Not a very new thing, but another way of looking at it, In Supply chain Brain.
Watch: The Economics of 'Eaches'
Thomas Goldsby: In SupplyChainBrain
Farewell to the age of economical bulk and pallet distribution. Now it's a question of managing "eaches." Thomas Goldsby, Haslam Chair of Logistics at the University of Tennessee, Knoxville, explains the new economics behind this trend.
SCB: Eaches are an essential part of today's supply chain, given the growth of e-commerce, and the need to pick small lots for customer orders. What do you mean by “the economics of eaches”?
Goldsby: We’re not talking about supply chains that are dependent upon full pallets moving in and out. Instead, at some point in the distribution of products, we're going to get down to less-than-pallet loads, and perhaps the individual item. When I refer to the economics of eaches, I'm talking about understanding the financial aspects associated with picking, packing, shipping and delivering those individual items.
SCB: Based on shifts in consumer buying behavior?
Goldsby: The way consumers shop today, it's no longer just a case of driving to a store, picking their own items from the shelf and filling up a shopping cart. Rather, it’s an industrial worker — an employee of a manufacturer, retailer or distributor — who’s performing that activity, as well as handling as the last-mile portion. My sense is that most companies don't fully appreciate the cost of breaking down the pallet and delivering to a desired destination. .... "
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