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The Retailer FabFitFun Excels at Logistics
Published
2 ans agoon
FabFitFun Warehouse in Chino, CA
FabFitFun is an interesting retailer with a complex supply chain. They have assembled a set of hardware and software solutions to enable huge surges in shipping. They have been successful enough with their fulfillment capabilities that they are no longer just a direct-to-consumer retailer; they are also a third-party logistics provider.
Forbes.com had a well-written story about them a couple of years ago. “Four times a year, Valerie McKellar waits near her front door, peeking through the blinds and double-checking the FedEx mobile app for status updates on the delivery of her FabFitFun subscription box. When it’s finally dropped off on her porch, she heads to her living room table, one big enough to host each of the products she carefully opens one at a time: A Vera Bradley Compact Organizer. An Alice + Olivia duffle bag. A Short Stories LED indoor planter. ‘It’s just so exciting,” McKellar says. “A lot of people relate it to Christmas and that’s very much true. It feels like it’s this great gift that I’ve given myself.’”
The FabFitFun box includes a selection of full-size products across beauty, fashion, fitness, wellness, home, and tech—delivered each season. FabFitFun members can customize the box based on their preferences, or accept the product selections curated by the company. Members can subscribe annually for $219.99 or seasonally for $69.99/box. The company touts savings of up to 70% per product.
This is an interesting retail niche, but it comes with a supply chain that has huge surges in shipping. Julian Van Erlach, the senior vice president of supply chain management at the company, said the firm’s revenues are “well north of $100 million.” But whereas a traditional retailer might have few large selling seasons that last from one to three months – at FabFitFun they are shipping million’s of boxes per year, with 11 pickable items per box to which members often add an additional 2 to 3 items. And the goods all ship within five to fifteen days depending on the sale event. “We have the same volume during seasonal peaks as Amazon’s largest West Coast facility.” Mr. Van Erlach explained.
To support these surges, the direct-to-consumer retailer built a 600,000-square-foot warehouse in Chino, California, in 2018. The warehouse operates using advanced software: a warehouse management system from Körber Supply Chain Software, a warehouse execution system from Bastian Solutions, and cartonization and shipping software from EasyPost.
Because the other solutions must integrate to the WMS, the WMS is, perhaps, the key piece of software. A warehouse management system supports warehouse processes such as receiving, put-away, picking, value added services (VAS), and shipping. To do this the system must manage fulfillment orders, warehouse tasks, inventory locations, the status of work, and resources that include both humans and machines.
Why did this subscription retailer select Körber? There were a few reasons. One is that the solution scales. Mark Gavin, the senior director of global IT at FabFitFun, said the solution can handle millions of orders dropped into the WMS all at once that then get processed over a few hours. Körber was able to ingest orders in hours while “the competitors were quoting days.”
Secondly, the Körber solution was very flexible. The system let them conduct business the way they wanted to, Mr. Gavin said. Körber allowed them to mold the “software around our business instead of the other way around.”
Körber was also able to develop a piece of custom code to support a complex kitting process. When products are packed into a box to support a customer’s order, those customers have choices. Customers are asked, “do you want this product or do you want to substitute one of these other products?” It is not the same items going into every box. If there were just a few options, a few different bills of materials could be created that direct packers which box to select and which items go in that box. But because of the plethora of choices, there were actually over 35 million possible kitting configurations this season, the bill of material methodology was just not feasible. FabFitFun and Körber developed special functionality that allowed the retailer to handle all the kitting complexity.
With their WMS, they have visibility of the flow of work between and across assets. Their waving strategy assigns orders to the available assets, allowing them to increase output by creating a very smooth flow of work across the entire building. Otherwise, a work area could become “overwhelmed,” work areas dependent on that asset would end up waiting for work, and the output from the building would end up getting “choked.”
Mr. Van Erlach is also high on their cartonization and shipping software from EasyPost. The cartonization software, based on the dimensions and shape of the products going into a carton, shows workers just how the products need to be packed and ensures the products ship in the smallest possible carton. The MagicLogic solution “plays Tetris with all the items in the order, “Mr. Van Erlach explains. The result is FabFitFun can fit more items on a truck, save trees and lower costs.
