With millions of muggles waiting for the latest Harry Potter volume to hit the bookstores (or their doorsteps), the people charged with its distribution relied not on magic, but on careful planning and painstaking execution.
Peter Bradley is an award-winning career journalist with more than three decades of experience in both newspapers and national business magazines. His credentials include seven years as the transportation and supply chain editor at Purchasing Magazine and six years as the chief editor of Logistics Management.
There is magic in literature, the kind of magic that engages and entrances a reader and draws him or her into the characters' lives. And in some books, like Harry Potter and the Half-Blood Prince, magic is deeply entwined in the plot's twists and turns as well.
Whether or not that explains the phenomenon that is Harry Potter, there's no denying that the series written by J.K. Rowling has resonated with readers around the world. The publishing phenomenon continued this summer. On July 15, fans of Harry Potter flocked to bookstores around the nation to await the stroke of midnight, when the sixth book in the series would go on sale. Within 24 hours, 6.9 million copies of the book were in customers' hands.
While the books' appearance at the stroke of midnight may have seemed another bit of magic, something much more mundane was at work. The responsibility for ensuring that stores had books to sell on July 16—but not before—required not magic, but careful planning and execution among its publisher, Scholastic, and Scholastic's printers and distribution partners. Given the project's scale—an initial printing of 10.8 million books—and the stipulation that every one of those books be kept under wraps until the release date, it's a story worth telling all its own.
It's all in the planning
The job of planning for the distribution of Harry Potter and the Half-Blood Prince fell to Andrew
Yablin, who is vice president of global logistics for Scholastic. It was not his first experience with Harry. Yablin also headed up the logistics effort in 2003, when the fifth book in the series, Harry Potter and the Order of the Phoenix, was released.
Yablin credits meticulous planning, which began in January, for the smooth rollllout. "I think the biggest key to our success, because we knew that this was going to be quite large, was the pre-planning that went into the whole thing," he says. "Plus I was fortunate enough to have the same team members both internally and from all the providers—it was a veteran team."
For Scholastic, the team included Yablin; Francine Colaneri, vice president of procurement, who oversaw manufacturing; and Ed Swart, direcr of operations for the Scholastic Trade Division. "Watching a team that's been together before come together again and build on opportunities from the last time was an unbelievable experience," Yablin says. "For the three of us, it was quite an interesting challenge time the print-and-bind schedule to what sales needed and to what would work on the distribution and logistics side."
The carriers that would haul all those books also took part in the planning. Terry Budimlija, who headed up the Harry Potter team for Yellow Transportation, reports that for Yellow, the process began in January. "We had multiple discussions, conference calls and such to talk about the details, delivery dates and what Scholastic expected from Yellow. What we needed was information ahead of the product. Our detailed planning couldn't begin until we had information on shipments, consignees, delivery dates— information that allowed us to electronically sort into service centers and distribution centers."
Early on in the process, Yablin and his colleagues visited each of the eight U.S. binderies that would produce the book to ensure their shipping processes met Scholastic's strict requirements. "The three of us went to every one of the binderies and put on a presentation on exactly how things were going to happen. Whether it was coming out of bindery A or bindery F, it had to be handled exactly the same way," Yablin says. Scholastic went so far as to create a standard operating procedure that detailed everything from how pallets were to be shrink wrapped to the steps to be taken to ensure that shipments were handed off to the correct driver.
Yablin and his team also made site visits to the carriers' offices, traveling to both J.B. Hunt's headquarters in Lowell, Ark., and Yellow Transportation's headquarters in Overland Park, Kan., to work out in detail when and how the books would be moved. The team also remained in close communication with its other distribution partners, like Combined Express, a Pennsylvania-based third-party logistics service provider that managed all the appointments, deliveries and routing for Hunt and United Parcel Service (UPS).
