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