The Friday Report: May 14th, 2021

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

Walgreens Delivers in Two Hours or Less

Aiming to capitalize on the e-commerce craze, Walgreens recently announced that it launched two-hour delivery service nationwide.  Walgreens consumers can now order from an inventory of 24,000 items for quick delivery without an order minimum.  Store employees pick and pack the orders then hand them off to Uber, DoorDash, Instacart and Postmates drivers for delivery.  Because Walgreens uses a variety of delivery service providers, the delivery fee will vary but is anticipated to be $7.99 in most areas.

The retailer hopes that offering faster, convenient options will enable them to capture more sales as well as valuable customer data.  Leveraging this information can help identify other products and services, income streams and business models desired by its customers.

For more information, please continue reading here.

HelloFresh Plans Q4 Opening of Huge Phoenix Distribution Center

Situated in a location with ready access to a strong labor pool and major routes including Interstates 8, 10 and 17, the new DC will be able to reach consumers living in populated areas such as southwest and west Phoenix.

The new DC complements HelloFresh’s suite of new U.S. warehouses, expanding its production facilities and supply chain.  This will enable the company to offer more meal options to attract and retain customers.  HelloFresh indicated that the company has plans to also provide breakfast and lunch meal options.  Growth in the meal kit space has been steady with HelloFresh expanding its customer base by 1 million, with a 37% increase in U.S. sales during the latest quarter as compared to the previous period. 

For more information, please continue reading here.

Walmart Paves the Way for Faster Supplier Payments to Provide Access to Capital

Recognizing that using historically underutilized “diverse” suppliers benefits its business by increasing its product assortment, Walmart took note of challenges these businesses frequently face and has searched for solutions.

During the early stage of the pandemic, Walmart noted that consumer demand for nonessential items fell precipitously.  Retailers were canceling orders, extending the time it would take to pay suppliers, creating financial stress.  This frequently made it challenging for suppliers to pay its employees and other expenses.  Cancelled orders and extended payment windows, when unbalanced tended to negatively impact the amount of financing and credit made available to suppliers and had the greatest effect on those companies low on cash.

To help solve this dilemma, Walmart found the means to enable options for accessing capital, expediting payments.  Collaborating with its financial partner C2FO, Walmart Inc. expanded its early payment program.  Suppliers can use an interface to pick which of their invoices are to receive early payments, giving it access to working capital.  Initially Walmart will fund the program.  In a later phase, Walmart will fund the program by collaborating with banks.

For more information, please continue reading here.

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