Carriers get on board
Though Scholastic printed more copies this time than it did with the fifth volume (whose initial print run was a mere 6.8 million), its carrier base was smaller this time around. Yablin says he chose to use a single truckload provider to maximize the payload in his truckload shipments. Hunt ended up handling every one of the 10.8 million volumes in the first printing, including those that moved through Scholastic's own distribution center into the Yellow or UPS systems. That amounted to about 1,000 truckloads. "The last time we weren't able to maximize payload because we had various providers with different tare weights on their vehicles,"Yablin says."This time we worked with Hunt specifically on getting the same equipment, and we were able to take some of our payload targets up to overcome some of the cost increases." Those included diesel fuel costs that ran about a dollar a gallon higher than in June 2003, for the previous Harry Potter release, plus increases in base rates for all carriers. "We needed to maximize transportation capacity," Yablin notes.
Apparently he succeeded. "With Hunt's help, we averaged over 79,000 pounds on every truckload," Yablin reports. (The maximum allowed on most U.S. highways is 80,000 pounds.) "That takes a lot of pre-planning, a lot of skill. We kept everything legal, but we kept it right at the legal max. Once we knew the book's specs and weight, we were able to max out the loads. I think we brought the payload up almost 8 percent on average from the last book to this book, which was really phenomenal."
Safe and secure
Hunt had the task of carrying all the books from the binderies and staging them for delivery to DCs run by major customers like Amazon.com and Barnes & Noble, as well as to Scholastic's DC in Jefferson City, Mo. But it also had another, more daunting responsibility: safeguarding those books between the time they were printed and the release date. The enormous number of books involved and the time it took to produce them increased that challenge. Scholastic's printers began producing the books in late May, a full month and a half before they went on sale, lengthening the period of exposure.
The books could not linger for long within the binderies, which had little storage space. So the team had to come up with a different solution. Because the copies would move mostly in truckload quantities, the team decided to pre-position a lot of truckloads, using the trucks as rolling storage in Hunt's secure yards.
But the books didn't stay there for long. Two or three days after the presses started up, shipments of books began to move out. At that point, keeping those shipments secure while positioning them for delivery became the carrier's responsibility. "We told them that security was job number one on this project," Yablin says. "There was an eight- to 10-week period where we had to keep this under wraps. We absolutely mandated that everything would stay on the trailers. I didn't want to take it off and put it in another facility."
This time around, the job was made easier by technological tools that weren't available in 2003. "I think technology has come a long, long way in a short period of time," says Yablin.
Those technological tools included Qualcomm's OmniTracs satellite tracking system and its OmniExpress wireless fleet management system, which are installed on Hunt's tractors to help the carrier keep tabs on shipments in the yards or on the road.
Hunt also equips its trailers with the FleetView wireless trailer management system sold by Texas-based Terion, a business-to-business wireless communication company. That system, which provides trailer location and event status information, became an important tool in safeguarding shipments after they were loaded.
Yablin explains that Hunt programmed the system on each truck to indicate the route from the bindery plant to the destination yard, so that it would trigger an alarm if the truck strayed off course. But even after the trailers reached their destination, the Terion system remained activated. "Once a trailer was dropped in the secure yard, there was a geo-fence put around it," Yablin says. That meant the Terion system would send an alert if a trailer moved as little as 10 feet, he explains. "That was a tremendous advance from where we were just two years ago."
Over and out
Another of Hunt's responsibilities was to move truckloads of the Harry Potter book from the binderies to the Scholastic distribution center in Jefferson City, Mo. There, the books were staged for shipment via Yellow Transportation or UPS.
"We tried to make that process as close to cross-docking as we could," Yablin says. "We had our own procedures in the facility to keep the books out of the commingled storage rack. But we definitely tried to time it so that as soon as a Hunt truck arrived, the cargo was quickly loaded onto another vehicle and sent back out."
Much of that activity took place late in the process. For instance, Yellow collected the 750,000 books it would handle in some 2,000 shipments in late June. Those shipments, almost all carton pick orders, were scheduled based on the transit times Yellow needed to deliver books on Thursday, July 14, two days before they went on sale.
