Last week we returned from the Operations Summit and were preparing to go to ProMat Show 2017 and we’re here now in Chicago. If some of you are checking in after meeting us at the #OpsSummit, we’re glad you’re checking in with us and we look forward to talking to you about how we can help you in the coming month and years. Feel free to contact us if we can be of service.
I. Like we reported on in last week’s Recap, we attended the Operations Summit. We spoke or moderated a few panels including a session on omnichannel optimization. TPG Partner, Steve Muliak reports, “Most of the sessions reflected the need to think about retail in a much broader perspective. Even a few years ago this conference was focused mainly on catalog and eCommence fulfillment. Now, the conference is encouraging companies to seek different ways for consumers to pick up their orders, be it local stores or nearby delivery points.” OmniChannel was discussed in almost every session.
Special shout out and thanks to our session participants, who added so much depth to our conversations…Jon Um, Hollar.com, Michael Smith, Stage Stores, Scott DeGraeve, Scott DeGraeve Consulting, and Ritch Haag, Clarks Americas.
II. To back up Steve’s report on what he saw this year at the Operations Summit, a news story from Chain Store Age for just the fashion industry that came out yesterday is still further proof that quick delivery (or pick up, like example Target) and live time inventory is key to reach target demographic of 18-24 year olds, says
III. This article from yesterday as well, from Kevin Gibbon, contributor at Forbes also addresses quick delivery. Is that all a store has to do? No. The research referred to in this article speaks to the “short fuse” that consumers have for errors, making inventory planning of key importance.
IV. The LA Times reports that a new “delivery hub” is being built as two buildings in Riverside County and will add to the 1 million square feet already built between 2010 and 2016. It is meant to companies using ports of Los Angels and Long Beach for distribution.
The developer, Rockefeller Group from New York is investing $110 million to build two giant buildings, just one of them 1 million square feet. They don’t have tenants yet, but hope to before opening in the Summer of 2018.
“The need for speculative development is growing rapidly because of the demand by e-commerce companies who require ultra-large facilities,” said Marc Berg, regional director for Rockefeller.