Streamlining Supply Chain and Logistics Management for a Global Retailer
PROJECT
CONSULTANTS
RELIABLITY
ENGINEERS
YEARS OF
PARTNERSHIP
CHALLENGES
The company faced stock shortages, excessive lead times, and inflated logistics costs. Additionally, they struggled to maintain inventory visibility across their distribution centres and retail locations, resulting in lost sales and increased operational costs.
THE OBJECTIVES
The key objectives of the project were to:
• Improve inventory visibility and accuracy across all regions.
• Optimize transportation routes to reduce lead times and shipping costs.
• Ensure a more agile and responsive supply chain to better manage fluctuations in demand.
• Enhance supplier collaboration and strengthen relationships with logistics partners.
OUR APPROACH
1. Supply Chain Assessment and Data Analysis
The first phase involved a comprehensive assessment of the company’s existing supply chain and logistics operations. Assetonix gathered data on:
• Inventory levels, order fulfilment rates, and warehouse utilization.
• Transportation routes, shipping costs, and delivery times.
• Supplier performance, lead times, and contract terms.
Using advanced data analytics, Assetonix identified several bottlenecks and inefficiencies, including:
• Poor coordination between suppliers and distribution centres leading to overstocking in some regions and stockouts in others.
• Fragmented transportation networks with overlapping routes, contributing to excessive fuel costs and delays.
• Limited use of technology to track shipments in real-time, causing inaccurate delivery predictions and poor customer satisfaction.
2. End-to-End Supply Chain Visibility Implementation
To address the lack of visibility, Assetonix implemented an integrated Supply Chain Management System (SCMS) that provided end-to-end visibility from suppliers to retail stores. This involved:
• Integrating existing inventory management systems with the SCMS to ensure real-time updates on stock levels across all regions.
• Implementing barcode scanning and RFID technology in warehouses to improve tracking accuracy and reduce human errors.
• Establishing a centralized dashboard for supply chain managers to monitor inventory movements, supplier performance, and order fulfilment rates in real-time.
3. Supplier Collaboration and Relationship Management
To strengthen supplier relationships and improve order fulfilment, Assetonix facilitated the implementation of a Supplier Relationship Management (SRM) system. This enabled:
• Improved communication and collaboration with suppliers by providing them with access to real-time demand data, allowing them to better plan their production and delivery schedules.
• Introduction of performance metrics to assess supplier reliability, lead times, and quality, encouraging a higher standard of service.
• Collaborative planning and forecasting initiatives to ensure that both suppliers and the company were aligned on inventory needs and replenishment schedules.
THE RESULTS
The project yielded significant improvements across the client’s supply chain and logistics operations:
• Inventory Accuracy
• Cost Reduction
• Improved Lead Times
• Supplier Performance
Streamlining Supply Chain and Logistics Management for a Global Retailer
PROJECT
CONSULTANTS
RELIABLITY
ENGINEERS
YEARS OF
PARTNERSHIP
CHALLENGES
The company faced stock shortages, excessive lead times, and inflated logistics costs. Additionally, they struggled to maintain inventory visibility across their distribution centres and retail locations, resulting in lost sales and increased operational costs.
THE OBJECTIVES
The key objectives of the project were to:
• Improve inventory visibility and accuracy across all regions.
• Optimize transportation routes to reduce lead times and shipping costs.
• Ensure a more agile and responsive supply chain to better manage fluctuations in demand.
• Enhance supplier collaboration and strengthen relationships with logistics partners.
OUR APPROACH
1. Supply Chain Assessment and Data Analysis
The first phase involved a comprehensive assessment of the company’s existing supply chain and logistics operations. Assetonix gathered data on:
• Inventory levels, order fulfilment rates, and warehouse utilization.
• Transportation routes, shipping costs, and delivery times.
• Supplier performance, lead times, and contract terms.
Using advanced data analytics, Assetonix identified several bottlenecks and inefficiencies, including:
• Poor coordination between suppliers and distribution centres leading to overstocking in some regions and stockouts in others.
• Fragmented transportation networks with overlapping routes, contributing to excessive fuel costs and delays.
• Limited use of technology to track shipments in real-time, causing inaccurate delivery predictions and poor customer satisfaction.
2. End-to-End Supply Chain Visibility Implementation
To address the lack of visibility, Assetonix implemented an integrated Supply Chain Management System (SCMS) that provided end-to-end visibility from suppliers to retail stores. This involved:
• Integrating existing inventory management systems with the SCMS to ensure real-time updates on stock levels across all regions.
• Implementing barcode scanning and RFID technology in warehouses to improve tracking accuracy and reduce human errors.
• Establishing a centralized dashboard for supply chain managers to monitor inventory movements, supplier performance, and order fulfilment rates in real-time.
3. Supplier Collaboration and Relationship Management
To strengthen supplier relationships and improve order fulfilment, Assetonix facilitated the implementation of a Supplier Relationship Management (SRM) system. This enabled:
• Improved communication and collaboration with suppliers by providing them with access to real-time demand data, allowing them to better plan their production and delivery schedules.
• Introduction of performance metrics to assess supplier reliability, lead times, and quality, encouraging a higher standard of service.
• Collaborative planning and forecasting initiatives to ensure that both suppliers and the company were aligned on inventory needs and replenishment schedules.
THE RESULTS
The project yielded significant improvements across the client’s supply chain and logistics operations:
• Inventory Accuracy
• Cost Reduction
• Improved Lead Times
• Supplier Performance
