Macy’s automated fulfillment center in Portland, TN – Source: Macy’s video
Macy’s recently announced that it has carved out roughly one million square feet across 35 stores to efficiently fulfill online orders in local markets at a reduced cost.
Adrian Mitchell, Macy’s CFO, speaking last month on the company’s third quarter earnings call, said delivery expenses during the period represented about 4.3 percent of net sales, a figure consistent with 2021’s results. Higher fuel costs were “more than offset” as Macy’s reduced the cost of delivery on a per package basis.
“We continue to get smarter about where demand is and how best to service that demand,” he said before adding that the semi-automated store-level DCs would enable Macy’s “to reduce shipping costs and split shipments, better utilize inventory in specific markets and regions and improved delivery speed, which will be an advantage this holiday season.”
Adding this functionality, he said, provides Macy’s with a “relatively low-cost” complement to its existing system.
Mr. Mitchell said that Macy’s has made process and technology investments across its stores to further “streamline fulfillment activities” chainwide.
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Macy’s automated fulfillment center in Portland, TN – Source: Macy’s video[/caption]
“The investments we're making in our supply chain, both upstream and downstream, our focus on simplifying our processes and modernizing our technology further enhancing our keepers to move product to our customers faster while driving greater supply chain cost efficiencies,” he said.
A recent Macy’s Inc. Insider video at the retailer’s fulfillment center in Portland, TN, looked at the use of automation to cut costs and increase the speed at which products get to customers’ homes.
Jodi Buhrman, VP, process & engineering, said that the “queue-based system” used at the facility enables Macy’s to make use of airspace that would not be possible if humans were doing all the work.
“By having this automation it prevents us from having to expand onto the building or open up another building,” she said.
The department store plans to use additional automation to further improve performance.
Ms. Buhrman said Macy’s would add a pocket sorter that can take multiple items from a customer’s order, marry them up and then deliver them to a packer. “Automation is going to do that work, eliminate touches that our colleagues need to perform and we can get the goods to the customer faster.”
Macy’s automated fulfillment center in Portland, TN – Source: Macy’s video[/caption]
“The investments we're making in our supply chain, both upstream and downstream, our focus on simplifying our processes and modernizing our technology further enhancing our keepers to move product to our customers faster while driving greater supply chain cost efficiencies,” he said.
A recent Macy’s Inc. Insider video at the retailer’s fulfillment center in Portland, TN, looked at the use of automation to cut costs and increase the speed at which products get to customers’ homes.
Jodi Buhrman, VP, process & engineering, said that the “queue-based system” used at the facility enables Macy’s to make use of airspace that would not be possible if humans were doing all the work.
“By having this automation it prevents us from having to expand onto the building or open up another building,” she said.
The department store plans to use additional automation to further improve performance.
Ms. Buhrman said Macy’s would add a pocket sorter that can take multiple items from a customer’s order, marry them up and then deliver them to a packer. “Automation is going to do that work, eliminate touches that our colleagues need to perform and we can get the goods to the customer faster.”