The Friday Report Blog: April 7th, 2023

Quick wrap up of a few hot topic newsworthy stories in the supply chain logistics industry

Rivian Electric Vehicles Deliver 75 Million Packages for Amazon

Since their nationwide roll-out last summer, Rivian’s electric vans have been used to deliver over 75 million packages for Amazon. Currently, there are over 3,000 Rivian electric vans making deliveries in over 500 cities and regions throughout the United States.

Amazon is looking to expand its electric vehicle fleet as its in-house logistics wing grows. By 2030, the company expects all 100,000 of the electric vans it ordered from Rivian will be on the road. In 2022, Amazon’s in-house logistics wing delivered 4.8 billion deliveries alone.

Since the deal was announced in 2019, Rivian has battled supply chain constraints stemming from semiconductor production issues. As a result, the two companies have been in talks to renegotiate their deal, so Amazon does not have to buy so many Rivian electric vans.

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Footlocker to Expand Inventory Visibility Capability

Footlocker has announced an investment into an inventory visibility system that will enable enhanced product tracking across its entire distribution network. The new system is vital to Footlocker’s attempt at building a seamless omnichannel experience for customers. Additionally, the apparel company feels that the investment will give it a competitive advantage against digitally savvy rival companies.

Footlocker’s new inventory management and visibility system will also be used in retail stores to power handheld devices. With the devices, workers will have real-time access to product information, enabling them to provide in-store customers with a seamless check-out experience. Additionally, retail workers will be able to order out of stock products directly from an e-commerce property that can be delivered directly to customers.

In addition to inventory visibility investments, Footlocker plans to increase capital spending by 50% over the next four years.

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Chewy Ramps Up Fulfillment at Automated Facilities

Chewy has announced that it will close its two oldest fulfillment centers and move operations to nearby automated facilities. The over 800 employees of the affected facilities, located in Mechanicsburg, Pennsylvania, and McCarran, Nevada, have all been offered employment at other Chewy fulfillment centers.

The pet products retailer stated that closing the two fulfillment centers will enable more order volume to flow through its automated facilities, resulting in reduced fulfillment costs. As of December 2022, fulfilling volumes at its automated facilities in Archbald, Pennsylvania, and Reno, Nevada, were nearly 20% cheaper than at the legacy locations.

Chewy also plans to lower expenses by improving its cartonization processes. This will enable the company to fit more of a customer’s order into a single package, subsequently reducing its freight and packaging costs.

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