(800) FORTNA-1
(800) 367-8621
Driving Supply Chain Results
Clients / Industries
Industrial Distribution

In the Industrial Distribution Supply Chain, speed to market coupled with having the right inventory at the right price ensures long-term business success.

Successful supply chain improvement projects will work to optimize inventory planning and deployment and maximize product life cycle management.  The goals of achieving lower distribution costs and improved customer service must be balanced while taking into account:

  • Customers demanding more and more value (next day delivery guarantees)
  • Intense pressure to compete globally (yet maintain local presence due to highly fragmented industry)
  • Inventory planning and optimization due to SKU proliferation (many clients manage inventory in excess of 200,000 SKU's - some over 600,000 SKU's)
  • Unprecedented pricing competition and squeezed margins
  • Individual unit (each/broken case) and case picking with shipping to customers directly

Industry Highlights

  • Goal is to maximize assets with keen focus on process improvements and cost reductions
  • Revenues & volumes are down 12% to 40% (YOY)
  • Large # of SKU's (proliferation)
  • Mostly each and case pick
  • High Velocity / Volumes
  • Biggest Driver in 2009 - Inventory