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Unloading Predictability. Agenda Objectives Approach Landscape Challenges Open Discussion.

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Presentation on theme: "Unloading Predictability. Agenda Objectives Approach Landscape Challenges Open Discussion."— Presentation transcript:

1 Unloading Predictability

2 Agenda Objectives Approach Landscape Challenges Open Discussion

3 Objectives Document recommended unloading practices and evolve a whitepaper that can be used as a tool to approach a more efficient unloading process in a fair and equitable manner, inclusive of fair cost sharing recommendation

4 Approach Survey of retailers, wholesalers and manufacturers exploring current processes and initiatives Interviews with retailers, wholesalers, manufacturers and service providers

5 Landscape

6 History Current State Future Challenges Key Initiatives & Challenges

7 Landscape History Delivered terms include “sort & segregate” Deregulation in 80’s eliminated ICC maintained “store door delivery charges” Increased incentive for driver to “outsource unload” Spawned unloading service concept and need to manage unloading costs

8 Landscape Current State CPU is increasing but Pre-Paid still predominant Pre-paid load cost includes COGS, Transportation and unload allowance “Rebates” absorbing retailer support costs add complexity Retailer retained unload service creates independent cost calculation and reconciliation process

9 Landscape Future Challenges Increasing load complexity as retailers – Expand channels – “Localize” assortments – Introduce tailored product flows Impact of increasing “efficiency” programs bundling incentives & blurring visibility Evolution of “collaborative profitability management” supported by CTS solutions

10 Landscape Retailer Intiatives Demand forecasting Collaborative planning Enhanced flows Retailer Challenges Increasing SKU count Increasing breakdown On-time delivery Supplier Intiatives S & OP Store based demand planning Inventory optimization Supplier Challenges Unloading cost variability Timely unloading Increasing load complexity

11 Challenges

12 Unloading Cost Calculation Unloading labor – Precisely calculable – Impacted by “exceptions” Environmental Business driven Overhead absorption – Tougher to calculate – Highly variable

13 Challenges Issues impacting unload productivity Program driven procurement decisions Appointment scheduling Drop-trailer programs Flow requirements DC configuration

14 Open Discussion

15 Discussion Topics Can we agree on industry wide processes for identifying and then calculating labor expense associated with unloading different load types? Can we Agree on a way to reflect “exceptions” and decide whether exceptions are a valid expense to be shared between trading partners? Can we agree on what fixed cost elements are fair to be included as part of a “rebate” component of the unloading allowance?

16 Discussion Topics How is unloading cost & effectiveness impacted by broader efficiency programs and are there suggestions for enhancing programs to drive mutual benefit? What process, system, organization and/or infrastructure enhancements would drive increased unloading efficiency?


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