New WMS Deployment to Target Emerging Markets
Emerging markets exist around the globe, and they’re ripe for investment and expansion of e-commerce, as well as omnichannel sales. As explained by Fortune, Walmart has already expanded its reach into Brazil’s emerging market, but it is in retreat. Let’s take a look at what went wrong and how new WMS deployment could help shape future excursions into emerging markets.
Emerging Markets May Have Little-to-No WMS Deployment
Emerging markets cannot be held to the same standards as those in the U.S. and EU. They simply lack the infrastructure and resources necessary to sustain big box retailers like Walmart. Walmart saw gains 3 percent lower than expected following the excursion into Brazil. However, Walmart has identified what is necessary to create a successful market. It will just take time, and ironically, it mirrors many of the same processes in achieving omnichannel success in the U.S.
New WMS Deployment Is Essential to Maximizing Value in Emerging Markets
The biggest problem with expansion into emerging markets is about warehousing and supply chain networks. A fast expansion puts an enormous strain on existing resources, especially in areas with limited infrastructure. Delivery trucks may take days to reach a destination, and distribution centers may be in a central part of the country. Now, remember that Brazil is home to the Amazon rainforest, so simply avoiding rain and treacherous roads was not possible. Also, Walmart is working to increase tracking of drivers and workers, and the company has scaled back locations to 44.
How to Be Successful With Expansion Into Emerging Markets
Lessons learned from Walmart’s experience are complex, but they can be broken into these key areas:
- Be a partner, not a threat, to traditional stores in the region.
- Avoid bidding matches with established companies.
- Create a decentralized distribution network before opening multiple locations.
- Consider region-specific concerns, like rainfall, infrastructure, and political concerns.
- Integrate systems to gain end-to-end visibility.
- Consider new WMS deployment, as well as WMS deployment that integrates with existing systems, if any.
- Ensure continuity among executives to ensure business and strategic value continuity.
Get the Expert Help Necessary for New WMS Deployment Today
Emerging markets represent one of the greatest opportunities for the global supply chain, and warehouse managers need to take note. Depending on the region, emerging markets may lack process standardization, visibility and transportation management, as well as a quality infrastructure. As a result, new WMS deployment is essential to targeting emerging markets and increasing profitability. For assistance in expanding existing systems into emerging markets or setting up new WMS deployment and such markets, choose Veridian.
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