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Operational Excellence: the "entry ticket" for any
serious efforts to improve relationships between trading
partners. |
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Often the
primary source for cost reductions - if profit
improvement or price reduction are critical business
goals, these concepts may provide the key. |
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Responsive Replenishment: drives inventory out of
pipeline; much faster response to unexpected shifts in
shopper buying patterns. |
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Less
direct impact on sales and market share than the demand
side concepts, except to fulfill the need to get the
right product in the right place at the right time. |
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Integrated Demand Driven Supply: when it is
possible, the key to extremely rapid response,
permitting production schedules to be more closely
aligned to actual consumer demand. To implement one
can't ignore the suppliers since on average a third of
the consumer price are ingredient and packaging costs
and these suppliers frequently dictate downstream
service levels. |
 |
Often
easier for companies to work together to realize the
benefits without getting into any issues regarding
trading relationship. |