Pressures within the Retail supply chain to reduce costs while increasing both item and delivery compliance, has defined how we create value for our clients. It is now considered a normal practice to leverage fines to a vendor for product compliance issues, order fill rates, delivery creation deadlines, delivery time & label compliance. An importer of consumer goods today needs to be creative to keep costs down. Ocean container rates have increased while per unit purchase prices remain unchanged. We at PiVAL know that it is important to communicate any opportunity for competitive advantage to our customers since we see & handle their goods in our care. We take every effort to add value by recognizing unique cost saving opportunities to our customers as we see them.
One of our clients imports bags of various sizes and they were challenged to create savings in their Supply Chain. We recognized that this product could be nested, one inside the other, for the purposes of doubling or tripling the piece count per ocean container which would allow them to import that much more inventory per ocean container cost. This effort however needed to ensure a net savings given that the labor costs to unpack the items if shipped this way is far different than the offshore labor costs for packing that way. The desired result was achieved though process controls, shop floor layout & conveyor design that achieved a cost per unit handling rate which supported an overall reduced cost. To support this effort we created visibility through our WMS (Warehouse Management System) & RF (Radio Frequency) scanning processes to track inbound nested items from receiving though the rework process into shippable items.
This visibility also enabled our clients Supply Chain Team the full control of the outbound order process, including cost accrual in synchronization with labor cost & receivables. We also added in EDI connectivity to enhance speed and data accuracy which achieved 100% ship ratios including label compliance and appointment management services.
This enabled our client to sell into the big retailers knowing our abilities to handle the complexity of Tier 1 retailers.