Rising operating expenses, from higher wages to higher oil and freight prices, have forced food distributors in the U.S. to improve their operational efficiency. Solutions include using smaller trucks to ensure a full load, packing trucks more efficiently, making delivery routes shorter, and using technology to match cargo with available trucks. Continue reading →
It’s your OM in the News roundup! Follow the links to recent posts from our faculty contributors, including videos, and thoughtful questions for class discussion.
In this edition, we discuss inventory management, logistics, and vertical integration.
Inventory Management Needs An Overhaul
Modern inventory management software alone cannot reduce excess inventory because of the continued fear of stock-outs. It’s time for some changes in inventory management. Read more…
Walmart Going Toe-to-Toe with Prime?
Starting in November, customers can expect free two-day shipping with orders over $35 and in-store returns of items purchased online. Read more…
CostCo’s Farm-to-Table Rotisserie Chicken
Costco is building a farm-to-table production system in Fremont, Nebraska, to manage both the supply and demand of its rotisserie chickens. Read more…
1. What are the strategic impacts of Walmart’s service design changes?
Guidance: Free two-day shipping with orders over $35 and in-store returns are offered on items purchased from both Walmart and its third-party sellers. These changes provide Walmart customers with a more seamless and uniform retail experience than its competitors like Amazon.
2. What are the supply chain impacts of Walmart’s service design changes?
Guidance: Faster shipping and easier returns will increase the demand for trucking capacity and present a major logistical challenge to Walmart’s supply chain