John McClymont’s Post

Great write up! Being more intentional should include embracing technology as one of the tools in the toolbelt. The world has changed and supply chains are too important to keep doing the same things. Inventory positioning should be table stakes at this point. Same with geographic demand forecasting and replenishment. The price points for those capabilities are pennies on the dollar with the right tech partner. Heft IQ offering is proof of that. #supplychain #logistics #heftiq

Walmart, Target and Amazon are all-in on the shipping wars, a move retail experts say will help them maintain a competitive edge against low-cost Chinese retailers Shein and Temu. For Walmart and Target, their investments are also aimed at narrowing the gap in delivery speed with Amazon, which has set the standard for fast shipping and remains the king of speed. Amazon packages have been arriving at the doors of Prime customers even faster this year under the company’s new distribution model, which divides the country into eight regions and predominantly ships items from warehouses in those areas. The idea, according to Amazon, is to get shipments to travel shorter distances with fewer touchpoints, which helps the company not only speed up deliveries but also cuts down on costs. Walmart and Target have been pouring money into warehouse upgrades, new facilities or other efforts that they say will also help trim costs. Walmart uses more than 4,000 of its stores across the country as fulfillment centers and delivery hubs for online orders. In November, the company said it would be adding 40 so-called parcel stations to stores in nine states by the end of the year in an effort to process more goods and get them faster to customers. The nation’s largest retailer said many of the stations — which are like mini post-offices that receive and deliver packages — would be operating during the holiday season. At the same time, the Bentonville, Arkansas-based company is working to overhaul its warehouses through automation to help speed up delivery to stores and customers. #martech #retailmedianetworks #adtech #ecommerce Source: Fortune

Amazon expanding their logistics as it competes with Walmart, Temu and SHEIN. The e-commerce market leader is buying up industrial property and restructuring its sprawling distribution network as it looks to speed up package delivery and cut shipping costs. 🚚 Amazon will add 16M sqft of new warehouse space to their roughly 413M sqft of space in the US 🚚 Amazon said it increased the number of orders delivered on the same day or the next day in the U.S. by more than 65% in the fourth quarter of 2023 compared with the previous year.  🚚 Central inbound receiving centers will range from 600k-1M sqft to under 100k in rural delivery stations. So you have the battle of the retail titans; Walmart with 4600 local fulfillment centers called stores within 10 miles of 90% of the US population, who delivered 4.4B items the same or next day, and Amazon saying they did the same with 4B items in 2023...with SHEIN & Temu driving the costs to the bottom, and leveraging a favorable tax loophole. Who wins...US the customers! Dan Klenkar Walter Holbrook Neil Saunders https://lnkd.in/gKK9EdiZ

We've entered the shipping wars: major U.S. retailers are intensifying their efforts to boost shipping speeds in response to growing customer demand for quicker deliveries, as detailed in this article by AP News. This is a critical strategy to undertake in order to compete with low-cost Chinese retailers SHEIN and Temu who have entered the scene. Amazon is ramping up their regional distribution model to decrease shipping touchpoints and cut down on costs, while Walmart and Target are investing heavily in warehouse upgrades and automation. Walmart has opened three fully automated fulfillment centers in the last year. Target has a similar game plan in motion, investing $100 million in its sortation centers to increase the speed of goods to customers, as John M., Target's Chief Operating Officer explains. Experts acknowledge the challenge of catching up with Amazon's extensive infrastructure and general omnipresence. Jason Goldberg, Chief Commerce Strategy Officer at Publicis, notes Amazon's superior warehouse space and trucks, making it a formidable challenge for their rivals to keep pace. The shipping wars are unfolding, marked by technological innovation and strategic maneuvers, as these retail giants strive to meet the ever-growing expectations of the modern consumer. #consumertrends #innovation #logistics #retail #supplychain

Amazon is making bold moves to stay ahead of the competition! In an effort to fend off rising stars like Temu and Shein, Amazon is planning to launch a discount store. This step aims to offer customers more value and convenience, targeting price-sensitive shoppers who have increasingly turned to competitors for deals. The store will feature a wide range of products, including electronics, fashion items, home goods, and more, ensuring there's something for everyone. As the retail landscape continues to evolve, it’s fascinating to see how major players adapt and innovate to stay on top. What’s noteworthy is Amazon's strategy to directly ship products from China, similar to Temu's model. By leveraging international supply chains, Amazon enhances product variety and offers competitive prices, solidifying its global market position. This move underscores Amazon's global ambitions and commitment to meeting consumer demands for affordability and choice. Key points about Amazon's discount store initiative: 1. Customer Targeting: The discount store is aimed at attracting price-sensitive customers who are increasingly shopping with competitors like Temu and Shein. 2. Product Range: Expect a diverse array of products, from electronics to fashion items and home goods, catering to various consumer needs. 3. Fulfillment Strategy: Amazon plans to ship products directly from China, streamlining logistics and potentially lowering costs for consumers. 4. Global Expansion: This initiative underscores Amazon's global ambitions, leveraging international supply chains to enhance product diversity and affordability. 5. Competitive Pricing: By adopting a direct-from-China model, Amazon seeks to offer more aggressive pricing strategies to maintain competitiveness. 6. Technological Integration: Advanced technology and data analytics are expected to optimize inventory management and enhance customer experience in the discount store. 7. Market Impact: Analysts are closely monitoring how Amazon's discount store will reshape consumer expectations and impact traditional retail models. 8. Strategic Partnerships: Amazon may forge new alliances with Chinese manufacturers and suppliers to ensure a robust supply chain for its discount store operations. 9. Economic Implications: The initiative could influence global trade patterns and supply chain dynamics in the retail sector, affecting broader economic trends. 10. Consumer Response: The success of Amazon's discount store concept will hinge on consumer adoption rates and satisfaction with product quality and pricing. Could this initiative be a game-changer for Amazon and the retail industry? Time will tell. #Amazon #RetailInnovation #ECommerce #DiscountStore #CustomerValue #BusinessStrategy #RetailTrends #Innovation #ECommerceNews #TechNews #BusinessGrowth https://lnkd.in/enduXMaQ