The shipping software rate shops for carrier costs, which depend on the destination, dimensions and weight of the box. “Before we even make the box, we rate shop it across a number of different last-mile carriers against our contracts, and it’s against every node of that carrier,” Mr. Van Erlach explained. “So, let’s say FedEx may have five locations, and each one of them is returning a quote for the box. We pick the one that we want to use systemically. All that happens in fractions of a second.” The solution also allows for zone skipping, which can also save significant amounts of money. Zone skipping is the practice of delivering a large quantity of packages via truckload or less-than-truckload to a parcel carrier hub close to the package’s final destination. Zone-skipping makes for quicker delivery to customers and allows us to keep prices to members lower than otherwise.
The Chino warehouse employs 200 full-time employees. However, to handle the box event surges, it will hire up to 800 temps. Mr. Van Erlach said, “we’re known for our ability to ramp on a dime.” The distribution center can go from ship shipping out thousands of orders to two shifts later being able to ship out a hundred thousand plus orders in a day.
That is a surprisingly large employment ramp, but Mr. Erlach says they don’t really have problems getting the temp workers. “We pay very competitive wages. We give prizes during the seasons. We’re a fun place to work. The warehouse is very, very clean. It’s a very, very safe environment.”
Finally, picking orders can be exhausting in a manual warehouse. But this is a goods-to-person warehouse. In other words, workers are not pushing a cart over 10 miles a day. They are at a station, and the goods come to a pick-to-light station, where a light comes on, and a worker picks the product behind the lit-up slot and then puts it in a carton. The pick-to-light solution and the software that runs those stations come from Bastian Solutions.
All the hardware and software solutions were implemented and integrated in just nine months. That is very fast for a warehouse with this degree of complexity.
FabFitFun has had great results from this combination of solutions. “Our labor cost went up by 50% during COVID. But our cost per order dropped by two-thirds,” Mr Van Erlach enthused. In other words, their costs were dropping by more than 66% while their labor costs increased 50%. And their cartonization and shipping led to significant savings in transportation. “This all adds up to tens of millions a year in savings.”
Finally, the warehouse is not just a cost center, it is also a profit center. The company is not just a retailer, they are also a third-party logistics provider. Their capabilities in warehousing and shipping have led several other retailers to pay them to fulfill orders for them.
The post The Retailer FabFitFun Excels at Logistics appeared first on Logistics Viewpoints.
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Walmart AI Pricing Patents Signal Shift Toward Real-Time Retail Execution
Published
3 jours agoon
20 mars 2026By
Walmart’s new patents and digital shelf rollout point to a more tightly integrated model linking demand forecasting, pricing, and store-level execution.
Walmart has secured two patents related to automated pricing and demand forecasting, drawing attention to how large retailers are evolving their pricing and execution capabilities.
One patent, System and Method for Dynamically Updating Prices on an E-Commerce Platform, covers a system that can dynamically update online prices based on changing market conditions. A second, Walmart Pricing and Demand Forecasting Patent Classification, relates to demand forecasting technology designed to estimate what customers will buy and recommend pricing accordingly. At the same time, Walmart is expanding digital shelf labels across its U.S. stores, replacing paper labels with centrally managed electronic displays.
Individually, none of these elements are new. Retailers have long used forecasting models, pricing tools, and store execution processes. What is notable is the combination.
Walmart now has three capabilities aligned:
Demand forecasting tied to predictive models
Price recommendation based on that demand
Store-level infrastructure capable of rapid execution
That combination reduces the operational friction historically associated with pricing in physical retail.
Pricing Moves Closer to Execution
Traditional store pricing changes required coordination across multiple steps: analysis, approval, printing, distribution, and manual shelf updates. That process introduced delay and inconsistency.
Digital shelf labels materially change that constraint. Prices can be updated centrally and executed across stores with significantly less manual intervention.
This does not change the underlying logic of pricing decisions. Retailers have always adjusted prices based on demand, competition, and margin targets. What changes is the speed and consistency of execution.
As a result, pricing moves closer to real-time operational control.
Implications for Supply Chain Operations
Pricing is not an isolated commercial function. It directly influences demand patterns, inventory flow, replenishment timing, and markdown activity.
