STORES Magazine - April 2011 - (Page 21)

SUPPLY CHAIN & LOGISTICS / COVER STORY L ife is more than a little unsettled for retail supply chain executives these days. Since the start of the year they’ve had to deal with rising commodity prices, oil prices that have sprinted past $100 a barrel, turmoil in the Middle East that impacts oil prices and poses a potential threat to transportation routes, and the earthquake and tsunami in Japan that is likely to impact the availability of electronic components and devices. BY SUSAN REDA, EDITOR Several retailers interviewed for this prices have already added “significant Sponsored by supply chain and logistics special costs to both import ocean costs and to report expressed mounting frustration domestic drayage moves.” Looking over a lack of control when it comes ahead, the company hopes to negotiate to issues negatively impacting the supply chain. Still, they more predictable and favorable fuel agreements with ocean remain focused on managing through the mayhem, factoring and drayage carriers, perhaps even caps. “We realize that this unrest into their planning and, in particular, doing whatever may move costs out of fuel and into base rates, but we anticithey can to offset rising fuel costs — their No. 1 concern. pate that it will at least make for more predictable rates over With margins, sourcing and transportation costs under inthe length of the contract.” creasing pressure as a result of spiking oil prices, retailers across the country are considering changes and weighing var‘No shortage of oil’ ious options. Some are considering conversion to slower Making matters worse is what Al Ferrara, national director modes of transit. Other talk of increased use of consolidation of the retail & consumer product practice at BDO USA, deor multi-stop pickups. They are quick to concede that all of scribes as an insidious multiplier effect. “Oil prices affect so these solutions either add time or cost to the many pieces across the supply chain — supply chain, yet the consensus is that they everything from producing goods to heatdon’t expect to see fuel-price relief in the ing manufacturing facilities to trucking,” near future. he says. “The increases we’ve seen of late The director of import/ export operations could have a tenfold impact on the rest of and international trade compliance for a the economy.” large home goods retailer says soaring fuel Ira Kalish, director of global economics WWW.STORES.ORG STORES / APRIL 2011 21 http://WWW.STORES.ORG

Table of Contents for the Digital Edition of STORES Magazine - April 2011

Stores Magazine - April 2011
Editor’s Page
President’s Page
Retail People
Chain of Uncertainty
Digital Couponing
Energy Management
Social Media
Cross-Channel Metrics
Broadband Bonding
Workforce Management
Alternative Payments
Divisional Update
NRF News
Point of View
Retail Industry Calendar
End Cap

STORES Magazine - April 2011