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Operational Excellence:
the "entry ticket" for any serious
efforts to improve relationships between trading
partners. |
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Responsive Replenishment:
drives inventory out of pipeline; much faster
response to unexpected shifts in shopper buying
patterns. |
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Integrated Demand Driven
Supply : when it is possible, the key
to extremely rapid response, permitting production
schedules to be more closely aligned to actual
consumer demand. To implement one can't ignore
the suppliers since on average a third of
the consumer price are ingredient and packaging
costs and these suppliers frequently dictate
downstream service levels. |
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Often the primary source
for cost reductions - if profit improvement
or price reduction are critical business goals,
these concepts may provide the key. |
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Less direct impact on sales
and market share than the demand side concepts,
except to fulfill the need to get the right
product in the right place at the right time. |
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Often easier for companies
to work together to realize the benefits without
getting into any issues regarding trading
relationship. |
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