Tuesday Morning’s DC bypass cuts two weeks, 19 percent cost out of supply chain

By John D. Schulz, Contributing Editor
April 23, 2012 - LM Editorial

While the idea of a DC Bypass is an exhilarating theory for many companies, few companies have released data to color the dream with facts and figures. Through collaboration with Averitt Express, retailer Tuesday Morning proving to be one such success story.

With the ever-increasing transportation costs, and Tuesday Morning’s commitment to “legendary savings” for customers, the discount retailer got creative to not only secure, but enhance its bottom line. Working closely with Averitt’s expertise and vast array of services and assets, Tuesday Morning designed a dynamic logistics plan to service hundreds of its retail locations directly from the port in Los Angeles, without ever passing through the Dallas distribution center.

“After months of collaborative planning, Tuesday Morning and Averitt fine tuned the DC Bypass solution and literally set the wheels in motion,” said Tony Allison, regional vice president for Averitt.  “We strive to be flexible and take an innovative approach to our customers’ supply chain challenges.”

“We are just getting started with DC Bypass and are already delivering product to 337 stores directly,” said Cheryl Bailey, Tuesday Morning’s logistics manager. “Our products are being delivered to our stores less than 30 days after arriving at the port, eliminating an averaged two weeks from our supply chain process.”

Time isn’t the only thing being eliminated. Early numbers show the new system cuts roughly 19 percent of cost out of Tuesday Morning’s supply chain – a number officials say is only going to increase as the company adds more of its 865 stores to the Bypass plan.

“We are incredibly pleased with our DC Bypass solution,” said Brian Turner, director of transportation and planning for Tuesday Morning. “DC Bypass makes my job significantly easier, especially since Averitt makes adjustments so Tuesday Morning doesn’t have to make.”

The DC Bypass is the second major innovation brought to Tuesday Morning’s supply chain since the relationship with Averitt began three years ago. In the beginning, all freight was moved by truck from the Los Angeles port to the Dallas distribution center before being sent out to stores. Tuesday Morning devised a plan with Averitt to transition from truck to rail, saving significantly on dollars and days.

About the Author

John D. Schulz
Contributing Editor

John D. Schulz has been a transportation journalist for more than 20 years, specializing in the trucking industry. He is known to own the fattest Rolodex in the business, and is on a first-name basis with scores of top-level trucking executives who are able to give shippers their latest insights on the industry on a regular basis. This wise Washington owl has performed and produced at some of the highest levels of journalism in his 40-year career, mostly as a Washington newsman.

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Seasonally-adjusted (SA) for-hire truck tonnage in October at 135.7 (2000=100) was up 1.9 percent compared to September’s 133.1, and the ATA’s not seasonally-adjusted (NSA) index, which represents the change in tonnage actually hauled by fleets before any seasonal adjustment was 139.8 in October, which was 0.9 percent ahead of September.

The average price per gallon of diesel gasoline fell 3.7 cents to $2.445 per gallon, according to data issued today by the Department of Energy’s Energy Information Administration (EIA). This marks the lowest weekly price for diesel since June 1, 2009, when it was at $2.352 per gallon.

In its report, entitled “Grey is the new Black,” JLL takes a close look at supply chain-related trends that can influence retailers’ approaches to Black Friday.

This year, it's all about the digital supply network. In this virtual conference, we will define the challenges currently facing supply chain organizations and offer solutions designed to transform linear operations into dynamic, automated networks that offer seamless communication, visibility, and the ability to respond and optimize processes at any given time.

In his opening comments assessing the economy at last week’s RailTrends conference hosted by Progressive Railroading magazine and independent railroad analyst Tony Hatch, FTR Senior analyst Larry Gross said the economy continues to slog ahead at a relatively tepid pace, coupled with some volatility in terms of overall GDP growth. And amid that slogging, Gross said there is currently an economic hand-off occurring between the industrial sector and the consumer sector.

Article Topics

News · Trucking · Distribution Center · Retail · All topics

About the Author

Jeff Berman, News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman.


Post a comment
Commenting is not available in this channel entry.

© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA