Costco Supply Chain

 Costco 's warehouse-style shops and bulk goods mean their supply chain works somewhat different from the typical retailer with large boxes.The firm is a no-frills company, from its supply chain to the retail space.Throughout their business model, you can see it in the clear racks in warehouse style, palletized merchandise, and general stores decor.

Sustainability:

In the past, sustainability efforts have centered around responsible sourcing and Costco's Kirkland brand charitable contributions.We should expect Kirkland R&D to continue searching for more responsible and sustainable ways of manufacturing Costco brand goods

International Expansion:

Costco has seen success in its international operations and therefore is looking to continue to expand internationally. Though they've moved slowly into international markets, the company's CAGR growth in the last five years has been around 7 percent overseas. International revenue accounts for around 28 per cent of the total revenue of the company. The organization actually has a physical presence outside of the USA in 11 countries. Costco recently opened its first warehouse in Shanghai and was forced on its first day of operation to close because of an overwhelming customer response.

Vertical Integration:

Costco's hopes for the future include having the supply chain parts in-house to better manage costs. Costco, for example , recently purchased Innovel Solutions to manage large and bulky deliveries for $1 billion, most of which are online for the warehouse retailer. Innovel Solutions is a first-and last-mile provider for distribution and deployment.

E-Commerce improvements:

Costco is looking to upgrade its e-commerce presence in U.S. as well as international markets. Although the business has come to the e-commerce party a little late, they have stepped up their game over the past two years, and they continue to do so today. In 2017 , the company partnered with Instacart's grocery delivery service to allow Costco consumers to shop from the store's inventory and have their order delivered right at their door in just a few hours, adding prescriptions to their Instacart offerings recently.

The 2020 COVID-19 Pandemic has led to an online grocery sales spike for Costco, with a 65.3% growth in Q3 earnings.