Creating Value

Integrative
Mental Model

Orientation Win-Win
Principal &
Strategy
Interest Based

Goal Expand the Pie

Simultaneous
discussion of
Approach issues

Offers Multipels offers

Build long-term
Outlook relationship
 Action

set DSL target for business entities, such as transporters, depots/distributors, and factory itself.

standardize cancellation reason as one of the deduction factor for DSL

one of the most impactful action for achieving DSL is on-time & in-full deliveries. Also, this will
help factory to reduce unecessary cost such as shutting down and not-productive overtime. So,
Danone decide to give incentives for those distributors/Depots whose DSL ≥ 95%.

We have S&OP meeting every months, and Supply Chain Leaders meeting to evaluate and
plan next months target & action, together with Distributors & Depots.
As incentives to distributors, we also offers incentives and continuous contract & more
shipments for those transporters whos On-Time ≥ 50% and DSL ≥ 95%
For existing distributors & transporters, we have evaluation meeting and give feedback each
other. Also for new distributors, help & assist within the first 6 month, and encourage them to
deliver higher volumes, in order to sustain long-term relationships.