REDUCING CYCLE TIME
Retailers want to lower inventory, increase turns, and improve the in-stock condition at their stores.
They benefit from smaller, just-in-time shipments that accelerate the flow of merchandise from suppliers,
through a distribution network, into stores.
But smaller, more frequent orders and shipments (LTL) increase cycle time. They cost more to ship and take longer
to fill and deliver than full truckload. An LTL network has multiple handlings, adds transit time, and increases the
risk of damage and loss. Transit time is not guaranteed and arrival time uncertain, therefore delivery appointments
cannot be pre-scheduled. If the destination DC is busy, your shipment can be delayed additional days.
The NCS PRIORITY ONE SERVICE takes the variability out of the supply chain. NCS consolidates smaller
shipments from multiple suppliers into truckloads at a single consolidation point and moves them on pre-appointed
schedules direct to the retailer DCs where standing appointments expedite product receipt!
This process works because:
- Transit and Scheduling is tightly-controlled, significantly reducing the time to deliver versus the traditional LTL schedules
- Inventory accounting at each stage is precise and precise shipping documentation is communicated to all stakeholders
- Standard and stringent process execution provides absolutely consistent results
Dependability is THE critical success factor to making a just-in-time strategy work. Your customer must be able to
depend on orders/shipments arriving in time to fulfill store demand -- transit must be dependable and arrival at the
Priority One Service delivers VELOCITY, DEPENDABILITY, and VISIBILITY
Shipments move on a specific schedule; they arrive at NCS directly and quickly
- NCS is open-to-receive 24/7; Carriers are not delayed
- Any product that comes into NCS today moves out today
- NCS has daily pre-scheduled delivery appointments for all DCs
Faster, more consistent performance reduces safety-stock inventory and increases inventory turns
- Faster cycle-time, increased shipping consistency and reduced lead time variability results in
significantly-improved in-stock positions
- Predictability in demand cycle facilitates better forecasting for promotions and other volume spikes
- Product is on-the-shelf and on-time; improves in-store sales and increases supplier sales
- Transit time is predictable and guaranteed
- In-network accounting for inventory in-transit is precise
- DC Receiving is expedited
- Risk of service failures, loss, and damages is minimized (less in-network handling/re-loading)
- Complete record of every shipment with PO# references, assigned carrier, delivering trailer# is maintained
- This information is available to all Stakeholders -- Supplier and Retailer
- This information is available to all Roles: Buyer, Customer Service, and Operations - shipping and receiving
Priority One Service benefits your customers by delivering to standards which free capital dollars through reduced
inventory safety-stock levels and increased inventory turns.
Most important, you can lower your cost-to-serve your customers and accelerate your order-to-cash cycle time!