When pricing becomes faster and more responsive, those linkages tighten.
Three implications are clear:
1. Increased Execution Speed
Retailers can align pricing decisions more quickly with current demand conditions, reducing lag between signal and action.
2. Stronger Dependence on Forecast Accuracy
When pricing recommendations are driven by predictive models, the quality of demand sensing becomes more consequential. Forecast errors can propagate more quickly into sales and inventory outcomes.
3. Closer Coupling of Merchandising and Supply Chain
Pricing decisions influence demand. Demand impacts inventory, replenishment, and store execution. Faster pricing cycles compress the distance between these functions.
Centralization and Control
Walmart has positioned its digital shelf label rollout as an efficiency and accuracy initiative. Centralized price management improves consistency between systems and store execution while reducing labor tied to manual updates.
That positioning aligns with the operational realities of large-scale retail. At Walmart’s footprint, even small improvements in execution efficiency translate into material cost and accuracy gains.
At the same time, the shift toward algorithm-supported pricing introduces standard enterprise control requirements. Organizations need clear governance around how pricing recommendations are generated, reviewed, and executed, particularly as systems become more automated.
A Broader Technology Pattern
Walmart’s patents are best understood as part of a broader shift in supply chain and retail technology.
AI and advanced analytics are moving closer to operational decision points. Forecasting models are no longer confined to planning environments; they are increasingly connected to systems that can act.
In this case, that connection spans:
Demand sensing
Price recommendation
Store-level execution
The result is a more tightly integrated operating model in which commercial decisions and supply chain execution are linked through software.
What This Signals
The significance of Walmart’s move is not tied to public debate over surge pricing scenarios. The underlying development is structural.
Retailers now have the ability to connect demand forecasting, pricing logic, and execution infrastructure into a faster decision loop.
For supply chain leaders, that represents a clear direction:
Execution is becoming more digital, more centralized, and more tightly coupled to predictive models.
The companies that benefit will be those that can align forecasting, pricing, and operational execution within a controlled, coordinated system.
The post Walmart AI Pricing Patents Signal Shift Toward Real-Time Retail Execution appeared first on Logistics Viewpoints.
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Supply Chain and Logistics News March 16th-19th 2026
Published
3 jours agoon
20 mars 2026By
This week’s installment of Supply Chain and Logistics news includes stories about record increases in oil prices, Rivian’s autonomous taxis, and much more. Firstly, the Trump administration has issued a 60-day waiver of the Jones Act, a century-old regulation that requires goods moved between US ports to be transported by US-built vessels, etc. Additionally, this week Uber & Rivian announced a partnership for Rivian to build 50,000 autonomous robotaxis by 2031 with over a billion dollars in investment from Uber. Schneider Electric and EcoVadis announced a partnership to target emissions in the health care sector. Lastly, DHL announces 10 warehousing sites to be used for data center manufacturing capacity, and Mind Robotics raises 100 million in series A funding.
Your Biggest Stories in Supply Chain and Logistics here:
Trump Administration Issues Pause on Century-old Maritime Law to Ease Oil Prices
The Trump administration has issued a 60-day waiver of the Jones Act. This century-old regulation typically requires goods moved between US ports to be carried on vessels that are US-built, US-owned, and US-crewed. However, with oil prices surging toward $100 a barrel due to escalating conflict in the Middle East, the suspension aims to ease logistics for vital commodities like oil, natural gas, and fertilizer. While the move is intended to lower costs at the pump and support farmers during the spring planting season, it has sparked a debate between those seeking immediate economic relief and domestic maritime unions concerned about the long-term impact on American shipping and labor.
Uber and Rivian Partner to Deploy up to 50,000 Fully Autonomous Robotaxis
Uber and Rivian have announced a massive strategic partnership that signals a major shift in the future of autonomous logistics and urban mobility. Under the terms of the deal, Uber is set to invest up to $1.25 billion in Rivian through 2031, a move specifically tied to the achievement of key autonomous performance milestones. The primary focus of this collaboration is the deployment of a specialized fleet of fully autonomous R2 robotaxis, with an initial order of 10,000 vehicles and an option to scale up to 50,000 units. From a supply chain perspective, this represents a significant commitment to vertical integration; Rivian is managing the end-to-end production of the vehicle, the compute stack, and the sensor suite, including its in-house RAP1 AI chips, while Uber provides the scaled platform for deployment. Commercial operations are slated to begin in San Francisco and Miami in 2028, eventually expanding to 25 cities globally by 2031.