Though it handled less total volume than Hunt did, Yellow found that its job still presented plenty of challenges. The carrier had scheduled deliveries in the 48 contiguous states, plus Alaska, Hawaii and Puerto Rico.
Yellow was essentially responsible for two waves of deliveries: the first to small distributors or resellers that then shipped the books to other customers, and the second to small booksellers, drug stores and small retailers. The bulk of those deliveries were executed on Thursday, July 14, with a handful on Friday. Some shipments were as small as half a dozen cartons.
"Every single delivery was pre-positioned out to the destination terminals by Wednesday night. It all happened on Thursday, and we were able to move everything by road. We did not use any air," Yablin says. "By following their lead in getting products to the outer islands, Hawaii and up to Alaska, we released on time to minimize cost and keep the loads secure but also get them in position. In a lot of cases, we were able to load LTL direct to densely populated areas like Los Angeles and Boston and New York. We were able to load those in Missouri so that we wouldn't have to open the trailers until the delivery day. They were actually route loaded, so that we didn't have to touch it. We reduced our security risks significantly by eliminating the need to go through any of their DCs."
It helped that Yellow was able to determine how its trucks would be loaded well in advance of the books' release date, says Budimlija. "Once we had a spreadsheet that had all the information, we were able to lay that on top of our network and put together a plan for loading trailers with the highest level of security we could. We were able to load 95 percent of the shipments to destination service centers or destination DCs. That minimized handling."
Most of Yellow's work took place on the weekend before the book's release, with shipments timed to reach destination terminals on Wednesday for the Thursday deliveries. Shipments to more distant locations, like Hawaii, Alaska and Puerto Rico, had moved earlier in the month.
Part and parcel
Along with Hunt and Yellow, the third carrier that participated in Scholastic's big rollout was UPS. Yablin says that although UPS played a relatively small role in the process, it was nonetheless a crucial player. The average order size was larger this time than for the 2003 release, he explains, so economics dictated that a larger share of shipments would move via LTL than by parcel delivery. "But it was still critical to have the small-package service provider," he says. For Scholastic, UPS handled shipments to some of the smallest retailers, as well as residential deliveries for books ordered directly from Scholastic, about 1,300 deliveries for a total of 16,000 books.
Both Yellow and UPS had a team working in the Scholastic DC for several days. "We had their teams on the ground verifying count and address and order," reports Yablin. "We shipped carrier load and count: We did not want any problems with the count because of the security issues that would arise if something showed up at its destination short. We wanted to make sure the carrier was absolutely 100-percent responsible."
the end of the journey
Scholastic's logistics staff undoubtedly heaved a huge sigh of relief once all the copies of Harry Potter and the Half-Blood Prince had been delivered safely into their customers' hands. But that was by no means the end of the journey for many of those books. Once Scholastic's job was over, the millions of copies delivered to customers' DCs or fulfillment centers still had to be shipped out to retail stores or for residential deliveries.
Amazon.com, for example, says it received more than 1.5 million advance orders for the book, all of which had to be delivered to customers as soon as possible after the hour of release. Amazon worked with UPS and the U.S. Postal Service to deliver hundreds of thousands of copies of the book to buyers on Saturday, July 16. (Amazon also made deliveries of the book to customers in the United Kingdom, Canada, Germany and Japan.)
Both Amazon and Barnes & Noble chose UPS to deliver a large share of their books, says Andrew Yablin, Scholastic's vice president of global logistics. "Although we weren't paying the freight for those shipments, we did work diligently with Amazon and Barnes & Noble and UPS to make sure security measures were in place."
The process was more complicated than it might appear, says Steve Holmes, a spokesman for UPS. "We had to create individual plans for Scholastic, Amazon and Barnes & Noble," he reports. "We needed to make sure we had the assets in place and we had to do a good bit of planning on security.
