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Supply
Chain by the Numbers |
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- Oct. 1, 2015 -
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Small US Carriers Slow to Add to Fleet Due to Truck Cost; US PMI Remains Positive in September - but Barely; Advanced Auto Gets New Reason to Increase Replen Cycles; LLamasoft Gets Goldman Infusion |
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1000
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That's the number of its 4000 total stores that parts retailer Advance Auto says it will be replenishing on a daily basis by the end of the year, up from just 77 in Q1. Why the rapid change? Apparently some of Advance Auto's key competitors do daily replenishment already, and now an activist investor firm named Starboard Value LP has taken significant stake in the firm, and it believes the less frequent replens are hurting sales by leading to out-of-stocks. "Advance Auto has substantially underperformed peers on almost any measure, including operating margins, revenue growth, and total shareholder return," Starboard said in an announcement. Nothing like an activist investment firm to focus the minds of company executives. |
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$50 Million |
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That how much funding supply chain network design software provider LLamasoft announced it will be receiving this week from an arm of Wall Street investment firm Goldman Sachs. Company founder and CEO Don Hicks told Crain's Detroit Business the funding will be used for product development and growth through acquisition. He said the company is in negotiations for a deal to buy an overseas firm that could close in a few weeks. The deal values LLamasoft at some $200 million, a rich price for a company that has not been in business all that long, but has come in recent years to dominate the supply chain network optimization market, with recent moves to expand its supply chain planning footprint to new areas. |
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