November 02, 4:30pm - 5:30pm
E-commerce and omni-channel fulfillment are sending ripples through the supply chain, from retailers to distributors and manufacturers. Mounting pressure is pushing more inventory upstream, driving smaller shipment sizes direct to customers, and calling on manufacturers to process and handle smaller and more frequent orders. Costs are mounting accordingly. Yet most manufacturers lack insight into the new cost of serving customers. Instead, they are relying on outdated per unit costs based on large shipments to distributors and are inadvertently pummeling their own margins.
Attendees of this session will learn:
- how freight rates are expected to move over the next 12 months;
- anatomy of costs associated with direct to customer order fulfillment, smaller shipment sizes, and shorter timeframes for inventory replenishment;
- strategies for influencing cost to serve through optimized inventory, facility placement, and collaborative shipping with other manufacturers; and
- best practices for deconstructing the components of true costs to obtain an accurate calculation and identify opportunities for efficiency gains.