Cost saving moves are always a priority and the managers who repeatedly initiate successful cost cutting ideas are highly valued by their companies. While at times it can seem like you have played all your cards in terms of available savings, there are always more opportunities around the corner. One way to rekindle your cost reduction quest is to minimize supply chain touchpoints. Every time pallets or cartons are handled, there is a cost. Here are some examples of avoidable handling:
- When pallets of product shift during transportation and need to be re-stacked.
- When excessive unstacking for inspection is required due to quality assurance concerns.
- When products need to be repositioned during order selection to achieve load stability due to stacking compatibility issues of various corrugated containers.
- When retail stores receive excess safety stock which must be kept in the back room.
- When clerks must empty corrugated containers and stock displays rather than just placing trays into position as is practiced in a one-touch merchandising approach.
There may be several factors that are involved in eliminating touchpoints. More frequent delivery and better inventory management can help stores eliminate the need for excessive handling of extra stock in the back room, allowing them to place incoming deliveries immediately to the sales floor. RPCs can also play a critical role in reducing touch points. Due to their design for sturdy stacking, they are unlikely to shift while in transit, while providing greater ease of stacking during order picking. Additionally, they are designed for one-touch merchandising, allowing retail outlets to cut their stocking labor by up to 50 percent.
Supply chain savings can come in all sizes and shapes. By taking a broad view of cost reduction, it is possible to determine which projects make the best sense and to take steps towards building a culture where the elimination of waste and innovative thinking are second nature. Download “10 Ways to Create Supply Chain Cost Savings” for more ideas to eliminate costs.