Supply Chain by the Numbers

- May 3 , 2012


Supply Chain by the Numbers for Week of May 3, 2012


Krafty Manufacturing Strategy; Macy's Maps Multi-Channel Fulfillment; Schneider National Goes Shopping; Lowes Engineers a DC Labor Strategy



The percent of SKUs that typically make up about 50% of a consumer packaged goods company's total production volumes, according to Kraft Foods' Kevin Smith. 50% of the SKUs will make up about 95% of volumes, meaning the other 50% of SKUs make up just 5% of volumes. This analysis was among the insights that led Kraft to start the switch to a strategy that focuses on productuion-leveling and fixed schedules, Smith said at the JDA user conference this week. The move is paying big dividends, he said.




Number of demand-fulfillment combinations Macy’s has identified in its multi-channel commerce strategy, according to a Macy’s executive this week at the JDA Software user conference. In other words, order from web, pick up in store would be one combination, order from web fulfill from DC would be another. The executive said there are actually several more possibilities, but they are uncommon enough they are not worth systematizing now. Macy’s is building its multi-channel processes and technology to support these 16 combinations.


The amount of distribution center labor that retail giant Lowes has under engineered labor standards, according to Mike Mabry, EVP of Logistics and Distribution, during a keynote presentation at the JDA user conference this week. The goal, Mabry said, was as much about consistency and predictability as it was about labor costs, and the move played an important role in the company’s overall logistics strategy a few years ago.


The huge number of new trucks Schneider National says it will purchase during 2012, the company announced this week. That represents a change-out of about one-third of its fleet. The move will not only provide significant improvements in diesel mileage, reducing fuel use by some 2 million gallons annually, they new tractors will also be equipped with OnGuard collision avoidance technology. Most of the equipment will come from Freightliner.