DISTRIBUTION
   
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  • Electronic linkage between vendor & buyer (typically EDI)
 
  • Vendor Observes actual product Usage
 
  • Replinishment deliveries driven by customer coverage needs, model stock and production and transport economics
 
  • Not solely by customer orders
 
 
  + For Wal Mart:   + For VIG:  
 
 
  • inventories down from 7.6 to 1.3 weeks
  • service levels at retails: up from 92.9% to 98.7%
  • transport costs down & more stable deliveries
 
  • delivery surges eliminated
  • transport cost down 50%(loading optimization)
  • reduced inventories
  • SURPRISE:
 
  • acceptance of Wal-Mart's merchandising programs
 
  • shelf space for new products without slotting allowances
 
  • sales up 7.9% in a "flat" business
 
 
 
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