[#197] Supply Chain in Numbers - Sep 18, 2023
Amazon DSPs to get $20.50 per hour, Yellow paid $4.6M in bonus few days before bankruptcy, Dollar General plans 1M sqft DC, Locus crosses 2B picks, Walmart's latest drone can go up to 6 miles
Welcome to “Supply Chain in Numbers.” This newsletter tracks significant digits from the world of the supply chain. Five prominent numbers are published every Monday. If you have any feedback, please send it to me.
$20.50 per hour to DSPs
Amazon is boosting pay for contract delivery drivers. Last-mile wage increases are part of a $440 million investment into the service partner program, which launched in 2018. Amazon anticipates its 279,000 delivery associates might earn $20.50 on average or more, plus benefits, reducing reliance upon the USPS and FedEx while speeding deliveries. These associates are part of the DSP program, often distinguishable by blue Amazon-branded vans, responsible for delivering packages the last few miles to shoppers’ doorsteps. DSPs are “free to set their own wages and incentives,” though Amazon sets a minimum pay. [CNBC]
$4.6 million ‘retention’ bonus before bankruptcy
Just weeks before closing its doors and dismissing thousands of employees, Yellow Corp. doled millions of dollars in bonuses to executives so they wouldn’t leave the trucking firm during its chaotic unraveling. Yellow paid bonuses totaling about $4.6 million to eight current and two former executives in the weeks before the company went bankrupt with plans to liquidate. So-called retention bonuses are common in major restructurings, as they incentivize employees to stick around and help clean up failed firms. It’s less common to pay them before a bankruptcy filing when, as with Yellow, the company is shutting down for good. [Bloomberg]
1 million sqft DC for 1,000 Dollar Generals
As part of its nationwide supply chain expansion plans, Dollar General has opened its first ground-up dual distribution center combining the efficiencies of traditional and DG Fresh supply chain functionalities. The new facility in Blair, Neb., measures roughly 1 million square feet and will support more than 1,000 Dollar General stores at full capacity. The company is accelerating its Food First strategy by investing heavily in in-store brands. The Food First initiative is a broader strategy to provide customers with healthier options, including more fresh food. [Progressive Grocer]
100 million picks in 27 days
Locus Robotics’ autonomous mobile robots, or AMRs, have now been involved in more than 2 billion picks. The company noted that this milestone came on Aug. 18, only 11 months after it reached an “industry-first” landmark of 1 billion picks. The last 100 million picks took just 27 days — an average of 3.7 million picks per day. Of its AMR-assisted picks, about 80% come from existing Locus Robotics customers, and 20% from new ones added over the past year. [Robotics 24x7]
Drone delivery up to 6 miles
Deliveries via drone are continuing to expand, with Walmart planning its longest deliveries yet — up to six miles — by partnering with Alphabet Inc.’s Wing unit. The drones will operate at two Dallas-area stores covering about 60K stores, with delivery times expected to take less than 30 minutes. This marks a meaningful step towards widespread drone delivery as drones continue to expand in use and range while the FAA finalizes its rules. [Unmanned Airspace]