With millions of fans awaiting the release of the Madden videogame each August, game-maker Electronic Arts has invested in a state-of-the-art logistics system to ensure it doesn't drop the ball.
John Johnson joined the DC Velocity team in March 2004. A veteran business journalist, John has over a dozen years of experience covering the supply chain field, including time as chief editor of Warehousing Management. In addition, he has covered the venture capital community and previously was a sports reporter covering professional and collegiate sports in the Boston area. John served as senior editor and chief editor of DC Velocity until April 2008.
It's become an annual rite of summer, along with backyard barbecues, pennant fever and trips to the seashore. In fact, the annual release of the Madden NFL videogame every August has even spawned its own unofficial holiday—the "Madden sick day," taken by gaming devotees anxious to snatch up the new release the day it hits the stores.
This year marked the biggest Madden launch ever. The game's manufacturer, Electronic Arts, shipped 1.35 million units to retailers nationwide on Aug. 10.
But for the logistics team at Electronic Arts, the annual release is no day at the beach. A fumble anywhere in the supply chain could leave the company with thousands of unhappy customers—not just loyal gamers but also the retailers that sell Madden 05. Videogame prices typically drop a few months after the initial release. That means Electronic Arts has to go the extra mile—or should we say, the extra yard—to get Madden on the retailers' shelves right away.
"Missing an order and not getting something out to a customer would be huge, especially with a title like Madden," says Dave Niemann, director of supply chain systems at Electronic Arts, which has sold more than 37 million copies of Madden since 1989. "Madden was the best-selling football videogame last year, so having a successful launch for week one was pretty significant. But obviously, the distribution challenges of shipping 1.3 million units were pretty huge."
If volume alone weren't enough of a challenge, there's also the ultra-tight schedule.When it comes to a big release like Madden 05 (as well as releases like the new Harry Potter game), EA has a crucial three- to four-day window to download orders from its enterprise resource planning (ERP) system and then pick, pack and stage them in its DC. Complicating that is the company's commitment to releasing orders simultaneously to retailers. "We strive very hard to achieve a level playing field in terms of releasing our product and getting it out the door to our customers," says Niemann.
Fourth and long
It wasn't so long ago that just getting those orders out on time was a touch-and-go proposition. EA's logistics processes were bogged down by a manual system that taxed the company's ability to deliver its products on time. The old system printed pick tickets and batch-uploaded the order history twice a day. When the picker completed the picks, the order was sent to shipping for re-packing, manifesting and shipment.
Since a limited amount of transportation planning was done on the front end, operators had to carry out routing and customer-compliant labeling tasks after the order was packed and awaiting shipment. "We were operating in a vacuum," Niemann says. You could say EA was running its offense without a playbook.
That's when the company decided to trade in its homegrown warehouse management software for an integrated logistics solution from Irista, a division of HK Systems. Included as part of the update project was the installation of A-frame picking systems, in-line scales for carton validation and radio-frequency (RF) bar-code scanning technology.
The new WMS solution provided Electronic Arts with supply chain visibility for the first time. And the company saw results right away. Labor costs plummeted at Electronic Arts' 250,000-square-foot distribution center in Louisville, Ky. Throughput improved by approximately one-third, and EA saw an immediate drop in shipping costs. The elimination of nine steps in the fulfillment process resulted in new efficencies and allowed Electronic Arts to reduce order cycles by 24 hours.
Achieving those winning results was not easy. Like football teams that log endless hours of practice on the field before a big game, Niemann and his team logged endless hours preparing for the conversion to the new software and picking equipment. The most important issue was making sure the system would function under EA's highly seasonal business plan. The company ramps up twice a year—in August for the release of Madden and again in the fall for the crucial holiday selling season.
In preparation for the big event, Niemann's team ran through the playbook countless times to assure everything would go smoothly. They also spent hours putting together a contingency plan in case the system failed.With the install scheduled for July 2001, just weeks before the annual release of Madden, there was no room for error.
