Higher fuel and transportation expenses weighed on retailers' supply chains during the third quarter, even as fulfillment improvements helped some companies contain costs. Early reports from Amazon, Tractor Supply and Carter's point to an uneven environment heading into the holiday season, with shipping inflation alongside isolated delays in getting merchandise into inventory. A focus on efficiency pointed up how effectively retailers can offset external cost pressures by improving the movement and placement of goods. Amazon (NASDAQ: AMZN) reported benefits from its fulfillment network, while Tractor Supply (NASDAQ: TSCO) cited transportation costs as a drag on margins.
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