Retailers fear port strike would stall holiday shipments

A potential strike by longshoremen from Maine to Texas threatens to disrupt retailers’ shipments before the busiest shopping time of the year.  http://bostonherald.com/business/general/view/20220828retailers_fear_port_strike_would_stall_holiday_shipments

The lockout could force retailers to shift shipments to Western coast ports or Canadian ports, but that may also cause significant congestion and delays as well as add burdening expenses.

In response to the conflict NRF President and CEO, Matthew Shay, urges management and labor organizations to resume port contract talks:

“We are facing a critical time,” Shay said, noting that some retailers have already enacted contingency plans to ensure that holiday merchandise will reach store shelves in time. “Now that there is a real risk of disruption, most retailers using the East and Gulf Coast ports will be forced to executive contingency plans within the next week to meet in-store holiday deadlines. These plans carry great expense but they are necessary to avoid disruptions that will add costly delays to our members’ supply chains.”  http://www.nrf.com/modules.php?name=News&op=viewlive&sp_id=1421

Community Involvement

MKM Management would like to extend a big THANK YOU to our staff as they have willingly participated in supporting several community causes.  Recently many of our team members helped with charity work for a local school, KIPP Indianapolis. Over several weeks our team executed a great deal of the “Move Project” for KIPP, which has included moving many loads of school equipment from various locations and helping paint the school.  This has forced our team to function without a full staff, yet getting the job done, and working outside their typical work hours.  Big “KUDOS” to all those involved. 

We are proud of our staff at MKM and K&L and are committed to supporting our community. We are proud to have contributed time and resources to various organizations this year, including: 

        

·         KIPP Indianapolis

·         The Brickyard Golf Scramble which supports the Little Red Door Cancer Society

·         The Julian Jam on behalf of the Julian Center which provides services for survivors of domestic violence, sexual assault, and other life crises

        

·         The Indiana Heart Walk

·         Indianapolis Country Club “Golf Fore a Cure”, benefitting the Vera Bradley Foundation

Growing E-Commerce Forces Transformation in Distribution Networks

A study by Jones Lang Lasalle finds that multichannel commerce is creating a need for retailers to redesign their distribution networks.  As competition with purely online retailers continues to escalate, multichannel retailers have to become more repsonsive and ship faster from store to store, store to doorstep, warehouse to store, or warehosue to doorstep! 

The attached article points out that:

"Retail chains are finding it more cost-effective to increase online logistics operations rather than open more traditional stores, which requires an entirely different kind of distribution model. Therefore, retailers are evolving their regional distribution networks with the addition of e-commerce distribution centers.

"Traditional warehouses that support stores require less investment and machinery and fewer staff. The new e-commerce distribution centers, which involves direct order fulfillment, can cost three times as much and involve three times as many employees."

 
Is it best to build it yourself or to develop a solid partnership with a  third party fulfillment provider?

http://www.supplychainbrain.com/content/nc/logisticstransportation/single-article-page/article/growing-e-commerce-forces-transformation-in-distribution-networks-report-finds/

Will The Trend Towards High End DC Automation Drive More Companies to 3PL Adoption?

This is an interesting read, and also has some very valuable insights into how to uncover whether or not a 3PL is going to help your organization.  Plus, how do you get to know a 3PL and understand if they will be the right partner?

Aside from the move to more automation in distribution, the single most impactful event that we have seen on a retailer’s ability to meet shipping commitments is the velocity of change and growth in e-commerce.

If logistics is not one of your organizations core competencies you may risk losing a competitive advantage as customer expectations continue to rise.

http://www.scdigest.com/experts/Holste_12-08-01.php?cid=6064&ctype=content