unloading predictability. agenda objectives approach landscape challenges open discussion
TRANSCRIPT
Unloading Predictability
Agenda
• Objectives• Approach• Landscape• Challenges• Open Discussion
Objectives
• Document recommended unloading practices and evolve a whitepaper that can be used as a tool to approach a more efficient unloading process in a fair and equitable manner, inclusive of fair cost sharing recommendation
Approach
• Survey of retailers, wholesalers and manufacturers exploring current processes and initiatives
• Interviews with retailers, wholesalers, manufacturers and service providers
Landscape
Landscape
• History• Current State• Future Challenges• Key Initiatives & Challenges
Landscape
History• Delivered terms include “sort &
segregate”• Deregulation in 80’s eliminated ICC
maintained “store door delivery charges”
• Increased incentive for driver to “outsource unload”
• Spawned unloading service concept and need to manage unloading costs
LandscapeCurrent State• CPU is increasing but Pre-Paid still
predominant• Pre-paid load cost includes COGS,
Transportation and unload allowance• “Rebates” absorbing retailer support
costs add complexity• Retailer retained unload service
creates independent cost calculation and reconciliation process
Landscape
Future Challenges• Increasing load complexity as
retailers – Expand channels – “Localize” assortments– Introduce tailored product flows
• Impact of increasing “efficiency” programs bundling incentives & blurring visibility
• Evolution of “collaborative profitability management” supported by CTS solutions
Landscape
Retailer Intiatives• Demand forecasting• Collaborative planning• Enhanced flows
Retailer Challenges• Increasing SKU count• Increasing breakdown• On-time delivery
Supplier Intiatives• S & OP• Store based demand
planning• Inventory optimization
Supplier Challenges• Unloading cost
variability• Timely unloading• Increasing load
complexity
Challenges
Challenges
Unloading Cost Calculation• Unloading labor– Precisely calculable– Impacted by “exceptions”• Environmental• Business driven
• Overhead absorption– Tougher to calculate– Highly variable
Challenges
Issues impacting unload productivity
• Program driven procurement decisions
• Appointment scheduling• Drop-trailer programs• Flow requirements• DC configuration
Open Discussion
Discussion Topics
• Can we agree on industry wide processes for identifying and then calculating labor expense associated with unloading different load types?
• Can we Agree on a way to reflect “exceptions” and decide whether exceptions are a valid expense to be shared between trading partners?
• Can we agree on what fixed cost elements are fair to be included as part of a “rebate” component of the unloading allowance?
Discussion Topics
• How is unloading cost & effectiveness impacted by broader efficiency programs and are there suggestions for enhancing programs to drive mutual benefit?
• What process, system, organization and/or infrastructure enhancements would drive increased unloading efficiency?