Dynamic Distribution Networks Drive Better Customer Service

Aberdeen: Best performers report significantly shorter order-to-delivery cycle times and order fill rates.

No longer confined within the walls of a distribution center, Dynamic Distribution Networks are changing the way supply chain throughput is conducted. And early adopters have already experienced significant business opportunities as a result.

Best in Class (BIC) performers that adhere to a dynamic distribution philosophy reported the highest proficiency in reduction of cycle time and inventory within supply chains, along with providing high levels of customer service. The Best in Class are expert in combining the skills of internal resources, service providers and suppliers to create a responsive, and cost effective, network.

1. Top performing companies have cash-to-cycle times that are 25% shorter than their peers and

2. On-time delivery performance and order fill rates far exceed others responding to the survey. Less company assets are committed to the fulfillment process. The impact is significant on both the top and bottom line.

Departmental rivalries, misaligned goals and performance metrics, and poor partner management policies all contribute to a company’s inability to create more fluid and flexible fulfillment operations. Top performers have enough confidence in themselves and partner organizations to rewrite the book on how fulfillment in a global supply chain is done.

• The Supply Chain Integration Benchmark Report: Warehouse Without Walls Publ 20060413