Supply Chain Use Case: Direct Plant Ship
Use Case Objective:
Determine if Direct Plant Ship has a positive effect on COGS reduction and/or service level improvements.
Use Case Benefits: COGS can be reduced if product is procured from the vendors manufacturing facility vs vendor’s mixing center or forwarding warehouse. Potential reduction in lead time and/or improvement in service level with full pallets/full trucks coming from the DPS plant.
Process/Analytical Steps:
Metrics to Review:
1. Collect vendor data: Shipping locations, COGs, allowance and potential ADUSA warehouse locations. 2. Collect product data: Ti Hi, brackets, forecast (potential leave behind items/volume) 3. Determine if opportunity is year-round or seasonal. 4. Reach out to the efficiency team about potential DPS opportunity to tie them into the conversation. 5. Work with the ISA team to have them evaluate the DPS items and any leave behind items and volume. Tie in the control tower to ensure full pallet/full truck ordering does not overload the warehouse capacities. 6. Work category team on new vendor number setup for DPS opportunity. Vendor sends over necessary paperwork to category. 7. Monitor service levels for improvement.
• Verify Capacity from Control Tower/ISA team • Monitor service level after DPS implemented • Partner with efficiency team to provide DPS savings.
Teams to Involve/Collaborate:
• Network Optimization/Control Tower • Efficiency team • In-stock team • Vendor • Category team
Return to Use Case List
24
Made with FlippingBook - professional solution for displaying marketing and sales documents online