The new era of Internet-based commerce
Staff -- Modern Materials Handling, 10/1/2001
The new era of Internet-based commerce and communication precludes retailers from making blind investments in all Web-related initiatives. That's according to Gerald L. Storch, vice chairman of the Target Corporation, in his keynote talk, "Stop the Stupidity," at the Retail Systems 2001 Conference & Exhibition in Chicago, Ill.
In addition, Storch said retailers can ill-afford to assume that non-Internet tools will be an ineffective use of business resources. Instead, retailers must make smart, informed decisions about how they will leverage the Internet with business processes in an effective manner.
To support his argument, Storch discussed several concepts and initiatives that Target has begun to embrace. Included in this list were joint business planning and collaborative planning, forecasting, and replenishment practices. Both promote joint resolution of inventory management across the supply chain, and leverage the resources of the Internet to establish a single collaborative venue for resolving disputes and sharing information.
Storch, an executive committee member of the Worldwide Retail Exchange (WWRE), says that the three biggest Internet-based retail exchanges - WWRE, Transora, and Globalnetxchange (GNX) - should merge to form a single, unified body. He explained how retailers and suppliers could improve existing business systems and enhance end results by working together to develop a united exchange of industry standards.
Storch also made five recommendations to the retail industry. First, consolidate retail exchanges immediately. Second, agree on standards for B2B commerce. Third, move toward standards for radio frequency identification as soon as possible. Fourth, be willing to support strategy with actual investment. Finally, do not accept anything on faith. Instead, face the future, and determine how specific businesses can effectively leverage the current capabilities of the Internet.
View All On-Demand Webcasts