3rdwave Retail Sourcing & Distribution

An Industry Overview

Managing a global retail sourcing, distribution and/or private brand program is difficult to execute because it does not neatly fit into the traditional buying or logistics processes of the retailer. The requirement to manage a many-to-many purchase order environment over long lead times, great distances, multiple cultures and a myriad of logistics events' milestones increases the complexity of the supply chain geometrically.

The number and timing of new product introductions dictate the success of the retailer's private brand programs. The ability to manage the entire value chain to minimize expenses is critical. With consumers constantly demanding greater service at competitive prices the need to be able to collaborate along the entire supply chain and execute to insure maximum on-time order fulfillment becomes an imperative.

A solution should enable retailers to optimize, streamline and manage their supply chains, driving out any extraneous costs while minimizing product cycle times and maximizing on-time in-store fulfillment capability. The areas where gains have been most readily identified relate to reduced order cycle times, streamlined global business processes, very high available-to-promise fulfillment capability and superior estimate and actual landed cost management execution and control.

The ability to manage product order cycle times is now complicated with the Department of Homeland Security's global supply chain security initiatives. The global supply chain must comply with tighter regulatory filings and record management to avoid delays or complete rejection of shipments at the port of entry. For seasonal and other time-sensitive products, significant delays in clearing goods through customs couldl dramatically add to the landed cost and reduce profitability.