Rising Costs In Supply Chain
One morning, a Costco store in Los Angeles began
running a little low on size-one and size-two Huggies.
Crisis loomed.
So what did Costco managers do? Nothing. They
didn’t have to, thanks to a special arrangement with
Kimberly-Clark Corp., the company that makes the
diapers.
Under this deal, responsibility for replenishing
stock falls on the manufacturer, not Costco. In return,
the big retailer shares detailed information about
individual stores’ sales. So, long before babies in
Los Angeles would ever notice it, diaper dearth was
averted by a Kimberly-Clark data analyst working at
a computer hundreds of miles away in Neenah, Wis.
“When they were doing their own ordering, they
didn’t have as good a grasp” of inventory, says the
Kimberly-Clark data analyst, Michael Fafnis. Now,
a special computer link with Costco allows Mr. Fafnis
to make snap decisions about where to ship more
Huggies and other Kimberly-Clark products.
Just a few years ago, the......
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Approximate Pages: 10 (250 words per double-spaced page)
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