Calculating Costs of Extending Real-Time Replenishment
Not quite ready for "instant information"? Try setting up real-time replenishment first.
But your supply chain keeps you up at night. Inventory carrying costs, inefficient shipping and spoilage are a drag on operating margins, and you cant bear to think about lost salesassuming, of course, you had the technology to do so. Right now, communication between restaurants, distribution centers and the corporate ordering hub is a patchwork of phone calls and end-of-the-day data feeds. You need help.
Youll need a consulting team to guide you through what you conservatively estimate will be a one-year implementation. The application will be Web-based modules for your existing collaboration suite. Youll need to upgrade the hardware and connectivity in some stores, and the consultants must help ensure smooth integration of everything from point-of-sales systems to corporate databases.
The results? A comprehensive CPFR system that will track demand in real time and streamline inventory, reducing costs in shipping, overhead, waste and lost sales. A 100% return on investment is typical in as few as six months, and just wait until you see your new operating margins. Better still, your supply chain will stay as fresh as your food. After all, its not their burger vs. your sandwich anymore.
Download the interactive Microsoft Excel file for this planner from the above .xls graphic link. Project owners should note that the prices shown are estimates; actual costs vary according to infrastructure, complexity, scale and corporate culture.