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Unveiling the True Value: Investment or Cost in Supply Chain Dynamics

Posted on 3rd December, 20232 min read

In the realm of business, decisions regarding investments are often met with scrutiny, particularly when it comes to enhancing supply chain efficiency. The question arises: is incorporating an Integrated Supply Planner (ISP)/Vendor Replenishment Planner (VRP) a strategic investment or an additional cost burden? Let’s explore this debate through real-world case studies that shed light on the transformative impact of ISP/VRP actions.

Case Study 1: Woolworths ISP Transformation

Actions Taken:

  • Support Buying Team execution through sharing & alignment of forecasts.
  • Promotional alignment.
  • Positive representation of our client within Woolworths.
  • Stronger engagement & ability to leverage relationships.

Results:

  • Pre-Strikeforce ISP Outbound Service Level: 87.74%
  • Post-Strikeforce SP Outbound Service Level: 97.05%
    • 9.31% increase in on-shelf availability.
    • $60K additional stock in stores per week.

Case Study 2: Woolworths ISP Boost

Actions Taken:

  • On-time execution of 3 new lines & 3 job buys.
  • Improvement of $80k per week in availability in Woolworths store sales.
  • Influence on WW promotional forecast increases, leading to increased sales.

Results:

  • Woolworths SF ISP – Day 1 Outbound Service Level: 90.77%
  • Woolworths SF ISP – Day 30 Outbound Service Level: 99.52%

Case Study 3: Coles Strikeforce VRP Triumph

Actions Taken:

  • Improvement of $200k per week in stock being delivered to Coles DC’s.
  • Excellent supplier and retailer collaboration – increased orders & promotional on-shelf availability.

Results:

  • Coles Strikeforce VRP – Day 1 Outbound Service Level: 69.03%
  • Coles Strikeforce VRP – Day 30 Outbound Service Level: 100%

Why Outsource?

  1. Cost Efficiency:
    • Cost savings compared to a full-time employee – Share the resource and significantly reduce your costs.
  1. Expertise and Knowledge:
    • Experience and knowledge – Specialists in the field of the demand chain, increasing efficiency.
  1. Increased Capabilities:
    • Increased capabilities and skills – Providing broader access to abilities and knowledge.
  1. Scalability:
    • Scalability – Can increase the team depending on requirements.
  1. Complimentary Access:
    • Complimentary access to the Strikeforce Portal included with our Strikeforce ISP/VRP Service.

Conclusion: The Strategic Impact of ISP/VRP Integration

The evidence from these case studies is compelling – partnering with an ISP/VRP is not merely an expense but a strategic investment that yields tangible results. From improved service levels to increased on-shelf availability and enhanced collaboration, the value of ISP/VRP actions is clear. When considering the long-term benefits, it becomes evident that embracing an ISP/VRP is a pivotal move toward optimising supply chain dynamics and achieving sustainable business growth. It’s time to view it not as a cost, but as a strategic investment that pays dividends in efficiency, collaboration, and overall business success.