Supply Chain weekly wrap-up: 5/27/16 – 6/2/16

Taking last mile delivery one step too far?

I don’t know about you, but I do not need someone to deliver fresh groceries to my refrigerator when I am not home. My lack of a “need” in this area may however be a minority opinion in this case as tests are underway in Sweden for this exact service. Three companies have come together to develop and test a courier service that will provide messengers with access to your home. The use of this innovative delivery service requires the installation of an add-on lock developed by Swedish company Glue AB. This lock allows messengers to enter your home via smartphone app, however home owners must remotely approve the access request. PostNord AB, a Scandinavian courier company, and ICA AB, a supermarket chain, are set to test this new delivery concept together with Glue AB in 20 homes across Stockholm. The group has promised that their messengers will unpack the grocery deliveries and of course remove their shoes before entering the home. This new venture is one of many in the global race to find the most efficient and practical last mile delivery solution.

Read more about this innovative delivery service here.

Nike expands Logistics Campus in Belgium with focus on sustainability

Nike recently revealed the latest expansion of its logistics center in Belgium as the company aims to integrate more agility and resilience into its supply chain operations and serve customers faster. This single inventory location serves the company’s online operations, retail stores and wholesale partners across 38 countries. The advanced logistics center employs 3,000 people and ships over one billion units of apparel, equipment and footwear worldwide across the centralized network each year. A guiding theme throughout the expansion was a focus on sustainable operations as the company pursues its vision for a low-carbon, closed-loop future.
The new features of the expanded facility serve as great examples of Nike’s pursuit to achieve its vision of sustainable operations. The entire logistics campus, for example, is run on 100% locally generated renewable energy, including wind, solar, hydroelectric, biomass and geothermal. Furthermore, the surrounding infrastructure allows for 99% of inbound containers to arrive by water, not road, which significantly reduces the amount of truck deliveries each year. Additionally, Nike will be recycling 95% of the waste it generates on-site.

Read more on Nike’s state of the art logistics center in Belgium here.

For retailers, it’s beginning to look a lot like…Christmas?

Many U.S. retailers are struggling to generate foot traffic, and as a result, inventory levels are becoming a concern. After a sluggish first quarter due to an unseasonably warm winter, many clothing retailers are now also struggling to work through their spring collections. To make matters worse, Christmas is just six months away, which means it is time to start placing orders for the holiday season. The problem: many retailers do not know where to start when it comes to forecasting for this year’s holiday rush. If the first quarter and slow start to the second quarter are used as indicators, many retailers will be placing very conservative orders. According to Steve Barr, a U.S. retail and consumer sector leader at PwC, many retailers are expected to exercise “tremendous discipline” when it comes to inventory levels.
One strategy some retailers have turned to is cutting the number of any given article of clothing on the shelf, with the goal of creating a sense of urgency to buy. Other retailers have made adjustments to their supply chain operations in an effort to be more responsive to style changes and trends.

Read more on the current state of clothing retailers here.

Have a great weekend!