
Re-shaping retail channels
Agenda

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• Business continue to face both domestic and global
challenges
• Business continues to struggle with aligning technology with
their business operations
• Business continues to struggle with managing data analytics
as part of the close, consolidate and reporting cycle
Challenges

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https://www.census.gov/mtis/www/data/pdf/mtis_current.pdf - March 15, 2017
United States – Retail Sales – February 2017

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February 2017 – Retail Sales by Segment
Source - USA Government
US Retail Sales in February post
smallest gain in six-months –
Bloomberg March 15, 2017
But notably, January's core retail
sales were upwardly revised to a
1.2% increase, up from the prior
reading of 0.8%. Business Inside
– March 15, 2017
Most U.S. retailers reported weak
sales in February despite
unseasonably warm weather, a
likely offshoot of delayed tax
refunds for millions of
households.
Market Watch – March 15, 2017

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Retail Sales change by month

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Source – Scotiabank – March 7, 2017
Global Forecast

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Sales Tax Changes / New Mexico / Amazon
http://www.cnbc.com/2017/03/06/the-associated-press-amazon-to-collect-sales-tax-in-new-mexico-starting-in-april.html
More States are targeting
eCommerce retailers (lack
of Nexus)

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Source - http://blogs.infor.com/the-informed-distributor/2017/03/todays-technology-investment-will-drive-tomorrows-distribution-business-
models.html
Business Investment / Technology

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Amazon
http://www.supplychainquarterly.com/topics/Strategy/20160503-so-you-think-amazon-rules-
the-world-new-report-says-you-aint-seen-nothing-yet/September 9,
2014
Amazon, Alibaba will use self driving vehicles, robotics, 3d printing and AI for to
compete on same day delivery
Amazon, which currently charges a $99 annual fee for two-day deliveries under its
"Prime" service, will eventually offer two-tier pricing for delivery services, Jindel said.
One will be a "Gold Prime" membership costing $199 to $249 a year that covers next-
day deliveries, the other a platinum membership for $399 a year that includes same-
day deliveries. Jindel said the pricing scheme will take effect only after Amazon builds
out its distribution infrastructure.
Amazon is using and will using all aspects of
- Robotic warehouses
- Robotic trucks
- Drone delivery
- AI and quantum computers improved logistics and analytics
- additive manufacturing

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https://www.exact.com/au/about-exact/news/434-wholesale-of-the-future
What is migrologistics?

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• Risk and Compliance (Taxation)
• Cost to serve models
• Retailers competing against Amazon
• Changes to hub and spoke approach channel management
• Social Media Analytics
• Understanding the trends
• Watson
• More predictability with sales
• Time-Series (Inventory on hand/turnover)
• Product launches
• Inventory Management
• Testing inventory stock provision for dead and slow moving stock
• Tracking inventory
• Costing (rebates, discount)
Business Demands

14. © 2012 IBM Corporation
IoT - https://www.ibm.com/blogs/internet-of-things/enabling-iot-business-outcomes/
Watson - https://www.ibm.com/analytics/watson-analytics/in-en/by-industry/retail
Analytics - http://www-05.ibm.com/uk/forecasting-and-
budgeting/2017_Q1_Rolling_Forecast_Seminar_slide_deck3-1.pdf or
https://www.ibm.com/analytics/us/en/business/financial-performance-management/
Opportunities for solutions