SUPPLY CHAIN SERVICE STRATEGY

50 | R i g h t S e r v e ™ Consumer Products Supply Chain Service Strategy One of our clients is a global provider of consumer products. Their research, development, and product innovation are world renowned. Unfortunately, their supply chain innovation was not keeping pace with their product innovation. The disconnect was creating product shortages and supply chain costs well above their industry’s norms. We were retained to develop and implement a methodology and tool set that would help their supply chain keep pace with their product and marketplace innovation. After a rigorous weeding out of their under-performing SKUs, we worked with them to craft a supply chain service strategy that allowed them to work collaboratively with product and marketplace development andmaintain profitability. The strategy is illustrated in Figure 3.23. Their channels include distributors, customer direct, and retail. ABCD customer strata are distinguished for distributors and customer direct. The strategy specifies targets for fill rate, on time shipping, shipping frequencies, returns policies, value added service offerings, and safety stock levels. The strategy even specifies tailored supply chain planning models. It is one of the most comprehensive and effective supply chain service strategies operating in global industry.