SUPPLY CHAIN

Drone deliveries by Amazon could one day originate from an unusual-looking starting point.   

For the first time ever, UPS is going to add a surcharge for orders delivered to homes during peak holiday times.    The surcharges, which apply only to residential deliveries, could boost the buy-online-pickup-in-stores (BOPIS) strategy deployed by many store-based retailers.  The move comes as the shipping giant look to combat its escalating costs, which include increased investments in hiring, in the wake of the shipping boom caused by rising online package volumes.    

Retailers are thrilled with their surging online sales, however the same can’t be said for associated fulfillment operations.    Business is booming online as sales across 82% of e-commerce and multichannel businesses increased in 2016. Only 6% reported a decrease in orders. While many voiced concerns over increasing competition, Brexit and currency fluctuations, the majority of companies (88%) expected a further increase in e-commerce orders during 2017.  

Amazon’s newest distribution center will use robotics to streamline operations.   The online giant plans to open its second Colorado fulfillment center in Thornton. This will be the first Amazon Robotics facility in the Centennial State.   

Amazon continues to expand its footprint of distribution centers.   Amazon is set to break ground on its first fulfillment center in the state of Oregon. The 855,000-sq.-ft. facility, which will be located in Troutdale, will augment the company’s sortation center in Hillsboro, and Prime Now hub in Portland.  

An annual report provides an in-depth analysis of the front-burner issues facing America’s retail supply chains, and highlights tools and leading practices to compete in an evolving marketplace.  

Complexities associated with online shipping and fulfillment are eating into retailers’ profitability.   This was according to “Strategies for Agile, Profitable and Secure Omnichannel Execution.” The report, from Radial, revealed that more than 55% of customers are using multiple channels, such as online and mobile to shop.  

Coinciding with its recently announced growth plan, Dollar General opened a new distribution center.    The new $100 million facility resides in Janesville, Wisconsin. It is the company’s 14th warehouse. The approximately 1 million-sq.-ft. depot, which began shipping merchandise in January, serves approximately 800 stores in nine states in the upper Midwest, and employs more than 500 employees. Along with more than 130 store locations in the state, Dollar General now has more than 1,300 employees in the state of Wisconsin.