Advisory Services Insight
Identifying savings in your supply chain
A constant challenge for suppliers and brand owners who trade with major retailers is the increased cost of doing business. Demands for automation and rapid response rates continue, as do the costs of implementing systems and technology to meet those demands.
Retailers often require suppliers to use specific systems to trade, for example electronic data synchronisation (EDI) and National Product Catalogue (NPC). To meet these requirements, suppliers must invest in supporting technologies and systems, adding extra cost to their business.
Have you ever stopped to think how required changes can also benefit your company?
Using the Savings Calculator by GS1 Australia, a free online business analytics tool, suppliers can easily identify potential savings in their supply chain as a result of an implementation. These include increased sales, greater stock accuracy and reduced out of stocks.
Some of the proven benefits achieved by suppliers*
35% reduction in transaction costs
61% improvement in business cycles
40% reduction in transaction errors
20% reduction in order-to-cash cycle time
Often it is not clear where benefits can come from. The Savings Calculator breaks down potential benefits into specific areas, making it easier to interpret the results. Results are delivered instantly in an easy-to-read report that can be used to support a business case.
“Becoming EDI and NPC compliant forces you to clean up your processes and clean up your data. Once you do that, there are countless business efficiencies to be gained.” Lawrence Diamond, e-Commerce Manager at Energizer Australia.
To achieve enhanced product availability, reduced out of stocks and lower distribution costs, access the GS1 Savings Calculator or tap into the talent of supply chain experts who deal with the management of identifying cost savings on a daily basis at GS1 Australia Advisory Services.
*EDI Basics – Benefits of EDI, OpenText Corp, 2019.