In our financial statements, inventory appears on the asset column. However, too much inventory actually blocks flow and sales. So how much inventory is really required? The lowest amount of inventory that can bring in satisfied customers.The way to know if your definition of ‘the lowest amount’ is to compare Read more…
The definition may help you choose the right questions next time you ask a prospective candidate. Or it may help you understand which attribute you can make even stronger. Good inventory manager means being a good planner, coordinator and controller. All rolled into 1!
The idea that a company that practices pull supply chain methodologies will suddenly enjoy massive inventory savings and replenishment nirvana can be as flawed as the belief that the company that practises push supply chain methodologies will maximise sales and freshness in stores. If you only use supply-side/ push methodology, your Read more…
Demand uncertainty and supply rigidity often create inventory shortages. The immediate consequence of inventory shortages might be significant lost sales and revenue ; however, the impact of stockouts cannot be fully evaluated without understanding how inventory shortages influence long-term customer behaviour. In practice, the most common tactic for preventing stock outs Read more…
One of the keys to achieving agile response to fast-changing markets lies upstream of the organisation in the quality of supplier relationships.Many companies have not recognised that competitive advantage that can be derived from closer relationships with key suppliers. Instead there is often an arms- length, even adversarial approach to Read more…
There are actually 2 decoupling points in any supply chain 1. ‘Material’ decoupling point: Strategic inventory is held in as generic a form as possible. This point ideally should lie as far downstream in the supply chain and as close to the final market place as possible. 2. ‘Information’ decoupling Read more…
“Lean thinking” embraces the elimination of waste in its various forms. Activities that consume resources but generate no redeeming value in the eyes of customers are wastes that must be eliminated in the “lean” paradigm. Agility, on the other hand, emphasizes flexible, timely action in response to rapidly changing demand environments. Though Read more…
1. Market Sensitive. By market sensitive we mean that the supply chain is capable of reading and responding to real demand. Most organisations are forecast-driven rather than demand-driven. 2. Mastered Virtual supply chain. The use of information technology to share data between buyers and suppliers is, in effect, creating an information Read more…
One of the hot topics we have been coming across nowadays is the resilience of supply chains- specifically Pharma and Automobiles supply chains. Intertwined in these discussions are 2 words which are (incorrectly) being used almost interchangeably – Lean and Agile. If you have a hammer, everything looks like a Read more…
Who should read thisIf you have wondered why supply chain partners don’t seem to want to do what is in everyone’s best interest, even when it’s obvious what’s best for the supply chain. Symptoms faced if you have Misaligned IncentivesExcess inventory,Stock outs,Incorrect forecasts,Inadequate sales effort andPoor customer service Wrong Assumptions Read more…