March 2 - Target aims for the fulfillment bullseye

Store fulfillment is typically the last node of the retail supply chain, before the consumer picks up an online order or it's delivered via last mile. But not for Target. View online | Sign up | Forward

Weekly edition | March​ 2,​ 2021 Your Guide to Operations By Shefali Kapadia   BROUGHT TO YOU BY — AutoScheduler AutoScheduler Is Your WMS Accelerator AutoScheduler provides a solution that adapts and rebalances activities based on what happens at the warehouse every few minutes. Download our Ebook today!   Store fulfillment is typically the last node of the retail supply chain, before the consumer picks up an online order or it's delivered via last mile. But not for Target. (Was this email forwarded to you? Sign up here.) Target aims for the fulfillment bullseye Target could have kept building fulfillment centers, CEO Brian Cornell said this morning on the retailer's earnings call. But "we didn't see the textbook solution as scalable," he said.  It's trying a different playbook instead. Target is testing a sortation center between the store and last-mile delivery, with plans to add five more. How it works. Lowe's speeds up fulfillment … The retailer is able to fulfill orders six times faster than the year before. And that's critical, with Lowe's fulfilling 60% of online orders from stores in Q4. Lowe's is also aiming to take complexity out of stores, building a network of cross docks and distribution centers. "Market-based delivery is absolutely the way to go," CEO Marvin Ellison asserted. Read more. … But port congestion slows down Wayfair's supply chain Orders are idling at factories and supplier facilities in Asia. That's rippling down the chain to cause stockouts of some SKUs at Wayfair, executives said. The e-tailer expects it will take a few months before the backlog lessens and stock levels return. Details here. Stat of the week More sustainability, more savings A recent survey by Gartner found that 53% of respondents plan to invest in waste reduction efforts in the next 18 months, because it's the right thing to do and it saves cost, as seen in the chart below. Dive deeper. Credit: Matt Leonard / Supply Chain Dive / data from Gartner Opinion Poll             In which aspect of your supply chain are you most focused on increasing sustainability? Our suppliers/vendors Our transportation, owned or contracted Our warehouses or other facilities Our packaging Other — hit reply and tell us! Have a poll question you’d like to suggest? Let us know!   Last week's results are in! We asked: How has your production changed over the last year? 41% of you said (A) We've increased production across the board; 24% said (B) We want to increase production but can't, due to supply chain constraints; 11% said (C) We've decreased production across the board; 11% said (D) Production changes have varied by SKU; and 13% said (D) Other.                                                 Quick Hits The New York Times The Amazon workers' vote to unionize in Alabama has become a labor showdown, drawing attention from the White House and NFL players. Design News COVID-19 has driven emerging tech in manufacturing in the past year, but what will come of the next 10 years? Parcel and Postal Technology International DP World has announced that its London Gateway Logistics Park will fast-track the delivery of a green warehouse facility before the end of 2021. Marketplace Employers report it's getting harder to find skilled labor. HR Dive The U.S. Department of Labor withdrew a pair of wage-and-hour opinion letters on gig workers and truck drivers issued in 2019. Parting thought It seems like just yesterday (but also ages ago, because time is a weird construct in a pandemic) that Target executives were defending their store-based fulfillment model to dubious analysts who thought the model couldn't scale. Well here we are, with more and more retailers fulfilling more and more online orders from stores. Was Target right all along? The executives surely think so. Did the pandemic help change the game for store-based fulfillment? Or a bit of both? Shefali Kapadia Senior Editor, Supply Chain Dive Twitter | Email

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