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One essential tool used by the supply chain team is supply chain design. One key tool they use to accomplish this is a supply chain design solution from Coupa. As Schneider Electric matured with the network design tool, they also found they could drive savings through shipment consolidation.
A 3PL (Third-Party Logistics provider) is a company that takes care of your logistics operations – everything from warehousing your products to getting them where they need to go. Robinson are great examples of major 3PLs that have transformed the industry. That’s exactly where 3PLs shine.
Of course, it can add up to a vast pool of data, so realistically, access to advanced modelling and analytics tools will be essential to get the most value from it. Its worth remembering, for example, that secondary distribution tends to generate higher transportation costs than primary distribution.
This was my chance to obtain a deep dive into OTTO’s decision to focus on production logistics – in contrast to the numerous autonomous mobile robotics (AMR) companies that focus on warehousing and fulfillment processes. And OTTO’s founders, Matt Rendall and Ryan Gariepy were available to tell all facets of the company story.
Companies annually spend about $325 billion on warehousing — and 85% of that cost goes to operating expenses that include labor, space and equipment. Let’s look at the example of an order that needs to go out by 5:00 pm, when FedEx or UPS is making a pickup. Warehouses also represent an enormous cost center. The result?
For example, Mr. Tamma explained, “for the BMW X5 model, we have a specific corresponding products ranging from 19-inch to 22-inch rim sizes.” This tool allows them to look at what has changed. Higher warehousing costs? In the Prestige tire segment, the company has a market share of over 50% in the OEM channel.
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