At the Ecommerce Summit in Columbus, OH, in April, I attended this session and was provided with ideas to maximize performance and operational efficiency throughout both front-and back-end operations. These strategies were accompanied by Tim Holody’s real-world, personal examples from his current job at Serta and the experiences and lessons he has learned over the years. One important takeaway I even remember today was the mantra: “one location per SKU and one SKU per location” that Tim heavily emphasized on. The session covered a lot of topics with practical applications, including:
Pop-Up DCs to the Rescue: Flexible, Economic Solutions for Peak Expansion Details
The pop-up concept is similar to that of regional fulfillment nodes, but without the cost barrier. It’s a temporary, lightweight infrastructure that can provide lower shipping costs for 1- to 2-day delivery across the country and may include an option for same-day courier delivery.
The most common use cases are:
A few things to consider:
1. Temporary spaces: basic things like floor space; you want to spread your inventory out versus going up
2. Dock access and WiFi and Power: access to the internet and taking into account the network traffic
4. Lightweight infrastructure
5. Assortment: systematically you need to account for:
a. SKUS eligible in that region
b. ABC movers
c. Inventory levels at each DC or store
d. Volume expectations versus previous year in that shipping zone(s)
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