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Question
when the goods are prepared to be delivered from the DC to the retail stores, what are the procedures after the stores receive the goods? What are the duties of the staff of the stores? And Is it necessary for the retail stores to send a confirmation receipt to the DC to inform the delivery of products?

Besides, we hired a transport company to support local delivery to the retail outlets. However the contractor has a fair performance with a 90% on-time delivery rate. How can the contracted transport company achieve 100% on-time delivery?

Thank you~~

Answer
Hi Gabi -

Procedures for receiving goods are usually tailored to the type, size and internal priorities of the retail outlet. There isn't a one-size-fits-all approach, at least not that I know of. In general, retail stores will receive goods and immediately place them in an on-site storage area, which in small stores may only be a back room. Then during low-volume times, for instance at night, the staff will restock and face the shelves.

There can be distinctions for special pack product, like end displays or by register-boxes -- but these are usually documented via legal agreements between the retailer and the vendor.

Now let's talk about receipt of goods. Someone should confirm receipt, but the retailer doesn't have to be responsible for it. Instead, the broker can handle it, or the trucker can have the retailer sign an acceptance document. Some brokers and vendors offer (for an extra charge) the service of forced signed acceptance so the truck doesn't deliver the product and leave without anyone accepting it.

Now let's talk about performance. How can a transport company achieve 100% on time delivery? Usually this isn't economical for either the transport company or its customers. Why doesn't Wal-Mart use FedEx to ship it's products from DC's to stores? You see what I mean?

So instead of going that route, you've got to determine the root cause(s) of the poor performance. Look to your own company first. Are you are booking the container pickups within the transport company's lead time? Are you on-time when the outbound trucks arrive at your DC? Does your equipment load the container onto the semi within tolerated specs? If everything is fine here, then talk with your transport company. They should be able to give insight into any internal delays that aren't readily apparent.

If they have no idea why, then you might try other things like booking your pickups farther into the future and allowing extra time in your planning for delivery. If you keep expanding this, you will increase your accuracy, albiet at a cost (more inventory in holding and in-transit).

Finally, you can always engage the services of another transport company. You should get references and check them out first. In addition, you might also want to add a punitive clause to your contract -- in essence penalties for underperformance.

I hope this has been helpful! Please reply if I can clarify anything.
-Israel  

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Israel B. Bentch

Expertise

I can answer questions about Supply Chain Planning; specifically in demand forecasting, inventory and supply management, promotions modeling, and manufacturing planning. My knowledge is greatest in the area of Manufacturing Planning. I have modeled many processes such as multi-echelon manufacturing, short shelf life finished goods manufacture, the manufacture of goods with extremely long lead times, raw materials consumption, and plant closures/openings. In addition, I can advise on various methods of manufacturing capacity planning and load leveling to minimize labor turnover. I have experience in demand forecasting as well. Specific issues on which I can advise are: optimal customer, item, and location groupings, modeling trend, seasonality, and variability, distribution center closures and openings, and historical sales realignments. In supply planning, I can provide recommendations for planning optimal inventory levels, master data requirements, distribution network modeling, and promotions integration. Finally, most of my experience has been modeling the above topics using the Logility software suite, MS Excel, and sometimes with custom software. I cannot answer questions related to procurement, transportation, 3PL management, cost/price management, or technical questions related to any software other than mentioned. Furthermore, I cannot comment on topics such as heuristics modeling, packaging issues, or international distribution.

Experience

I have been a private consultant working with supply chain management, providing expert business and technical services since 2000. I've advised and worked on projects covering everything listed in the "What kinds of questions can you answer" portion of this form. See below for a time-line. 2007-2010 - Contracting with Butterball, LLC. 20022007 - Contracting with ConAgra Foods, Grocery Division 20002002 - Contracting with ConAgra Foods, Refrigerated Division

Organizations
Project Management Institute Veterans of Foreign Wars

Education/Credentials
National Louis University, Wheaton, IL MBA, Finance National Louis University, Wheaton, IL BS, Management Defense Language Institute, Monterey, CA Russian Studies and Linguistic Certification York College, York, NE AA, Liberal Arts

Awards and Honors
Scored top 1% in CAPSIM simulation as part of the MBA program at NLU.

Past/Present Clients
My primary client timeline is listed below. In addition to this, I also maintain a relationship with the supply chain consulting firm Plan 4 Demand as an adjunct consultant. 2007-2011 - Butterball, LLC. 20022007 - ConAgra Foods, Grocery Division 20002002 - ConAgra Foods, Refrigerated Division

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