Download Fixing Grocery Retail’s 10 Billion Dollar Problem

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