Consolidation Centres
Retailers and manufacturers are faced with some key challenges:- Pressure to reduce cost
- Increased supply chain complexity, i.e. more store formats, SKUs and suppliers
- Increased competition
In order to face these challenges, retailers are taking more control over their own supply chain and try to reduce inventories. Moving inventory out of a supply chain results in:
- More frequent and smaller deliveries
- Increased reliance on manufacturer service level adherence
Large manufacturers can align themselves with retailers for their high volume, fast moving (A-type) products as they have sufficient scale to deliver in full truck loads. However, medium and small type manufacturers who deliver B & C-type products (medium and slow-moving items) lack the economies of scale to do this. This results in part load deliveries with high costs and increased congestion.
CEVA Logistics' Collaborative Consolidation Centres solution (C3) addresses these pain-points and facilitate collaboration between these parties:
