Multipick

Multipick

The principle of Multipick Replenishment is based on the responsibility given to suppliers to manage customer's inventories. Suppliers share the costs of transportation and optimize them by seeking full truck loading with a shuttle and other economies of scale.

The goal of the customers is to multiply the deliveries, as increasing deliveries decreases the inventory level and should improve supplier's service rate:

• Get rid of leftovers (too late for shipment) or compensation in a shorter time span (next delivery)
• Elimination of shortages and wait time for next delivery only in several days
• ...

For the suppliers, the challenge is to compensate the loss of optimization of transportation (incomplete truckloads, split batches, small lots, number of deliveries to manage...) by mutualization of transportation. Getting back control of transportation allows suppliers to agregate volumes, adapt size of trucks and negotiate tariffs.