A trusted wildlife and pet food manufacturer encountered challenges while using a major global retailer’s Collect Program. In a Collect Program (CPUI/FOB), the retailer assumes responsibility for moving goods from the supplier’s location to their distribution centers at the supplier’s expense (freight factor). The transportation spend is calculated into the supplier’s cost of goods (COGs). Although the program is designed to streamline supply chain processes, the manufacturer found that it required more hands-on management and resources than anticipated. They also experienced poor delivery performance resulting in low in-stocks, which led their buyer to remove three SKUs from the shelf. To address these challenges and enhance efficiency, the company decided to explore alternative logistics solutions, eventually opting for RJW’s Prepaid Retail Consolidation Program. In a Prepaid Program, commonly referred to as delivered pricing, the supplier delivers product to retailer DCs, overseeing the transportation. Pricing starts with factory pricing, or first cost, and adds the cost to move merchandise through a 3PL’s facilities (RJW) to arrive at delivered cost, or final cost.
The manufacturer transitioned from the retailer’s Collect Program to RJW’s Prepaid Retail Consolidation Program. By optimizing shipments and reducing the number of individual deliveries, RJW’s Retail Consolidation Program decreases safety stock, dramatically reduces product shortages, simplifies replenishment and ensures that products are delivered On-Time, In-Full.
This strategic move provided a more streamlined and predictable supply chain, reducing the labor and resources needed to prepare and ship the producers’ products.
“In the Collect Program, we struggled with [getting] product out of our warehouses and completing all of the paperwork. Since we’ve partnered with RJW, our paperwork has pretty much disappeared. There’s minimal work that we have to do and minimal labor needed too.”
– SVP of Sales and Marketing
With RJW’s Prepaid Retail Consolidation program, the manufacturer also benefited from advanced technology tools like RJW Edge and Guru, which simplify deduction resolution, drive data-informed decisions and enhance supply chain visibility.
“We felt that RJW has the best technology and processes of any of the 3PLs out there.”
– SVP of Sales and Marketing
The switch allowed the company to reallocate resources more effectively and focus on optimizing other areas of their operations.
Since adopting RJW’s Prepaid Consolidation Program, the wildlife and pet food manufacturer has experienced significant improvements in operational efficiency.
Most notably, its in-stock levels increased to over 98%, and the company secured four additional SKUs with the retailer within the months following the change.
The transition also led to a reduction in labor needs, now only requiring a few hours per week from one employee instead of a team with multiple full-time people. These changes have contributed to more stable margins, better forecasting, and overall supply chain stability – resulting in stronger sales performance.
“We were running in the low 80s [for in-stocks], and actually lost [SKUs] because of that. We had to clean up our act so to speak, and we were able to do that with RJW. Since then, we’ve gained shelf space for some of our items and our in-stock performance is running around 98%.”
– SVP of Sales and Marketing
The wildlife and pet food manufacturer is eager to build on this success by continuing to leverage RJW’s extensive retail logistics solutions. With a focus on achieving best-in-class OTIF scores and expanding SKUs, the company looks forward to driving their business forward with RJW’s expertise.
“RJW is hands down superior to other third-party providers.”
– SVP of Sales and Marketing
Optimize your supply chain. Grow your business.
Partner with the Retail Logistics Expert.
Optimize your supply chain. Grow your business.
Partner with the Retail Logistics Expert.
