While some companies struggle with escalating costs and inefficient operations, others maintain precise control over every supply chain link, thriving in competitive markets. The critical differentiator often lies in achieving comprehensive landed cost visibility. NCR Corporation, a global technology leader, provides a compelling case study in transformation through its Chief Procurement Officer's initiative to build robust cost analysis capabilities, successfully reducing cost of goods sold and inventory levels.
NCR's Global Supply Chain Challenge
As a multinational technology giant serving retail, financial, and hospitality sectors, NCR operates an exceptionally complex supply network. Managing suppliers, manufacturers, distributors, and customers across continents presents significant challenges including inflated transportation costs, extended lead times, and inventory management difficulties.
The company recognized that traditional management approaches couldn't address these systemic issues. Strategic optimization required advanced systems providing accurate data for deep analysis, process improvement, exception reduction, and intelligent inventory positioning. This realization sparked an ambitious transformation program focused on achieving end-to-end landed cost visibility.
Key Drivers for NCR's Visibility Initiative
Multiple strategic factors propelled NCR's decision to implement its in-transit visibility project:
- Cost reduction imperative: Intensifying market competition demanded aggressive cost containment, particularly in goods sold and inventory carrying costs.
- Operational efficiency goals: The need to streamline supply chain velocity, minimize stockpiles, and shorten delivery cycles required real-time shipment monitoring.
- Customer service enhancement: Accurate delivery forecasting and proactive delay notifications became essential for service excellence.
- Regulatory compliance: Increasingly complex global trade regulations necessitated complete traceability of product origins, destinations, and transportation paths.
NCR's Three-Phase Implementation Strategy
The company executed its visibility transformation through a structured phased approach:
Phase 1: Data Aggregation & Integration
NCR established a unified data platform consolidating information from suppliers, carriers, customs agencies, and internal systems, enabling real-time analytics.
Phase 2: System Deployment & Integration
The new visibility platform integrated seamlessly with existing ERP, Transportation Management (TMS), and Warehouse Management (WMS) systems to ensure uninterrupted data flow.
Phase 3: Continuous Optimization
Post-implementation, NCR maintained rigorous performance monitoring, issue identification, and iterative system improvements.
Tangible Business Outcomes
The visibility initiative delivered measurable benefits across NCR's operations:
- Reduced cost of goods sold through optimized routing, lower duties, and decreased excess inventory
- Improved inventory turns through enhanced demand forecasting and stock positioning
- Increased operational efficiency via process automation and reduced manual interventions
- Enhanced customer satisfaction through accurate ETAs and proactive exception management
- Strengthened regulatory compliance with complete shipment traceability
NCR's transformation demonstrates that comprehensive landed cost visibility serves as the foundation for supply chain excellence. By developing robust cost analysis capabilities, organizations can achieve sustainable cost advantages, operational agility, and superior customer experiences. In today's hypercompetitive environment, NCR's blueprint offers valuable insights for enterprises seeking supply chain leadership.