Walgreens recognized by EPA for supply chain leadership
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.”
I’m sure I wasn’t the only person in the industry to raise an eyebrow when the S&P Retail Index notched an all-time high last month. Closing at $669.26 on Sept.14 to reach that milestone, the index has continued to creep up even further the last couple of weeks. A closer look at the stock market performance of the retail sector shows that both REITs and many individual retailers are continuing a strong positive trend—which makes sense, of course, because REITs will perform better in a strong retail environment when retailers are doing well.
While the headlines continue to be positive, the bottom lines are still a bit mixed. A number of strong, innovative brands have seen their stocks rise to all-time highs, but some have missed the boat at a rather inopportune time. In particular, traditional teen retailers like Aeropostale and Abercrombie & Fitch continue to struggle. But, as we all know, down doesn’t always mean out in this industry. Some retailers that have struggled in the past have come roaring back. Think Limited Brands.
All of this gets me thinking about what makes that key difference between success and failure; where, how and why do we draw the line between “buy” and “sell?” There’s no one single answer, of course, as it depends on a number of complex factors. There isn’t always a correlation between specific industry performance and retailer strength: Electronics is going like gangbusters these days, but Best Buy is still limping along. In the case of fashion retailers, especially teen fashion retailers, the fickle nature of the consumer often has a huge impact on performance.
Something else that I’ve been thinking about is how this new-found stock market strength could impact retail expansion plans. I think these strong numbers from retail stocks might indicate that retailers will be loosening up the purse strings a little bit and taking a more aggressive approach with their expansion plans. Obviously, this isn’t exactly a brand new development. Keeping in mind there’s always a lag time between making a big-picture expansion plan and actually executing one, the strength we’re seeing from stocks now will have more of an impact on 2014 expansions than it will on 2013 plans. Those deals are already done and leases are signed.
In my mind, the bigger question is, “Will this stock strength continue?” I think it will. In fact, I expect the Retail Index to go up even further on the heels of recent strong holiday sales forecasts from NRF and ICSC. That said, I think retailers thinking about their expansions should proceed with some degree of caution. After all, the last time the economy dropped off a cliff and the retail bubble popped, it became clear that many retailers were overextended, thanks to the push from Wall Street to grow. In the grand scheme of things, expansion and retraction is a necessary process for our industry. Any good chain closes some stores and opens others every year. There will always be some locations that are not optimal, and new opportunities for strategic growth and repositioning. I think that, while the numbers are very positive, retailers should continue to be guarded in their optimism. If we’ve learned nothing else from the recent recession, we should know by now that caution can be a lifesaver.
What do you think? Please make a public comment below or feel free to e-mail me privately at [email protected].
Click here for past columns by Jeff Green.
Supply chain innovators acknowledge for cross-border initiative
Transplace, Dal-Tile, Whirlpool, Convermex and Werner Co. were recipients of Supply Chain Innovation Award presented recently at the annual meeting of the Council of Supply Chain Management Professionals (CSCMP).
The collection of companies was recognized for their collaborative efforts to consolidate low- and high-density freight onto the same vehicle to reduce demand for transportation resources, thereby reducing costs. The team consisting of Ben Enriquez, country director, Mexico, Transplace; Sonney Jones, director of transportation, Dal-Tile; Bradley Rudasill, transportation lead, Whirlpool; and Rebecca Myers, director of transportation and customs compliance, Werner Co., presented the case study "Opposites Attract – Shippers Consolidate Truckloads to Improve Capacity Utilization and Sustainability," at the CSCMP annual meeting.
"Improving weight or cubic capacity utilization is a challenge many shippers face," said Dal-Tile’s Jones. "Partnering with like-minded businesses has allowed Dal-Tile to bring its shipments much closer to absolute capacity optimization, and realize financial and environmental benefits without sacrificing service. Collaborative consolidation of Dal-Tile’s high density freight with other shipper’s low density freight onto the same vehicle has reduced the demand for transportation resources by 60 percent on applicable lanes, netting cost reductions of 10-25 percent while reducing our carbon footprint."
The Supply Chain Innovation Award was established by CSCMP’s Research Strategies Committee and SupplyChainBrain to recognize a collaborative supply chain team’s outstanding innovations as demonstrated by quantifiable and sustainable cost-savings, revenue-generating, or customer-satisfaction achievements. There were eight finalists in contention for this year’s award.
"It’s an honor to be recognized for innovation by such a respected industry organization," said Transplace’s Enriquez. "Establishing a successful collaborative cross-border shipping program with multiple shippers has resulted in significant savings for every company involved. It was a privilege to share our experience with other supply chain professionals and provide them with the insight to pursue innovation within their own supply chains."
Transplace is a non-asset, North America-based third party logistics (3PL) provider offering manufacturers, retailers, chemical and consumer packaged goods companies the optimal blend of logistics technology and transportation management services.
Supply chain innovators acknowledged for cross-border initiative