FedEx's decision to end its relationship with Amazon illustrates the complex nature of working with a potential competitor, writes David Gordon, president of Channel Marketing Group. When deciding whether to work with Amazon Business, distributors must consider whether the business is worth the potential risks or whether it's better to develop in-house e-commerce solutions, Gordon writes.
DHL has reached a memorandum of understanding with airline services company Sats to improve its logistics and food offerings. The deal includes reverse logistics operations and efforts to handle food waste.
Managing modern consumer goods supply chains is demanding, but measuring supply chain performance should be simple. It isn't yet -- because of an inconsistent approach to the critical OTIF metric. Consumers expect products to be on the shelf. The US food retail industry loses an estimated $15-20 billion in sales every year because items are out of stock or otherwise unsaleable. That's around 2-3% of its total sales. The main operational challenge for the consumer sector is to achieve high levels of on-shelf availability, while keeping supply chain costs down and inventories under control. Read more.
One trend emerging at the center of food retail store design is the micro-fulfillment center, a new automation in the industry. Although small, as the name implies, these warehouses are well equipped to autonomously fulfill online orders -- fast and efficiently. Micro-fulfillment offers an end-to-end solution plugging into any grocery store's already existing network and making e-commerce profitable. Learn more.
The food industry is very familiar with food recalls, and retailers and wholesalers execute multiple food recalls each week. Two high profile and market crippling consumer advisories last year from the FDA and CDC for romaine lettuce not only captured the attention of food safety professionals but captured the attention of individuals outside of food safety. Entire business operations and individuals at all levels -- from store associates to CEOs -- and most importantly, customers were impacted. Find out more.
In today's "prosumer" world, consumers are placing greater pressure on suppliers and retailers to raise their standards and performance with regards to how products are made and who makes them. Product sourcing is a supply chain responsibility and the accountability rests on the shoulders of many people, companies and governments. The Safe Quality Food Institute's Fundamentals Factors for Social Responsibility Standard (F2SR), based off ILO (International Labor Organization) guidelines, includes provisions to mitigate against forced labor. Read more.
Automating a warehouse takes time, effort and money, but the process can be worth the effort because of eventual labor savings and business growth, says Wes Whalberg, Best Buy's director of supply chain engineering. During the CSCMP 2019 EDGE Conference, Whalberg shared the retailer's 10-step program for warehouse automation.
Amazon changed its search system to attract consumer attention to products based on profit potential instead of emphasizing the best-selling or most relevant products, according to employees who worked on the project. Amazon in a statement denied it has "changed the criteria we use to rank search results to include profitability."
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