Pain-free distribution or…
Silly decision?
A retailer operates a spoke-and-hub distribution model to keep products moving from its suppliers to its stores. But its logistics team wants to do even better, and decides that sending whole product palettes to its smaller warehouses will boost overall efficiency.
But disconnected planning means they don’t discuss the changes in depth with the rest of the business, so their well-intentioned idea has unintended consequences…
The problem is, some of their products, including over-the-counter medicines, are very small. So every palette contains a huge quantity – which is going to take a long time to get through. In fact, each of their small warehouses ends up with £250k of paracetomol, tying up a whole lot of working capital and causing the company a real financial headache.
It’s another classic example of a bright idea backfiring because of disconnected planning. But it doesn’t have to be that way. By implementing integrated business planning (IBP), you can join the dots within even the most complex business, bringing teams together to make better informed decisions that make sense for everyone. And at Fidenda, we’ll support you all the way.
We’re better in person
Like to find out more about what IBP could mean for your business? We’re here to help. Talk to us about your planning challenges and we’ll create a roadmap to real, transformative change.
