1. MYTH #1: Aggregation or Disaggregation has no impact on variation. At a store, an item may sell between 10 to 100 pieces (10x Variation)For manufacturer, the difference might be 1,000 to 2,000 pieces (2x Variation). The more disaggregated the Read more…
It was 2009, and I was struggling .. I was head of Merchandise planning and replenishment for a 500+ store chain. My target was to get 99% availability with less than 2% stock which was more than 6 months old Read more…
Imagine a manufacturer producing a variety of products. These products are then sold through stores which are serviced by a few warehouses. Usually, the retailer will order an entire season’s supply of an item. The retailer will want the items Read more…
Stockouts can be defined as the unavailability of specific items or products at the point of purchase when the customer is ready to buy. Many retailers underestimate the cost of stockout by as much as 300%. Focusing on increasing availability of Read more…
By definition, good demand planning is customer focused. Therefore, it should be led by those who have the most contact with and the greatest understanding of the customer – that is, Sales and Marketing, and not the Supply Chain team. Demand Read more…
Are you building your company to be Lean or are you building it to be Agile? Cause building your company to be BOTH Lean and Agile, will only mean that you are NEITHER! Ask yourself the below 4 questions.If you Read more…
To get at the roots of profit-destroying complexity, companies need to identify their innovation fulcrum, the point at which the level of product innovation maximizes both revenues and profits. Complexity doesn’t appear on balance sheets or on quarterly reports, but Read more…
Supply chain management (SCM) has become a complex, technology-driven discipline that reaches across functions, business processes, and corporate boundaries. Nevertheless, some CEOs pay little attention to SCM as a strategic concern and thereby squander its potential to improve overall performance. Executed Read more…
Looking to make the perfect cricket team, would you stumble on a Sachin Tendulkar and then ignore him? People say ‘No’ to the above question, but then go ahead and do exactly that in their business! Let me prove this Read more…
The biggest cost for your company is: The imbalance between the demand for your products and your ability to supply them. Even in Supply Chain functions, many do not understand how their work can drive growth. Unfortunately, companies stuck in Read more…