Gaining a Supply Chain Edge

Three Big Reasons Wal-Mart and Amazon's Leaders Are Golden

Since Amazon and Wal-Mart are major competitors, it has been interesting to see how they respond to each other’s success through growth and innovation.

Jeff Bezos, CEO of Amazon, was just named the National Retail Foundation's (NRF’s) Gold Award winner for 2012.

Although Bezos has been making headlines quite often for his many innovations, this one stands out. The NRF’s membership is made up mostly of traditionally brick-and-mortar stores, so by naming Bezos its retailer of the year, it really shows the extent of Amazon’s disruption of the retail industry.

2012 was a banner year for Amazon, and there is no doubt Bezos has shaken up the industry as major retail chains respond to the Amazon Effect. But this isn’t the first time the NRF has designated a force of great change as its retailer of the year.

In 1988, Sam Walton, founder of Wal-Mart, also won the Gold Award from NRF. And the comparisons between these two major innovators don’t end there. Both Walton and Bezos have been pioneers in these three major areas:

  • They both had a great retail strategy, built while totally focused on the customer.
  • They both defined their supply chain capabilities in response to their retail strategy.
  • They both applied technology to create major innovations and bring down prices for customers.

So why aren’t all companies doing these three things that have elevated both Bezos and Walton? A very good question.

Since both companies are also major competitors, it has been interesting to see how they respond to each other’s success through growth and innovation. While we know Walton’s legacy, where Bezos and Amazon will go is yet to be seen. Amazon’s growth and influence will continue, with new developments in same-day delivery and perhaps even brick-and-mortar stores.

But, wait: Wal-Mart isn’t just watching from the sidelines. I find it interesting that first it was Wal-Mart, then Amazon, and going forward, it’s a true battle of the titans.

See more on Amazon’s influence and future growth in this video: theAmazon Effect. http://www.tompkinsinc.com/amazon-effect/

Discuss this Blog Entry 1

on Jan 16, 2013

Amazon and Wal-Mart really changed the way businesses do business and consumers get their goods. And when you change the way people shop you have to change the way you control your inventory and supply chain, otherwise you fall behind your own business model.

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This would be valid if only colleagues could interact. I have seen many workplaces in large organizations where only management can interact. All infomation must flow through managers. To make it worse the work layout does not support interactions. ... If you want the benefits of co-location you have to have the right management structure and the right physical structure!!!

on Feb. 26, 2013
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