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| Your industry : Distribution & retail |
Service & time sensitive, competitive |
Supply Chain Challenges & Initiatives
The supply chain of Distributors & retailers is core to their non-manufacturing business model. In face of increased competition and more demanding customers, they face a series of challenges:
- Managing stock versus depletion risk
- Managing product life cycles
- Promotional planning
- Planning for seasonal products
- Integrating with category management
- Determining cost-effective supply channels
- Planning capacities throughout the distribution system
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Real-life illustrations (public information, not necessarily linked to Atlas)
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Dollar General has built its current supply-chain strategy around seven key "sustainable capabilities" which brought a gross profit increase of 1.1% point with key supply chain improvements:
- Merchandise inventories rose 7% points less than the total retail square footage
- Annual inventory turns increased from 3.8 to 4
- Lower costs per load, higher miles per trip and greater efficiencies
- A reduction in transportation expenses as a percentage of sales
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