The supply chain is currently experiencing a big push back, and this can be seen everywhere from B2B customers demanding tailored packaging to big retailers like Amazon moving toward direct customer fulfillment. Throw in penalties for late shipments, and it’s easy to see how productivity and profitability are starting to take some big hits.
The Chief Customer Officer of Iptor Supply Chain Systems, Graham Newland, recently shared his expert insight on this matter with Digital Supply Chain. He emphasized the importance of identifying exceptions and managing them in order to make sure market growth does not eat into the bottom line.
As the bigger B2B customers continue to demand more and more, packaging and labeling that are tailored to each customer are becoming de rigueur. This requires more resources and time, and businesses need to have a firm grasp of the new cost model associated with the change. One way businesses can note big improvements is by focusing on making their decision-making processes faster and more effective.
Pushback in Fulfillment
Despite the incredible progress in agility and efficiency made by many organizations in the past several years, higher demands from customers are making fulfillment and supply chain models more complex than ever. Additional staff are now needed for picking and packing individual orders, and consumer buying habits are becoming less predictable, which means new models are needed.
Organizations should try to get their Customer on Time in Full (OTIF) levels somewhere in the range of 95 to 98 percent if they want to keep their reputation intact and avoid unnecessary costs. Getting there, however, is a bit complicated. Not only must inventory planning be top notch, but the agility to respond to unpredictable buying habits is also required.
As customer behavior continues to evolve, fulfillment experts need to stay on their toes. Companies that focus on effective systems to deal with the fact that exceptions are now becoming the norm will find themselves gaining a tremendous edge.
This blog post was based off an article from Supply Chain Digital. View the original here.