Fixing Grocery Retail’s 10 Billion Dollar Problem
Analysis of 1.75 million retail DC appointments on one of the world’s largest supply networks reveals that US grocery retailers hold nearly $10 billion in excess inventory.
Analysis of 1.75 million retail DC appointments on one of the world’s largest supply networks reveals that US grocery retailers hold nearly $10 billion in excess inventory.
This inventory is held to buffer against poor OTIF performance. Retailers have started to impose fines on suppliers and carriers, which could total up to $5-10 billion/year
This inventory is held to buffer against poor OTIF performance. Retailers have started to impose fines on suppliers and carriers, which could total up to $5-10 billion/year
This report explains a simple solution that dramatically boosts OTIF performance and enables significant benefits for both suppliers and retailer, including:
Benefits for Retailers:
- Reduced supply variability
- Reduced inventories
- Improved service levels to the stores
- Increased Retail DC operational effectiveness and throughput
Benefits for Suppliers:
- Reduced OTIF penalties paid to retailers
- Improved customer service
- Increased operational effectiveness of the customer supply chain
- Reduced operating costs
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