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Capital Optimization Gain
Background
With retailers operating low cost, low inventory supply chains, increasing pressure bears upon their suppliers to provide them with what they want when they want it and how they want it. The benefits from such a Quick Response Service (QRS)
Environment has increasingly led powerful retail organizations to demand that their suppliers confirm to accommodating 100% customer service levels with lead times from order to delivery becoming a major issue.
In the context of these demanding service requirements, manufacturers need to take a proactive response in engineering their supply chain operations to accommodate QRS and develop meaningful strategic partnership with their customers.
Description
COG is a proactive program that enables companies to optimize the utilization of total supply chain resources in meeting 100% customer service levels and shortened lead-time targets, creating the benefits of true partnership opportunities.
Methodology
The methodology employed is designed to engineer the most appropriate supply chain environment for QRS and 100% customer service, and at the same time, initiate strategic supply chain partnership with selected retail customers. There are 5 principle elements:
Supply Chain Audit to determine the
manufacturers ability and
specific requirements
for delivering 100% service level and shortened lead times.
Supply Chain Modeling to create an infrastructure to achieve the
QRS environment
and to determine the nature of any consolidation facilities.
Operational Testing to evaluate the
robustness of the re-engineered supply chain in
accommodating fluctuating demand patterns within each retail customers business.
Cost/Benefit Analysis to determine the
payback for both sides in
the partnership.
Pilot Initiatives independently
monitored and fine tuned by Spectrum Planning with
selected customers, that commences operation of the QRS environment prior to a
full roll-out
Benefits
At the conclusion of the COG program, the company will be in a position to develop meaningful supply chain partnership by taking a proactive stance with its major customers in implementing a QRS supply Chain environment, with the ensuing benefits of lower inventories, reduced storage facility requirements, 100% customer service, and the ability to accommodate short lead times.
(Please Refer Achievements for details of projects)
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