For those not in the shipping business, news that Toys R Us filed for bankruptcy protection had the same effect as a surprise Gatorade bath.
For the rest of us with experience in the logistics business, this was just the latest stark reminder of the long-running battle between retailers and online sellers.
It’s next to impossible to drive in urban and suburban areas without noticing the telltale signs of the ongoing struggle.
Empty storefronts and going-out-of-business sale banners have been popping up in some of the plazas and malls I drive by on a regular basis.
Still, the Toys R Us news comes just a few months before yearend holiday shopping begins in earnest.
Many of the company’s woes are connected to it carrying billions in debt and spending hundreds of millions annually to service it.
Read: How Out-of-Stock Inventory is Killing Toys’‘R’‘Us
Learning Logistics
But another part of its predicament seems to be supply chain related.
In an extensive piece chronicling the company’s challenges in the Wall Street Journal, Toys R Us CEO Chief David Brandon reportedly said in court papers that the firm had fallen behind some competitors and cited “our inability to provide expedited shipping options, and our lack of a subscription-based delivery service.”
Logistics intelligence can play a vital role in helping retailers survive in these tough times, and thrive.
A flexible supply chain, powered by a solid transportation management system (TMS) can definitely be part of the solution for retailers looking to better compete with e-commerce companies for customers.
I’ve seen plenty in working extensively in the retail and e-commerce industries.
I’ve been asked the following question countless times over the many years since e-commerce began.
How Can a TMS Help Retailers?
The Road Ahead
Investing in technology to enhance and evolve the way you do business is the way to drive your company forward from a logistics standpoint. There are TMS options that don’t require a big spend on hardware and staff, or a long, drawn-out implementation. You need a quick ROI as well as a system that gives you control, visibility and cost savings ASAP.
It’s well worth your time to check out a TMS built with the freight intelligence necessary to advance in the toughest of times. Think about that the next time you’re driving past a shopping plaza and see the sad signs.
About the Author
Dan Clark, Founder and President of Kuebix, is a transportation industry veteran. He possesses extensive operations and sales experience gained from years of working with the leading freight carriers.
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