Toys R Us Shifts To Fulfillment By Amazon

Toys R Us Shifts To Fulfillment By Amazon

September 14, 2020
Anita Lee-Post, Ph.D.

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 →

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Inventory Throughput is Key for E-Commerce Warehouses

Inventory Throughput is Key for E-Commerce Warehouses

August 1, 2020
David Little, Ph.D.

The rise in e-commerce has been accelerated by the COVID-19 pandemic.

E-commerce requires three times the warehouse space over brick-and-mortar retail operations.  A real key to managing a warehouse efficiently is inventory throughput.  Wayfair, for example, focuses on throughput and uses a chase demand strategy to staff warehouse operations to obtain efficiency.

Video Spotlight:

This post is based on the Supply Chain Dive article, Prologis: Demand for warehouse space will rise alongside e-commerce growth, by Matt Leonard, June 18, 2020, and  the YouTube videos in the Spotlight. Image source: vitpho/123RF

Discussion Questions:

1.  Wayfair uses a chase demand strategy to staff the warehouse operations.  What other aggregate planning strategies could Wayfair employ?  Is the chase demand strategy the better option?  Why or why not?

Guidance: Students should consider all the aggregate planning strategies in the textbook.  Lead the discussion by Continue reading →

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