OPERATIONS

Wal-Mart testing same-day delivery for holidays

BY Katherine Boccaccio

Bentonville, Ark. — Wal-Mart Stores said Tuesday it is testing same-day delivery service in four markets over the holiday shopping season.

The service is being tested in northern Virginia, Philadelphia, Minneapolis and San Francisco/San Jose, Calif. Geared toward customers who buy popular items online during the holidays, the test includes about 5,000 items and builds on a same-day grocery delivery service the retailer launched in San Jose in April 2010 and tested in San Francisco in 2011.

According to Wal-Mart spokeswoman Amy Lester, the company has no immediate plans to roll out the service to other stores. "This is truly to learn and better understand what our customers want," Lester said.

To use the service, customers can place orders up until noon and then choose a four-hour window to receive the delivery the same day. Wal-Mart is using UPS delivery trucks to deliver the merchandise. For the San Francisco and San Jose markets, shoppers have to order by 7 a.m. that day to receive those items. Wal-Mart is using its own delivery trucks in those two regions.

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Dec-22-2012 07:00 pm

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M.Fourcall says:
Dec-22-2012 07:00 pm

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Nov-13-2012 06:02 am

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M.Fourcall says:
Nov-13-2012 06:02 am

I would like to thank you for your nicely written post, its informative and your writing style encouraged me to read it till end. Thanks Bill

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SUPPLY CHAIN

Retail container imports to increase 9.9% in October

BY Katherine Boccaccio

Washington, D.C. — The Global Port Tracker report released Tuesday by the National Retail Federation and Hackett Associates found that import cargo volume at the nation’s major retail container ports is expected to increase 9.9% in October as merchants wrap up the annual shipping cycle for holiday merchandise.

“NRF’s annual forecast says retailers should see solid growth during the holiday season this year and these cargo numbers back it up,” NRF VP for supply chain and customs policy Jonathan Gold said. “Increased imports show that retailers have gauged the market and expect increased sales.”



U.S. ports followed by Global Port Tracker handled 1.42 million Twenty-Foot Equivalent Units in August, the latest month for which after-the-fact numbers are available. That was up 6.7% from July and 3.3% from August 2011. One TEU is one 20-ft. cargo container or its equivalent.


September was estimated at 1.49 million TEU, up 8% from last year, and October is forecast at 1.45 million TEU, up 9.9%.

August, September and October are the three busiest months of the year as retailers bring merchandise into the country for the holiday season, and volume for the three months combined is up 7%.

While cargo volume doesn’t correlate directly with sales, NRF forecast last week that holiday sales will increase 4.1% to $586.1 billion this year. With most holiday merchandise already at least in distribution centers by the end of October, monthly cargo volume will drop off for the remainder of the year but will remain above 2011 levels.

November is forecast at 1.32 million TEU, up 2.4% from last year, and December is forecast at 1.28 million TEU, up 4.6%. After the holidays, January 2013 is forecast to stay at 1.28 million TEU, down one-half of 1% from January 2012, and February is forecast at 1.19 million TEU, up 9% from a year earlier. The first half of 2012 totaled 7.7 million TEU, up 2.9% from the same period last year.

For the full year, 2012 is expected to total 16 million TEU, up 4.1% from 2011, due in part to some retailers that brought cargo into the country early because of the threat of a strike when the labor contract covering East Coast and Gulf Coast longshoremen was set to expire September 30. The strike was averted when labor and management agreed to continue talks through Dec. 31.

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SUPPLY CHAIN

Walgreens recognized by EPA for supply chain leadership

BY Michael Johnsen

Deerfield, Ill. — Walgreens on Tuesday received the U.S. Environmental Protection Agency’s 2012 SmartWay Excellence Award, the organization’s highest recognition for demonstrated leadership in supply chain goods movement. The award — recognizing Walgreens as an industry leader in freight supply chain efficiency, performance and environmental sustainability — was announced at the American Trucking Associations Annual Management Conference and Exhibition in Las Vegas.

By optimizing routes to be more efficient and creating more effective ways to decrease empty miles when no product was being hauled, Walgreens fleet decreased its carbon footprint by nearly 15% between 2010 and 2011, according to SmartWay data. The fleet serves all of the company’s locations within the continental U.S. More than 3,000 companies participate in the SmartWay program. Of those, Walgreens is one of 40 companies to receive this award.

“Walgreens is always looking for innovative ways to improve performance when it comes to efficiency and environmental sustainability,” Walgreens senior VP supply chain management Reuben Slone said. “We continue exploring new technologies and strategies to improve fuel efficiency, lower costs and encourage stewardship of the environment.”

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