Six Figure Saving for a Leading Retail Sector Player – A Supply Chain Analysis Engagement

Client: A renowned player in the global retail sector, Size: >$10 billion in revenue, Area of engagement: Supply chain analysis

Overview of the Global Retail Sector

It is a transformative time for the retail sector globally. Shoppers are clearly in the driver’s seat, enabled by technology to remain constantly connected and more empowered than ever before to drive changes in shopping behavior. Across the retail industry, disruption of traditional business models has given way to transformative and unprecedented change to better serve more demanding shoppers and redefine customer experience. Transformations and innovations are happening faster and at a greater magnitude than ever before, presenting challenges for retail sector players who are accustomed to balancing conventional performance metrics like profitability, growth, and space productivity.

“Companies in the retail sector must look to make use of automated control management systems, to stay ahead of the competition.” 

In the era of new technologies and innovations, many different tools have emerged. The use of modern automated control systems allows an enterprise to record information about the volumes of sales. Additionally, the application of these systems helps analyze indicators quickly. These indicators can be the turnover of any product. The determination of the amount of buying for each product is necessary to preserve quality and avoid damage. Unfortunately, not all establishments understand the importance of automated control systems.

The Business Challenge and Journey

Client background: The retailer has over 500 superstores in the US and serves its customers through mail order catalogs, e-commerce, and contract businesses.

Client issue: With a huge amount of goods passing through its supply chain, the company needed to improve the flow and speed of goods while maintaining a high level of service. The client wanted a more flexible, scalable, adaptable, and cost-effective supply chain – both in the US and in origin countries.

Client journey:  The analysis provided the client with a base case that included current cost structure, lead time, and product flow. The client also identified business improvement areas across their supply chain and also benchmarked their process flow against other key competitors in the market.

Research methodology: The supply chain analysis experts at SpendEdge conducted a comprehensive research and carried out discussions with prominent stakeholders in the global retail sector to help the client develop a robust supply chain model and implement it successfully.

Key questions answered in this supply chain analysis engagement include

The Results

The customer put of the allocation decision, allowing for products to flow to the right place at the right time. This yielded savings on demurrage and detention bills by taking advantage of permitted yard time at deconsolidation. This also allowed the client’s own facility to hold less safety stock, freeing up capacity to accommodate future growth.

To know more about our supply chain analysis solutions