Fixing Grocery Retail’s 10 Billion Dollar Problem

Analysis of 1.75 million retail DC appointments on one of the world’s largest supply networks reveals that US grocery retailers hold nearly $10 billion in excess inventory.

This inventory is held to buffer against poor OTIF performance. Retailers have started to impose fines on suppliers and carriers, which could total up to $5-10 billion/year

This report explains a simple solution that dramatically boosts OTIF performance and enables significant benefits for both suppliers and retailer, including:

Benefits for Retailers:

Reduced supply variability
Reduced inventories
Improved service levels to the stores
Increased Retail DC operational effectiveness and throughput

Benefits for Suppliers:

Reduced OTIF penalties paid to retailers
Improved customer service
Increased operational effectiveness of the customer supply chain
Reduced operating costs