Optimize and Orchestrate the Overall Consumer Goods & Retail Value Chain

Control Tower Example

A Control Tower enables customers to drive superior service and cost for both domestic, intra-company, and international moves and supports all transport modes: truckload, less than truckload (LTL), intermodal (e.g. ship, truck, and rail), air, parcel, and ocean.

It intelligently determines the legs based on advance shipment notices (ASNs) provided by suppliers, contract manufacturers, or based on Shipment Plans provided by a Freight Forwarder.

If a shipment is delayed, the Control Tower predicts the effects on the following legs and impact on the customer and alerts managers.

The traditional approach to planning limits the scope of plan creation strictly to sites owned by the Retail or Consumer Goods companies.

The pitfall with this approach is the supply chain nervousness transmitted up the chain. ERP solutions in the market are not able to solve this problem because they are limited by the batching planning paradigm which causes delays in actions and re-planning and does not minimize ‘bullwhip effects’ entirely.

Key Operational Benefits

• A comprehensive supply chain and logistics model that represents all parties, the network, and processes, from planning through execution, delivers real-time management of all supply chain activities
• Continuous and incremental supply-demand matching across the supply chain network
• The ability to identify in real-time issues impacting performance and resolve them quickly
• Advanced analytics, reporting, and insight, leveraging a single version of the truth to drive improved carrier, supplier, and personnel performance
• Improved supply reliability and reduced inventory risk
• Detailed tracking of transactional and resolution history for continuous improvement
• Detailed tracking and tracing of products ensures promises and commitments are met

Key Financial Benefits

• 1-8% improvement in inbound delivery performance and outbound customer service levels
• 20-30% improvement in forecast accuracy
• 1-2% increase in retail sell-through
• Reduced DC operating costs
• 30-50% reduction in premium freight costs
• 5-25% reduction in overall annual transportation costs
• 20-30% inventory reduction
• 20-60% reduction in manual planning, scheduling, and execution management overhead

Bonus Download: Includes Nucleus Research’s Control Tower Value Matrix For 2020