Adapt to the demanding reality of today’s consumer goods industry
Today’s shoppers expect to buy the goods they want, when they want, from the channel of their choice. Bricks-and-mortar retailers are feeling the pressure of these demands and face stiff competition from online players with more agile supply chains. To stay competitive, some large retailers are insisting that suppliers up their game when it comes to fulfillment and on-time deliveries, imposing substantial fines for early, late, or incomplete deliveries. The impact on revenue and margins can be significant.
This CPG company was missing OTIF targets because of delayed deliveries from distribution centers, too many stock-out situations, and a lack of data to track OTIF targets by customer, group of products, and network. Valuable working capital was tied up in buffer stocks and it incurred additional transportation costs to expedite shipments in attempts to meet retailers’ delivery slots.
It needed a better view of its transportation system to know when and where problems were going to impact service levels.