The Friday Report: April 9th, 2021

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

Target Ups the Ante, Enhancing Inclusion of More Black-Owned Businesses

As retailers and brands consider potential action to help advance the issue of racial equality and opportunity for Black-owned businesses, Target has announced new commitments to the cause. Earlier this month, Target committed to spending $2 billion with Black-owned businesses by 2025.  The plan for Target to partner with more than 500 Black-owned businesses is designed to add products across a variety of categories and will also serve to ramp up company spend with Black-owned firms such as marketing agencies, facilities-maintenance providers, and construction companies.

In addition, Target announced plans to create new resources to improve engagement with Black-owned business startups and vendors.

For more information, please continue reading here.

Flat Inventories Threaten Spring and Summer Retail Buying Seasons

As both wholesale and manufacturing inventories continued to be more or less flat, demand has increased.  Sales are continuing to increase year-over-year for manufacturers, wholesalers, and retailers.  Supply chain bottlenecks have reduced the amount of inventory typically anticipated at this time of year, raising concerns about the adequacy of supply of spring collection goods.

One of the most significant issues experienced thus far in 2021 is one of port congestion.  As the demand for goods has escalated, so has the need for ocean shipping.  This has led to more congestion at numerous U.S. ports.  As Americans start to receive their stimulus checks, retailers are bracing for higher levels of product demand.  Congestion at the ports and other supply chain problems may ultimately mean lost sales and irritated consumers.

For more information, please continue reading here.

New Gap Inc. Delivery Fulfillment System Prioritizes “Most Valuable Lifetime” Customers

Prizing customer loyalty is nothing new in the retail industry.  Gap Inc. is taking it to a new level, however.

In the latest company earnings call, CEO Sonia Syngal informed listeners that Gap Inc. met e-commerce shipping expectations with the delivery of about 130 million products.  Notably, above the industry average, Gap Inc. has reason to be proud of its performance during challenging times. 

The CEO went on to introduce a new tiered delivery speed system which Gap Inc. anticipates will aid in optimizing delivery fulfillment speed for its best customers while also managing fulfillment costs overall.

Online sales for Gap Inc. were reported to exceed $6 billion in 2020, a growth of 54% YoY.

For more information, please continue reading here.

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