[#91] Supply Chain in Numbers - Sep 6, 2021

Joh Lewis adding a 1M sqft DC, Maersk orders 8 container ships, 3 days of order to deliver from China to South Asia, Distance traveled by hot tub parts, Walmart plans to add 20K supply chain workers

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.

1 million sqft

British retailer John Lewis is adding 1 million square feet of warehouse space in the British town of Milton Keynes to handle growing online demand. The depot adds to the 2 million sq ft of warehousing John Lewis already operates at nearby Magna Park, Milton Keynes. Since the start of the pandemic, online sales have grown from 40% to over 60% of John Lewis’s total sales. In a separate deal, John Lewis has signed a three-year lease agreement for a 30,000 sq ft distribution center at Bardon, Leicestershire. The site will be operated by Clipper Logistics and will be operational in time for Black Friday. [SHD Logistics]

8 container ships

Maersk has ordered 8 container ships designed to run on e-methanol to the tune of $175 million each. That’s at a bit of a premium — about 10 percent to 15 percent above market rate for vessels with conventional propulsion systems — but the hope is that they’ll help Maersk cater to customers who have made pledges when it comes to the climate. E-methanol comes from a Danish startup, and it’s created by using solar power to produce hydrogen, then combining it with recycled CO2. Maersk is the largest shipping company in the world, and half of their 200 largest customers have climate targets that require cleaner shipping. [Numlock]

3 days of order to deliver

Customers in Thailand, Singapore, Malaysia, and the Philippines will receive shipments (from China) as quickly as three days after they place an order on Lazada’s e-commerce platform, thanks to new distribution centers introduced by Alibaba’s logistics arm, Cainiao Network. Cainiao has launched DCs in China’s export-focused cities of Yiwu, Shenzhen, and Quanzhou, offering doorstep pickup, distribution, and cross-border shipping services. In addition, Cainiao has set up logistics facilities in 20 cities to consolidate parcels and support local export SMEs. [Supply Chain Digital]

887,776 miles

On a typical day, Hot tub maker Bullfrog Spas’ Herriman, Utah, factory takes delivery of 40,000 gallons of chemicals, 400 sheets of plastic and up to 60,000 additional components. Bullfrog’s M9 spa is one of its most elaborate models. its 500 workers assemble around 1,850 parts to make this model. It can take up to six months for a customer to get a hot tub, up from a few weeks before the pandemic. Parts come from seven countries and 14 states, and travel a cumulative 887,776 miles to make one hot tub. [WSJ]

20,000 workers

Walmart is planning to hire 20,000 new associates across more than 250 Walmart and Sam’s Club distribution centers (DCs), fulfillment centers (FCs), and transportation offices. Supply chain associates are paid an average of $20.37 per hour, according to the press release. The plan is for filling a wide range of roles, including order fillers, freight handlers, lift drivers, technicians, and management positions. These positions will be permanent roles and will be offered in both full- and part-time capacities. [Walmart]