Communications providers have long put the physical fulfillment solutions on the back-burner compared to their network service counterparts – and while network performance and consistency is critical – CSPs are neglecting the cost and operational savings enabled by streamlining their CPE and accessory sales. Too often CSPs are tying up millions of dollars in inventory to ensure no stock out situations instead of streamlining and understanding their inventory picture to better allocated that capital elsewhere.
Slow, inefficient, & costly supply chain responses to changing market dynamics
Too many resources allocated to costly error-prone manual supply chain processes & poor customer service levels
Knowing where to best place inventory; Over/under utilization of supply chain assets
Lack of visibility and certainty over supplier spend and performance; Limited business intelligence for decision making
However, its one thing to understand the need to change supply chain processes, its yet another to implement them successfully. Companies today still struggle with some significant challenges, and these challenges have substantial impacts financially. We already previously identified the fact that Retailers today see lead times as long as six to ten months, forcing vendors to make significant bets on inventory, consumer trends and distribution methods—bloating supply network with a stockpile of $1.2 trillion in excess merchandise. At the same time, retailers lose a staggering $93 billion in missed sales every year, simply because they don’t have the right products in stock to meet customer demand. Value of excess merchandise stockpiled in supply chains configured to account for those long lead times is over a trillion dollars.