Distribution
Issue | Resolution |
---|---|
In-HouseMultiple distribution centers, scores of employees, and corporate delivery fleets. Must absorb the cost of products damaged and lost within the process. |
OutsourceNational distribution infrastructure zero cost. |
Shrinkage HorrorLoss of products between point of purchase and point of use. Surveys report loss of from 2% to 6% of spend. Causes of shrinkage include damage in transit or in storage, unauthorized use, theft, spoilage, variation, hidden loss, shipping errors, warehouse discrepancies, misplaced goods and vendor fraud. |
Shrinkage EliminationReported inventories are audited and guaranteed. Any loss due to shrinkage is credited to your GL. |
Freight ExpenseHigh frequency of multiple shipments effectively paying twice for freight, in to distribution centers / stock rooms out to end users. |
Freight SavingsCyclic environment aggregates shipments savings up to 40%. |
Picking ErrorsThe larger the enterprise employing multiple centers with scores of employees the more haphazard and inconsistent order fulfillment. |
Picking Accuracy99.998% accurate utilizing ISO 9001:2000 certified facilities errors statistically insignificant. |
Receiving ConfusionLabor intensive receiving orders daily to identify which final user each product is destined for, incorrect allocation is a major problem as cost centers billed for products not received effectively underwrite the operations expense for other cost centers. |
Receiving EleganceAn every day process is reduced to two hours per month. Every user receives correct product and allocation. |
Business RecoveryWhen it exists requires plan design and on going management. Requires additional secure off-site storage for mission critical products. Expensive to maintain and risks product spoilage and obsolescence due to lack of product rotation. |
True RecoveryBusiness recovery program: free. Utilizing VSB™ data and underground vaults the correct amount of product is stored and rotated. |