MOVINGFaB COLLABORATIVE

THE CHALLENGE EMERGES

In 2017, FaB began convening a forum of industry professionals to discuss the growing concern of the logistical challenges they were facing and sharing. Our Supply Chain Forum continues to explore how an end-to-end industry supply chain collaboration could drive out inefficiencies, waste, and costs and fines; meet grocery retailers’ On Time In Full Programs (OTIF) expectations; and meet their consumer demands more consistently.

Increasingly, grocery retailers are implementing OTIF (On Time In Full) programs to improve their customer experience. OTIF programs come with fines/penalties when delivery requirements are not met by food and beverage manufacturers and suppliers who provide the products that fill their shelves, coolers and freezers.

Meeting OTIF requirements translates into an improved consumer experience and drives positive sales revenue/margins, and volume growth for grocery retailers and food and beverage manufacturers. 

Not meeting OTIF requirements translates reduced consumer experience and into penalty fees for food and beverage manufacturers, and lost sales revenue and margins for the manufacturers and retailers.

Truck carriers want to pick up and deliver on time without additional delays in loading at the food and beverage manufacturer or unloading delays at the grocery retailer. Free time is currently two hours, but the truck transportation industry is moving to one hour given ELD mandate, HOS, and transportation cost. While the carrier charges detention cost, it doesn’t cover all of their expenses. Generally, the food and beverage manufacturers don’t charge detention cost to the grocery retailers and they just absorb these costs which erodes their revenue/margins and adversely impacts their bottom line.

Charging penalties/fines between all parties involved is not fixing the problem or addressing the various root causes across the end-to-end supply chain. This model is not sustainable for the food and beverage industry or the entire supply chain long term.


A SOLUTION EMERGES

Those in discussion realize that these industry challenges can be solved but would require and industry collaboration across the entire supply chain. This collaboration would drive transformational change capable of yielding positive results for all stakeholders involved, including manufacturers, truck carriers, 3PL warehouses, grocery retailers, and academia. There is agreement to facilitate the formation and piloting of the MovingFaB collaborative.

 

PILOT PARTNERS

An industry stakeholder collaborative for a stronger logistical ecosystem consisting of:

Manufacturers Truck Carriers 3PL Warehouses Grocery Retailers Academia


 

GET INVOLVED

Join the Supply Chain Forum for MovingFaB updates and opportunities to engage. The efforts of this member forum are attracting industry leaders, food and beverage company supply chain and logistics professionals, and logistics and distribution professionals and academics.

 

THANKS TO OUR PREMIUM MEMBERS