Case Study: Macy's Inc. Automates, Optimizes Inbound Freight Operations

For Macy's Inc., formerly known as Federated Department Stores, Inc., a smooth supply chain is a business necessity. As one of the nation's premier retailers, Macy's operates more than 850 department stores in 45 states, the District of Columbia, Guam and Puerto Rico under the names Macy's and Bloomingdale's.

The company, which also operates macys.com and Bloomingdale's By Mail, oversees a complex logistics network that expanded to effectively support the total vendor-to-store supply chain. As a result, the retailer's support divisions, such as Macy's Logistics and Operations (MLO), are set up as their own operating entities within the corporation.

Like other support divisions, MLO is responsible for evaluating opportunities to improve technology at Macy's. Historically, the retailer relied on in-house systems; however, Peter Longo, president of MLO, and Pam Sweeney, MLO senior vice president of systems and technology, began to examine alternatives for enhancing inbound transportation management. In addition to boosting pipeline visibility, Longo and Sweeney realized that Macy's inbound freight systems presented a significant opportunity for cost and service improvements. Consequently, the company began a rigorous ROI analysis to examine the value of using outside supply chain solutions to automate and optimize its complex inbound freight operations.