Speeding up the Flow of Inventory:
The Supply Chain Action Network™ (SCAN) leverages the Internet to enable real-time,
collaborative planning between distributors and their customers and suppliers.
What value does SCAN™ deliver to distributors?
Due to competitive pressures, distributor margins (already low to begin with) are now
razor thin. Distribution is by its nature a high volume, low margin business. Therefore,
any technology that can reduce inventory carrying cost and speed the flow of product
can yield tremendous bottom line impact.
Distributors are expected to provide exceptionally high fill rates on short lead time
notice. To accomplish this, distributors today are forced to rely heavily on forecasts and
inventory. And the longer the lead time from suppliers the greater the safety stock level.
SCAN™ compresses lead time out of both ends of the supply chain. Replenishment
demands and production requirements that are not covered by inventory appear as
action items on the planner’s To Do List automatically and in real-time. With the click of
a button these demands can be relayed on to the manufacturer’s To Do List.
A planning process that used to take days now takes minutes. Forecast and inventory
won’t disappear, but consider the bottom line savings of cutting safety stocks across the
board by two to three days!
With the Internet and SCAN™ order fulfillment rates rise as inventory costs shrink.
Technology has emerged as a competitive weapon.
|