November 2016 Archive
November 28, 2016
As Gap Struggles, Its Analytical CEO Prizes Data Over Design (WSJ)
Under Mr. Peck, a former partner at Boston Consulting Group who arrived at the company in 2005, Gap Inc. has put operational executives in control of its major brands, including Old Navy. It has also expanded the role of outside vendors—some of which have their own design teams. Mr. Peck favors a model in which things are more decentralized. Brand merchants, who serve as collection editors, are no longer involved in every product category. Some items, like men’s dress shirts, can be stamped out by a foreign supplier without approval from a head designer. He is also pushing executives to pay more attention to Google analytics and market-research data to monitor consumer tastes.
November 28, 2016
Choke Point of a Nation: The High Cost of an Aging River Lock (NYT)
Lock No. 52 is a serious bottleneck in innumerable supply chains nationwide. It is emblematic of the nation’s crumbling transportation infrastructure coast to coast — including locks, ports, highways and railroads. The average delay at No. 52 in October and November was 15 to 20 hours. At the moment, No. 52’s sister dam downriver, No. 53, is adding 48 more hours to the wait.
November 26, 2016
Zara’s Recipe for Success: More Data, Fewer Bosses (BusinessWeek)
Zara has unique practices that may account for its success
– Unlike rivals such as Gap, H&M, and Primark, Zara has no chief designer, and there’s little discernible hierarchy. Its 350 designers are given unparalleled independence in approving products and campaigns, shipping fresh styles to stores twice a week. Guided by daily data feeds showing what’s selling and what’s stalling, the teams develop fashions for the coming weeks.
– It “pulls” ideas from consumers, rather than designing collections months in advance and “pushing” goods on shoppers with ads.
– Its supply chain which consists of a network of factories in Spain, Portugal, and Morocco that produces 60 percent of its merchandise. With production nearby, it can quickly switch gears if weather or fashion trends change, getting designs into stores in as little as two or three weeks, while rivals’ orders slowly make their way across the ocean on container ships.
Blockchain has the potential to transform the supply chain and disrupt the way we produce, market, purchase and consume our goods. The added transparency, traceability and security to the supply chain can go a long way toward making our economies safer and much more reliable by promoting trust and honesty, and preventing the implementation of questionable practices.
November 22, 2016
How to Fight Amazon.com, Best Buy-Style (WSJ)
1) Prevented showroom shoppers from buying elsewhere.
2) Committed to matching competitors’ prices and brought its prices in line with Amazon’s.
3) Improved its website and mobile app.
4) Used its stores to improve its e-commerce operations.
5) Used its stores for competitive advantage.