As the first step, EA's cross-functional team, with representatives from finance, IT, operations and training, met with the Irista project team to map out existing business process requirements with the proposed WMS solution. For practical reasons, the team focused on maintaining the existing operational methodology and process flows while requiring only minimal software modifications and facility design changes.
Later on, the team designed a tiered approach to acclimate warehouse workers to the new equipment and systems. Needed modifications to the conveyor system to accommodate the in-line scales and installation of the A-frames and pallet racks were completed prior to the system's going live, allowing associates to familiarize themselves with new locations and layouts. A dedicated training facilitator worked with Irista to develop a comprehensive training curriculum designed to help operators accustomed to working with a manual paper pick-ticket process learn to follow on-screen instructions.
The finance team got involved to verify inventory reporting and the integrity of the data to be shared between the new WMS and the company's Oracle ERP database. "It was very painful going through all those layers, and the challenge of the whole thing was involving the finance people," says Niemann. "But in the end, it was well worth it. The system go-live was so smooth that we had to request more orders to keep the operators busy.We have optimized our physical distribution to the level where I'm not sure if there is a lot of room for improvement."
Illegal procedure
Although there's no guarantee that the folks in finance would agree with that assessment (when are CFOs ever satisfied?), they certainly can't complain about a multimillion dollar reduction in chargeback costs. EA ships goods not only to distribution centers, but also directly to stores for customers like Wal-Mart. Before its new system went live, EA had no way to track orders. When a customer called to complain that an order wasn't packaged correctly, the company threw up its hands and paid the penalty.
Now, when a retailer claims a shipment didn't arrive on time or that the quantity was incorrect, EA can come back with data not only on who picked the product and when, but also with the weight of the box and the time it was loaded on the trailer at the dock. "Having that data is a pretty powerful tool when a proof of delivery is in question," says Niemann. The ability to harvest the data from the supply chain systems has pretty much eliminated costly chargebacks, he reports.
The software in place at the DC also allows EA to drill down deep when it comes to performance stats. For example, EA is able to determine who its most efficient pickers are, whether structured labor is in the right place at the right time, and if inventory is stored in the best location to drive the most efficient picking.
"We derive a lot of benefit from going back and analyzing historical data in our distribution center," says Niemann. "We're able to drill down to see how many seconds it takes for a particular person to complete a pick and move on to the next box. It all comes down to the bigger picture —we're always trying to decrease labor costs and increase productivity."
So far, that's proved to be a winning combination.
EA hopes to score big with RFID
Unlike many manufacturers, Electronic Arts has the option of remaining above the RFID fray. Because it's not a Top 100 supplier for either Wal-Mart or Target, it's exempt from RFID mandates both retailers imposed on their biggest suppliers last year. So why is the videogame maker moving full-speed ahead on the radio-frequency technology front?
For one thing, the company realizes that it won't be able to remain on the sidelines forever. The day will almost certainly come when it, too, will be required to use RFID tags to identify the products it ships to retailers. But more to the point, it's convinced that RFID could bring its operations to a whole new level.
That's not to say EA is unaware of the potential stumbling blocks. Like most manufacturers, Electronic Arts would like to see standards issues resolved before investing in RFID technology. And it's hoping tag prices will fall and read rates will rise in the interim. "Those challenges considered, we're pretty excited about the potential for what RFID could bring to EA," says Dave Niemann, EA's director of supply chain systems.
EA believes that at some point it will be drawn into the game. And because of the high value attached to videogames, it will probably end up tagging individual items, not pallets or cases. Though it would require a considerable investment, RFID would give EA increased visibility of its goods as they move through the supply chain, leading to better order validation as well as increased internal security. In addition, RFID tags could accomplish the same function as the weigh-in-motion scales currently used in the company's DC.
Another benefit? Better communication. "We're looking into what kind of benefits we can build into our supply chain and how we can transfer the information to our technology chain and process that information," says Niemann. He reports that the company expects to share the information not only across the supply chain, but with all divisions of EA and with suppliers and business partners as well.
