1. Streamlining the Supply Chain More Flow and Less Hold
Executive Seminar
September, 2005

2. Streamlining the Supply Chain
Moving product through the supply chain creates more value than holding it. What are the best strategies for increasing movement and reducing hold time?
How do you encourage crossdock and flow through shipments rather than pick-from-stock order fulfillment?
How important are demand planning and accurate forecasts?
What can vendors do to improve the product flow for their customers?
How should the supply chain network be configured to emphasize product movement rather than product location?
What transportation modes are the most effective in improving flow?

3. Supply Chain Model
When asked about their sales models, “push” versus “pull”, participants provided the following breakdown ...
A streamlined product flow would appear to be a requirement for at least 38% of sales and a very nice to have for the other 62%.

4. Product Flow – By-Passing Putaway
There are at least two basic routing strategies to streamline order flow. The first is to by-pass DC’s and the second is to crossdock or flow products through DC’s.
How do you increase the volume of product that can be crossdocked or flowed through a DC?
How can you increase the volume of product that can by-pass DC’s?

5. Revisiting – Gate-to-Gate Transit Times
Transitioning to crossdock or flow-through operations has a much larger impact than any other action to streamline product flow, if product must go through a DC.

6. Demand Planning and Forecasts
How important is an accurate demand forecast in streamlining product flow?
Primarily impacts the “push” component of sales?
Increases the opportunity to by-pass DC’s?
Impact on crossdock volume?
Who benefits most from an accurate forecast, buyer or seller?

7. Vendors – Product Preparation
How important is product preparation by vendors in streamlining inbound shipments? Should vendors be doing more?
... retail example

8. Crossdock Operations
Can vendors make more of a difference in streamlining their customers’ crossdock operations? Have customers maximized the potential opportunity to work with vendors?

9. Network – Revisiting Product “Touches”
Streamlining supply chains can be defined in terms of reduced product touches (as well as reduced inventory). How does reduced touches impact mode selection and shipment routing?

10. Networks Trends
How should a network be designed to reduce product touches?
More or less distribution centers?
More or less inbound consolidation centers?
More or less outbound pool distribution centers?

11. Routing Trends – International
The trend is to more containers built at vendors and deconsolidated at DC’s.
What is the most streamlined flow for ocean containers?

12. Mode Trends -- Domestic
It is not clear that transportation mode is moving to fewer “touches” in all cases. LTL to truckload and inbound pool is an improvement. Truckload to intermodal may not be, but it is likely lower cost.

13. Factors Driving Mode Changes
Transportation cost is the primary factor driving mode and routing changes, but the result could also be a more streamlined supply chain.

14. Streamline Supply Chain – Learnings
Accurate demand planning appears to the biggest lever for streamlining product flow.
Crossdock and flow through operations are key to by-passing the putaway process. Ordering behaviors and vendor collaboration could drive additional volumes through this process.
The trend is not towards fewer DC’s, at least in the short term.

15. Questions?