All hands on deck for final push
Posted: Monday, December 24, 2012 11:57 pm
By: By the Associated Press
The Messenger 12.24.12
By DAVID SHARP
FREEPORT, Maine (AP) — With the final retail push under way, L.L. Bean CEO Chris McCormick is playing Santa’s helper against a backdrop of conveyor belts and beeping front-end loaders as he boxes up slippers and shirts.
But there’s little time to reflect on the holiday cheer those gifts will bring because he’s busy concentrating to make sure no shipments go astray.
At L.L. Bean, top executives are abandoning their desks to work in the shipping department and to answer customers’ phone calls as part of an annual all-hands-on-deck approach to ensure last-minute purchases arrive at their destinations before Christmas.
This season, the deadline for orders with guaranteed Christmas delivery is the latest ever, with L.L. Bean offering free shipping as late as noon Friday.
“Consumers are going to buy when they want to buy. There’s no changing that, so we have to be ready,” McCormick said during a break inside the busy 1-million-square-foot distribution center. where nearly 200,000 orders are shipped daily in late December.
There’s never been a better time to be a procrastinator because retailers continue to offer later guaranteed delivery, and in some cases retailers are offering same-day delivery in select cities, said Al Sambar, a logistics and retail strategist at the consulting firm Kurt Salmon.
Thanks to improved shipping logistics, many online and catalog retailers established Christmas delivery deadlines on Thursday and Friday, with some like Amazon extending the deadline for one-day shipping until Saturday.
Retailers are increasingly focusing on speed. Following Amazon’s lead, other retailers are experimenting with regional warehouses to get the product closer to potential customers, said Raj Kumar, a retail partner at A.T. Kearney, a global management consulting firm.
Macy’s, Toys R Us and Wal-Mart are testing pilot programs in which stores themselves are utilized as shipping hubs as retailers push for next-day and same-day delivery, he said.
Unlike Amazon, L.L. Bean’s worldwide shipping hub is centralized, about a mile from the corporate headquarters.
The company hired 4,700 seasonal workers to help with the holiday rush, doubling the workforce, and 500 administrative employees are expected to get into the act during crunch times.
Earlier in the week last week, McCormick was boxing goods in the shipping department with the company’s financial controller, Kierston Van Soest.
Nearby were the company’s chief financial officer and other executives. In Bean parlance, they’re dubbed “day hikers,” since they’re on a temporary daily assignment.
Pulling items from a shopping cart, McCormick and Van Soest scanned the products with a bar code reader, printed shipping labels and order forms, and then boxed up the items, tossing in catalogs for good measure. In the past, McCormick worked on a product-sorting conveyor line, in the retail store stockroom, and in a recycling area.
Nationwide, the final retail push on Friday and Saturday is expected to yield $34 billion in total sales, accounting for roughly 8 percent of the $400 billion in December sales, McNamara said.