A final cost benefit relates to inventory within the supply chain. Although there is currently limited benefit for the case study retailer, evidence from literature indicates that FGP dose lead to a reduction in inventory for the company introducing FGP. Partially, this results from the increased reliability of deliveries from the supplier. However, there is also the opportunity to synchronize the movement of products through the supply chain so that deliveries occur just prior to their use.
In addition to economies, there are also service benefits. For instance, the retailer has enjoyed higher delivery service levels, with more arrivals at the DC being on time. The increased visibility of the supply chain enables the retailer to identify problems and make changes to improve the reliability of deliveries. The power of the retailer is also an important factor. If the cause of a problem appears to relate to a supplier or haulier, the retailer may decide to source from elsewhere. This could represent a significant loss of business for these companies. The previous lack of visibility meant the suppliers and hauliers could hide behind other reasons for failure to arrive