UPS also worked closely with the U.S. Postal Service for the residential deliveries on Saturday. UPS delivered books to post offices around the country on Friday for delivery the next day—a process that required a great deal of communication. Among other things, the postal service provided UPS drivers with letters explaining the plan in case of any confusion at local post offices. The carriers also came up with a contingency plan for UPS drivers to deliver any packages refused by a post office directly to the recipient.
Other carriers played a role in the book's last-mile distribution as well. For example, Con-Way Transportation handled 4,000 LTL shipments of the book for Levy Home Entertainment, the book distribution arm of Chas. Levy Co. Levy Home Entertainment serves as a supplier to a number of large retail chains, including Best Buy, K-Mart, Meijer, Shopko, Stop & Shop, Target and Wal-Mart. Like Hunt, Yellow and UPS, Con-Way had to come up with ways to accommodate the need for tight security. For example, Con-Way says it had to arrange for shipments stored in its DCs in Hillside, Ill.; Salem, Va.; and Clearfield, Utah, to be held in secure, locked facilities prior to their release for final delivery.
Online merchants should consider seven key factors about American consumers in order to optimize their sales and operations this holiday season, according to a report from DHL eCommerce.
First, many of the most powerful sales platforms are marketplaces. With nearly universal appeal, 99% of U.S. shoppers buy from marketplaces, ranked in popularity from Amazon (92%) to Walmart (68%), eBay (47%), Temu (32%), Etsy (28%), and Shein (21%).
Second, they use them often, with 61% of American shoppers buying online at least once a week. Among the most popular items are online clothing and footwear (63%), followed by consumer electronics (33%) and health supplements (30%).
Third, delivery is a crucial aspect of making the sale. Fully 94% of U.S. shoppers say delivery options influence where they shop online, and 45% of consumers abandon their baskets if their preferred delivery option is not offered.
That finding meshes with another report released this week, as a white paper from FedEx Corp. and Morning Consult said that 75% of consumers prioritize free shipping over fast shipping. Over half of those surveyed (57%) prioritize free shipping when making an online purchase, even more than finding the best prices (54%). In fact, 81% of shoppers are willing to increase their spending to meet a retailer’s free shipping threshold, FedEx said.
In additional findings from DHL, the Weston, Florida-based company found:
43% of Americans have an online shopping subscription, with pet food subscriptions being particularly popular (44% compared to 25% globally). Social Media Influence:
61% of shoppers use social media for shopping inspiration, and 26% have made a purchase directly on a social platform.
37% of Americans buy from online retailers in other countries, with 70% doing so at least once a month. Of the 49% of Americans who buy from abroad, most shop from China (64%), followed by the U.K. (29%), France (23%), Canada (15%), and Germany (13%).
While 58% of shoppers say sustainability is important, they are not necessarily willing to pay more for sustainable delivery options.
Schneider says its FreightPower platform now offers owner-operators significantly more access to Schneider’s range of freight options. That can help drivers to generate revenue and strengthen their business through: increased access to freight, high drop and hook rates of over 95% of loads, and a trip planning feature that calculates road miles.
“Collaborating with owner-operators is an important component in the success of our business and the reliable service we can provide customers, which is why the network has grown tremendously in the last 25 years,” Schneider Senior Vice President and General Manager of Truckload and Mexico John Bozec said in a release. "We want to invest in tools that support owner-operators in running and growing their businesses. With Schneider FreightPower, they gain access to better load management, increasing their productivity and revenue potential.”
Economic activity in the logistics industry continued its expansion streak in October, growing for the 11th straight month and reaching its highest level in two years, according to the most recent Logistics Managers’ Index report (LMI), released this week.
The LMI registered 58.9, up from 58.6 in September, and continued a run of moderate growth that began late in 2023. The LMI is a monthly measure of business activity across warehousing and transportation markets. A reading above 50 indicates expansion, and a reading below 50 indicates contraction.
October’s reading showed the fastest rate of expansion in the overall index since September of 2022, when the index hit 61.4. The results show that the industry is continuing its steady recovery from the volatility and sluggish freight market conditions that plagued the sector just after the Covid-19 pandemic, according to the LMI researchers.
