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Supply Chain Consulting with Wholesalers and Retailers

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Over the last few years AVLC consulting assistance to wholesalers and retailers in the supply chain management area has concentrated in five key areas.

1. COMPETITIVE SUPPLY CHAIN STRATEGY:

Analysis of alternative supply chain structures utilising a combination of own and third-party operations to shorten the lead time from supply of product to the market from the wholesaler or the retailer's RDC to a customer or store on either a same day or a next day delivery cycle. Implemented by linked information support systems to trigger activities and monitor performance combined with the use of real time tracking and tracing of vehicle deliveries.

2. APPLICATION OF DECISION SUPPORT SYSTEMS:

Use of existing data from EPOS, warehouse issues and purchases to determine both product and store/customer profitability. Development of tools and techniques used by category managers to determine product sale, promotion and seasonal stock holding strategies. The development of demand forecasting techniques to highlight the timing requirements for stock in warehouse and store. Significant inputs to the promotion process, plus determination of individual promotion profitability before a decision to proceed.

3. IDENTIFICATION OF PRODUCTIVITY AND COST REDUCTION OPPORTUNITIES:

Matching supply chain resources with product throughput, eliminating duplication of effort and restricting activities on slow moving products to productive purchases. Elimination of added value activities until absolutely necessary. Introduction of new, more productive operational techniques.

4. INTERNAL AND EXTERNAL CONTRACTUAL ISSUES AND PERFORMANCE:

Development of formal contracts for third-parties/fourth parties and service level agreements for internal requirements which link to a combination of resources used and performances achieved. Introduction of flexible and short-term contracts with logistics service providers including linking performance measures with penalty clauses and renewal systems. Industry standard benchmarking of customer service levels and costs.

5. LINKING INTERNAL AND EXTERNAL SYSTEMS APPLICATIONS:

Development and use of data warehousing technology to link internal and external systems to provide data not previously available (for example, retail buyers' merchandisers' could obtain stock visibility of stock and production plans at manufacturers, or stock location by quantity at various stages in the supply chain for imported products). The development of stock management and forecasting systems to support wholesalers and retailers to improve "efficient consumer response".

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