This Month in Modern: Innovation trend validated

One of the many benefits that Modern brings to our readers is the ability to get inside some of the more progressive warehouse and DC operations in our monthly System Reports. Another key benefit is our power to survey more than 80,000 readers to offer the most comprehensive snapshot of trends in warehouse and DC management.

This month in Modern, I’m happy to report that we’re able to offer stories based on both of these benefits—in this case, one clearly validates the innovation trend illustrated in the other.

Starting on page 16, executive editor Bob Trebilcock offers what I’ll call a Super System Report, a collection of case studies under a common theme—“It’s all about the business”—that highlights five cutting-edge facilities that have been transformed from places to store inventory to enablers of a “go-to-market” strategy.

The collection neatly encapsulates this fundamental shift that Modern has been tracking over the past few years. “In the not-so-distant past, a DC was a cost of doing business and a necessary evil,” says Trebilcock. “These facilities are now strategic assets that give their companies a competitive advantage in the marketplace.”

Over these pages we re-visit facilities operated by e-tail pioneer Gilt; pizza giant Papa Johns; sports retailer BRG Sports; DIY leader Home Depot; and athletic apparel retailer lululemon.

What I find so fascinating about this collection is that while each story illustrates an organization facing the same challenges of the modern economy—e-commerce, omni-channel fulfillment, and employee retention—each solution is tailored to the specific needs of that company. There is no one-size-fits-all answer to today’s challenges.

“These stories illustrate the thoughtful, strategic innovation and investment that needs to happen today,” says Trebilcock. “And while each story integrates some level of automation and technology, pieces that have been snapped together with a specific purpose, we can’t overlook the fact that distribution is now considered a broader part of supply chain strategy.”

And according to the findings of our “Annual Warehouse and Distribution Center (DC) Operations Survey,” the evolution of the DC as a “business enabler” certainly bodes well for continued innovation, investment and overall market growth.

“This year’s findings clearly reflect an industry that’s facing up to omni-channel pressures, SKU growth, and more item and case handling,” says Don Derewecki, senior consultant with St. Onge Co., a partner in this annual research project conducted by Peerless Research Group. “This year, we see respondents expanding facility size, experiencing an uptick in technology use, and applying more capital expenditures to outfit the added square footage—all positive signs that readers are adapting to the new economy.”