Diesel Fuel Index
|
Region
|
06/17/13
|
|---|---|
| U.S. | 3.841 |
| East Coast | 3.835 |
| > New England | 3.980 |
| > Central Atlantic | 3.910 |
| > Lower Atlantic | 3.752 |
| Midwest | 3.859 |
| Gulf Coast | 3.741 |
| Rocky Mountain | 3.848 |
| West Coast | 3.954 |
|
|
|
| California | 4.022 |
Supply Chain News: Logistics Savvy May Determine Multi-Channel Success, as Macys Revamps Fulfillment Network by Empowering Stores
The Wall Street Journal noted that the move is not without risks. "Picking" at store-level is usually a lot more expensive than picking in distribution centers, though we will note true additional costs can be muted by having store employees grab merchandise in "down time", though most retailers are experimenting with different store fulfillment models and processes.
For example, the WSJ article said that picking and fulfillment at a Macy's store in Paramus, New Jersey indicated both the promise and the challenges of this approach.
Macy's Manager Dealing with E-Fulfillment Orders at New Jersey
Source: Wall Street Journal
"In the store's back recesses, Macy's converted an area where it once took telephone orders into a dimly-lit, makeshift packing area. There employees packed handbags, kitchen appliances and shoes into cardboard Macy's boxes. By noon or so, employees filled some 400 boxes, which were then put into plastic bags awaiting afternoon pickup," the article said. "By 2:30 pm, 100 more orders had come to the store, totaling $5,091 in sales. Danya El Zein, director of store fulfillment, scoured the sales floor for a white Michael Kors purse for a customer in Bowie, Md., and a Fossil wallet for a customer in California."
Macy's employees find, for example, that identifying specific colors for a given SKU on the store floor can be challenging. Unlike a distribution center, there is no defined location fora given color on the store floor, and the actual markings on the tag may not use the same word for the color. Wow.
The article notes that Macy's rival Nordstrom was one of the first retailers to fill on-line orders with goods shipped from its stores, beginning the practice in 2009. Nordstrom now ships from all 117 of its full-line outlets.
Last holiday season, Toys R Us kicked off its own program in all 800 of its Toys R Us and Babies R Us stores.
"We're able to sell more without having to buy more inventory," said Jamie Nordstrom, president of Nordstrom's online operation. Mr. Nordstrom said shipping from stores has cut the level of markdowns and improved margins, and has sped up the rate the rate at which the chain turns over its inventory.
One complexity with this kind of approach is which channel gets credit for the sale: is it the on-line channel or the store that ships it? Toys R Us counts the orders as online revenue. Macy's says it is still sorting that out.
"We are struggling with compensation across the company, like any other omni-channel retailer is," Mr. Sachse told the WSJ.
What is your reaction to Macy's new multi-channel fulfillment strategy? What are the pros and cons? Let us know your thoughts at the Feedback button below.
Source: http://www.scdigest.com/ONTARGET/12-05-23-1.php?CID=5861
The Changing Nature of Shipper and 3PL Contract Relationshships
The growth in logistics outsourcing continues apace, but since the economic downturn shippers have been changing their thinking relative to relationships and contracts with 3PLs. That includes new approaches to which party controls which assets, and especially new shipper thinking with regard to risk sharing with 3PLs. Gary Griffith, a senior executive at leading third-party logistics provider Kane is Able, shares these interesting insights with SCDigest editor Dan Gilmore in another of our Supply Chain Thought Leaders Video... Read more
Administrator 17 Jun 2013 Hits:2 Supply Chain
Supply Chain Video News for June 17, 2013
CSCMP Quick Courses Topics include demand management, financial and inventory fundamentals, materials requirements planning, physical distribution systems, and sales and operations planning, and more
US Logistics Infrastructure Paradox
Of all the issues we have and do follow here at Supply Chain Digest, perhaps the most difficult one for me to really get my arms around is the state of US logistics infrastructure. And here's why: certainly complaints about the state of the US logistics infrastructure are common across many sources, notably politicians but from many other corners as well. Just type in "crumbling infrastructure" into your favorite search engine and see the massive hits that are returned. Yet, by other views US
Supply Chain by the Numbers for Week of June 13, 2013
Average starting salaries for 2012 graduates of Arizona State University’s master's degree program in supply chain management, according an article last week in the Wall Street Journal, which said such degrees might be considered "the new MBA." That idea in part because at Arizona State at least, that starting salary for supply chain grads topped the average for the school's MBA graduates, which averaged $92,556. MIT's Chris Caplice told SCDigest that MIT's supply chain graduate program saw 2012 students average an amazing $115,000 in starting salaries. Back to school everyone! Source: http://www.scdigest.com/assets/newsviews/13-06-13-2.php?CID=7136
If You are in Supply Chain, You Made a Smart Career Choice
We've said it many times before, but if there is a better career path right now than supply chain, we're not sure what it is, other than maybe fracking engineer. Report after report and SCDigest anecdotal conversations with supply chain recruiters indicate that after a couple tough years following the recession in 2008, demand for supply talent continues to outpace available supply. An article last week in the Wall Street Journal noted that situation, saying that "with global operations becoming more complex, companies in manufacturing, retail and
RFID and AIDC News on Local TV News Report Shows Just How Easy it Is to Capture RFID Credit Card Data
- June 12, 2013 - RFID and AIDC News: Local TV News Report Shows Just How Easy it Is to Capture RFID Credit Card Data Simply Bring a Reader Near a Credit Card, Grab Holder Name, Card Number, Expiration Date and More; Are Banks Not Being Straight with Consumers? SCDigest Editorial Staff It's not exactly supply chain related, but we were interested enough in recent investigative report by Eye
Logistics News on A New Alternative Truck Fuel Enters the Playing Field
- June 12, 2013 - Logistics News: A New Alternative Truck Fuel Enters the Playing Field DME is Little Known, but Volvo Trucks Announces Aggressive Plans, Pilot with Safeway SCDigest Editorial Staff There has been a flurry of activity and investment around natural gas powered trucks
Supply Chain Graphic of the Week on Global Energy Consumption
We very much look forward every year to the annual BP Statistical Review of World Energy, the most comprehensive report on matters related to energy use and production that can be found anywhere. Next week, our TheGreenSupplyChain.com will do its usual full review of the 2013 report, but for this week we provide the graphic below from the report, showing energy consumption by energy source across the globe over time. Global Energy Consumption by Fuel Type
Green Supply Chain News on Against Mandates for Renewable Energy, Europeans Turn to US Forests
Drax PLC, a U.K. power company, says that after it converts two more electricity plants next year to run on pellets, it should be able to sell its excess emissions credits for some $600 million
Supply Chain Video News for June 10, 2013
CSCMP Quick Courses Topics include demand management, financial and inventory fundamentals, materials requirements planning, physical distribution systems, and sales and operations planning, and more
Supply Chain News on Are Warehouse Management System Modifications Going Away. The Question is Should They
Supply Chain News: Are Warehouse Management System Modifications Going Away? Should They? Trend is Towards Much Fewer Mods, but They Have Not Disappeared; Stifling Innovation? SCDigest Editorial Staff There is no question that leading vendors of Warehouse Management Systems (WMS) have dramatically improved out-of-the-box capabilities, substantially reducing and sometimes even eliminating the need for modifications to the vendor's core offering. This is a big