10 Steps to a More Profitable Supply Chain

September 17, 2009 — Does this story sound familiar? It's 7:00 p.m., your warehouse team has just finished their final picks for the evening, your fleet has been loaded based on standard routing calculations, and you're ready to pack up shop. Then that dreaded moment happens — a member of your sales team calls down to the warehouse: "Our best customer needs more 'x' by tomorrow or they'll go somewhere else."

It turns out, however, that the customer that made your people jump through hoops is, in reality, an underperformer from both a gross margin and gross profit perspective. In fact, unknown to the sales force or anyone else, this "best customer" has been in the bottom quartile of your customer portfolio for several years. Worse, that "critical" sale just cost you more money to process than it produced in profit.