Do you have great suppliers but a BAD Supply Chain?
Find out how Supply Chain Solutions can help you deliver...
As retailers implement strategies to increase profits, suppliers are asked to provide Vendor Managed Inventory (VMI), Value Added Services (VAS) and Just-in-Time (JIT) inventory management. To support such programs – and support their own goals to increase inventory turns – durable goods companies can implement time-phased inventory policies. Advanced technology automatically triggers replenishments based on specific customer needs and service-level goals.
Align supply and demand
OFM’s need to accurately predict demand and synchronize their supply chains to increase margins. We continue to observe the lack of planning support, especially in long lead time sources of material and component parts.
Better coordinate activities with suppliers
Much of this industry’s manufacturing is going overseas. Visibility of global activities is vital for tracking the movement of goods and information among supply-side trading partners. Ideally, companies would like to manage as if manufacturing plants were attached to their corporate headquarters. Effective supply chain management technology that provides continuous business monitoring and proactive alert notifications is the next best thing. Linked by performance-based technology and Internet communications, supply chain partners can practice exception-based management and eliminate problems of time and distance.
Reduce transportation costs
Durable goods companies are especially sensitive to rising fuel costs around the globe. For many manufacturing and distribution companies, transportation costs may account for 4%-8% of sales and 40% -60% of the total logistics expenditure. Transportation Management Solutions can help reduce costs up to 30% for inbound, outbound and inter-facility moves. Through optimized transportation planning, freight dollar savings of up to 20% can quickly be realized. Logility's transportation solutions manage shipment schedules and routes, freight costs, carrier selection, shipment tracking and parcel management.
Maintain in-stock positions with less inventory
Managing inventory investments continues to be a top priority for distribution-centric durable goods companies. Greater inventory control comes from the ability to accurately forecast demand and inventory requirements at the customer level. With an integrated supply chain solution, companies can automate time-phased inventory policies to optimize investments and eliminate out-of-stock conditions. Improvements in both inventory turns and customer service levels are results you can count on.
Isn’t time for you and your team to take a hard look at your supply chain?