The Distributor's "Tastes Great, Less Filling Challenge"
publication date: Jul 15, 2011
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author/source: Neil Gillespie & Allen Ray
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 | You have a Decision to Make:
High Fill Rates Or High Inventory Turns?
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Wholesale distributors face the same trade-off as
Miller Brewing Company tackled when they had to invent a beer that
tasted great yet was less filling. Those two things seemed impossible to
accomplish together, just like high fill rate sand high turns. We
talked about how it really IS possible to get great fill rates AND
great turns on your inventory.
But here's another choice you might need to make:
Would you like priority shipping and more liberal returns from suppliers,
or... use of world class purchasing and inventory management software for FREE? Many distributors
that use Vendor Managed Inventory (VMI) like getting priority shipping
and better return privileges from suppliers when they go on VMI. Plus,
the supplier automatically generates returns in most cases. Others
like using the world class forecasting, purchasing and inventory
management capabilities of datalliance's software and business process. The Decision? There really is none. When you go on VMI with a supplier, you get BOTH. Why is THAT a good decision? Because these two benefits deliver solid business results... Here's another example. Van Meter More Than Doubles Sales, while Decreasing Inventory! Here's
an example of a Midwest electrical distributor - Van Meter Industrial.
They implemented VMI with datalliance with Hubbell Manufacturing and
generated these sterling results: - Turns improved 46%,
- Net inventory dollars actually decreased
- While Sales increased 168% - that's over 2.68 times increase in sales
- Out of stock instances decreased 33%
On
a million dollars of sales, the improvement in cash generation for a
168% sales increase with the associated turns improvement is a half
million dollars. Van
Meter's results were real, although they may not be typical. Your
results may vary based on individual conditions, the suppliers you work
with and local market conditions. But VMI works when you become an equal
partner with your supplier and use datalliance's system and process.
Find out how. Join us for a webinar on Turns vs Fill Rates: How to Increase Both July 19, 12:00 EDT Click Here To Register https://www2.gotomeeting.com/register/998983490 |
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