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Global Logistics Focus Sept.19, 2016

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2016 GLOBAL LOGISTICS FOCUS SPECIAL REPORT THE JOURNAL OF COMMERCE Old Dominion simplifi es global shipping by doing more than delivering freight. Our focus on premium service means every shipment arrives with one of the lowest claims ratios and one of the best on-time records in the industry. Old Dominion Freight Line, the Old Dominion logo, OD Household Services and Helping The World Keep Promises are service marks or registered service marks of Old Dominion Freight Line, Inc. All other trademarks and service marks identifi ed herein are the intellectual property of their respective owners. © 2016 Old Dominion Freight Line, Inc., Thomasville, N.C. All rights reserved. SIGNS THAT A long-awaited reduction of U.S. inventories is under way surfaced in recent earnings reports of some major retailers, including Wal-Mart Stores, but retailers also are showing signs of struggling to strike a balance between online and in-store goods. The goal of lowering inventory (and related costs) can clash with the desire to sell more products and a greater variety of products online, as well as in stores. Total stockpiles of consumer goods at Wal-Mart, the nation's larg- est retailer, declined 2.3 percent year-over-year to $43.5 billion in its latest quarter, which ended July 31. Comparable store inventories FINDING THE RIGHT INVENTORY MIX Retailers are gradually drawing down bloated inventories, but struggle to find a balance between online and store goods William B. Cassidy

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