Collaborating with retailer customers helps manufacturers to more accurately predict consumer demand. They can then reduce inventory costs, and minimize rush orders, while simultaneously improving service levels and sales. They can also more closely align suppliers with their planning, resulting in more predictable supplies and lower costs. Through collaboration with manufacturers and suppliers, retailers can improve the service levels and partner relationships, helping to drive down stock-out conditions and increase sales. Realizing improved supply chain efficiencies also helps to drive down costs in the warehouse and the stores.
Collaboration is a win-win proposition.
It doesn't shift costs or complexities from one trading partner to another. It reduces demand uncertainty and increases operational effectiveness from one end of the supply chain to the other. You don't need to spend millions of dollars to get started, and the value mentioned above is realized quickly, in a matter of months, not years. The range of benefits are determined by a number of factors. Based on our industry-leading experience and on industry benchmarks, Syncra has developed a highly detailed value assessment methodology to help you identify the level of potential value you can expect from your investment in collaboration.