Kmart Switching to Pull Model At DCs
t an investors' meeting it has decided to alter its distribution model from a push method (in which distribution centers determine what products get shipped to stores) to a pull system (in which products are shipped according to how well they are selling). Inventory at Kmart distribution centers has been reduced from 6.9 weeks of supply a year ago, to 1.5 weeks of supply currently, the company told investors. This has enabled Kmart to cut distribution space by 2 million square feet without reducing capacity, the company added.
FDI Asks Supreme Court to Preserve Distributor Practices
WASHINGTON -- Food Distributors International here said last week it planned to file a brief asking the U.S. Supreme Court to preserve what it called "legitimate, off-invoice practices" that food distributors and produce dealers engage in, as recognized under amendments to the Perishable Agricultural Commodities Act. The organization filed papers in conjunction with the case of JSG Trading Corp. v. the U.S. Department of Agriculture. In asking the court to uphold the collateral fee practices recognized by PACA, the FDI brief exhorted the justices to review the case, since an appeals court decision siding with USDA will "invite standardless investigations." Officials said USDA redefined the term of "commercial bribery" in bringing the original lawsuit.
