Raise operational standards and customer loyalty.
“Greater than huge” describes the proliferation of SKUs in the automotive industry. Distribution operations must deliver these parts pronto – to retailers, repair shops and to consumers. Nobody wants to wait. Out-of-stocks are not tolerated. To provide excellent customer service, distribution operations must achieve the highest levels of accuracy, operational efficiency and precision performance.
And there’s the challenge of balancing service with increased costs. Smaller orders are turning once-per-week replenishment into a daily occurrence, with more frequent runs that can dramatically increase labor and transportation costs. Distribution centers need real-time access to other supply chain data, including sales forecasts and fulfillment plans, which can empower them to properly align personnel allocations with customer demand and avoid overtime.