Harris Teeter, Kellogg, and Rite Aid Recognized for Reverse Logistics

Harris Teeter, Kellogg, and Rite Aid, received two of the three Reverse Logistics Collaboration Awards presented at the 2011 Joint Industry Unsaleables Management Conference held last month in Las Vegas.

The awards recognize successful collaborative initiatives among trading partners that enhanced the state of knowledge surrounding model unsaleables practices and attacking root causes.

“We congratulate all our clients for this formal recognition of their innovative, collaborative approach to supply chain management,” said Jeff Pepperworth, president of Winston-Salem, N.C.-basedd Inmar Reverse Logistics.

The individual awards were made after the review of two case studies. One, “A Collaborative Roadmap,” highlighted a long-term collaboration between Kellogg and Harris Teeter while the other, “Addressing Expiry to Drive Down Unsaleables,” presented a recent joint project involving Rite Aid and a supplier partner. The two submissions detailed how both sets of trading partners -- working closely with Inmar -- leveraged data and operational insights provided by Inmar to continue improving internal processes and, in doing so, recognized a significant and sustainable decrease in unsaleables.

In the case of Kellogg and Harris Teeter, the two companies focused -- though not exclusively -- on mitigating damage and out-of-date as a means of driving down unsaleables. By employing a measurement tool developed by Inmar, the two trading partners were able to more readily (and less intrusively) assess case/package damage at several points along the supply chain and instigate appropriate preventative measures. At the same time, collaborative efforts addressing expired product were established based on an Inmar/Kellogg audit program that collected data on “days prior to expiration” and “days beyond expiration” for selected products. The immediately-attributable reduction in product damage and expired product contributed directly to reduced unsaleables.

For Rite Aid, the unsaleables issue centered on disproportionate expiry rates within certain product categories. Following an extensive audit and analysis by Inmar, Rite Aid and its trading partner instituted a variety of inventory management, replenishment and marketing strategies that resulted in a dramatic reduction in unsaleables that exceeded corporate expectations.

Inmar connects trading partners through consulting, software services, and operations using solutions developed to make the connections that improve quality, efficiency and collaboration in supply chain, consumer marketing, business intelligence, financial settlement and risk management.

Matthews, N.C.-based Harris Teeter, Inc. operates 203 retail stores as well as grocery, frozen food, and perishable distribution centers in Greensboro and Indian Trail, NC, and the Hunter Farms milk and ice cream facility in High Point, NC.