Comments on: The State of the Retail Supply Chain http://logisticsviewpoints.com/2009/12/21/the-state-of-the-retail-supply-chain/ Providing logistics professionals with clear and concise analyses of Logistics Trends, Technologies, and Services Wed, 08 Feb 2012 13:26:03 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Babbleware http://logisticsviewpoints.com/2009/12/21/the-state-of-the-retail-supply-chain/comment-page-1/#comment-133 Babbleware Tue, 05 Jan 2010 05:40:04 +0000 http://logisticsviewpoints.com/?p=2564#comment-133 Steve, Sorry for the late post - 15 days is equivalent to infinity in blog response times. Great blog. The interesting aspect is that retailers disclose that from the back of the store (think Fibber McGee's closet) to the shelf is untracked. Now consider that RFID has been pushed by WalMart and others because their own systems can't track from back of the store to the shelf. Isn't that just 10 - 300 feet? While it is an affliction of all retailers it is apparently their dirty secret. A CPG manufacturer delivers 98.6% of their goods on time as promised and reported while the Retailer only has a 94.3% in stock availability. Where is the 4.3% of inventory? In the void. As a CPG manufacturer I spend 17% of my Revenue on Trade Promotion but approximately 62% (or $3.16/case) of that is misspent: it arrives too early and is on the store floor prior to my "other" investments or it is too late - the promotion code is over. The amount of money misspent on trade promotions is staggering without considering the productivity gains and accuracy improvement available within and between trading partners. $2.13 per case of incremental, attainable, pure proft is the opportunity. The http://tinyurl.com/EvolutionBegins. Steve,

Sorry for the late post – 15 days is equivalent to infinity in blog response times. Great blog.

The interesting aspect is that retailers disclose that from the back of the store (think Fibber McGee’s closet) to the shelf is untracked. Now consider that RFID has been pushed by WalMart and others because their own systems can’t track from back of the store to the shelf. Isn’t that just 10 – 300 feet?

While it is an affliction of all retailers it is apparently their dirty secret. A CPG manufacturer delivers 98.6% of their goods on time as promised and reported while the Retailer only has a 94.3% in stock availability. Where is the 4.3% of inventory? In the void.

As a CPG manufacturer I spend 17% of my Revenue on Trade Promotion but approximately 62% (or $3.16/case) of that is misspent: it arrives too early and is on the store floor prior to my “other” investments or it is too late – the promotion code is over. The amount of money misspent on trade promotions is staggering without considering the productivity gains and accuracy improvement available within and between trading partners.

$2.13 per case of incremental, attainable, pure proft is the opportunity. The http://tinyurl.com/EvolutionBegins.

]]>