Retail Survival — How 3PL Leader Transplace Improves Predictability in Retail Supply Chain
Source: Innovative Retail Technologies
Experienced 3PL shares success, insight and key recommendations for delivering high-service performance levels, improved visibility and stronger order fill rates during the most challenging economic climate of record.
February 3, 2009 (Dallas, TX) — Transplace, a leading provider of comprehensive transportation management solutions and logistics technology, today announced key recommendations for meeting customer on-time percentage and order fill rates. In today's economy, meeting on-time performance levels and order fill rates is extremely critical when quantities constantly fluctuate and delivery target dates are rapidly changing. Transplace has achieved navigating these treacherous waters with some of the world's leading consumer packaged goods (CPG) companies, demonstrating that success is possible, but it requires constant contact between the CPG and its 3PL provider, as well as leveraging the power of predictability reporting tools.
According to Mark McEntire, director of operations, CPG for Transplace, "A top priority for our customers is to identify potential delivery failures as early as possible. We step in — providing visibility and data, which is then supplied to the customer from both a cost and service perspective. From there, it becomes actionable intelligence. Obviously, the desired result is not a failure, but we developed the tools necessary to predict those failures, communicate options to our customer and enable us to benchmark this predictability."
Providing mass customization of reporting options, Transplace arranges for customers to receive on-demand reports each morning that proactively tracks shipments over the previous seven days. This service helps companies analyze key performance levels. Transplace also works closely with customers to develop custom reporting tools that provide a detailed view of all loads and any potential violations that may occur prior to delivery.
"These reports identify the responsible party and the necessary response action. Transplace's deep knowledge and understanding of the consumer goods market really sets the company apart from its competitors. Our customers need that consistency and predictability, and these reports — at the end of the day — help them make better business decisions, and that is our primary objective," added McEntire.
Success starts with a stable routing guide followed by a close review of each carrier's on-time performance and acceptance rates. "Every day of the year, meeting on-time delivery requirements which, in turn, improves order fill rates is priority-one to Transplace and to all of our customers. It requires a collaborative effort between all parties," said McEntire.
In addition, Transplace highlights important steps for shippers to improve peak performance levels and order fill rates:
• Aligning performance scorecards: Key metrics around performance measurements must add up. Meeting regularly with customers to evaluate scorecards for closer alignment is critical. The goal is to assess opportunities that will reduce the avoidable costs and close performance gaps.
• Turning data into actionable intelligence: Once the performance scorecards have been compared and more closely aligned, the data enables better communication, collaboration and also much improved visibility into purchase orders, shipment pickup and delivery. This provides 360-degree visibility into the supply chain.
• Putting a customer service manager on site with the customer: This yields instant benefits as it facilitates real-time, reliable feedback to the team on all issues. The customer service manager also benefits with a better understanding of the culture and DNA of the company. A proactive partnership is created with the insight and perspective of a representative who shares this knowledge with the internal team, allowing for everyone involved to have an enhanced understanding of the key business drivers and overall strategy.
• Using event management: Setting flags in the transportation management system that can provide alerts for accepting loads and on-time pick, ship and delivery is another proactive tool to improve on time percentages and drive an increase in fill rates. "Most often success is measured by meeting the customer's first available delivery date every time, where a certain goal percentage rate is established. If this doesn't happen, Transplace is raising flags and we're working with the customer to figure out why and what we can do to remedy the problem before it gets out of control," said McEntire.
• Enhancing transportation predictability: Providing supply chain predictability is the key to a successful partnership with your retailer. When customers are not thinking about transportation, because the function has become more predictable and reliable, they are free to focus on other, more strategic areas of the business.
Transplace assists its customers with a focus on improving on-time performance and reducing fines associated with late deliveries where performance improvement positively impacts the bottom line. In addition, the amount of paperwork and labor associated with these tasks is reduced freeing up time for sales teams to focus more on strategic goals. The combination of reduced administrative costs and a significant reduction in the capital spent on fines helps to increase profitability or with assisting their customers in re-allocating this capital to a more productive part of their business.
Following these suggestions, customers also can see a reduction in safety stock, which in turn allows customers to drive more revenue to their bottom line. In addition, there is more opportunity to occupy shelf space, participate in promotions and collaborate with customers. Improved on-time percentages and order fill rates also allow vendors to cut down on the number of chargebacks received, causing a boost in sales, profitability and improvement in supply chain efficiencies.
"With improved on-time delivery and fill rates, shippers gain the favor of large retailers and have access to data that others can't see by being involved in their preferred supplier network," said Bill Hale, vice president of marketing and business development for Transplace. "The ability to prove transportation predictability for high-service performance and order fill rates alleviates the burden of investing and carrying safety stock, which directly improves the vendor and retailers' bottom line. By taking these measures for increasing performance levels, shippers see invaluable results across the board. Optimizing the compliance process has a profound effect on overall profitability."
Transplace's seventh annual Shipper Symposium will be held May 5-7 in Dallas. More information on speakers and sessions can be found at http://symposium.transplace.com. Early registration ends January 31. To learn more about Transplace, please visit www.transplace.com
About Transplace
Transplace is a non-asset based third-party logistics (3PL) provider offering manufacturers and retailers the optimal blend of logistics technology and transportation management services. From complete logistics management outsourcing to intelligent transportation management systems (TMS) to supply chain network planning and design to high-quality brokerage services, Transplace has proven the ability to deliver both rapid return on investment and consistent value to customers. The company is recognized among the elite 3PLs in North America by a customer base that includes many of the largest shippers in the world.
In 2008, Transplace was awarded with the Global Logistics and Supply Chain Strategies "100 Great Supply Chain Partners" distinction for the fifth consecutive year and by Supply & Demand Chain Executive as a "Top 100" provider in supply chain transformation for the fourth consecutive year. In addition, Transplace was recognized by Inbound Logistics as a Top 10 3PL for the sixth consecutive year.