Schneider Electric and EcoVadis Announce Partnership to Decarbonize Global Healthcare Supply Chains
Schneider Electric, a major player in the digital transformation of energy management and automation, and EcoVadis, a provider of business sustainability ratings, have announced a strategic partnership aimed at accelerating decarbonization within the healthcare industry. “Energize” is a collective initiative to engage pharmaceutical industry suppliers in climate action. The collaboration focuses on addressing Scope 3 emissions, those generated within a company’s value chain, which often represent the largest portion of a healthcare organization’s carbon footprint. By combining Schneider Electric’s expertise in energy procurement and sustainability consulting with EcoVadis’s supplier monitoring and rating platform, the partnership provides a structured pathway for pharmaceutical and medical device companies to transition their global suppliers toward renewable energy.
Mind Robotics, a Rivian spin-off, raises $500 million in Series A Funding
RJ Scaringe, CEO of Rivian, is positioning his new $2 billion spin-off, Mind Robotics, as a technological solution to the chronic shortage of manufacturing labor in the Western world. By developing a “foundation model” that acts as an industrial brain alongside specialized mechatronic bodies, the company aims to move beyond the rigid, fixed-motion plans of traditional robotics toward systems capable of human-like reasoning and adaptation. Scaringe emphasizes that while these machines must perform with human-level dexterity, they don’t necessarily need to be humanoid in form; instead, the focus is on creating a data-driven “flywheel” within Rivian’s own facilities to lower production costs and help domestic manufacturing remain globally competitive.
DHL is significantly scaling its data center logistics (DCL) footprint in North America, announcing the addition of 10 dedicated sites totaling over seven million square feet of warehousing capacity. This expansion is a direct response to the explosive demand for AI-driven infrastructure and the specific needs of hyperscale and colocation data center operators. By offering specialized services like rack pre-configuration, white-glove handling of sensitive IT hardware, and warehouse-to-site transportation, DHL is positioning itself as an end-to-end partner in a sector where 85% of operators express a preference for a single logistics provider. This move not only addresses the logistical complexities of moving high-value components like GPUs and cooling systems across global borders but also underscores the critical role of integrated supply chains in maintaining the build speed of the digital backbone.
Song of the Week:
The post Supply Chain and Logistics News March 16th-19th 2026 appeared first on Logistics Viewpoints.
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How to Capitalize Quickly to Address Hyperconnected Industrial Demand
Published
4 jours agoon
19 mars 2026By
This first in a blog series offers a review of discussion that occurred during ARC Advisory Group’s 2026 Industry Leadership Forum. Specifically, it details a keynote conversation held with senior executives from Rolls-Royce, BTX Precision, and MxD.
The New Fabric of Demand: Modernizing Collaboration and Transparency for Real-Time Production
Industrial leaders have been talking about tearing down workflow and data silos for decades. Yet here we are again. For most, the reality is that most operations and supply chains today typically don’t indicate much progress. A few leaders have figured out how to use digital tools to scale and build pathways forward, a whopping 12.9% according to our latest data (yes, that’s sarcasm). However, even as they struggle to coordinate, orchestrate, and innovate across their operations and enterprise, much less tightly collaborate outside their four walls. In a digital world, this continued capability gap, the inability to closely link market signals to responsive production and external supply chains, is very quickly becoming a liability.
Recently, at the 30th Annual ARC Industry Leadership Forum in Orlando, I had the privilege of leading a keynote discussion entitled The New Fabric of Demand: Modernizing Collaboration and Transparency for Real-Time Production. As part of that, I moderated an excellent conversation that included Global Commodity Executive Greg Davidson of Rolls-Royce, CEO Berardino Baratta of MxD, and CRO Jamie Goettler of BTX Precision.
