Wal-Mart Expects 'Flatter' Peak Season
Joseph Bonney
| Sep 8, 2011 1:28AM GMT
The Journal of Commerce Online - News Story
Executive says inventory management, shipping patterns have changed
Executive says inventory management, shipping patterns have changed
Wal-Mart is “guardedly optimistic” about the rest of 2011 but sees a trend toward a “flatter” peak season for holiday shipments, said Kelly Abney, the retailer’s vice president for corporate transportation.
The world’s largest retailer expects store sales to move closer to events like Christmas or the start of school, Abney told Dalhman Rose & Co.’s fourth annual Global Transportation Conference in New York.
Inventory buildup for the holiday doesn’t peak as early as it once did, and improved inventory management has enabled Wal-Mart to smooth out the traditional peak season, he said.
“The way we have been able to flow inventory closer to events is through improved technology … and by working much more closely with our suppliers,” Abney said.
“That has allowed us, through joint visibility of our supply chain, to (be) confident with staging that inventory much closer to events, without fear that we will have any kind of out-of-stock issues.”
Several railroad executives told the Dahlman Rose conference they expect a modest peak season this year.
“It will probably be more of a mound,” said Donald W. Seale, executive vice president and chief marketing officer at Norfolk southern.
Robert Noorigan, vice president, investor relations at Canadian National, said there will be a peak season but quoted one customer as saying “you’re not going to need an oxygen mask to get to the top of it.”
Contact Joseph Bonney at jbonney@joc.com
The world’s largest retailer expects store sales to move closer to events like Christmas or the start of school, Abney told Dalhman Rose & Co.’s fourth annual Global Transportation Conference in New York.
Inventory buildup for the holiday doesn’t peak as early as it once did, and improved inventory management has enabled Wal-Mart to smooth out the traditional peak season, he said.
“The way we have been able to flow inventory closer to events is through improved technology … and by working much more closely with our suppliers,” Abney said.
“That has allowed us, through joint visibility of our supply chain, to (be) confident with staging that inventory much closer to events, without fear that we will have any kind of out-of-stock issues.”
Several railroad executives told the Dahlman Rose conference they expect a modest peak season this year.
“It will probably be more of a mound,” said Donald W. Seale, executive vice president and chief marketing officer at Norfolk southern.
Robert Noorigan, vice president, investor relations at Canadian National, said there will be a peak season but quoted one customer as saying “you’re not going to need an oxygen mask to get to the top of it.”
Contact Joseph Bonney at jbonney@joc.com
