Inventory Management Secrets
As long as sales are incentivised only for volume sold into the channel and marketing only for market share, companies will never become demand-driven.
To make the move on demand-driven initiatives, companies must focus on profitable sales through the channel.
We want to shorten our response time to market, achieving better availability with fewer surpluses.
The following execution processes are used to align our supply chain with actual demand:
1๏ธโฃ ๐๐ง๐ฏ๐๐ง๐ญ๐จ๐ซ๐ฒ ๐๐ ๐ ๐ซ๐๐ ๐๐ญ๐ข๐จ๐ง
Aggregating inventory higher up the supply chain allows the stock to get replenished to locations that sell faster, and prevent it from getting accumulated where it does not sell.
https://lnkd.in/ggJYxJnu
2๏ธโฃ ๐
๐ซ๐๐ช๐ฎ๐๐ง๐ญ ๐๐-๐ฌ๐ฎ๐ฉ๐ฉ๐ฅ๐ฒ
Frequent replenishment reduces a lot of the inventory safety downstream and allows us to respond faster to demand changes
https://lnkd.in/gyUPXYqh
3๏ธโฃ ๐๐ฒ๐ง๐๐ฆ๐ข๐ ๐๐ฎ๐๐๐๐ซ ๐๐๐ง๐๐ ๐๐ฆ๐๐ง๐ญ
Reality is dynamic. Inventory norms of every SKU throughout the supply chain are challenged every day, and based on demand and supply patterns, dynamically adjusted up or down to align our inventory with actual demand.
https://lnkd.in/g4dQv9Pu
4๏ธโฃ ๐๐ฆ๐๐ซ๐ญ ๐๐๐ฉ๐ฅ๐๐ง๐ข๐ฌ๐ก๐ฆ๐๐ง๐ญ
In case the warehouse has limited stock instead of sending the stock to the โbest-performing storeโ we need to have an algorithm that recommends the best store which will be able to sell the option at the fastest rate. The algorithm gives stock without starving stores as much as possible.
https://lnkd.in/gKxhebjz