Supply Chain Connectivity Informs Profitable Decision-making

As consumer demand for variety, quality and safety increases, costs for food, transportation and regulatory compliance also continue to rise. The key to succeeding in this market environment is to not only control spend, but to apply spend in the most profitable way. A cost-cutting play is not enough. Competitive advantage lies in gaining savings, and then leveraging information and partnership across the supply chain to inform and invest in smart decisions that make the most of revenue-generating opportunities.

At the end of the foodservice supply chain, chain operators and retailers have potentially the most to gain from supply chain economics. Efficiencies gained throughout the chain are cumulative. When their manufacturing and distribution partners are more efficient, chain operators and retailers also share in the resulting cost-savings and potential to generate more revenue through product quality and flexibility. On the other hand, when supply chain partners are inefficient and communication with these partners is inaccurate and time-consuming, the chain operator's and retailers profitability suffers.

Savings shared among partners

ArrowStream recognizes the benefits of total supply chain strategy for chain operators and retailers. That's why our online software and freight optimization technology, along with our logistics network, is founded on the principle of converging supply chain information and optimal routes and orders to achieve economies of scale and to enable smarter spend decision-making. With our supply chain approach, the benefits of improved efficiency and profitability for the chain operator and retailer can only be achieved by simultaneously improving profitability for their distributor and manufacturing partners – a noteworthy difference from other providers that simply force costs upon distributors and manufacturers and exclude these partners from any savings.

ArrowStream Logistics optimizes routes and order volume of multiple chain operators, retailers, distributors and manufacturers to deliver lowest total cost to all participants in the network. ArrowStream OnDemand likewise applies the sharing concept through the sharing of information in one central repository that allows approved trading partners confidential and controlled access to necessary data.

This unlimited visibility benefits all supply chain partners through accurate ordering and pricing, improved communication and transaction efficiency and more easily managed QA and compliance.

For chain operators and retailers, more accurate and shared data results in more efficiency through an identified price variance, plus better-informed contract negotiations, and improved consumer satisfaction and revenue generation through more accurate ordering per store.