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TJX Companies is confident in navigating weather-related events such as El Niño due to its warehouse distribution model, CEO Ernie Herrman said in a Q2 earnings call on Aug. 19.
Herrman said since the company keeps its liquidity and shipping out of its warehouses, it has better control than traditional retailers. Inventory doesn't need to go straight to the stores if the off-price retailer thinks there's going to be an unusual weather pattern in a certain region, he added.
"[T]his is a benefit of our model where we stage goods in our warehouses versus goods at most brick-and-mortar retailers come into the warehouse and have to go out," Herrman told **** ysts. He added that the company's "planning organization is really good at reacting to any wild swings in weather or natural disasters or any of those red flags."
Off-price retailers and classic retailers tend to have different supply chain models when it comes to how they manage their inventory, but it's not one-size fits all, Dheera Anand, a partner at Bain and Co., told Supply Chain Dive in an interview. The supply chain strategy Hermann described in TJX's earnings call is known as the hold and flow, or staged, model, Anand said.
#supply
TJX Companies is confident in navigating weather-related events such as El Niño due to its warehouse distribution model, CEO Ernie Herrman said in a Q2 earnings call on Aug. 19.
Herrman said since the company keeps its liquidity and shipping out of its warehouses, it has better control than traditional retailers. Inventory doesn't need to go straight to the stores if the off-price retailer thinks there's going to be an unusual weather pattern in a certain region, he added.
"[T]his is a benefit of our model where we stage goods in our warehouses versus goods at most brick-and-mortar retailers come into the warehouse and have to go out," Herrman told **** ysts. He added that the company's "planning organization is really good at reacting to any wild swings in weather or natural disasters or any of those red flags."
Off-price retailers and classic retailers tend to have different supply chain models when it comes to how they manage their inventory, but it's not one-size fits all, Dheera Anand, a partner at Bain and Co., told Supply Chain Dive in an interview. The supply chain strategy Hermann described in TJX's earnings call is known as the hold and flow, or staged, model, Anand said.
#supply
2 months ago
