Improving supply chain performance through vendor collaboration
The challenge:
Rising costs from vendor non-compliance and shipment errors impacted Burlington’s distribution centers.
The solution:
SPS Supply Chain Performance Management
The result:
Burlington reduced costs, eliminated 63% of problem shipments and boosted distribution center productivity.
The challenge
Burlington Stores, Inc., a leading off-price apparel and home product retailer, faced rising costs from non-compliant shipments to its distribution centers as the company expanded nationwide.
Issues with vendor shipments included improper merchandise packing, misprinted packing slips, incorrect style, color and size substitutions, damaged goods and late shipments. These trouble shipments had to be removed from the normal processing flow. Additional staff, space and resources were required to resolve the problems, which prevented the company from achieving its strategic plan of reducing costs while improving service levels.
The solution
Burlington implemented SPS Supply Chain Performance Management to improve vendor collaboration and accountability.
Performance Management aggregated data from Burlington’s disparate systems to generate a unified view of the entire supply chain. Leveraging these capabilities, Burlington quickly identified and resolved vendor routing, shipping and packaging violations. The company also gained the ability to monitor and manage shipment problems, improving the flow of merchandise to stores.
With enhanced visibility, Burlington was able to communicate with vendors as soon as shipments were identified as out of compliance. As vendors began meeting basic requirements such as carton markings and consistent packs, Burlington achieved compliance with more business-specific requirements.
The results
With SPS, Burlington dramatically reduced problem shipments, increased fill rates and achieved ongoing improvements in supply chain performance.
With SPS Supply Chain Performance Management, Burlington achieved:
Increased distribution center capacity
- Reduced distribution cost per unit by 8%
- Boosted distribution center productivity by 14%
- Cut distribution center cycle time by more than 40%
- Eliminated 63% of problem shipments
By partnering with SPS, Burlington reduced costs, improved vendor collaboration and strengthened supply chain performance.
The SPS solution was directly responsible for reducing costs and for a marked reduction in trouble tickets. It improved distribution center productivity, flow and service levels, and it significantly reduced our returns to vendors, leading to more productive use of floor space.
–Al Soltanian, Project Manager