Noatum Logistics analyzed the retailer’s:
- Inventory holding costs
- Asset utilization (distribution center capacity)
- Order fulfillment cycle
- Transportation optimization.
From this analysis, Noatum Logistics recommended the customer begin using direct-to-store purchase orders (POs). Direct-to-store POs would allow the customer to fulfill orders from regional warehouses, which would improve its distribution processes. The Noatum Logistics flow through network, coupled with the extensive transportation networks of the Noatum Logistics Worldwide companies, is well equipped to support this strategy. In addition, Noatum Logistics could allocate all origin, transportation and destination services into a single cost on a per-item basis.