With Walmart being a threat to Amazon’s logistics crown, they’re upping their game. 🔥 The grand strategies are revealed! 👇 1. Quick expansion Amazon has signed at least 6 new leases in the western part of the country. Amazon currently operates in 413 million square feet of industrial real estate, and it plans to expand by another 16 million square feet. 2. Decentralization Amazon is now split into 9 regions from the previous 8 regions. FBA sellers are required to store inventory across multiple locations. 🌍 3. Many small stations Amazon is investing in communities, including small towns and rural areas. Strategically scattered fulfillment centers minimize final-mile transportation costs. Conclusion. Amazon’s decision to decentralize and expand is mainly due to the big moves of its competitors. The equally big Walmart is utilizing its existing physical stores for order fulfillment. Smaller rivals Temu and Shein are also putting pressure on ecommerce in general (but can’t compete in terms of fulfillment yet). Needless to say, Amazon is determined to cling to its reputation as the ecommerce king. 👑 #walmart #amazon #ecommerce

Interesting trend of legacy retailers using their existing real estate as an actual asset to compete with Amazon rather than liability to be written off. I’ll admit when I saw short-hop delivery services like Getir passing through my neighborhood with bundles that could fit on the back of an e-bike, I was skeptical. It will be interesting to see if: (1) using physical stores as distribution nodes allows Walgreens and Target to keep pace with Amazon and (2) this serves as a lifeline for commercial retail real estate, especially in neighborhoods that have seen stores closing.

https://lnkd.in/eQpxVjmh Update: Amazon’s delivery surge eats into UPS, FedEx’s share The digital retailer juggernaut Amazon continues to surpass their competitors. It doesn’t matter what type of widget you sell or if you’re in supply chain shipping and logistics, Amazon is refining their processes and business model like we’ve never seen. They’ve acquired 16 million sq ft of new warehouse space around the country already this year. What will Amazon look like in 5 years, and will you be able compete with Amazon and other digital first retailers?   #Sennco #ESL smart labels tightly couple your eCom site with your physical stores, making every store shelf a digital asset. Still have questions about digitally connected electronic shelf labels, hit me up. Paper price tags are holding back your digital transformation.   #Retail #eCommerce #Omnichannel #Smartshelves #SenncoSolutions #IRL #Digitalinnovation #ESLdigitalintelligence #Futureofretailpricing #Retailshelvingntelligence #ESLpoweredsales #Retailinnovation

https://lnkd.in/emvNpzVP If you work for a traditional brick and mortar retailer this is a must read. These warehouse numbers and the shipping potential is staggering. “The e-commerce market leader is buying up industrial property and restructuring its sprawling distribution network as it looks to speed up package delivery and cut shipping costs… Amazon so far this year has leased, bought or announced plans for more than 16 million square feet of new warehouse space in the U.S.,… That adds to the company’s existing footprint of roughly 413 million square feet of industrial real estate across North America as of Dec. 31, according to company filings. Some of the new sites are massive facilities of more than 1 million square feet meant for storing large quantities of inventory, while others are less than 100,000 square feet and used to stage packages for final delivery to customers. ” How are you preparing to successfully compete with Amazon in the future? US retailers must digitally transform to reach their full eCommerce potential and to remain competitive with digital first retailers. Paper tags are not an integral part of #RetailInnovation or the transformation to digitally connect every retail item at every physical store shelf. #Sennco smart labels empower sales with advanced shelf level data, vibrant promotions and real time centralized pricing updates. Discover how eliminating paper tags for advanced #ESL technology will position your company to take advantage of customers’ preference to mix their physical and digital buying. Bridge the gap between your physical and digital channels with our custom #Electronicshelflabels and on-shelf availability solutions.    #Retail #eCommerce #Omnichannel #Smartshelves #SenncoSolutions #IRL #Digitalinnovations #ESLdigitalintelligence #Retailing #Futureofretailpricing #Retailshelvingntelligence #ESLpoweredsales

New issue of Sent Items out this morning! A busy start to the Spring in the world of eCommerce and logistics. Some devastation (Baltimore bridge), politics (Section 321/China sellers), and a couple “I didn’t see that coming” headlines (USPS dropping FedEx in favor of UPS; 1,000 people in India watching your Amazon shopping!) A few headlines I covered: * Amazon, Walmart, Temu, and Shein Overlap * Amazon is phasing out its checkout-less grocery stores with “Just Walk Out” technology * UPS to replace FedEx as U.S. Postal Service's primary air cargo provider * Fulfillment Startup Stord Expands With Logistics Acquisition * How U.S. Sellers Are Embracing Trade ‘Loophole’ That Has Boosted Shein and Temu * Amazon Sellers Plagued by Surge in Scam Returns * An Editorial on the Bridge Tragedy in Baltimore. Read this morning's issue in full and subscribe for free here: https://lnkd.in/e8XMAunK