DC Velocity - November 2014

inbound

Wal-Mart Stores Inc. has fueled its superheated growth through rock-bottom prices made possible by low-cost offshore manufacturing, primarily in China. But now the retail giant is beginning to rethink that model. The megaretailer has started working with suppliers to restore production in the U.S. market in cases where it makes economic sense, said Michelle Gloeckler, the company’s executive vice president of consumables and U.S. manufacturing lead. Gloeckler spoke about Wal-Mart’s strategy at the Council of Supply Chain Management Professionals’ (CSCMP) Annual Global Conference in September.

According to Gloeckler, Wal-Mart has evaluated more than 1,000 product categories to determine which ones are suited for “reshored” manufacturing. They include those with a lot of “air,” or empty space, in their shipping containers; those with highly automated production processes; and seasonal products that require short leadtimes. Domestic production also makes economic sense where raw materials can be readily sourced in the U.S. or where energy is a major factor, since U.S. energy costs are declining in comparison with costs in other parts of the world, she added.

One of the biggest obstacles facing suppliers when it comes to reshor-ing production is the variability of state regulations. To help address the problem, Wal-Mart has been hosting “trade fairs” where state economic development officials are invited to meet with the suppliers to discuss business conditions in their areas.

Coming soon to a
Wal-Mart near you:
More “Made in the
USA” labels

Here are some recent examples of charitable works by companies in the logistics, transportation, and material handling markets:

; Bestpass Inc. and the New York State Motor Truck Association

held their Operation: Big Wheels for Heroes “touch-a-truck” fundraiser and public awareness event to benefit the Truckload Carriers Association’s Truckload of Respect program.

Truckload of Respect supports the annual Wreaths Across America wreath-laying event at Arlington National Cemetery.

; FedEx Corp. celebrated the 10th anniversary of FedEx Cares Week, which has expanded to nearly 400 cities around the world. In addition to thousands of volunteer hours donated each year, FedEx and its team members gave more than $11.4 million to the United Way and other nonprofits in 2013.

; A record number of dealers participated in Clark Material Handling Co.’s “Raising Hope Champion” program, under which dealers have the opportunity to order special pink burden carriers to benefit the Susan G. Komen Race for the Cure. Clark and its dealer network have successfully raised over $270,000 for the Susan G. Komen Foundation.

; Mitsubishi Caterpillar Forklift America Inc. (MCFA) has donated a Jungheinrich EJE 120 electric-powered walkie pallet truck to the Houston Food Bank. The Food Bank will use the 4,500-pound capacity truck to help transport the thousands of boxes of food it delivers daily.

Logistics gives back

If you’re involved in defense logistics or procurement, the Defense Logistics 2014 conference may be a don’t-miss event. The conference will be held Dec. 2–4 in Alexandria, Va.

This year’s theme is “The New Normal: Balancing Readiness, Affordability, and Efficiency.” Sessions will address such topics as the impact of budget cuts and constraints on defense logistics, procurement practices and strategies, and performance-based logistics.

The event is known for attracting speakers from the highest ranks of logistics and procurement decision- and policymakers across all branches of the military. The 2014 roster includes Defense Logistics Agency Director Vice Admiral Mark Harnitchek; Under Secretary of Defense for Acquisition, Technology, and Logistics Frank Kendall; and Assistant Secretary of Defense (Acquisition) Katrina McFarland, among others.