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| Posted: |
05 Mar 2008 |
| Published: |
01 Apr 2007 |
| Format: |
PDF
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| Length: |
27
Page(s) |
| Type: |
Book |
| Language: |
English |
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ABSTRACT:
As supply chains become increasingly more global in nature the ability to effectively manage a network of distribution centers is becoming a required core competency. Unfortunately, a surprisingly high number of companies that currently practice multi-site distribution are experiencing real challenges in this area impacting profitability. In a recent survey of 146 multi-site distributors, almost two thirds of companies report that their operations are moving in the wrong direction - costs have risen, and customer service levels have declined.
However, a small group of companies have mastered the art of managing a network of warehouses. These companies follow strategies which allow them to provide superior levels of customer service while at the same time containing costs. On average, Best-in- Class companies have:
- 99% or more on-time and complete orders
- Fewer than 1% of orders contain a line that is back ordered
- Lower inventory carrying costs over two years
- Reduced inventory write-offs for spoilage or obsolescence over two years
The firms enjoying Best-in-Class performance shared several common characteristics with respect to their multi-site order fulfillment capabilities. To achieve Best-in-Class performance, multi-site distributors must leverage the entire network to fill orders, and move away from dedicated use facilities, resulting in greater agility and improve levels of customer service; rather than "rip and replace" disparate WMS systems, use a Multi-Site Inventory Visibility platform to manage globally; and utilize warehouse and order management applications to enable Sales Order Splitting.
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BROWSE RELATED RESOURCES:
Customer Service | Supply Chains | Warehouse Management |
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View All Resources
sponsored by Sterling Commerce Retail Solutions |
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