In this four-part series, we will explore that conversation fully, digging into how the “fabric of market demand” has fundamentally changed, and why structural modernization, both human and technological, is no longer just an option. It is an industrial imperative that will increasingly determine who wins in disrupted markets.
Why Legacy Workflow Will Actually Get Modernized
If we examine the present through the lens of the past, the fundamental laws of supply and demand haven’t really changed. What has changed is the hyperconnectivity of the world and our compressed time to both reward and volatility.
The hard truth is that legacy linear workflows simply do not work in hyperconnected, digitally-driven environments, which are non-linear by nature. As our industrial environments become more digital, they naturally open up countless new ways for how things can get done and how risk can enter the organization. As a result, disruption has shifted from a rare event to a fairly continuous and pervasive reality. In this new reality, responsiveness differentiates you from the competition, and lag time kills.
To survive and thrive in non-linear environments, tighter, integrated ecosystems are required, where silos are actively torn down or redesigned so that barriers to value can be continuously identified and quickly eliminated. At the core, this concept is unfolding around data access, contextualization, and sharing. It provides the urgency behind the need for building industrial data fabrics.
This rewiring certainly extends beyond operations and enterprise processes, enabling the entirety of the supply chain to be judged on its collective responsiveness to the market, all the way down to the individual company level. In this scenario, data can quickly point out laggards who limit value. As the orchestrators of these supply chains identify these limitations on value, they quickly break off and discard the connection and move on without these weak links.
Pillars of the New Fabric of Demand
To achieve necessary level of operational and supply chain responsiveness, the roles of every entity within an ecosystem must be rethought. In the subsequent three blogs of this series, we will take a deep dive into the three distinct pillars that make up this modern architecture, but I’ll begin by laying them out here:
The Market Signal is the catalyst of the entire ecosystem. It dictates the “what” and the “when,” defining what value, success and risk look like in real-time. In blog 2, I’ll explore how to move from reactive assumptions to proactively capturing the market signals that actually matter.
The Demand Architect is moving beyond traditional order-taking. The Demand Architect designs and orchestrates the ecosystem, aligning external partners as true extensions of the enterprise. In blog 3, I’ll discuss the structural agility required to lead this response, rather than just manage a process.
The Agile Partner is the engine of execution. The Agile Partner links supply chain dynamics directly to the shop floor, differentiating themselves through their responsiveness to the market signal. In the final blog in the series, I’ll tackle how data transparency and trust become technical requirements, not just buzzwords, without exposing mission-critical IP.
Building the Modern Industrial Enterprise
Legacy workflows cannot survive in a non-linear world. Industrial organizations must re-architect operations and ecosystems for real-time responsiveness and secure, transparent collaboration. To do so, they will need to:
Improve the measurement of responsiveness: Efficiency and margin-squeezing are important, but they aren’t game-changers. Your competitive edge now relies on how quickly you can adapt to market signals.
Embrace transparency over secrecy: Modern collaboration requires providing a contextualized “lens” into production status without compromising proprietary IP or cybersecurity. Industrial data fabrics are key.
As always, view technology as a tool, not an outcome: Industrial data fabrics are needed to break silos and AI to manage complexity and improve accuracy and speed of decisions. However, the age-old adage remains true. Just because you can apply AI to something doesn’t mean you should. It must be grounded in measurable Value on Investment (VOI), not just return.
The New Fabric of Demand Blog Series
This is the first in a series of four on The New Fabric of Demand: Modernizing Collaboration and Transparency for Real-Time Production. Over the coming days, I’ll publish a perspective from each of the three pillars of the new fabric of demand:
Pillar 1: The Market Signal
Pillar 2: The Demand Architect
Pillar 3: The Agile Partner
By Mike Guilfoyle, Vice President.
For more than two decades, Michael has assisted organizations, including numerous Fortune 500 companies, in identifying and capitalizing on growth opportunities and market disruption presented by the effects of digital economies, energy transition, and industrial sustainability on the energy, manufacturing, and technology industries.
The post How to Capitalize Quickly to Address Hyperconnected Industrial Demand appeared first on Logistics Viewpoints.
Walmart AI Pricing Patents Signal Shift Toward Real-Time Retail Execution
Supply Chain and Logistics News March 16th-19th 2026
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