Overcoming Retailers Delivery Requirements with Data Reporting

January 31 / US
Overcoming Retailers Delivery Requirements with Data Reporting

By: Mark McEntire, Senior Vice President of Operations, Transplace

Within the last few years, the rise of omni-channel fulfillment has dramatically impacted the retail industry and its vast supply chain networks. This next-gen inventory strategy has put pressure on businesses to meet growing consumer demands by having products where and when they want them. To overcome the challenges presented by these evolving expectations, major retailers are also evolving their business processes and increasing delivery requirements to keep pace with customer demand and gain a competitive advantage.

Retailers Adjustment to the Industry and Consumers Demands

One of the ways that retailers have increased their efforts to meet product demands and help streamline their operations is by implementing demanding supplier requirements for the delivery of shipments to their distribution centers (DCs) or directly to store locations.

This supplier requirement process has been put into place to help retailers improve delivery flow, cut inventory costs and ensure products are available at all times. The rules vary from retailer to retailer, but they typically penalize early and late deliveries or shipments not being filled as requested in the order – and leave non-compliant suppliers subject to fines.

Over the past few years, the requirements of these programs have become increasingly more demanding. For example, the Journal of Commerce recently reported, “as of April 1, 2018 shippers sending truckloads to one retailer have to deliver on the scheduled arrival date at least 85% of the time or face a penalty based on the value of the products shipped. That was a bump up from a 75% on-time requirement introduced in 2017.” Ultimately, the penalties can leave non-compliant CPG companies with significant impacts on their businesses bottom line.

How Can Suppliers Avoid Delivery Penalties from Retailers?    

To help meet the increasing demands from retailers put on today’s CPG shippers, Transplace has created The Weekly Supplier Performance Benchmarking Report. The report, which was constructed by Transplace’s Think Tank, currently includes data gathered from 28 suppliers to major retailers and identifies delivery performance statistics such as late, early and in full shipment percentages, all anonymously compared to other shippers participating in the program.

The main goal of the report is to help CPG companies better understand how their delivery performance compares to industry peers, and enables businesses to use timely market data to drive improvement within their supply chains. In addition, the analytics from the report provides critical key metrics which gives shippers the ability to address performance gaps in their delivery operations or records when supplying to these large retailers.

To date, the data from the weekly email newsletter has proven to be valuable for companies when meeting with retail customers or making strategic decisions regarding supply chain operations – and has also allowed for increased collaboration with peers and the sharing of industry best practices.

Are you interested in receiving The Weekly Supplier Performance Benchmarking Report in your inbox? Learn how you can get involved in the program here!

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