Toys R Us Shifts To Fulfillment By Amazon

Toys R Us Shifts To Fulfillment By Amazon

September 14, 2020

Toys R Us went through bankruptcy in 2017, and closed its stores in 2018, but online orders have continued.

Toys R Us has recently replaced Target with Amazon as its e-commerce partner.  Customers shopping at the ToysRUs.com site will be redirected to Amazon for order fulfillment.


Video Spotlight: 


This post is based on the Chicago Business Journal article, Target is out, Amazon in as Toys R Us fulfillment partner, by Anne Stych, August 21, 2020, and the YouTube video in the Spotlight. Image source: BK666/Shutterstock

Discussion Questions:

1.   Is Toys R Us’ e-commerce partnership with Amazon a sound operations strategy?  Explain.

Guidance: Yes.  By partnering with Amazon, Toys R Us can build on Amazon’s e-commerce prowess to handle customer-business transactions online.  This way Toys R Us can focus on providing customers with a large toy assortment to choose from and leave Amazon to handle the order fulfillment.

2. Comment on Toys R Us’ digital strategy from an operations management perspective.

Guidance: Toys R Us attempted to rebuild its brand by opening two physical Continue reading

Facebook
Twitter
What Pandemic? Agile Systems Help Sephora Gain Market Share

What Pandemic? Agile Systems Help Sephora Gain Market Share

 

Sephora’s early investments in flexibility have paid off.

Sephora, like most retailers, had to close its stores during the pandemic. Whereas many others struggled to build or shore up an online presence, Sephora shifted gears with little effort. It relied on its inventory system linking brick-and-mortar retail and e-fulfillment facilities as well as on a distribution network with rapid access to most zip codes. Not only did the company meet customers’ expectations, but it also increased market share.

 


Video Spotlight: Sephora Promotes its Safety Guidelines as Stores Reopen


This post is based on the Supply Chain Dive article, How Sephora Flexed its Warehouse Network to Prep for an E-Commerce Onslaught, by E. Cosgrove, August 25, 2020, and the YouTube video, Sephora to Take a Measured and Supportive Approach to Reopening Select Retail Locations in the US, by BusinessWire, May 26, 2020. Image source: Africa Studio / Shutterstock.

Discussion Questions:

1. Explain how Sephora’s network design enabled the company to meet demand during the pandemic.

Guidance: Sephora had already built flexibility in its distribution network. Its five warehouses are located in four states (Maryland, Mississippi, Nevada, and Utah) to ensure coverage of and delivery Continue reading

Facebook
Twitter
Amazon’s New Cross-Dock Facility

Amazon’s New Cross-Dock Facility

September 7, 2020

Amazon is planning to build an 855,000-square-foot fulfillment center in Goodyear, Arizona.

The fulfillment center will hire 3,000 employees, who will work together with robots to pack online orders for delivery.  In addition to the fulfillment center, Amazon is planning to open a cross-dock facility and six delivery stations across metro Phoenix.


Video Spotlight: 


This post is based on the AZ Central article, Amazon to hire 3,000 in metro Phoenix, including 1,000 at high-tech Goodyear robotics facility, by Joshua Bowling, August 19, 2020, and the YouTube videos in the Spotlight. Image source: Syda Productions/Shutterstock

Discussion Questions:

1.   What role does Amazon’s Goodyear fulfillment center play in its supply chain management?

Guidance: The fulfillment center in Goodyear, Arizona will take online orders from customers, retrieve items ordered from storage/cross dock and pack them for delivery.  Employees help pick customer orders by identifying items for robots to prep and stack on pallets for shipping or stowing.  The result is increased Continue reading

Facebook
Twitter