Supply Chain Routing: VDDW Corporate Performance Management Initiatives for Results

RESULTS: Initiatives > Supply Chain Routing



	Initiatives: Overview Pricing Supply Chain Routing Planning & Budgeting Return On Advertising NOP–driven Negotiating NOP–driven Commission & Incentives Sku Rationalization Customer Profitability Market Segmentation Partner and Product Benchmarking Improved Category Management Staffing efficiencies Process Costing

Trading partners have numerous options around how to move goods from one to another, and those different options come with different economics. Pick-up or deliver? Route through a Distribution Center or ship direct? 3rd party managed or in-house? Consolidate slow movers into a single warehouse? Let the vendor manage the inventory, or do it ourselves? Scan-based trading? Inventory Consignment? Rent temporary offsite warehouse space, or buy? Manage our own fleet, or contract with a 3rd party? Implement an automated conveyor system, or not?
The options on how to configure the supply chain can be dizzying, with numerous financial tradeoffs that need to be considered. Now add the following level of complexity: Are all customers, products, and suppliers the same? Are there advantages to dealing differently with different customers or suppliers? Are different skus better suited to different paths, and if so which ones should flow down which paths?
Making these decisions requires a thoughtful and thorough analysis of the following:
1. The processing requirements, variables, and costs associated with flowing a given segment of the business down one path versus another.
2. The capacity constraints, and cost of additional capacity, for different paths.
3. The terms and prices of alternative arrangements offered by trading partners.
The VDDW delivers the content required to illuminate such decisions. It reveals process costs, the variables which drive those costs, the rates of capacity consumption and constraints on capacity, slice-by-slice, for every segment of the business, by product by supplier by customer by channel by facility. In so doing, it provides the foundation needed for intelligent comparison to the terms of trading partners’ offers so as to make the routing decisions that are best for the company.