Inventory Management Secrets

Published by riteshkapur on

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๏ธโƒฃ ๐ˆ๐ง๐ฏ๐ž๐ง๐ญ๐จ๐ซ๐ฒ ๐€๐ ๐ ๐ซ๐ž๐ ๐š๐ญ๐ข๐จ๐ง
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๏ธโƒฃ ๐…๐ซ๐ž๐ช๐ฎ๐ž๐ง๐ญ ๐‘๐ž-๐ฌ๐ฎ๐ฉ๐ฉ๐ฅ๐ฒ 
Frequent replenishment reduces a lot of the inventory safety downstream and allows us to respond faster to demand changes
https://lnkd.in/gyUPXYqh

3๏ธโƒฃ ๐ƒ๐ฒ๐ง๐š๐ฆ๐ข๐œ ๐๐ฎ๐Ÿ๐Ÿ๐ž๐ซ ๐Œ๐š๐ง๐š๐ ๐ž๐ฆ๐ž๐ง๐ญ 
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๏ธโƒฃ ๐’๐ฆ๐š๐ซ๐ญ ๐‘๐ž๐ฉ๐ฅ๐ž๐ง๐ข๐ฌ๐ก๐ฆ๐ž๐ง๐ญ
In case the warehouse has limited stock instead of sending the stock to the โ€˜best-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

#supplychain#demandplanning