FedEx’s growing Supply Chain

by Maria Hartas, DCMME Graduate Assistant

Can supply chains directly meet end consumers? The answer is yes, and for companies like FedEx Office opening retail locations in Walmart stores, the company’s supply chain is turning into a customer-centric supply chain. FedEx recently opened the company’s 2,000th retail location in a Walmart in Chesapeake, Virginia, marking it the 150th such location of the 500 Walmart stores customers will be able to print and ship while shopping.

 

Why FedEx & Walmart?

Expanding FedEx storefronts in Walmart is a strategic move towards adopting a more customer-focused supply chain. For FedEx, offering the option to customers to ship and pick orders from a secure store location instead of an exposed porch or front door increases the sense of security and reliability of doing business with the company. In addition to consumer benefits, FedEx will increase its market presence through the Walmart network in more locations without incurring direct construction or development costs leveraging the existing store facilities. Walmart on the other hand, will benefit from increased traffic in stores; online shoppers could potentially switch from other e-commerce platforms that do not offer convenient pick-up locations and opt to couple online ordering with grocery shopping at a Walmart near them.

A robust, customer facing supply chain will continue to grow as more companies take a holistic approach in improving customer experiences, starting from raw materials to convenient store locations nearby.

How can a 3PL, like FedEx, enter new markets though its supply chain?

Why are companies adopting customer-centric supply chains?

Could FedEx and Walmart become more competitive by working together?

Sources:

https://www.supplychaindive.com/news/fedex-opens-2000th-retail-location-e-commerce/551928/

https://www.cnbc.com/2018/03/20/walmart-to-bring-fedex-shops-into-500-of-its-us-stores.html

 

Kroger Robot centers coming soon

by Maria Hartas, DCMME Center Graduate Assistant

Kroger Co., the largest U.S. grocery retailer, in partnership with Ocado, a dedicated online grocery retailer, will be opening two high-tech customer fulfillment centers (CFCs) in the Central Florida and Mid-Atlantic regions. The facilities will be equipped with digital and robotic capabilities following Kroger’s first CFC, also known as a “shed”, which will be operating in Monroe, OH.

Kroger and Ocado are changing the retail-service industry by leveraging robotics technology in response to growing e-commerce purchasing habits. AI-enabled robots capable of quickly fulfilling high volume orders will efficiently supply click-and-collect orders, presumably in a more accurate, timely, and cot efficient assembly process.

With a commitment to build 20 CDCs, powered by Ocado, Kroger plans to advance the company’s ability to provide customers with anything, anytime and anywhere through the applications of AI and robotic technologies.

Can robots go grocery shopping?

How does AI advance e-commerce?

What is driving retail-service industry wide changes?

Sources:

https://www.supplychaindive.com/news/kroger-announces-2-more-ocado-sites/548712/

https://www.prnewswire.com/news-releases/kroger-and-ocado-announce-two-additional-sites-for-high-tech-customer-fulfillment-centers-300797898.html