Minimize the total cost of the supply chain network while ensuring SKU x Store availability targets are met
Determine optimal order quantity by considering trade-offs between inventory holding and transportation costs
Conflicting KPIs among functional silos: store operations planning high availability through more frequent shipments vs. logistics reducing costs through more frequent FTL shipments vs. inventory management reducing inventory investment in the network
Fixed order schedules and static transportation planning limiting the ability to respond to seasonal or structural changes
No quantitative basis for network-wide improvement initiatives
Diverse SKU portfolio and vendor capabilities requiring different operating models and different planning parameters
Internally consistent planning parameters related to order frequency, transportation mode, flow path, and availability targets for each SKU
What-if analyses on the transportation cost and inventory investment to meet availability targets
Total Cost to Serve optimization with explicit trade-offs among inventory, transportation, and store operations
Savings in annual inventory and transportation costs while maintaining store shelf availability
$ 105 M
Recurring inventory & transportation cost savings
