Supply Chain Challenges , Consumer Goods Logistics , Freight Transportation


Alex Stark | June 26, 2012

In retail distribution of CPG products, perfect is always the goal.  Accurate, on-time, damage-free shipments that keep retailers hyper-efficient at the receiving end.  No logistics firms are out there touting the benefits of "imperfect." 

But are there times when imperfect is good?

We think so.  

The biggest cost-saving opportunities in the CPG supply chain will not involve optimizing an individual company's distribution operations.  They will involve collaboration between retailers and their vendors on improved data sharing and revamping of order processes.  Like a newborn colt taking its first steps, this collaborative process will be awkward as new strategies are tried, adapted, scrapped, and re-tried.  Imperfect, even to the point of failure, is a necessary step toward progress.  We shouldn't delay initiatives until we've "got it all figured out."  

KANE is currently planning a Retailer Summit for October 2012 that will bring together large grocery retailers, select CPG manufacturers and industry experts for idea sharing.  On the agenda: lots of imperfect strategies that one day may change the way we do business.

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