Supply Chain Management

Retailers recognize that they must deliver the highest levels of customer service in order to retain existing customers and acquire new ones. Highly effective Order Management is absolutely crucial to this objective. On the other hand, Retailers are under pressure to eliminate non-value-added tasks and human errors that drive up costs and customer dissatisfaction. Between these two goals, Perfect Order Execution slips through the cracks. Perfect Order Execution need not be a challenge to realize. There are two opportunities that Retailers can convert profitably. First, when buyers order. Across buying departments, it is likely that the orders are cut for the same vendor. Consolidation of merchandise by vendors can help realize several benefits. Using optimization models, advancing or postponement of merchandise can make a big impact to inbound flow to Retailer’s DC or direct-to-stores. In a traditional supply chain ordering occurs in a inflexible environment. Second, when orders are picked from vendors. Similarly, transportation is an area for resolving several constraints. Using a combination of forecasting techniques on vendor’s Availability-to-Pick along with route optimization models, Retailers can create flexibility for vendors and themselves. There is always room for improved capacity utilization. Supply chain network modeling can help Retailers balance on-time delivery KPIs with their Cost-per-Mile goals. Apart from making way for Perfect Order Execution, such strategies can lower transportation costs for Retailers while improving their bottom line. In two simple steps, Retailers can start transforming their Order Management practices to a notch up using principles of Perfect Order Execution.