Home Depot plans to shave $500M from supply chain costs | US trade deficit drops on softening consumer import demand | FTC reportedly eyeing major antitrust case against Amazon
Home Depot is implementing $500 million in cost-cutting measures that focus on trimming excess inventory capacity as pandemic induced processes are being phased out, according to company officials. It's also taking steps to optimize forecasting and leverage internal technologies, robotics and appliance delivery capabilities.
The US merchandise-trade deficit in May was smaller than expected, as imports saw the largest decline in six months. The Commerce Department reported a 6.1% narrowing of the goods trade shortfall as imports dropped 2.7%, driven by a fall in consumer goods. Exports also declined 0.6%, primarily due to decreased shipments of food and industrial supplies.
The Federal Trade Commission is reportedly considering legal action against Amazon that focuses on alleged disparities in the retail giant's treatment of online merchants that use its logistics services compared to those that do not. One facet of the FTC's investigation is examining the Amazon algorithm that determines product positioning on its website, allowing certain products to be more quickly added to consumers' carts.
US GDP for the first quarter grew at a 2% annualized pace, a sharp upward revision from the previous estimate of 1.3%. The third and final estimate defies expectations that the US is headed toward a recession.
Members of the International Longshore & Warehouse Union Canada have announced a strike starting July 1, with more than 99% of members voting in favor of the action. The strike is likely to affect US trade as around 15% of the cargo passing through the Port of Vancouver comes from or is headed to the US, while around two-thirds of the containerized imports into the Port of Prince Rupert are dispatched to the US by rail.
Implementing successful decision enhancement systems in digital transformations requires generating demand for the system, engaging users and developing necessary skills, writes Jonathan Byrnes, MIT lecturer and founder of Profit Isle. Companies must gain the trust of users and nurture their motivations when implementing decision enhancement systems, according to Byrnes, who shares three examples of successful decision enhancement and highlights the difference between decision enhancement and digital automation.
Higher inventories are leading to increased costs and reduced profits for many firms, and roughly one-third of businesses responding to an April CNBC survey expected continuing surpluses into 2024. "The companies that are holding larger inventory amounts for a larger period of time, that is putting added stress on their balance sheets," says Maureen Sullivan, head of supply chain finance for MUFG Americas.
Marketers can boost returns by ensuring experiences throughout the customer journey improve over time, and include "one surprise along the way" and "end with a bang," suggest Julian De Freitas, assistant professor at Harvard Business School and academics Tomer Ullman, Pechthida Kim, Ahmet Uguralp and Zeliha Uguralp. In reviewing spending within the customer journey, De Freitas advises brands to "think about what parts of the experience end up heavily weighted in a customer's mind, and invest in those."
A PR campaign won't be effective unless a company has first determined a strong digital strategy, writes Evgeniya Zaslavskaya, founder and CEO of Zecomms Agency. "It'll be much easier to gain traction in the media you want to be featured in if your overall digital presence is solid and your brand's digital efforts are aligned," Zaslavskaya writes.
Like grasshoppers who aren't aware that they can escape an open jar, leaders who don't challenge their assumed constraints will be "continually hitting [their] head on a metaphorical ceiling of [their] own making," limiting opportunities and innovation, leadership consultant Susan Fowler writes. Fowler explains how to challenge these assumptions -- and prepare yourself for the results.
Drawing on personal experience, R Public Relations owner Emily Reynolds Bergh shares five strategies for business growth, including always working to build new relationships and hiring people for their enthusiasm as well as their skills. Other tips include keeping the mission in mind at all times and clearly outlining the scope of the work you do.
