Collaboration that Works

Automated Unilateral Collaboration

Using retailer data to improve forecast accuracy and on-shelf availability provides a unique opportunity for collaboration that finally works. Why do most collaboration programs fail? Collaboration initiatives have good intentions but tend to be complex to scale and operate, and require extensive time commitments from manufacturers and retailers. Multi-Enterprise Demand Sensing (MDS) is designed to avoid these issues.

Like all forms of collaboration, both parties have something to contribute when it comes to operationalizing downstream data, but the barrier to entry is low and the benefits are large. Retailers provide access to their data and in turn manufacturers implement MDS. The result is automated collaboration to provide a new level of supply chain efficiency, improving service levels while and cutting inventory levels for both parties. MDS is easy to scale and operate, places essentially no ongoing demands on either party, is completely in the control of manufacturers for execution and provides tangible benefits to retailers and manufacturers alike.

Unilever

“The consequence of basing on what you want to sell is waste and stocks you don’t need. By working closely with customers, we can have an end-to-end perspective. [By using POS data] we reduce loss, take waste out, lower distribution costs and create value for both of us.”

Pier Luigi Sigismondi
Chief Supply Chain Officer
Unilever

Source: Computerworld UK, reporting on Sigismondi’s keynote presentation at the Gartner Supply Chain Executive Conference 2011 in London (September 15, 2011)