CBA TO IMPLEMENT CROSS:BEAM PROJECT |
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Wednesday, 02 February 2005 07:00 PM America/New_York |
CBA unveiled three action steps Wednesday to tackle supply-chain inefficiencies, including working with suppliers and freight companies to reduce costs to retailers. Called the CROSS:BEAM Project (Christian Retailers on Shared Systems: Business Excellence Achieving Ministry), the plan was presented to nearly 220 attendees at CBA's Member Town Meeting breakfast. The trade association announced it would develop and expand the channel-wide electronic-data marketplace, start a consolidated central inventory buying program, and develop channelwide improvements of freight management and product distribution. Dean Edwards, CBA's director of business solutions, will lead the effort, which he said would be his focus for the next 60 days. He planned to meet with electronic data interchange (EDI) supplier Pubnet to discuss how the program "could become a strategic partner. To do so will require going beyond the movement of purchase orders and related transactions to data exchange transactions between retailers and suppliers." He also will meet with suppliers to push for the "absolute necessity" of providing best prices for EDI purchases. "The efficiencies of electronic purchasing and receiving significantly lose their luster without best pricing," he explained. Edwards said the consolidated buying approach is an effort to reduce independent retailers' product costs. He will be meeting with "a wide variety of suppliers" in the next 30 to 60 days on that issue. Edwards also plans to talk to "third-party logistics and freight management companies to develop an action plan to reduce the current shipping costs." "In this channel, too much freight is shipping at small-package rates," Edwards said. "And when that happens, the only ones who win are FedEx and UPS." After the presentation, William Stanek, owner of Living Water Christian Resource Center in Big Rapids, Mich., was enthused about the thought of implementing a plan to reduce time spent dealing with inventory at his 3,000-square-foot store. "It's not as much technical as freight in getting the product in and receiving it," he said. Currently, he said, an employee spends about two hours a day receiving and stocking shelves.
"For a small store, that's a lot of time," he said.
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