Perspectives

the final frontier of supply chain optimization

2017 March 13

most retailers are missing out on a major opportunity for cost savings in their supply chain

It's not because the opportunity is complicated - quite the contrary.  The idea is so simple most retailers probably think it's already being handled.  But when you're talking about shipping from Asia, what you think is happening and what is actually happening with your packaging material, performance specifications and freight utilization are rarely the same. 

So, what do you do?

If you ask your team to optimize freight utilization, what do they say?

"We are focused on demand response and fulfillment - getting the product to the customer is the #1 priority."

"We have already standardized our cartons so they are supply chain efficient."

"Adjusting the number of items within a carton will require some complicated change management."

"We know we ship a bit more air in the transit packaging than we want, but we can't ask suppliers to keep an infinite number of box sizes to fit any possible variation."

Does this sound familiar?

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These are real barriers for global retailers but they are not insurmountable.  The reality is even the most well managed retailer has some blind spots simply due to the sheer volume of SKUs moving through the business.   Your business is selling product to consumers, not managing logistics.  

At the same time, you might be leaving millions of dollars on the table because of this blind spot.  In a tight retail market, can you afford it?

Download the full report here to understand what you can do to tap into those savings.

The Final Frontier - Minimizer Report PDF

File size: 1.75 MB


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