How to ‘buy’ an effective Supply Chain and Distribution structure
for summer – Christmas 2009

This week’s preparation article for summer – Christmas 2009 is number 9 in the series; it is hoped that our preparation articles are helpful and useful in planning summer – Christmas 2009 success strategies.

1. How to ‘Open to Buy’ for volatile trading conditions…
2. How to ‘buy’ sales and profit growth
3. How Buyers ‘buy’ and are made accountable for space.
4. Buying on-line customers
5. Buying Retail Space
6. How to ‘buy’ Advertising
7. How to ‘buy’ sales productive store teams
8. How to ‘buy’ Low Shrinkage
9. How to ‘buy’ an effective Supply Chain and Distribution structure
10. How to ‘buy’ a 2009 retail hardened technology solution (next week)

How to ‘buy’ an effective Supply Chain and Distribution structure for summer – Christmas 2009 will sit at the heart of your successful summer – Christmas selling season.

Some Supply Chain points for review, consideration and change;

• Lowering China / off shore days from order to floor by a week.

• Running with two weeks lower stock levels

• Increasing real time visibility of stock from order to sale and replacement.

• Tracking orders from source to shop floor in real time.

• VC, Video Conferencing minimum SKYPE style between Buyer and Manufacturer / Importer.

• Reducing DC and Distribution Costs by 5%

• Having EDI ORDER / Order Change / Order Confirmed / ASN (Advance Shipping Notice) communication documents embedded even on indent ranges.

• DC’s EDI and RFID Competent

• 3PF – third party distributors EDI and RFID Competent

The Third Party Alternative

External Options

Third Party Providers exist to assist those suppliers who for a number of reasons may choose not handle bar coding and  Electronic Trading task internally and/or the physical logistics services

·         3PP provides seasonal overflow services

·         3PP provides EDI and Scan packing services only

·         3PP provides all warehousing, EDI & Scan packing services

·         3PP provides 1^st step to retailer eCommerce compliance

Why Do Companies Use 3PLs?

1.      Supply to retailer is infrequent

2.      eg. Christmas, Mothers Day.

3.      Supply to retailer is highly seasonal

4.      eg. 4 major orders per annum

5.      Suppliers existing facilities do not have capacity to handle retailer task

6.      Supplier does not have internal computer skills to meet requirements

7.      Supplier may wish to outsource all their logistics requirements (warehousing, eCommerce, transport etc)

What are the Benefits of using a 3PL

1.      Suppliers can focus on their own business

2.      Suppliers do not need to outlay capital for Electronic Trading Systems

3.      Suppliers pay on a “pay as you use the service” basis

4.      The real cost of providing the service is visible

5.      The 3PP has the computer systems and experience to handle the task

6.      3PP has the physical logistics service experience and facilities

Other Operational  Benefits

1.      The 3PP keeps abreast of updates to the Electronic Trading Systems

2.      The 3PP manages the EDI messaging relationship

3.      The 3PP has a pool of trained operators skilled in the EDI and scan packing systems

4.      The 3PP can handle significant variations in order throughput

5.      The 3PP manages the labour required to handle the task

6.      The 3PP arranges transport and liaises with the retailer Distribution Centres and stores

What to look for in a 3PL

Expertise & experience in bar coding and scan packing

1.      Experience of 3PP in handling your type of product

2.      Experience with retailer eCommerce systems

3.      Capacity to handle peak periods (order variations throughout the year)

4.      A computerised Warehouse Management System (WMS) that can interface with ERP/Accounting System

• RFID ‘bar-code source marking’ + EAS for high risk loss of sales and shrinkage items.

• Separate Distribution Points Sydney North and Melbourne South with feeder distribution points for bulky goods Perth, Brisbane and Northern Queensland where necessary.

• Style Life Reporting for ‘fashion risk’ product.

• Maximum four day replacement basics and semi basics; two days replacement prime Christmas trading.

The RETAiL Alert Group and its Supply Chain partners are ready to support the above objectives.

Email Supply Chain summer – Christmas 2009 to set a discussion meeting.

Tony Standley

Principal
The RETAiL Alert Group (Australia)
Mobile +61 (0)41 924 0497
e-mail info@adsass.com.au
Fax +61 (0)2 9987 0633
Website http://www.retailalert.com.au
 
THE PEOPLE WHO GET RESULTS.................