Global supply chains have become increasingly complex mazes where cost control often feels like peering through fog. Even technology giant NCR Corporation once struggled with these challenges. However, the company has now found a breakthrough solution, achieving comprehensive landed cost visibility that significantly reduced expenses and optimized inventory.
NCR's Supply Chain Challenges
As a global leader in technology solutions, NCR Corporation has consistently worked to optimize its worldwide supply chain operations. To reduce cost of goods sold (COGS) and inventory levels, the company launched a strategic initiative led by its Chief Procurement Officer. The first critical hurdle was obtaining accurate, comprehensive data to enable deep analysis, process optimization, exception reduction, and effective inventory management.
NCR's global supply chain operations presented several significant challenges:
- Data fragmentation: Supply chain data was scattered across multiple systems including ERP, transportation management (TMS), and warehouse management (WMS) platforms, making a unified view impossible.
- Limited visibility: The lack of real-time tracking for in-transit goods created inventory management difficulties and hampered responsiveness to market changes.
- Cost control obstacles: Accurately calculating and tracking landed costs—including transportation, tariffs, insurance, and related expenses—proved challenging, directly impacting profitability.
A Three-Phase Solution
NCR implemented a phased approach to build comprehensive landed cost analysis capabilities:
Phase 1: Data Integration and Standardization
The company selected a robust supply chain management platform that integrated with existing ERP, TMS, and WMS systems. Through data interfaces and transformation tools, fragmented information was consolidated into a single source. NCR established uniform data standards to ensure quality and consistency.
Phase 2: Enhanced In-Transit Visibility
Partnering with logistics providers, NCR deployed IoT technologies and GPS tracking to monitor shipments in real time. Integration with their management platform created visual tracking dashboards with alert functionality for potential delays or issues.
Phase 3: Landed Cost Analysis and Optimization
Using advanced analytical tools, NCR conducted detailed landed cost examinations. By identifying cost drivers and optimizing processes—including transportation routes, tariff strategies, and inventory holding—the company achieved substantial cost reductions.
Tangible Business Improvements
The landed cost visibility initiative delivered measurable results:
- Significant cost reductions through optimized logistics and inventory management
- Improved inventory turnover with reduced obsolescence risk
- Enhanced exception management for delays, damages, and losses
- Data-driven decision making for supplier selection, pricing, and inventory planning
This transformation demonstrates how comprehensive supply chain visibility can create competitive advantages in today's complex global marketplace.