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The most valuable companies – Mom and Pop Stores, Postal Services and Dabawallas in Mumbai

Connect the Mom & Pop Stores, Postal Services & Dabawallas in Mumbai to Amul, a multi-billion dollar producer of milk and dairy products, into a grid and you have the most valuable network! The battle for the mobile internet and commerce will be fought offline.

A Networked Grid that every company form Amazon & eBay to Google and Walmart want! Combine Local Brick & Mortar Intermediaries + Sensors + Analytics + Insights to Demand-Supply Consumer to Consumer Cycle in a grid and you have a winner. Software eats hardware!

Forrester: U.S. Online Retail Sales to Hit $370 Billion by 2017
http://mashable.com/2013/03/12/forrester-u-s-ecommerce-forecast-2017/

To test this model I ordered a book and had it delivered to 17 Thayer St. Magnum newsagents store in London so that I could walk across and collect it after a meeting via the Bond St. tube.

RETAILGRID! BUSINESS PLAN FOR FIRST MILE “COMMERCE” DISRUPTION, IS THIS THE NEXT MILE!
I personally believe that the First Mile is the Next Mile for “Commerce”, “mobility will only accelerate it. So what is the First Mile.
https://gerardjrego.com/2013/09/16/retailgrid-business-plan-for-first-mile-commerce-disruption-is-this-the-next-mile/

Combine Local Brick & Mortar Intermediaries + Sensors + Analytics + Insights to Demand-Supply Consumer to Consumer Cycle.

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The First Mile (today called the last Mile) is the next mile and every major companies from eCommerce and Retail to Healthcare and Manufacturing are scrambling to figure out what the business models are and how technology can address this next market. Instead of a geography, the First Mile is 10-15mile radius in advanced economies such as North America and Europe and 2-4miles in emerging economies where people spend >80% of their income on day to day and thus the micro-GDPs.

UPS researching delivery drones that could compete with Amazon’s Prime Air
http://www.theverge.com/2013/12/3/5169878/ups-is-researching-its-own-delivery-drones-to-compete-with-amazons

It’s not just Amazon: UPS and Fedex are working on their own drone delivery systems
http://qz.com/153443/its-not-just-amazon-ups-and-fedex-are-working-on-their-own-drone-delivery-systems/

WHY DRONE DELIVERY WON’T REPLACE THE UPS GUY
http://www.newyorker.com/online/blogs/currency/2013/12/why-drone-delivery-wont-replace-the-ups-guy.htm

The challenge: How to connect the demand-supply chains as  business model? KPIs;

1. Lower Cash Conversion Cycles
2. Decrease Inventory holding and Higher Increase in Stock Turns and 
3. Higher GMROI

This also means that optimization of a business model that companies don’t have.

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Why is the First Mile the Next Mile and the next disruptive battleground?

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Screen Shot 2013-12-08 at 10.07.46 AM

This is where the big screaming headlines of drone, robots and technology. The most valuable companies are the ones who do. The Mom & Pop stores, postal services and intermediaries that serve the First Mile.

In a “Networked Marketplace Grid” First Mile intermediaries are the most valuable. From the US Postal Service to the Dabbawalas in Mumbai to the Mom & Pop stores in your neighborhood. Watch the disruption in action and startup now, the giants cannot change their core business model and intermediation is the key to the First Mile and will the Last Mile for a whole host of companies that are giants today.

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Who are you disrupting or are you being disrupted?

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2 replies »

  1. Software eats Hardware. Orion, an algorithm optimizing via sensors and analytics…

    Ten years in the making, a UPS system called Orion crunches data so that drivers can save a fraction of a mile. It’s expected to save the world’s biggest package delivery company millions of dollars a year in gas. Bloomberg goes inside the making of the mathematical model that explores the physics of the driving route. (Source: Bloomberg)

    http://www.businessweek.com/videos/2013-12-09/forget-drones-this-is-the-future-of-delivery#r=lr-sr

  2. Why the First Mile is the Next Mile? Why Push is the next Pull?

    HOW VOLVO PLANS TO BRING DELIVERIES TO YOUR PARKED CAR
    BY CHRISTINE CHAMPAGNE
    Volvo is turning its cars into delivery drop-off points with a new technology called Roam Delivery, introduced at the Mobile World Congress.

    http://www.fastcocreate.com/3026899/how-volvo-plans-to-bring-deliveries-to-your-parked-car?partner=rss&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+fastcocreate%2Ffeed+%28Co.Create%29#2

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