The savings that must be gained through efficiencies in the supply chain to meet the financial goals of Fast Moving Consumer Packaged Goods (CPG) manufacturers will be driven by moving to a Demand Driven Supply Network (DDSN). Market6 enables DDSN by providing the infrastructure to manage the “last mile” of the supply chain.
Market6 provides retailers with advance information on consumer demand for each of their stores, while forecasting expected response to upcoming promotions and other demand-driving events. This data aggregation provides critical insight into upcoming consumer demand, and highlights products expected to show increased demand as a result of pricing, promotion or external demand driving events such as weather or sporting events.
To balance inventory throughout the supply chain, the Market6 system identifies items which may already have excess inventory at the store level, and anticipates the selldown of existing stocks before warehouse replenishment is required. Introduction of new products can be tracked to determine if full distribution has been achieved and when reorders should be expected.
Working with Market6, the benefits of a Demand Driven Supply Network for CPG manufacturers include;
- Improved fill rates (3 to 5 points)
- Increased inventory turns (10-20%)
- Reduced plant expediting & overtime (5-10%)
- Improved forecast accuracy (15-20%)
- Total trade spend savings (10-20% of trade budget)
Source: Booz Allen Hamilton