February 3, 2009 (Dallas, TX) — Transplace, a leading provider of comprehensive transportation management solutions and logistics technology, today announced key recommendations for meeting customer on-time percentage and order fill rates. In today's economy, meeting on-time performance levels and order fill rates is extremely critical when quantities constantly fluctuate and delivery target dates are rapidly changing. Transplace has achieved navigating these treacherous waters with some of the world's leading consumer packaged goods (CPG) companies, demonstrating that success is possible, but it requires constant contact between the CPG and its 3PL provider, as well as leveraging the power of predictability reporting tools.
According to Mark McEntire, director of operations, CPG for Transplace, "A top priority for our customers is to identify potential delivery failures as early as possible. We step in — providing visibility and data, which is then supplied to the customer from both a cost and service perspective. From there, it becomes actionable intelligence. Obviously, the desired result is not a failure, but we developed the tools necessary to predict those failures, communicate options to our customer and enable us to benchmark this predictability."
Providing mass customization of reporting options, Transplace arranges for customers to receive on-demand reports each morning that proactively tracks shipments over the previous seven days. This service helps companies analyze key performance levels. Transplace also works closely with customers to develop custom reporting tools that provide a detailed view of all loads and any potential violations that may occur prior to delivery.
"These reports identify the responsible party and the necessary response action. Transplace's deep knowledge and understanding of the consumer goods market really sets the company apart from its competitors. Our customers need that consistency and predictability, and these reports — at the end of the day — help them make better business decisions, and that is our primary objective," added McEntire.
Success starts with a stable routing guide followed by a close review of each carrier's on-time performance and acceptance rates. "Every day of the year, meeting on-time delivery requirements which, in turn, improves order fill rates is priority-one to Transplace and to all of our customers. It requires a collaborative effort between all parties," said McEntire.
In addition, Transplace highlights important steps for shippers to improve peak performance levels and order fill rates:
• Aligning performance scorecards: Key metrics around performance measurements must add up. Meeting regularly with customers to evaluate scorecards for closer alignment is critical. The goal is to assess opportunities that will reduce the avoidable costs and close performance gaps.
• Turning data into actionable intelligence: Once the performance scorecards have been compared and more closely aligned, the data enables better communication, collaboration and also much improved visibility into purchase orders, shipment pickup and delivery. This provides 360-degree visibility into the supply chain.
• Putting a customer service manager on site with the customer: This yields instant benefits as it facilitates real-time, reliable feedback to the team on all issues. The customer service manager also benefits with a better understanding of the culture and DNA of the company. A proactive partnership is created with the insight and perspective of a representative who shares this knowledge with the internal team, allowing for everyone involved to have an enhanced understanding of the key business drivers and overall strategy.
• Using event management: Setting flags in the transportation management system that can provide alerts for accepting loads and on-time pick, ship and delivery is another proactive tool to improve on time percentages and drive an increase in fill rates. "Most often success is measured by meeting the customer's first available delivery date every time, where a certain goal percentage rate is established. If this doesn't happen, Transplace is raising flags and we're working with the customer to figure out why and what we can do to remedy the problem before it gets out of control," said McEntire.
• Enhancing transportation predictability: Providing supply chain predictability is the key to a successful partnership with your retailer. When customers are not thinking about transportation, because the function has become more predictable and reliable, they are free to focus on other, more strategic areas of the business.
Transplace assists its customers with a focus on improving on-time performance and reducing fines associated with late deliveries where performance improvement positively impacts the bottom line. In addition, the amount of paperwork and labor associated with these tasks is reduced freeing up time for sales teams to focus more on strategic goals. The combination of reduced administrative costs and a significant reduction in the capital spent on fines helps to increase profitability or with assisting their customers in re-allocating this capital to a more productive part of their business.
Following these suggestions, customers also can see a reduction in safety stock, which in turn allows customers to drive more revenue to their bottom line. In addition, there is more opportunity to occupy shelf space, participate in promotions and collaborate with customers. Improved on-time percentages and order fill rates also allow vendors to cut down on the number of chargebacks received, causing a boost in sales, profitability and improvement in supply chain efficiencies.
"With improved on-time delivery and fill rates, shippers gain the favor of large retailers and have access to data that others can't see by being involved in their preferred supplier network," said Bill Hale, vice president of marketing and business development for Transplace. "The ability to prove transportation predictability for high-service performance and order fill rates alleviates the burden of investing and carrying safety stock, which directly improves the vendor and retailers' bottom line. By taking these measures for increasing performance levels, shippers see invaluable results across the board. Optimizing the compliance process has a profound effect on overall profitability."
Transplace's seventh annual Shipper Symposium will be held May 5-7 in Dallas. More information on speakers and sessions can be found at http://symposium.transplace.com. Early registration ends January 31. To learn more about Transplace, please visit www.transplace.com
About Transplace
Transplace is a non-asset based third-party logistics (3PL) provider offering manufacturers and retailers the optimal blend of logistics technology and transportation management services. From complete logistics management outsourcing to intelligent transportation management systems (TMS) to supply chain network planning and design to high-quality brokerage services, Transplace has proven the ability to deliver both rapid return on investment and consistent value to customers. The company is recognized among the elite 3PLs in North America by a customer base that includes many of the largest shippers in the world.
In 2008, Transplace was awarded with the Global Logistics and Supply Chain Strategies "100 Great Supply Chain Partners" distinction for the fifth consecutive year and by Supply & Demand Chain Executive as a "Top 100" provider in supply chain transformation for the fourth consecutive year. In addition, Transplace was recognized by Inbound Logistics as a Top 10 3PL for the sixth consecutive year.
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