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Pet e-tailer Chewy is reorganizing SKUs by velocity and automating its Archbald, Pennsylvania, fulfillment center with goods-to-person systems. (Was this email forwarded to you? Sign up here.)
Sit. Stay. Make a 180-degree turn. Sort your SKUs.
Pet e-tailer Chewy is embracing those last two commands.
The retailer pivoted to a goods-to-person model at its first automated fulfillment center. And it's zoning that warehouse by SKU, ranging from small toys to 50-pound food bags.
The expected results: greater efficiency, more accurate picks and 30% lower fulfillment costs. Dig into the details.
Chewy said its warehouse management system was involved in every step of the automation journey to make sure the transition was smooth. Turns out, many warehouse operators consider software, such as warehouse execution systems, essential or very important to their business, as shown in the chart below. Dive deeper.
Credit: Matt Leonard, Supply Chain Dive / data from Honeywell
The retailer opened two stores as part of an omnichannel test. On the exam: merging in-store and online inventory, and speeding up in-store pick rates.
The idea is for stores to "operate as both physical shopping destinations and online fulfillment centers," said Walmart's John Crecelius. Read more.
KH's "Ops Center" brought together departments including procurement, production and marketing. And now, it's helping with supply chain agility and constraints in the pandemic.
CEO Miguel Patricio gave the example of macaroni & cheese. The individual microwaveable SKUs face supply constraints with plastic cups. The solution? Pivot demand by marketing the boxed product instead. Details here.
Opinion Poll
Which of the following has most improved efficiency in your warehouse?
Have a poll question you’d like to suggest? Let us know!
Last week's results are in!
We asked: "Which of the following best describes the changes in demand your company has experienced during the pandemic?"
39% of you said (A) Demand increased in most SKUs; 13% said (B) Demand stayed the same across SKUs; 18% said (C) Demand decreased in most SKUs; 22% said (D) Demand increased in some SKUs while decreasing in others; and 7% said (E) Other.
Walmart's omnichannel experiment is one of the latest examples of retailers merging supply chain and store-facing operations. The store is the warehouse. The warehouse is the store.
I question what it does for customer experience. Items aren't always laid out in an ideal way for store pickers, and that could mean slower picks. I've faced crowded aisles filled with idle carts while shopping — not ideal for the in-store experience.
But if there's anyone who can ace an omnichannel test, it's Walmart.
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Adding more automation/robotics 
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