Autonomous forklift maker Cyngn is deploying its DriveMod Tugger model at COATS Company, the largest full-line wheel service equipment manufacturer in North America, the companies said today.
By delivering the self-driving tuggers to COATS’ 150,000+ square foot manufacturing facility in La Vergne, Tennessee, Cyngn said it would enable COATS to enhance efficiency by automating the delivery of wheel service components from its production lines.
“Cyngn’s self-driving tugger was the perfect solution to support our strategy of advancing automation and incorporating scalable technology seamlessly into our operations,” Steve Bergmeyer, Continuous Improvement and Quality Manager at COATS, said in a release. “With its high load capacity, we can concentrate on increasing our ability to manage heavier components and bulk orders, driving greater efficiency, reducing costs, and accelerating delivery timelines.”
Terms of the deal were not disclosed, but it follows another deployment of DriveMod Tuggers with electric automaker Rivian earlier this year.
The “2024 Year in Review” report lists the various transportation delays, freight volume restrictions, and infrastructure repair costs of a long string of events. Those disruptions include labor strikes at Canadian ports and postal sites, the U.S. East and Gulf coast port strike; hurricanes Helene, Francine, and Milton; the Francis Scott key Bridge collapse in Baltimore Harbor; the CrowdStrike cyber attack; and Red Sea missile attacks on passing cargo ships.
“While 2024 was characterized by frequent and overlapping disruptions that exposed many supply chain vulnerabilities, it was also a year of resilience,” the Project44 report said. “From labor strikes and natural disasters to geopolitical tensions, each event served as a critical learning opportunity, underscoring the necessity for robust contingency planning, effective labor relations, and durable infrastructure. As supply chains continue to evolve, the lessons learned this past year highlight the increased importance of proactive measures and collaborative efforts. These strategies are essential to fostering stability and adaptability in a world where unpredictability is becoming the norm.”
In addition to tallying the supply chain impact of those events, the report also made four broad predictions for trends in 2025 that may affect logistics operations. In Project44’s analysis, they include:
More technology and automation will be introduced into supply chains, particularly ports. This will help make operations more efficient but also increase the risk of cybersecurity attacks and service interruptions due to glitches and bugs. This could also add tensions among the labor pool and unions, who do not want jobs to be replaced with automation.
The new administration in the United States introduces a lot of uncertainty, with talks of major tariffs for numerous countries as well as talks of US freight getting preferential treatment through the Panama Canal. If these things do come to fruition, expect to see shifts in global trade patterns and sourcing.
Natural disasters will continue to become more frequent and more severe, as exhibited by the wildfires in Los Angeles and the winter storms throughout the southern states in the U.S. As a result, expect companies to invest more heavily in sustainability to mitigate climate change.
The peace treaty announced on Wednesday between Isael and Hamas in the Middle East could support increased freight volumes returning to the Suez Canal as political crisis in the area are resolved.
The French transportation visibility provider Shippeo today said it has raised $30 million in financial backing, saying the money will support its accelerated expansion across North America and APAC, while driving enhancements to its “Real-Time Transportation Visibility Platform” product.
The funding round was led by Woven Capital, Toyota’s growth fund, with participation from existing investors: Battery Ventures, Partech, NGP Capital, Bpifrance Digital Venture, LFX Venture Partners, Shift4Good and Yamaha Motor Ventures. With this round, Shippeo’s total funding exceeds $140 million.
Shippeo says it offers real-time shipment tracking across all transport modes, helping companies create sustainable, resilient supply chains. Its platform enables users to reduce logistics-related carbon emissions by making informed trade-offs between modes and carriers based on carbon footprint data.
