distribution – OM in the News

Nike and Direct-to-Consumer: Just Doing It

Nike continues its march towards more direct-to-consumer (DTC) sales, notifying seven more distributors that they will no longer be selling its products.

The last shipments to DSW, Macy’s, Urban Outfitters, Big Five, and several others are likely to go out in October 2021. The move follows Nike’s cut of nine wholesalers last fall, and continues a push towards more digital sales.

Its DTC model that began about a decade ago has been accelerated and positively affected by the pandemic.

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By Lisa M. Spencer|2021-05-06T03:28:57+00:00May 5, 2021|Tags: channels, distribution, external environment, logistics, strategy|

UPS and FedEx Manage Capacity for Peak Vaccine Shipping

UPS and FedEx are planning to increase vaccine delivery capacity threefold by May.

As of February 2021, the two companies were delivering about 14 million doses per week. UPS in particular believes it can still prioritize timely vaccine delivery when increased production by multiple manufacturers allows triple the volume in May 2021.

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FedEx, UPS teaming up to deliver COVID-19 [Vaccine] (Dec 11, 2020, ABC News)

This post is based on the Bloomberg article,

By Lisa M. Spencer|2021-03-31T22:22:57+00:00April 4, 2021|Tags: bottlenecks, capacity planning, distribution, logistics, supply chain management|

Home Depot’s Dallas DC: Running on Hydrogen

Home Depot is partnering with Plug Power to build a 1.5 million square foot distribution center in Dallas, Texas. The new distribution center will use Plug Power’s zero-emission hydrogen fuel cell systems to power material handling equipment such as forklifts.

The fuel cell systems also become the infrastructure for storing, compressing, and dispensing hydrogen fuel. The partnership is heralded as a fulfillment of Home Depot’s sustainability commitment to its supply chain and operations.

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How does a […]

By Anita Lee-Post, Ph.D.|2021-03-31T20:04:27+00:00April 1, 2021|Tags: distribution, social and environmental responsibility, supply chain strategy, sustainability|

Walmart Drone Deliveries Take Off

Walmart is partnering with drone delivery provider Zipline to make on-demand deliveries of select health and wellness products in the United States in early 2021. Zipline is known for medical drone operations in Africa.

Walmart also has a pilot project to delivery grocery and household products with automated drones from Flytrex. This is in response to Amazon obtaining FAA approval to test its own Prime Air delivery drones.

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Walmart and Zipline team up to bring […]

By David Little, Ph.D.|2020-10-05T04:37:01+00:00October 5, 2020|Tags: distribution, drones, last mile delivery, logistics, pilot project, project management, technology|