Challenges You Face

Where are the disconnects in performance optimization?

• Product lifecycle times decreasing with increasing levels of make to order characteristics.
• Volatile demand for product increasing forecasting error and inventory obsolescence.
• Allocation of total logistics costs vs. actual supply chain costs resulting in sub-optimal purchasing.
• Margin erosion caused by leaner competitors able to locate, respond, and adapt with greater speed to market conditions.
• Changing labor markets and rising fuel costs adversely affecting sourcing decisions.
• Increased documentation and monitoring of supply chain cause by SOX and increased threat of supply disruption.
• Little or no segregation of inventory into push/pull philosophies.

Value You Receive

What does this mean for you stakeholders?

Customer Example: $3.1B Retailer with 2 sales channels (direct outsourced), 350+ stores domestic, 4 distribution centers, and 60% international sourcing contracted Idhasoft to develop a supply chain strategy to address uncompetitive gross margins, no visibility to actual (true) channel costs, and inconsistent product availability. The solution was to rationalize channel costs using Fourth Quadran™ that calculates the true handling costs for all product categories through each channels and delivery options available to customers and retail locations. Client merchants may now select the most appropriate channel to maximize gross margin return-on-investment from a product flow standpoint. Overall inventory levels were decreased while reducing the risk of stock-outs.