Client currently uses distributors to replenish PUPs for e-com sales. The inventory is owned by the client and invoiced after customer sale. Inventory holding and distribution costs are borne by the client to distributors and PUPs. There is a need to ensure high availability at PUPs by avoiding Out of Stocks at PUPs. Also, there is a need to reduce the cost of servicing the PUPs by evaluating 3PL vs Distributors. The main objective is to identify the right service model to help improve customer service level by increasing product availability while optimizing cost to serve. Also, develop a repeatable framework (combination of process, framework and tool) to select the best service model.
To address this, the team at Tredence developed analytically robust data models with the following specifications:
Data backed repeatable decision framework for evaluating different service models across entire Europe
Tool to evaluate different scenarios and costs to identify the right service model