"Global supply chains are facing unprecedented complexity, and real-time transport visibility is essential for building resilience” Prashant Bothra, Principal at Woven Capital, who is joining the Shippeo board, said in a release. “Shippeo’s platform empowers businesses to proactively address disruptions by transforming fragmented operations into streamlined, data-driven processes across all transport modes, offering precise tracking and predictive ETAs at scale—capabilities that would be resource-intensive to develop in-house. We are excited to support Shippeo’s journey to accelerate digitization while enhancing cost efficiency, planning accuracy, and customer experience across the supply chain.”
ReposiTrak, a global food traceability network operator, will partner with Upshop, a provider of store operations technology for food retailers, to create an end-to-end grocery traceability solution that reaches from the supply chain to the retail store, the firms said today.
The partnership creates a data connection between suppliers and the retail store. It works by integrating Salt Lake City-based ReposiTrak’s network of thousands of suppliers and their traceability shipment data with Austin, Texas-based Upshop’s network of more than 450 retailers and their retail stores.
That accomplishment is important because it will allow food sector trading partners to meet the U.S. FDA’s Food Safety Modernization Act Section 204d (FSMA 204) requirements that they must create and store complete traceability records for certain foods.
And according to ReposiTrak and Upshop, the traceability solution may also unlock potential business benefits. It could do that by creating margin and growth opportunities in stores by connecting supply chain data with store data, thus allowing users to optimize inventory, labor, and customer experience management automation.
"Traceability requires data from the supply chain and – importantly – confirmation at the retail store that the proper and accurate lot code data from each shipment has been captured when the product is received. The missing piece for us has been the supply chain data. ReposiTrak is the leader in capturing and managing supply chain data, starting at the suppliers. Together, we can deliver a single, comprehensive traceability solution," Mark Hawthorne, chief innovation and strategy officer at Upshop, said in a release.
"Once the data is flowing the benefits are compounding. Traceability data can be used to improve food safety, reduce invoice discrepancies, and identify ways to reduce waste and improve efficiencies throughout the store,” Hawthorne said.
Under FSMA 204, retailers are required by law to track Key Data Elements (KDEs) to the store-level for every shipment containing high-risk food items from the Food Traceability List (FTL). ReposiTrak and Upshop say that major industry retailers have made public commitments to traceability, announcing programs that require more traceability data for all food product on a faster timeline. The efforts of those retailers have activated the industry, motivating others to institute traceability programs now, ahead of the FDA’s enforcement deadline of January 20, 2026.
Online grocery technology provider Instacart is rolling out its “Caper Cart” AI-powered smart shopping trollies to a wide range of grocer networks across North America through partnerships with two point-of-sale (POS) providers, the San Francisco company said Monday.
Instacart announced the deals with DUMAC Business Systems, a POS solutions provider for independent grocery and convenience stores, and TRUNO Retail Technology Solutions, a provider that powers over 13,000 retail locations.
Terms of the deal were not disclosed.
According to Instacart, its Caper Carts transform the in-store shopping experience by letting customers automatically scan items as they shop, track spending for budget management, and access discounts directly on the cart. DUMAC and TRUNO will now provide a turnkey service, including Caper Cart referrals, implementation, maintenance, and ongoing technical support – creating a streamlined path for grocers to bring smart carts to their stores.
That rollout follows other recent expansions of Caper Cart rollouts, including a pilot now underway by Coles Supermarkets, a food and beverage retailer with more than 1,800 grocery and liquor stores throughout Australia.
Instacart’s core business is its e-commerce grocery platform, which is linked with more than 85,000 stores across North America on the Instacart Marketplace. To enable that service, the company employs approximately 600,000 Instacart shoppers who earn money by picking, packing, and delivering orders on their own flexible schedules.
The new partnerships now make it easier for grocers of all sizes to partner with Instacart, unlocking a modern shopping experience for their customers, according to a statement from Nick Nickitas, General Manager of Local Independent Grocery at Instacart.
In addition, the move also opens up opportunities to bring additional Instacart Connected Stores technologies to independent retailers – including FoodStorm and Carrot Tags – continuing to power innovation and growth opportunities for retailers across the grocery ecosystem, he said.