[#199] Supply Chain in Numbers - Oct 2, 2023
H&M charges $5.99 per return, 9 Target Stores are closing because of theft, A $20B packaging behemoth, Toyota's gigacasting can make one-third of car body in 3 mins, Rockwell buys Clearpath for $600M
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.
$5.99 per return
The slow demise of ‘free returns of online orders’ may have begun. H&M will expand its charging policy for online returns to more markets worldwide. The fast-fashion retailer has begun charging customers in the U.S., U.K., and most of Europe, unless they belong to its free loyalty program. Since June, H&M has charged U.K. customers who aren’t enrolled in its loyalty program 1.99 pounds (~$2.50), for online returns. The return shipping fee in the U.S. is $5.99, except for loyalty members. Amazon to Zara have been experimenting with some customers with return fees in recent months, and others, like Bath & Body Works, have toughened return policies in other ways. [Retail Dive]
9 Targets in 4 states
Target will close nine stores in four states, including one in New York City’s East Harlem neighborhood, and three in the San Francisco Bay Area, saying that theft and organized retail crime have threatened the safety of its workers and customers. Target said that despite investing heavily in strategies to prevent theft, the business performance at the locations slated for closure was unsustainable. The closings, effective Oct. 21, also include three stores in Portland, Oregon, and two in Seattle. [ABC News]
$20 billion Packaging behemoth
The packaging sector is getting a bigger box. E-commerce and industrial supplier Smurfit Kappa and WestRock reached a merger agreement, creating a global paper and packaging powerhouse worth some $20 billion. the combination could bolster the companies at a time of weakening demand and declining prices for containerboard, the material used to make corrugated shipping boxes, and industrial packaging. Dublin-based Smurfit Kappa makes packages for consumer companies, e-commerce operators, and industrial products. Atlanta-based WestRock makes packaging for everything from medicine to pizza and home-and-garden products. [WSJ]
One-third of the car body in 3 minutes
Toyota wants to achieve annual electric vehicle sales of 3.5 million by the end of the decade. To accomplish this goal, the automaker wants to cut its plant investment, production processes, and manufacturing preparation lead time in half. Recently, reporters were given a glimpse of the company’s technology poised to drive this transformation. Toyota unveiled a prototype of its new gigacasting equipment capable of producing a third of a car body in approximately three minutes. Traditionally, this operation involves 86 pieces and a 33-step process that takes hours. Toyota plans to use the gigacasting method to produce the front and rear sections of an electric model in 2026, when the automaker expects to sell 1.5 million EVs. [IEN]
~$600 million acquisition
American industrial automation giant Rockwell Automation is buying Waterloo, Ont. autonomous robot maker Clearpath Robotics Inc., in a deal that could exceed US$600-million in value. Rockwell announced the deal last week and did not disclose the price. But four sources familiar with the matter said Rockwell is paying between US$550-million and US$600-million upfront, and that the total payout to shareholders could top US$600-million if Clearpath meets undisclosed performance targets. [The Globe and Mail]