Managing inventory at multiple warehouse locations across the region is challenging and can make product tracking and inventory planning a complicated feat for small- to mid-size CPG suppliers delivering to retail.To gain greater control over your retail supply chain, consider a one-inventory strategy.
Reinforced by Harvard’s Square Root Law of Inventory Management*, consolidating regional warehouse locations into one centrally located model creates the most effective route to retail by eliminating scattered inventory and redundant costs across the supply chain.
Suppliers reap the benefits of eliminated middleman costs when partnering with an asset-based 3PL that owns its warehouses and trucking fleet. This is because an asset-based approach removes additional fees passed on by 3PLs that outsource distribution services to other companies.
Also, through a one-inventory model, suppliers are able to significantly decrease labor charges and eliminate redundant overhead warehouse costs. With distribution control from a centralized location, suppliers benefit from preferred pricing and lower trucking rates - resulting from concentration of high freight volumes to and from one region.
By managing inventory in one strategic region, suppliers experience greater control and transparency over their supply chain – helping them achieve a more consistent product flow to store shelves and faster decision-making.
Working with a 3PL that manages both inbound and outbound transportation offers suppliers visibility, decreases lead times and improves performance levels to over 98% On-Time, 99% In-Full.
Real-time inventory tracking from a centralized location delivers the data-driven insights suppliers need to pivot faster. With access to real-time, on-demand inventory tracking capabilities through advanced analytics platforms, suppliers are armed with critical insights that empower better decision-making across the supply chain. From manufacturing facilities to retailer distribution centers, a one-inventory strategy accelerates transparency, improves efficiencies and drives overall performance.