Blog > Applying the 1-10-100 Rule to Food Distribution Technology
Facing increased product complexity and heightened customer demands, companies are turning attention toward advanced food distribution technologies to transform and optimize their supply. Forward-thinking companies are collecting data at every checkpoint, from the status of raw materials flow to the condition of finished goods. Companies that haven’t yet implemented food distribution technology to streamline their operation with complete visibility from the sale to the final mile need to consider the 1-10-100 rule to ensure optimal efficiency, cost savings, and risk reduction.
The 1-10-100 Rule
The 1-10-100 rule explains how failure to take notice of one cost escalates the loss in terms of dollars. The 1-10-100 rule concept when applied to controlling the costs associated with software development and deployment, states; that it costs one unit of labor resource dollars to correct an issue at development (prevention); it costs 10 units to fix an issue when found at (QC) quality control (correction), and it costs 100 units to fix an issue after the system or product has been implemented with a customer (failure).
Using the 1-10-100 Rule to Reduce Costs
Ignition by TELUS is cognizant of the 1-10-100 rule and applies it in the development of our purpose-built food distribution software, which for our clients, ultimately saves them millions of dollars. We look to see if there are significant inefficiencies that could be addressed with technology to reduce costs and improve an organization’s visibility into its data.
Technology plays such an important role for consumer goods companies, helping to automate processes as much as possible. To be effective, it’s important that an organization focuses on the practical use of data based on its importance to the business. Effectively employing technology can have a significant impact on an organization’s ability to gain critical visibility into its data, drastically improving the efficiency of decision-making related to how data is stored, managed, and used.
The Advantage of Purpose-Built Food Distribution Technology
The 1-10-100 rule must be considered when implementing business software, especially software that is either customized or configured for your business. Ignition by TELUS solutions are purpose-built for consumer goods companies to save distributors and manufacturers money and increase the ROI of their businesses. Especially with software that is purposed for that last mile, it is crucial that you have a partner that clearly understands this pivotal point of business and can drive efficiencies through the planning and execution processes.
“Technology is the bright shiny object, but at the end of the day, it must either solve a business problem or put the company in a possible to seize on new opportunity […]. It all goes back to the goal of resiliency and pursuing new business models.” – Simon Ellis, program vice president with IDC Manufacturing Insights
Ignition by TELUS has been developing purpose-built food distribution software for over 35 years and has a local and global footprint that has saved companies billions of trade dollars.
When looking at planning and execution software that will aid your business throughout the supply chain, Ignition by TELUS is the solution with leading food distribution software that boasts extensive capabilities for traceability, food safety, complex deal management, efficiency and automation, production management, omnichannel order management, and perfect order success.
The complete Ignition by TELUS platform includes various modules such as ERP, Warehouse Management, Order Management, Direct Store Delivery, and Business Analytics and Intelligence. These modules all work together to drive business results and deliver a quick return on investment but are also available as individual point solutions designed to optimize performance. Learn more about the complete food distribution software package and each module.