Same-Day Delivery: Zara Ships It

Same-Day Delivery: Zara Ships It

August 22, 2018

If you are a retailer, how do you compete against Amazon and Amazon Prime with its free 2-day delivery?  The answer could be to deliver from the store.

Many retailers have more stores than Amazon has distribution centers.  If you can effectively manage the inventory across stores, you could have a delivery advantage over Amazon from both a cost and time perspective.

However, Amazon is working hard to make same-day deliveries available to more customers.  Currently, select items are available for same day delivery in over 8,000 cities.

Many other retailers are working on same-day delivery using the same concept of shipping from the retail store, including Walmart, Home Depot, Target, Macy’s, and J C Penney’s.

Zara is relatively late to the same-day delivery market. But, Zara’ Fast Fashion deserves fast delivery. They have broken traditional logistics and supply chain approaches to get new designs to customers quickly.  They now hope to do the same in the last mile delivery to customers.

 


Video Spotlight: Zara Rolling Out Ship From Store Service


This post is based on the Forbes article, Zara’s Big Ship-From-Store Push Underscores Retail’s Bricks-Serving-Clicks Movement, by Barbara Thau, July 31, Continue reading

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Trucker shortages affecting supply chains

Trucker shortages affecting supply chains

July 19, 2018

OM in the News has previously posted about the national trucker shortage. The saga continues, and looks to worsen: there are 63,000 positions unfilled this year, and the number is expected to more than double in the future.

This is a challenging problem, especially since almost every item that is sold in the U.S. is transported by truck at some point.  Trucking companies are raising wages to the $60,000 – $70,000 range, with full benefits and signing bonuses, even for new trucking school graduates.  Those ready to work are snapped up quickly.

The dangerous and demanding nature of trucking makes it difficult to attract qualified workers despite the promise of generous compensation.  Rising wages are being passed along to consumers as transportation costs increase distribution costs and force companies to raise prices.

Delivery delays have become common, affecting inventory management and product availability.

This post is based on the Washington Post article, America’s severe trucker shortage could undermine the prosperous economy, by Heather Long, June 28, 2018. Image source: Rouzes/Getty Images.

Discussion Questions:

1. How does the trucking shortage impact manufacturers or other businesses?

Guidance: Trucker shortages mean businesses are finding it difficult to find Continue reading

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Chick-fil-A’s Chicken Shortage

Chick-fil-A’s Chicken Shortage

July 18, 2018

What happens when Chick-fil-A has no chicken?

In Texas, Chick-fil-A had to temporarily close two restaurants because an issue was characterized as a “delivery delay.”  This problem was much smaller than the KFC chicken shortage in the UK earlier this year, when almost all of its restaurants were shut down for lack of its key ingredient, but it none-the-less disrupted the organization’s operations in a very significant way.

In an unrelated issue, in mid-June, In-N-Out shut down in Texas due to an unspecified problem with the quality of its hamburger buns.

This post is based on the Inc.com article, Oh No, Chick-fil-A. First KFC, Then In-N-Out. Now You Too?, by Bill Murphy, Jr., June 30, 2018. Image source: Livingpix/Getty Images.

Discussion Questions:

1. How does this article pertain to operations strategy and the socio-cultural dimension of the external environment?

Guidance: While the causes behind these product shortages have not been clearly identified, the issue of stockouts may become more widespread in the future due to the shortage of qualified truckers in our nation.  Trucking is often viewed as a dangerous and difficult occupation, and companies are struggling to find enough drivers.  Even one cancelled or Continue reading

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