So, logistics essentially defines a network.. a business planning
framework that includes procurement, transportation , distribution ,
maintenance and replacement of a method. In fact, Macy’s college offers a full
time logistics management programme which takes in graduate students. An
interesting thing to see is how Macy’s deals with the unsettling economy and
changes in consumer demands.
They use an intelligent amalgamation of lean manufacturing
and forecasting to do this. Jeff Pilot, Group VP logistics says that Macys
primarily resort to two strategies to handle this. The first is that of localized
assortments where they categorize products according to what the customer is
most like to demand in a large volume. They use the Omni-channel strategy in
conjunction wherein the main aim is to maximize inventory at any channel..thus
fulfilling the growing needs of the customer by maximizing existing inventories
instead of purchasing new ones. This has led to a significant growth in
consumer channels.
Basically, a consumer is given ample choices and avenues of
placing an order to begin with, and then they aim at leveraging the transport
facilities , basically the logistics network to give the consumers what they
exactly need. It is also seen that, Macy's, Inc.
customers are twice as likely as other online buyers to have researched
a product in its stores before purchasing it online.
And this is exactly what Macys cashes on… it makes sure that the customer is
able to place his/her order anywhere through any device.
Another noteworthy point is what Macys
do at the DC bypass.. they identify orders that they can transform at the
earliest by eliminating lean such as time and resources spent on transport ,
handling etc. They are investing millions with vendors,in a joint decision in
the choice of inventories that haven’t even, in a way, come into their possession.This sort of piggy backs on the theory of the Triple-A
supply chain article says that only companies that are Agile, Adaptive and
Aligned in a competitive market , get ahead of their rivals. The Macys chain has shown that it does possess the capabiity to be listed amongst this list of superior and successful supply chains. Macy's,
Inc , one of the world's largest fashion goods retailers, has been presented with
the
Customer Engagement Award for
Digital Technology at the National
Retail Federation’s Annual Conference in
New York City in 2013.
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