Sellers of computer video games had a problem. Not with their games' exciting graphics and fast-paced action, but with logistics. "Retailers told us they were seeing their game sales slide because they couldn't get product on the shelf in time," said Russ Kreuger, vice president at GeoLogistics.
That's a big problem. About half of a video game's sales are made within three days of its release, and 70 percent are rung up within the first week. Some of the hotly anticipated titles are pre-sold to consumers. So when a video game is ready for market, the last place it should be spending time is in a retail distribution center.
The solution: Bypass the distribution center. Many retailers have adopted DC Bypass, targeting at least a portion of their inventory for delivery directly to stores. Advances in technology for tracking and tracing, warehouse-management systems and transportation management have enabled retailers, carriers and third-party logistics providers such as GeoLogistics to increase the use of DC Bypass.