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Home » Office Depot's Demand-driven, Omni-channel Supply Chain

Office Depot's Demand-driven, Omni-channel Supply Chain

July 22, 2013
SupplyChainBrain

"We had three customer segments with three delivery methods, but we now have married together all of our inventory and processes to serve commercial businesses and residential consumers ordering online as well as retail stores," says Rick DiMaio, vice president of logistics operations. "A very aggressive plan rolled out over several years laid the groundwork for us to be truly omni-channel today," he says.

Combining inventory allowed the company to pull out working capital and invest more in customer satisfaction, says DiMaio. One example of this is more tailored services for customers. This might mean daily dock deliveries for some businesses and delivery direct to desktops for others. Similarly, residential consumers can opt to have deliveries left on the front porch or delivered and set up inside. Retail stores might have shrink-wrapped stock delivered to a back room or placed directly on the store shelf.

"We have a sales group that finds out exactly what our customers' needs are and we tailor our services to meet those needs," he says. DiMaio notes that Office Depot provides next-day delivery to more than 90 percent of the U.S. population, both residential and business. Stores also are serviced every day in a rapid replenishment environment, he says.

In terms of future supply chain trends, DiMaio expects greater efforts by supply chain partners to leverage each other's assets, he says. "Overall, there will be more reliability on systems, which means systems will need to be adaptable and capable of handling multiple functions."

Sustainability will continue to be a differentiator, he says. If price is about equal, the greener company will win the business, DiMaio says. He notes that Office Depot was a pioneer in replacing corrugated packages with plastic reusable totes. "This results in less material and lower cost and it is better for the environment," he says. "Our customers love it."

To view the video in its entirety, click here


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Logistics Logistics Outsourcing Transportation & Distribution Inventory Planning/ Optimization Supply Chain Planning & Optimization Supply Chain Visibility Technology Business Strategy Alignment Global Supply Chain Management Sustainability & Corporate Social Responsibility All Warehouse Services Retail
KEYWORDS All Warehouse Services Business Strategy Alignment Global Supply Chain Management inventory control Inventory Management inventory management IT inventory management systems Inventory Planning/ Optimization IT supply chain IT supply chain management Logistics logistics & supply chain logistics management Logistics Outsourcing Office Depot Retail retail supply chain Rick DiMaio SC Planning & Optimization supply chain Supply Chain Management supply chain management IT supply chain management SCM supply chain management: retai Supply Chain Planning supply chain solutions supply chain systems Supply Chain Visibility supply management sustainability Technology Transportation & Distribution
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