At the drug store where I worked part time as a teenager, few tasks were dreaded as much as re-stocking the shelves with merchandise shipped in logistics packing unit – or what we called re-packs. These large plastic bins generally contained a mix of merchandise – just a few pieces of each SKU – that might go on a rack near the registers or back by the pharmacy, somewhere in the shoe care section, or maybe with the pain relief products, just across from the band aids. And are cough drops candy?
As hard as you tried to find everything in the bin related to the aisle where you were working, emptying each re-pack typically took you back and forth across the store multiple times. There has to be a better way to do this, we’d all huff.
Well, according to a brochure from SAP, there is. With the help of optimal pack size services, retailers can not only ensure that merchandise is delivered to them on time, they can help to streamline the processes of getting goods from the receiving dock to the store shelves.
Start With the Data
By analyzing data points such as product master data, movement data, delivery frequency and shelf capacity, optimal pack size service experts can identify cost drivers that are influenced by pack size. Using that information, you can minimize logistical process costs by identifying the most cost effective pack size. You reduce the costs related to inefficient unloading, unpacking, and stocking processes. Plus you can use the data to better negotiate rates and terms with your suppliers.
Because consumer trends change and product demand can be seasonal, optimal pack size services are available on a subscription service. As a result, you continue to reduce costs and boost profitability by maintaining efficient forecasting and replenishment practices
Three Steps Forward, No Looking Back
SAP Services offers a comprehensive optimal pack size service, and subscription plan.
- Step One – Once product ranges are defined and necessary data and data sources are identified, process costs and ordering behavior are analyzed and an optimization scenario is created
- Step Two – The scenario is validated by extracting data for the selected products; simulating and validating the ordering process; calculating the optimal pack sizes and saving potential; and then discussing with customer team
- Step Three – In this realization phase, the analysts roll out validation to remaining product ranges, and continue to simulate and calculate optimal pack sizes and related saving.
Learn more how these services can give you the insight needed to streamline logistics processing and minimize handling costs.