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Pros of Pooled Distribution

Posted by Kristen Melendez on Tue, Nov 26, 2013 @ 08:00 AM

This year, there are six fewer days between Thanksgiving and Christmas—the peak time for shopping—and the sales you normally expect to make are condensed into a smaller period of time. Retail stores will be competing to capture every sale possible in a shorter selling season. Retailers will still want to keep their stock lean, but it’ll be trickier trying to maintain the correct inventory without being able to predict, exactly, when they’ll need certain product.

Say you stock inventory in order to meet the increased demand, but even these sell out. So begins the back-and-forth of ordering more, ordering too much, again and again. Instead, pooled distribution can reduce your shipping costs and will help you manage inventory so that you can be flexible during this year’s unusual shopping season.

Pooled Distribution Reduces Shipping Costs

By using pooled distribution to stock retail stores, you reduce the amount of costs that would come from having to ship directly from the manufacturers to each store or to ship from your distribution center by an LTL or parcel carrier. By having your inventory flow through a distribution hub close to your retail stores, you can quickly and cheaply deliver products on a dependable and consistent schedule. And if your product is being delivered on the same routes as other retailers nearby your combined volumes create economies of scale, saving on fuel costs and handling costs as well.

Better Planning and Customer Service

With pooled distribution, delivery dates and times are controlled completely by the retailer. This allows retailers to staff accordingly; this means inventory gets replenished on store shelves quickly. If an item that a customer wants isn’t on the shelves, customer service associates knows exactly when the store will be expecting more, meaning no guess work for the customer.

Closer Deliveries Mean Quicker Deliveries

Not only do you save on shipping and fuel costs with pooled distribution, but you also reduce shipping time. Neither you nor your consumers have the flexibility to wait for product to arrive. The holiday season is busy enough already, and now, with six fewer days, consumers will want to get to the store and purchase what they need right away. So it’s essential that you replenish your stores quickly and effectively. With pooled distribution you can do exactly, by saving time in transit with the elimination of multiple sort and transfer stops to get product to your stores faster.

Shopping Trends Vary Depending on Geography

Economic, social, and geographic differences between one location and the next can influence what products are purchased and how much product each stores sells.  For many retailers, not every store in their network will fit into a pooled distribution model, but by using a blend of parcel, LTL, and pool carriers there may be an opportunity to uncover efficiency gains in your distribution network.

 

The Costs of E-Commerce White Paper          Benefits of Outsourcing E-commerce Fulfillment and Returns Case Study

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Topics: Store Fulfillment, Inventory Management, Pooled Distribution

The value of pooled distribution

Posted by Kristen Melendez on Tue, Sep 24, 2013 @ 09:00 AM

The transportation and logistics industry is riddled with jargon. LTL, TL, pooled distribution, milk runs – these are all terms you hear or see in a carrier’s marketing materials. As a dedicated 3PL (there’s another term) provider for retail, we specialize in pooled distribution. It’s the act of delivering inventory to a brick and mortar retail outlet. The difference between pooled distribution and LTL (Less Than Load) is significant in terms of impact on the retailer. Here’s how:

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Topics: Retail, Pooled Distribution

The Pros and Cons of Omni-Channel Retail Logistics

Posted by Kristen Melendez on Tue, Aug 06, 2013 @ 09:00 AM

There’s a lot of good to be had from omni-channel distribution, but it also comes with a lot of challenges. As businesses move to make the customer experience seamless across the storefront, web, and mobile apps, many are learning that there’s a lot more that goes into a satisfying customer experience than they may have thought. Fulfilling orders based on location is a great idea, and gets the item to a customer more quickly, but fulfillment like that requires a lot of logistics. There are pros and cons to omni-channel distribution, but there are ways to make the most of it.

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Topics: 3PL, Supply Chain, Store Fulfillment, Retail, Shipping, Pooled Distribution

3 Trends Driving Back-to-School Shopping in 2012

Posted by Kristen Melendez on Thu, Jul 19, 2012 @ 03:58 AM
I wanted to share this timely blog from Shop.org, as we know many of our retail customers are seeing the same trends in their business.  It seems that it is increasingly important for e-commerce operations and store operations to work together to shift their organizational strategies toward an omni-channel model that allows customers to seamlessly find what they are looking for regardless of where the inventory is available (i.e. online versus in store). 

3 trends driving online back-to-school shopping in 2012

...Back-to-school shopping, on the other hand, certainly has changed a fair bit in recent years. For starters, the number of U.S. consumers shopping online for some part of back-to-school has almost doubled in just five years: this year two in of five will shop online, compared to just one in five as recently as 2007. That’s per the latest back-to-school consumer survey conducted by BIGinsight for NRF. Oh, and by the way, close to a third of online back-to-school shoppers started this annual shopping ritual several weeks ago, and another half will start over the next two weeks. Target is already getting the message out, and I trust your back-to-school marketing and merchandising is already in full swing to capture this demand. For now, let’s look at the biggest trends from this year’s online shopping edition of the back-to-school survey. (See More)
Looking for additional resoruces or have questions about MKM Distribution? Please email [email protected] or call (317) 334-7900.
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Topics: Logistics, Retail, Pooled Distribution

K&L Logistics, 2010 Aeropostale Carrier of the Year

Posted by Kristen Melendez on Tue, Jun 14, 2011 @ 06:14 PM

We are extremely proud to announce that K&L Logistics, Inc. has been recognized by our client, Aeropostale, as Carrier of the Year in 2010. We would like to thank Aeropostale for their business. We value our relationship, and look forward to continuing to serve them as a valuable logistics partner.

We would also like to thank all MKM Distribution and K&L Logistics employees for their hard work, dedication, and commitment to excellence. It is an honor to have both clients and employees that share a true understanding of the importance of extraordinary service.

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Topics: Logistics, Retail, Pooled Distribution