Friday, January 19, 2007

The End of Retail

One of the cooler Christmas presents I received was a book called "Future Shop". Although I haven't started reading it yet, the gears have started turning.

A couple of thoughts:

1. The physical distance between the manufacturer and the consumer is getting wider. Most consumers live in America, and most products are built in China.

2. The conceptual distance between the manufacturer and the consumer is getting much smaller. A product can go from plant to shelf in one step.

I expect that within a very short period of time, the product will be able to go from the manufacturing plant directly to the customer, with no middle man.

Chances are, the hardest part of this evolution will be the disruption to the financial part of the supply chain. It seems like so much of our economy is built upon the structure of the supply chain, it would not be able to withstand such a disruption.

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