Case Study: National Restaurant Chain is served a menu of Distribution Accuracy & Cost Recovery

Background:

• Promotional campaign materials are shipped to approx. 400 locations every 1-2 months.
• Due to differences in configuration, demographics, location and ownership, each store receives a different combination & quantity of materials.
• Stores also order marketing, operations, training & HR materials on a regular basis, for which our client needs to recover production, freight & handling costs.

  Challenges:

• Promotional Campaigns
  • Kit elements were not clearly organized and labeled.
  • Many stores received incorrect items and quantities.
  • As a result, all elements were not in place by the campaign start date, and our client incurred additional costs to correct the mis-shipments.

• Daily Order Fulfillment
  • Charges were not being invoiced to the franchisees or reported to our client on a timely basis, if at all.
  • Therefore, costs of production, freight & handling were not being recovered.
  
  

  Solutions :

• Promotional Campaigns:
  • Instead of packing each kit as a custom order, we “version” the kits and pack like kits at the same time, minimizing variation from kit to kit on the production line.
  • Extensive “pre-work” is done to logically organize and label kit elements.
  • Pre-work assemblies and loose elements are pre-counted to control quantities.
  • A detailed Packing List is enclosed with each shipment.

• Daily Order Fulfillment:
  • All orders are entered via the web-based Pro-Mail Fulfillment Solution.
  • At time of shipment, Pro-Mail captures merchandise cost, handling charges and the actual freight charges billed to client’s FedEx account.
  • A customized “Franchisee Billing Statement” is mailed to each franchisee at month end.
  • Client manages Accounts Receivable and posts Cash Receipts via the Pro-Mail system.

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