[#226] Supply Chain in Numbers - Apr 8, 2024
BY acquires One for $899M, Drone hits 1M deliveries worldwide, Walmart plans 3rd milk processing facility, Fast-charge facilities are 18% utilized, Kohl's sees benefits from Sephora customers
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.
$839 million acquisition
Blue Yonder plans to acquire One Network Enterprises for $839 million to create a unified end-to-end supply chain platform and collaboration ecosystem. The planned acquisition will add One Network’s solutions for supply chain managers to Blue Yonder’s existing digital supply chain offerings. One Network’s solutions include Intelligent Control Towers and the Digital Supply Chain Network, which provide end-to-end visibility and control from raw material to last-mile delivery, and NEO. This intelligent agent technology aids with planning and execution. [Pymnts]
1 million deliveries around the world
Drone delivery has hit over 1 million deliveries worldwide as of last year, of which an estimated 157,511 were completed in North America, according to McKinsey. That’s up from 87,497 drone deliveries in 2022 and 23,780 in 2020. A federal green light has given several retailers the go-ahead to experiment with drone delivery in specific markets. This includes Wing, owned by Alphabet, Zipline, Walmart, and Amazon. Walmart will begin offering drone delivery to 75 percent of the population in the Dallas-Ft. Worth area this year. [NumLock]
3rd milk processing facility
Walmart has revealed its third owned and operated milk processing facility will open in 2026 in Robinson, Texas. The products from the facility will serve more than 750 Walmart stores and Sam’s Clubs throughout the South, including locations in Texas, Oklahoma, Louisiana, and parts of Arkansas and Mississippi. Walmart has been working across its food offerings to deliver increased transparency about where products come from and ensure supply for grocery essentials. It opened its first milk-processing facility in Fort Wayne, Ind., in 2018; its second facility, in Valdosta, Ga., is expected to open in 2025. Additional investments include opening its first case-ready beef facility in Thomasville, Ga., and building a second case-ready beef facility in Olathe, Kansas. [Progressive Grocer]
18% utilization of fast-charging stations
EV Charging Stations Are Now Busy Enough to Make Money in the US. The US's utilization of non-Tesla fast-charging stations doubled from 9% to 18% in 2023, indicating a significant increase in EV adoption. Rising utilization suggests profitability for charging stations, with around 15% usage required for profitability. Despite challenges in infrastructure expansion, the US saw a 16% increase in fast-charging stations in the second half of the year, with federal funding aiming to establish more charging stations every 50 miles along major travel routes. As charging networks expand and become more profitable, EV adoption will likely accelerate, creating a positive feedback loop for infrastructure and EV sales. [Bloomsberg]
40% of Sephora customers
Sephora’s performance at Kohl’s is helping the department store drive growth. Due to the beauty retailer’s presence at Kohl’s, 40% of customers who shop Sephora at Kohl’s are new to the department store. Additionally, Sephora brings a younger, more diverse, trend-oriented customer to Kohl’s. And 40% of those customers who came for Sephora have additional items in their basket. At the end of 2023, Kohl’s had Sephora in about 900 of its approximately 1,200 stores. The retailer plans to open 140 more Sephora small-format shops this summer. [Retail Dive]