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Why Collect Shipping Doesn’t Work for CPG Brands

Zipline Logistics

Collect shipping or customer pick-up (CPU) delivery options are an often promising solution for brands working with large, nationwide retailers. . While it may seem like a good idea, surrendering control of your supply chain in any way can cost your organization in potential fines, fees, and inefficiencies. .

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The Forecasting Accuracy Bugaboo

Logistics Viewpoints

Organizations then convert those demand forecasts to the associated quantities of raw materials to purchase, goods to be manufactured, or finished products to ship. In consumer goods industries, better forecasting leads to lower fines from retailers for late or incomplete deliveries. This increases sales.

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Freight Procurement is a Different Game

Logistics Viewpoints

Depending on the product, their customers are consumer goods companies, retailers, food service distributors and restaurant chains. A 95% on time delivery metric – very high performance – is just not good enough for Simmons. Simmons uses dedicated contract carriers, a private fleet, and brokers for their shipping.

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Mars Wrigley’s Highly Successful Supply Chain Digital Transformation

Logistics Viewpoints

Mars is one of the largest fast moving consumer goods companies in the world. For the largest retailers, short shipping results in fines and penalties. “I’ll Cost considerations include making sure truck utilization is high and ensuring that items that are closing in on their expiration date get shipped out.

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Challenges to Supply Chain Management

Elementum

Increasing Transport Costs A global lockdown meant that vast volumes of goods stalled in transit, and as consumers turned to online shopping to fulfill their needs, the demand for container shipping services increased dramatically.

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Inventory and forecast data from retailers: After your product ships (Part 2)

Alloy

It’s a very useful number that can itself signal action needs to be taken, such as if Units on Hand drops to zero, indicating a location is out-of-stock and additional product should be ordered or shipped. It’s calculated by dividing Retailer COGS by the average inventory on hand during the period. Gross Margin Return on Investment (GMROI).

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After your product ships (Part 1): Data retailers share and why it’s important

Alloy

But out of that weekly or daily data deluge, what are the crucial metrics? Unit Sales (Net) Unit Sales (Net) is the number of units sold from a retailer to a consumer, excluding any customer returns. Fortunately, most retailers provide data to help suppliers understand how they’re performing.