Supply Chain Management

Saks has over 350 stores and six distribution centers (DCs). Unfortunately there is limited public information on the specifics of their supply chain. At Saks the merchandise is delivered in cartons. 95% of these cartons flow through one of their sort facility to shipping without being put away. Although this percent could be higher, Saks has decided to retain a small amount of inventory at its central DC center in order to quickly replenish fast selling items rather than managing cross-store shipments. Saks largest distribution center is in Steele, Alabama and is 180,000 square feet. This facility processes over 45,000 cartons per shift.

As far as customer supply, Saks has a system called "Locator".  With this system if a customer wants to purchase an item but don't see the color or size they are seeking, they can place a order with a customer service specialist online. When the order is placed a message is sent Saks stores nationwide that show the product being in stock. Once the order is filled the locator is then closed and removed from the alert system. Locator acts as Saks.com's "secondary" distribution center. The only disadvantage of locator is there is a chance that the item will never be filled. This may be caused by items that are damaged, store displays, sold before the locator alert is received, or simply cannot be found. In some says this is a risky move as it can potentially lower their service level. The locator alert remain open for 72 hours or until it is picked up.

When a customer places a locator order, they receive an automated e-mail identical to the one below.


We are pleased to offer you our Saks Fifth Avenue locator service and thank you for taking advantage of this very personalized service. This e-mail is being sent as a confirmation that we have placed your recent locator order.
Your Locator order has been forwarded to stores that show available inventory.  We want you to know that every effort will be made to meet our shared expectations by shipping you this merchandise. It is possible, however, that we may not be able to fulfill your order. On occasion, merchandise that is ordered through our Locator system can become unavailable for shipment due to an unforeseen reason. If this happens, we  sincerely apologize for disappointing you, and we will notify you that your order can not be completed via e-mail within 7 days.
Please take a moment to review the information below to ensure that all billing and shipping information is correct and that the merchandise ordered, on your behalf, is also correct.
 

Order # 1788753237 Details

Store:	001 New York
Date:	07 Jul 2012 12:03 PM
Associate:	John Smith
Phone #:	212-753-4000

Order: 1788757
Assoc: 123456  John Smith
John_Smith@s5a.com
Phone #: 212-753-4000

CHANEL SHOES
3572627055635      780/034
(1 @ 390.00)                    390.00

INTL OTHER
487818390866      
(1 @ 50.00)                      50.00

          Subtotal              440.00
          Total Tax               0.00
          Total                 440.00

MCD /XXXX-XXXX-XXXX-1234        440.00

Items Ordered: 1

Client Information

 

Mary Lee

MCD Charge XXXX-XXXX-XXXX-1234

Ship To:

Mary Lee
123 East Street

New York, New York

USA

If you wish to change or cancel your order, or if you have any questions, please contact me at 212-753-4000.
Once your merchandise has shipped, you will receive an e-mail with tracking information.
Thank you for shopping with us at Saks Fifth Avenue.
Sincerely,
John Smith