U.S. Manufacturing

Constructing the Future of U.S. Manufacturing

With K’NEX, Lincoln Logs and Tinkertoys, children can build from their imaginations and open their minds to the worlds of science and engineering. As my company created these products for kids, many years ago our minds were opened to another complex subject: the math behind producing them in the United States.

Since 1992, our subsidiary The Rodon Group has helped K’NEX Brands make this a reality, manufacturing more than 32 billion bricks, rods and connectors at our plastic injection molding facility in Hatfield, Pennsylvania. We sell many of these toys at Walmart. So when the company announced its $250 billion U.S. manufacturing commitment, we were thrilled – because we were aligned with a retailer that’s acting on a cause we’re passionate about.

Last August, we attended Walmart’s first U.S. Manufacturing Summit, meeting with state representatives and connecting with like-minded businesses on the challenges of making more products domestically. Now that it’s time again this year, I’m excited that we’ll not only be attending, but playing an even bigger role.

This Thursday, I’ll be speaking on stage with Jim Stephen, CEO of Weber, at the second annual U.S. Manufacturing Summit, and I’m eager to share K’NEX’s story as well as some practical advice for other companies. While the case for manufacturing in America has been presented by many, some businesses remain skeptical that there are advantages. And we know firsthand the journey isn’t always easy. For example, although we quickly saw the major upside of bringing products to our customers faster, we discovered there were several minor supply chain details we weren’t up to speed on, like the proper thickness of a box, the ideal inks for packaging, and others that we had to replicate in a cost-efficient way.

Offstage, I’m excited about the connections we’ll all make. At The Rodon Group, we not only make toys – we also make about 5 billion parts a year for industries from home construction to food and beverage. So we’ll be sharing those details with companies who are interested, and we’ll also be seeking our own partners, too: We still import our toy motors, and if we can find a company at the summit that can make those domestically, we’ll reach 100% U.S. production on virtually every K’NEX item.

Given that I’ve said last year’s summit was like LinkedIn for U.S. manufacturing, I’m confident that those connections will be made for not only K’NEX, but hundreds of other companies assembling their dreams right here in America.

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Business

Why Smarter Inventory Means Better Customer Service

When you’re getting ready to head to Walmart, you expect everything on your list will be ready and waiting on our shelves.

With millions of items for sale, ensuring that happens – for everything, every time – is quite a complex process behind the scenes.

Managing back room inventory – products that are stored in back rooms for days, sometimes weeks, before they reach shelves – can be a challenge. It requires constant monitoring, and can sometimes take associates away from the sales floor where they would otherwise be helping customers. So recently we’ve been experimenting with new and better ways to improve the process for everyone.

Top Stock is one of these new systems that we’re testing in stores. With it, we’ve moved a great deal of our back stock inventory to somewhere else very simple: the top shelves on our sales floor. By keeping additional merchandise closer to where it’s sold, we can maintain fuller shelves while keeping a better in-the-moment read on inventory.

I spent the first 12 years of my three decades with Walmart in replenishment and supply chain roles, so I understand the significance firsthand of how this makes storage and stocking so much easier. But there’s also quite a bit more that directly benefits customers:

  • All the extra space we’re opening up in our back rooms is making it easier for us to integrate services like online grocery pickup. While the demand for grocery pickup is obvious, finding adequate space within our existing stores had sometimes been a challenge.
  • Need something you don’t immediately see on the shelf? Waiting for an associate to check our back room during peak holiday shopping periods could soon be a thing of the past. By improving our inventory management processes, we’re bringing the products and services that customers need one step closer. In fact, the implementation of Top Stock has helped reduce our rental of temporary inventory trailers to a small fraction of what it was just a few years ago.
  • Our improvements in inventory management are getting more associates out of the back room and onto the sales floor, where they can help and interact with customers.
  • Perhaps best of all, our associates can use open back room space for career-building education. When one store in Morrisville, North Carolina, implemented Top Stock inventory management, they reduced back room inventory by 75% in two months, allowing enough new space to open an Academy for associate training.

What’s worked for our business in the past isn’t always what’s best for today’s shopper. When we commit to coming up with unexpected ways to do the small things better, we not only become smarter and more efficient, but create a big win for our customers at the same time.

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U.S. Manufacturing

In the News: Inside Our Open Call for American Manufacturing

Shrimp, hair gel, sweet potato cake.

Forbes sent a film crew to Walmart’s corporate office in Bentonville, Arkansas, to capture the excitement as suppliers pitched these and hundreds of other products at our annual U.S. Manufacturing Open Call event.

Forbes shared its inside look today. Take a look at what the big day is like for the people behind the products.

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Innovation

Uncovering How We’ll Shop in the Future

As new technology brings new possibilities, there’s been an explosion of ways to shop – smartphone apps, online grocery shopping and Scan & Go for easier checkout, to name just a few. To serve customers better, we need to stay ahead of the research that helps form the ideas that will continue to revolutionize how we shop.

I’m part of a small team that’s delving deep into research to improve the shopping experience for everyone. I’m a data scientist for Sam’s Club Technology, and I like to compare what we do to building a car: You have to start with the engine.

My day-to-day work is all about staying on top of new methods to build that engine. I look at ways we can incorporate emerging research in object recognition, detection and segmentation – technology that can make things like our Scan & Go app even smarter. For instance, instead of scanning a bar code, the app will be able to recognize products using photos taken by your phone’s camera.

Because this is such a fast-moving field, the research I work with is in its earliest stages. I might work with one algorithm today, and a couple months from now use a completely new model that’s even better than what we had before.

Tech is constantly evolving, which makes innovation essential for retailers. We have to continually adapt our business to our shoppers’ lifestyles. There’s a lot of coding, engineering and algorithm testing that goes into building something that works better than what people are used to. It’s challenging, but that’s why I’m lucky to work with such talented people.

Until I joined the team last year, I never realized the strong sense of pride that associates in the Walmart and Sam’s Club family have in what our business does. After studying at Yale, I worked in financial engineering in New York – I didn’t expect to find an opportunity to do such innovative work in Bentonville, Arkansas.

I’ve found that in the corporate world, it’s rare for a business to invest in cutting-edge research. But, from the start, Walmart has chosen to invent some of our own solutions instead of waiting for someone else to come up with them. In this new age of tech, we’re still evolving and inventing better ways to get from Point A to Point C.

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Innovation

5 Ways Walmart Uses Big Data to Help Customers

In many industries, big data provides a way for companies to gain a better understanding of their customers and make better business decisions.

Walmart relies on big data to get a real-time view of the workflow in the pharmacy, distribution centers and throughout our stores and e-commerce.

Check out the infographic below to see how Walmart uses big data to make the company’s operations more efficient and improve the lives of customers.

Whether it’s analyzing the transportation route for a supply chain or using data to optimize pricing, big data analytics will continue to be a key way for Walmart to enhance the customer experience.

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