Make those shoes faster!
This week, Nike and Adidas have announced plans for their future production strategies. Due to the customer’s ‘buy now/wear now’ mentality, nearly 20% of factories will become automated by 2023. By adding robots into supply chain operations, the companies can eliminate the need for outside manufacturing, speeding up production and allowing for an internally monitored system. This will ensure faster supply chain processes and help stay up to date with the ‘fast fashion’ demand movement we are now seeing throughout the entire shopping industry. Stores stocking the companies’ shoes will be able to rotate inventory more quickly and maintain customer interest by staying on trend. It will also help to decrease the need for drastic discounts used to clear out old and unwanted inventory.
Due to the rise in e-commerce, automation in factories is needed to meet demand. Future supply chains are thought to be able to cut lead times by more than 66% when the most up-to-date technology is utilized. This will allow production to decrease from months to days.
Read more about the focus on automation here.
A new vending machine experience
Walmart is now testing a giant vending machine-like service in the parking lot of its Warr Acres store in Oklahoma. Customers are now able to pick up online grocery orders without the need for employee interaction. When customers purchase their goods online, employees will pack their requested orders and store them in the giant 20-foot-by-80-foot container. The container, or so-called kiosk, is installed with refrigerators and freezers to keep the groceries fresh. A unique code is given to each customer in order to retrieve his or her order. The groceries will appear within a minute and are ready to take home right away; however, there is of course a minimum spend of $30.
As the kiosk is open 24/7, it is able to fulfill up to hundreds of customer orders in just one day. It allows more flexibility for its customers, due its broadened pick-up times. Walmart is aiming to integrate its online and offline services through the introduction of this new model and several other innovative ideas.
Find more information here.
Blockchain trials for the many
DB Schenker, DPWA and Hamburg Sud have announced they recently joined forces in regards to the testing of blockchain technology. It was one of the largest and most comprehensive trials of the technology, successfully monitoring an 8,100km global road-and-sea supply chain journey from South Australia to Northeastern China. The results showed it had the potential to increase global supply chain security to that of military level. It provides the opportunity to reduce costs and transform industry practices.
This highlights the need for improved supply chain safety, especially regarding medicines and food, as you can no longer guarantee their sources. Therefore, the trial also simulated the ‘end customer’ in order to check if the system could validate the product for authenticity. This is particularly relevant for protecting a brand’s reputation and its service. Supply chain security affects all parties involved, from consumers and companies to communities. With the use of this improved blockchain technology, the group of companies believe it could create a new security benchmark.
More on the trial can be found here.
Have a great weekend!
Header Photo: sebra/shutterstock.com
