As supply chains become increasingly more global in nature the ability to effectively manage a network of distribution centers is becoming a required core competency. Unfortunately, a surprisingly high number of companies that currently practice multi-site distribution are experiencing real challenges in this area impacting profitability. In a recent survey of 146 multi-site distributors, almost two thirds of companies report that their operations are moving in the wrong direction - costs have risen, and customer service levels have declined.

However, a small group of companies have mastered the art of managing a network of warehouses. These companies follow strategies which allow them to provide superior levels of customer service while at the same time containing costs. On average, Best-in- Class companies have:

• 99% or more on-time and complete orders
• Fewer than 1% of orders contain a line that is back ordered
• Lower inventory carrying costs over two years
• Reduced inventory write-offs for spoilage or obsolescence over two years

The firms enjoying Best-in-Class performance shared several common characteristics with respect to their multi-site order fulfillment capabilities. To achieve Best-in-Class performance, multi-site distributors must leverage the entire network to fill orders, and move away from dedicated use facilities, resulting in greater agility and improve levels of customer service; rather than "rip and replace" disparate WMS systems, use a Multi-Site Inventory Visibility platform to manage globally; and utilize warehouse and order management applications to enable Sales Order Splitting.