Evolving Retail Standards: What Are You Planning for 2017?
The goods manufactured and shipped by retailers and CPG organizations certainly come in a wide variety, but these companies all have a number of key commonalities and shared challenges when it comes to their supply chain. At Transplace, as we continually look to gain insight into the concerns of our customers and meet their ever-evolving needs, it’s important to always be working to employ new processes on our part to fully support each and every customer.
Retail consolidation is one such process that’s also a current hot topic in the transportation industry. Let’s dive into the ins-and-outs of this process and find out how it can be beneficial for suppliers looking to enhance efficiency, lower costs and meet stricter compliance standards.
What challenges are retail and CPG companies facing?
In recent years, shippers have encountered new standards of velocity, market choice and cost for their products. The consumer, who is everyone’s end user, is demanding better variety (SKU proliferation) and expanded availability at the lowest possible cost – further increasing complexity and intensifying pressure on supply chains. This has created what some in the industry are referring to as “supply chain impatience.”
And in many CPG organizations, bracket ordering by customers, growing fees/accessorials and the potential for shipment damage are all growing concerns. Additionally, the industry is seeing a number of increasing compliance requirements for on-time delivery from many retailers, particularly big box organizations. This makes it critical for suppliers to focus on changing their fulfillment rules, optimization processes or communications with their carriers.
Change Management: Implementing Retail Consolidation
As common LTL carriers strategize the best way to meet consumer behavior, a true third party provider is able to implement supplementary measures to prevent supply chain disruptions. In addition to manufacturing postponement, a great approach is “Retail Consolidation,” namely a provider which will pool orders from various suppliers into a consolidated shipment to a retailer. There are a number of positive results to this methodology:
- Distribution network utilization
- Decreased claims ratio
- Increased speed-to-market
- Improved on-shelf performance
- Enhanced shipment visibility
- Inventory accuracy
- Improved days of supply
- Fewer fines or late fees
Retail consolidation can help shippers achieve the efficiency and precision they need with their shipments in the face of evolving compliance standards – and this, in turn, saves big on costs and potential fines.
How can Transplace help?
We understand the needs of shippers, especially in light of stricter, harder-to-meet compliance standards. And in turn, we put this knowledge to work to help all of our retail and CPG customers create the most effective cross-company initiatives possible.
As you’re planning for 2017, it’s important to consider new and effective transportation methods, such as retail consolidation, to give your supply chain the efficiency boost it needs. To properly implement an effective retail consolidation program, it’s important to work with a transportation partner who understands how to offer increased speed-to-market without sacrificing your budget.
Has your retail organization been thinking of utilizing a consolidation model?