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jeff bready - Home Delivery World

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Transporting Gourmet Food
& Gift Items
April 9, 2015
Jeff Brady
Director, Transportation & Logistics
Company Overview
80 years ago, Harry and David Holmes turned their extraordinary pears into
the perfect gourmet gift. You can still send Harry & David’s Royal Riviera® Pears
as well as many other high quality fresh fruits, handpicked to exacting
standards in 19 Southern Oregon orchards and in many other orchards around
the world.
Harry & David is a well recognized direct marketing, retail, B2B, wholesale and
vertically integrated grower and distributor of gourmet gifts consisting of the
highest quality fruits, baked goods, hard goods and other assorted
entertaining items. These great gifts are then shipped to arrive on time, in
perfect condition; guaranteed.
In September 2014, Harry & David, a near half-billion dollar omni-channel
retailers, was acquired as a wholly owned subsidiary of 1-800 Flowers.com and
the future is bright as we look at enterprise integration and cross-brand
marketing opportunities.
Transportation Network
• Domestic Small Parcel
• Best in Breed, True Zone Skipping Capability
• Domestic TL, LTL, Intermodal
• Dry and Temp Controlled, across various Temp requirements
• Outbound: Retail, Wholesale, Transfers and DM Induction Hubs
• Pool Distribution in select areas for Retail
• Consolidation points for Inbound LTL
• Domestic Ocean (HI & AK at Peak)
• International FCL and LCL Ocean for Imports (components primarily)
• International Outbound Small Parcel
• De-centralized Execution for Small Parcel, with Centralized strategy
• Centralized Inbound w/ direct and cross-dock, across multi-modes
• Inventory placement strategy designed to optimize Delivery network
• Logistics Planning team w/ tools to manage to the Commitment
• Strategic, Core and Transactional Partner base
Complexity, Challenges & Continuity
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Hyper Seasonality
High degree of Perishability
Complexity of CYO / POD
Drop Shippers
Wine Compliance
Geographic Locations : Oregon / Ohio
Gifting vs. Self-Consumption
Vast demographic with varying expectations
The Amazon Effect
Infrastructure – Build the Church for Easter Sunday?
Marketplace dynamics for Freight
Economic headwinds
Integration
Seasonal Operations – complexity and timing
Off-season
Capacity across modes
Page 4
Strictly confidential. Do not copy or distribute.
Combatting Challenges
• Robust systems to manage:
• Customer commitments
• SKU proliferation
• Gift Customization
• FIFO
• Proper zoning to allow downgrades
• Gel pack specific SKUs w/ seasonal timing
• Expedited shipping when required
• Dry Ice
• Days @ Ambient rules
• Ship To State rules
• Monitor Hub performance by mode; daily in Peak, to drive optimized and
proper hub induction and service selection
• Strategic Linehaul partners for hyper seasonal support
• SSF facilities to support Volumes
• Forward deployment of inventories
• Marketing growth of off-peak
• Integration efforts & synergies
• Risk mitigation strategies…. Forecasting, Carriers, etc.
Late Order Curve Challenges our Partners (and Us)
Hyper Seasonal Velocity
Pre Peak 2 weeks ramps
up to 155K ave. per
week; a 48% increase
First week of Peak
season, volume
explodes by 300% to
over 515K shipments
Peak Week
is over 2.1
Million
Shipments
Next 2 weeks ave. 105K
per week; increase of
128%
6 Weeks prior to Peak,
ave. weekly shipments
of 46K
• 4.3 million OB shipments in 3 weeks of December
• 57% of annual volume in the course of less than 6% of the Year
• 3 million OB shipments in the remaining 49 weeks in 2014
Network & Outbound Hub Induction Enterprise
Challenges and Future Opportunities
• Capacity and Industry trends continue to impact H&D
• Cost, Service, Capacity and Communication
• Geographic and Temp Controlled constraints add to Industry pressures
• Perishability, short-production runs, CYO offerings limits optimal placement
• Hyper Seasonality adds massive complexity
• The need to Strategically design the Network for the Future
• Intermodal, Temp Controlled, to become a Capacity play (not price)
• Inbound and Outbound
• Hybrid of Best in Breed carriers, with committed capacity
• True collaboration and Partnerships
• Dedicated & asset-light hybrid for Inbound & Outbound TL capacity
• Inbound LTL centralization / consolidation, across all Temps
• Food Safety and Risk mitigation: always a consideration
• Quality of gifts (Cold / Hot weather)
• Collaboration with like-minded visionary partners AND shippers
• Intermodal needs to become a core component in our supply chain
Partnership Principles
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Challenges are healthy
Change is good
Collaboration is key
Speed of execution is critical
Strong silos = corporate weakness from the customer’s perspective
Clear expectations drive results
It’s Okay to say no = don’t overcommit
Open and honest dialogue strengthens partnerships
What used to be, may not always be
Listen to your customers’ wants and needs
Performance and relationships count
Accountability and ethics; make them your driving principles
Objective:
Create a holistic and mutually beneficial partnership approach,
committed to deliver and never stop striving to improve.
Questions & Thank You!
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