“The big takeaway is that we’re continuing the slow, steady recovery,” said LMI researcher Zac Rogers, associate professor of supply chain management at Colorado State University. “I think, ultimately, it’s better to have the slow and steady recovery because it is more sustainable.”
All eight of the LMI’s indices grew during the month, with the Transportation Prices index showing the most growth, at nearly 6 points higher than September, reflecting increased activity across transportation markets. Transportation capacity expanded slightly during the month, remaining just above the 50-point threshold. Rogers said more capacity will enter the market if prices continue to rise, citing idle capacity across the market due to overbuilding during the pandemic years.
“Normally we don’t have this much slack in the market,” he said. “We overbuilt in 2021, so there’s more slack available to soak up this additional demand.”
The LMI is a monthly survey of logistics managers from across the country. It tracks industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).
The port worker strike that began yesterday on Canada’s west coast could cost that country $765 million a day in lost trade, according to the ALPS Marine analysis by Russell Group, a British data and analytics company.
Specifically, the labor strike at the ports of Vancouver, Prince Rupert, and Fraser-Surrey will hurt the commodities of furniture, metal products, meat products, aluminum, and clothing. But since the strike action is focused on stopping containers and general cargo, it will not slow operations in grain vessels or cruise ships, the firm said.
“The Canadian port strike is a microcosm of many of the issues that are impacting Western economies today; protection against automation, better work-life balance, and a cost-of-living crisis,” Russell Group Managing Director Suki Basi said in a release. “Taken together, these pressures are creating a cocktail of connected risk for countries, business, individuals and entire sectors such as marine insurance, which help to mitigate cargo exposures.”
The strike is also sending ripples through neighboring U.S. ports, which are hustling to absorb the diverted cargo, according to David Kamran, assistant vice president for Moody’s Ratings.
“The recurrence of strikes at Canadian seaports is positive for U.S. ports that may gain cargo throughput, depending on the strike duration,” Kamran said in a statement. “The current dispute at Vancouver is another example of the resistance of port unions to automation and the social risk involved with implementing these technologies. Persistent disruption in Canadian port access would strengthen the competitive position of US West Coast ports over the medium-term, as shippers seek to diversify cargo away from unreliable gateways.”
The strike is also affected rail movements, according to ocean cargo carrier Maersk. CN has stopped all international intermodal shipments bound for the west coast ports of Prince Rupert, Robbank, Centerm, Vanterm, and Fraser Surrey Docks. And CPKC has stopped acceptance of all export loads and pre-billed empties destined for Vancouver ports.
Connected with the turmoil, Maersk has suspended its import and export carrier demurrage and detention clock for most affected operations. The ultimate duration of the strike is unknown, but the situation is “rapidly evolving” as talks continue between the Longshore Workers Union (ILWU 514) and the British Columbia Maritime Employers Association (BCMEA), Maersk said.
Terms of the acquisition were not disclosed, but Mode Global said it will now assume Jillamy's comprehensive logistics and freight management solutions, while Jillamy's warehousing, packaging and fulfillment services remain unchanged. Under the agreement, Mode Global will gain more than 200 employees and add facilities in Pennsylvania, Arizona, Florida, Texas, Illinois, South Carolina, Maryland, and Ontario to its existing national footprint.
Chalfont, Pennsylvania-based Jillamy calls itself a 3PL provider with expertise in international freight, intermodal, less than truckload (LTL), consolidation, over the road truckload, partials, expedited, and air freight.
"We are excited to welcome the Jillamy freight team into the Mode Global family," Lance Malesh, Mode’s president and CEO, said in a release. "This acquisition represents a significant step forward in our growth strategy and aligns perfectly with Mode's strategic vision to expand our footprint, ensuring we remain at the forefront of the logistics industry. Joining forces with Jillamy enhances our service portfolio and provides our clients with more comprehensive and efficient logistics solutions."