Guest Column

Streamlining supply chain efforts can help retailers survive the changing landscape, says this Houston expert

A study found that approximately 88 percent of retailers see dropship as inevitable to long-term success. Pexels

It's undeniable that retail habits of consumers is changing. DiCentral, a B2Bi managed services provider, recently partnered with the Center for Supply Chain Research at Lehigh University to survey over 180 global retail and manufacturing decision-makers and identify how evolving consumer buying behaviors are driving this dramatic shift in the retail landscape. The transformational supply chain challenges retailers and manufacturers are facing today indicate a new reality for retail.

The first of its kind study titled, "Supply Chain Collaboration in Transformative Vertical Industries: Implications of Omnichannel and Dropshipping," examines the motivations, challenges, benefits, and supply chain implications of the dropshipping model through which retailers ship orders directly from vendor warehouses, thereby reducing excess inventory and warehousing costs.

The study found that approximately 88 percent of retailers see dropship as inevitable to long-term success. According to 87 percent of those retailers surveyed also experienced an increase in revenue as a result of dropshipping. Customer service also benefitted from dropship, with 84 percent of retailers noting improvements to customer service after adopting the dropshipping fulfillment model.

From the manufacturers' perspective, dropshipping can significantly improve relationships with retailers as reported by 71 percent of manufacturing respondents. As many as 66 percent of manufacturers also experienced an increase in revenue after implementation of a dropship order fulfillment capability.

Challenges for both retail and manufacturing respondents point to systems limitations as being a primary obstacle to deploying an enterprise dropship program. According to the study, 40 percent of manufacturers acknowledged system limitations as being a challenge. Retailers responded similarly, with 32 percent identifying systems (ERP, EDI, WMS, etc.) as a hindrance.

While retailers and manufacturers face similar obstacles in streamlining supply chains, the benefits to both remain clear. As businesses look to maximize revenue and enhance customer service, dropshipping is a proven advantage to achieving both goals. Decision-makers in retail and manufacturing would be prudent to explore dropshipping as a means of achieving the ROI and improved quality of customer service.

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Steve Scala is executive vice president of corporate development at Houston-based DiCentral, a growing SaaS company.

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Building Houston

 
 

Chevron has doubled down on its commitment to The Cannon in West Houston, a new study finds Houston a top city for STEM, a Houston startup takes home a win from a digital pitch competition, and more. Photo courtesy of The Cannon

Houston's innovation ecosystem has been booming with news, and it's likely some might have fallen through the cracks.

For this roundup of short stories within Houston innovation, a startup snags a win at a pitch competition, Chevron announces a new makerspace, a software company makes an acquisition, and more.

Houston named a best city for STEM

Image via SmartAsset

For the fifth year, personal finance website, SmartAsset, analyzed data for the 35 cities in the county with the largest STEM workforces. The study looked at the racial diversity index as well as the gender diversity index. The data for both metrics comes from the Census Bureau's 2019 1-year American Community Survey.

Houston ranked No. 7 on the list, and according to the report, the total number of STEM workers in Houston, Texas exceeds 79,500. Around 70 percent of the total STEM workers there are men, and more than 30 percent are women. Additionally, Houston has the third-best race/ethnicity index score in the study with more than 19 percent of STEM workers are Hispanic or Latino, almost 20 percent are Asian, and more than 8 percent are Black.

Texas makes up about a third of the top 10 list with Dallas and Fort Worth coming in at No. 9 and No.10, respectively.

Chevron announces digital makerspace in The Cannon

Photo courtesy of The Cannon

The Cannon and its surrounding Founders District in West Houston has announced the addition of Chevron's digital makerspace, which will be dedicated to startup partnerships and community organizations.

"Chevron's support for The Founders District and The Cannon expands our commitment to Houston's growing innovation ecosystem," says Barbara Burger, Chevron vice president, Innovation and president of Chevron Technology Ventures, in a news release. "We look forward to utilizing this new space to collaborate with other Chevron organizations, such as our Wells group, as we work to deliver more reliable, affordable, ever-cleaner energy."

While Chevron has been a key partner for The Cannon since 2018 and even had branded office space within the hub, this new space represents a new lease agreement for a significantly larger footprint.

"We are thrilled to partner with Chevron Technology Ventures in developing this exciting makerspace at The Founders District," says Mark Toon, CEO of Puma Development, the company developing The Founders District and founder of Work America Capital, a venture capital firm dedicated to investing in Houston-based businesses. "CTV is the paradigm for meaningful innovation in Houston. By investing in emerging technologies in energy, they are paving the way for innovation to remain at the heart of Houston's most prominent industry."

Lazarus 3D wins The Ion's pitch competition

Photo via Laz3d.com

After months of pitching events, The Ion's Startup Demo Day for 2020 concluded on November 18 with four final pitches from Lazarus 3D, Skylark Wireless, HelloWoofy, and Swoovy.

After each of the four founders presented at the virtual event, which was powered by Dell Technologies, Lazarus 3D, a startup that produces 3D-printed organs and tissues for surgical practice, took home the win and the cash prize.

"I'm so grateful to Ion Houston — I've met so many people and made so many connections," says Smriti Zaneveld, co-founder and president. "All of the companies that present at these events are doing something so meaningful."

Applications are now open for the next series. Apply online by clicking here.

Houston tech co. acquires New Zealand business

Photo via Onit.com

Houston-based Onit Inc., a legal software provider, announced that the company has acquired McCarthyFinch and its artificial intelligence platform.

"Our vision is to build AI into our workflow platform and every product across the Onit and SimpleLegal product portfolios," says Eric M. Elfman, Onit CEO and co-founder, in a news release. "AI will have an active role in everything from enterprise legal management to legal spend management and contract lifecycle management, resulting in continuous efficiencies and cost savings for corporate legal departments.

"Historically, legal departments have been thought of as black boxes where requests go in and information, decisions or contracts come out with no real transparency," Elfman continues. "AI has the potential to enhance transparency and contribute to stronger enterprise-wide business collaboration in a way that conserves a lawyer's valuable time."

The newly acquired software has the capacity to accelerate contract processing by up to 70 percent and increase productivity by over 50 percent. With the acquisition, Onit is enhancing its new artificial intelligence platform Precedent and the company's first release on the platform will be ReviewAI.

New sustainability-focused app launches at Climathon

Photo courtesy of Footprint

Houston-based Footprint App Inc. launched its latest carbon footprint education and action software during the Houston Climathon that was hosted earlier this month by Impact Hub Houston.

By tracking the user's sustainable habits, the student-focused tool allows users to compete to reduce their environmental impact. Footprint has launched in over 50 classrooms across the nation and is also being used by several corporations.

"With the state of Texas recently receiving an 'F' in climate education from the National Science Foundation, we see Footprint as the perfect tool for K-12 and beyond to help Texas students engage with climate science in a fun, competitive way," says Dakota Stormer, Footprint App, Inc. CEO and co-founder, in a news release.

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