I interviewed Djamel Rezzig who discussed Transformation of the Supply Chain Business Model.
Can you first provide a brief background of yourself?
My name is Djmal. I am French, living in Dubai. I've been working in UAE now for more than 10 years. I work with a company called [inaudible 00:01:08]. We are a franchisee of Ikea in Qatar, Oman, and I am in charge of supply chain and logistics division. I've also worked for the retailer Carrefour doing sales and supply chain. And today, my main objective is to combine the brick and mortar model and the omni-channels model within the region. We have some good competitors joining into the market. One of them is Amazon, and we would like to adapt our supply chain going forward to keep building a world-class supply chain.
Can you talk about what's involved with the transformation of the supply chain.
We operate at the regional office from here. The traditional way of managing the supply chain is actually facing some challenges and changes. One of them is in terms of oil. which has affected the market, and the second is the omnichannel, e-commerce, online business which is a growing markets. And we need to adapt our supply chain models.
We need to re-design our supply chain model is we [inaudible 00:02:56]. First, [inaudible 00:03:01] more [inaudible 00:03:09].
Why is this important?
How is it important? It is important because the customer goes online from home and one of the main challenges that we have is sales into homes. However, it is not the only channel. Today, we need to attract visitors online on our online website.We need to transform our visitors into customers.
One of the main challenges is that our customers are asking for services in the furniture business. They are asking for delivery and assembly, and the cash and carry model that we used to have is changing year after year. On top of that our customer wants to have delivery and assembly as quickly as possible, which is, for our supply chain, something new.
We have some cases where we have a customer coming to our store or requesting online kitchens with a lead time of a week. Some customers want their kitchens to be set up by the next day. Of course that is not out typical customer but it is something that we need to change.
On the other side, on the lower side, we have customers who want to deliver more smaller articles, mainly cash and carry. And we see a great trend where our customer wants to be delivered. So we need to re-adapt our supply chain and business model to be able to delivery at the lowest cost. Because the last mile delivery has a huge importance.
So all of these changes are happening. We are not yet there, but we believe that we are working towards redesigning our supply chain model and to adapt to the brick and mortar model but also to the online.
Thank you. Do you have any final recommendations for supply chain professionals that want to transform their supply chains?
Most of the companies try to go too fast.Study the market first. What is your penetration plan? Then evaluate where you are now. The third point is where we want to be. Then create strategies and tactics.
Another thing that I would advise is there is many ERP and other systems in the markets. We need to be real careful when looking into acquiring systems for enabling more automation.
About Djamel Rezzig
Regional General Manager Logistics